“Bitcoin’s peak volatility is right on track to drop below fiat volatility”
There will come a time that Bitcoin will be less volatile than fiat money as money is being redefined. And when this time comes, you better be holding some.
This is according to Willy Woo, a prominent online chain-analyst with roughly 400,000 followers on Twitter.
Woo’s comments are a direct response to remarks made by Johns Hopkins economist Steve Hanke. In a double-barrel attack on April 10, the economist makes it clear that that Bitcoin is too volatile to be used as currency.
#BREAKING: For the first time in over two weeks, Bitcoin’s price has surpassed $60,000/BTC. #Bitcoin’s volatility turns out to be its Achilles’ heel. Bitcoin will never serve as a reliable unit of account.
— Steve Hanke (@steve_hanke) April 10, 2021
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Not much later he stressed his position on the cryptocurrency and calling it a speculative asset:
Today, #Bitcoin shot up 6.9% from yesterday’s 24-hr low of $57,718/BTC to pass $60K for the first time in almost a month (source: @CoinDesk). Now, it’s back down to $59,370/BTC. Bitcoin is a speculative asset, NOT a currency. And like most speculative assets, Bitcoin is volatile.
— Steve Hanke (@steve_hanke) April 10, 2021
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This of course does not sit well with long-time analyst Willy Woo, who in a series of Tweets responded to Hanke’s claims.
“Bitcoin is too volatile to be money”
In reality, BTC’s peak volatility is on track to drop below fiat volatility (EURUSD) in 13 years, roughly when its adoption base equals that of the Internet. pic.twitter.com/jgDzw1EVu5
— Willy Woo (@woonomic) April 12, 2021
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Woo zooms in on Bitcoin and highlights its recent widespread adoption to the volatility of the EUR/USD pair. According to him, Bitcoin’s volatility is because of its denomination in US dollar. As a result, he is convinced that this is about to change.
It really depends on how the future of money turns out, and who’s on the denominator.
If it flips the current fiat regime, and becomes part of the new monetary base, then the unit of account becomes largely expressed in BTC; everything else becomes volatile against it.
— Willy Woo (@woonomic) April 10, 2021
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The volatility you see right now is upward volatility associated to its fast exponential climb towards global acceptance. This will become clearer to the world once 1b people find exposure in this asset, at current growth, that’s less than 4 years away.
— Willy Woo (@woonomic) April 10, 2021
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The analyst, who many regard as some kind of “oracle” when it comes to his detailed analyses, also points to the attraction of the said volatility.
Volatility brings traders, traders bring liquidity, liquidity unlocks institutions, institutions unlock sovereigns.
At a certain scale, money is redefined. But it starts with volatility. https://t.co/uk7L8ImFnu
— Willy Woo (@woonomic) April 12, 2021
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Bitcoin is currently trading at $62,957.68 after jumping to an all-time high of $64,863.10 according to CoinMarketcap just hours ago. It seems to be unaffected yet by Coinbase’s (volatile) first day of its direct listing on Wednesday. Could it be that the leading cryptocurrency is tanking in order to break out today?
The strength that Bitcoin has been showing in the past weeks, did not withhold Steve Hanke to once again make his point though.
#BREAKING: Bitcoin has reached a new all-time high today of $64,899/BTC, a ~900% increase over the past 12 months.
Speculators continue to pile in to Bitcoin & the Bitcoin bubble keeps inflating.
Remember, Bitcoin is purely a speculative asset, NOT a currency.
— Steve Hanke (@steve_hanke) April 15, 2021
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The post “Bitcoin’s peak volatility is right on track to drop below fiat volatility” appeared first on iGaming.
Source: igaming
