Despite constant headlines labeling the major crypto as excessively volatile and unpredictable. It is largely unaffected by the largest fluctuations policies, economic y technological of our times. The cryptocurrency space as a whole is still seen as the “wild west” of finance from the outside, although with some legitimacy one could say so. Bitcoin is stable enough to be considered money.
There is often little distinction between cryptocurrencies and the recognition of their differential properties. However, within the cryptocurrency space, Bitcoin is considered largely conservative, safe, stable, and predictable. In fact, some consider the network to be too conservative and flexible, hence the large number of projects and their great diversity.
- Ammous, Saifedean(Author)
Bitcoin has a robust network
Unlike Ethereum, for example, Bitcoin's focus is not on supporting complex functionalities or having rapid development capabilities. Changes to the code rarely occur and are backward compatible. Second coat development is encouraged in place of base coat modifications. The predictability of the future economic policy of Bitcoin is crucial.
A single decade is not very long in the context of the history of money, but it is a long period of time in terms of technological evolution. During this time, Bitcoin has without fail demonstrated its ability to maintain a global ledger of verified transactions. In fact, the Bitcoin network has actually scaled quite well, where it matters most, to handle increasing network utilization. Despite the temporary periods of rate increases and confirmation times.
In addition, the USD-denominated value of these transactions has increased dramatically, to regularly support transfers of more than $ 100 million in unique transactions, which we can see in whale-alert. And despite the fact that incentives to break the system and steal funds have been seen throughout its existence. Bitcoin's security model has proven to be robust.
While the exchange rate of Bitcoin to fiat currencies like the US dollar has fluctuated significantly, I'd say this is expected from a whole new asset class. It takes time for the market to realize and understand new technologies, much less to value and use them. This volatility in price does not represent volatility in fundamentals.
