December 16, 2016
Bitcoin payments could be much closer to going mainstream than many people think. The reason is not only that the list of merchants accepting bitcoin is growing by the minute. It is also because Bitcoin is maintaining a lower rate of volatility.
In the past year, Bitcoin’s volatility rate has decreased substantially, from 4.9% at the beginning of the year to 1.4% this month. It also hit a milestone, overtaking many reserve or national currencies in market cap. One of these was the British pound sterling, which is still considered a major reserve currency. Add to that Bitcoin’s strong performance in price and trading value.
Bobby Lee, the CEO of a major Chinese bitcoin exchange, said that the decrease in Bitcoin’s volatility is a sign of its maturity. With it, he sees Bitcoin’s emergence as a store of value. This is actually pretty earth-shattering: We are witnessing the evolution of the first store of value in digital form.
Volatility – two sides of the Bitcoin
There are those who insist that Bitcoin volatility is a good thing. As a volatile investment vehicle, it has the potential to grow exponentially in value. But a number of experts maintain that Bitcoin will be more fruitful in the hands of mainstream users who see it as a “real” global currency and don’t think twice about making Bitcoin payments.
This perception hinges on minimal volatility. Andreas Antonopoulos, a titan in the Bitcoin industry, has said that volatility is a bad thing “even if it’s going upwards.” Most experts agree.
Bitcoin for all
The idea is for Bitcoin to shed its identity as an alternative asset. It is rapidly advancing, technologically and economically, and earning the status of a global store of value. The closer it gets, the more its user base of merchants and consumers expands – to the benefit of all users.
The greater stability of bitcoin is already benefiting Bitcoin merchants who rely on bitcoin payments to sell products and services. Sustained price stability will fuel consumer confidence, opening the way for widespread adoption. Analysts predict that BTC could reach this level of stability in as little as one to two years, depending on whom you ask. Great news for merchants who enjoy the efficiency, security and efficiency of accepting Bitcoin.