The Bitcoin cryptocurrency continues to gain space and credibility among investors, however, the digital economy gains more and more strength, spearheaded by the BTC and being pulled by the other cryptocurrencies. And we already know that this new era of payments and investments is already revolutionizing the financial market.
The digital currency, on the other hand, has already conquered important names like Elon Musk, Paul Tudor Jones, Stanley Druckenmiller and Scott Minerd.
As it is a very volatile asset, this oscillation ends up generating distrust about the ability to be a good store of value, it is worth mentioning that one of the main features of this concept is simply to preserve value over time.
It is normal for this volatility to happen both in the market for these crypto assets, as Bitcoin is traded 24 hours a day, 7 days a week, on hundreds of exchanges around the world with different levels of controls and regulation, as it is a very fragmented market technically speaking this process is free of interventions.
Since there is no central bank for Bitcoin that can intervene and reduce currency volatility, then Bitcoin prices vary significantly as a function of its supply and demand. Certainly, there will be times when there will be more negotiations and at other times not, so this large price variation becomes normal.
The huge difference in opinions generates uncertainties that influence investors and make it difficult for prices to converge to an equilibrium value. As investors' understanding grows and matures, it enables the development of regulated markets.
Bitcoin is still not the best solution for payments, but the Bitcoin network has unique properties that make it a means of payment for high values and international transactions, and regardless of the high value, it works anywhere and anytime of the day , does not require an intermediary and cannot be reversed.
Nothing comes for free, it is normal for the bitcoin network to consume energy to do its activities, which are two:
Infrastructure, to allow anyone to participate in the network on equal terms.
Security, to create guarantees for the settlement of transactions, preventing them from being reversed or defrauded.
Many say that criminals would adapt better to new technology to do their illicit activities, but monitoring tools and rules to prevent money laundering already exist.
Bitcoin does have value, even though many say no, for you to have an idea this network has existed for more than 10 years without ever having been defrauded. Its value lies in the extremely strong network effects, and the ease of creating new cryptography does not affect its scarcity.