Volatility of an asset often scares investors away. No one wants to lose money overnight.
But, by its intrinsic nature, Bitcoin — the cryptocurrency currently making many lose sleep or gain wealth — has proved to be more volatile than any other asset. Its meteoric rise in has, however, gained it attention at Wall Street and helped it appear in the headlines more times than ever before. But the story does not progress that smoothly.
Unlike stocks, gold and currency trading, the market dynamics of Bitcoins were not well-defined from its inception in Its presence in the digital space, an inability to be physically touched or put in a safe, also makes it more susceptible to technological threats. But negative comments interspersed with reports of the world moving towards adopting digital currency has made Bitcoin stand out.
Adoption in Pakistan Urdubit.
Asked when would be the best time to buy, considering the massive ups and downs in their prices, Manzar said it is a commodity and a technology, making it harder to predict prices in a manner similar to, say, stocks.
The technology angle is something most people ignore, he deplored. After toiling for years, veteran commodities trader Shahan Rehman advises against likening Bitcoins to stocks.
While the current market dynamics support this theory, due to minimal usage on a global level, supporters such as the Urdubit. So, it works like digital cash. Supercomputers with fast processors are used to provide input to the Bitcoin software. The network thrives on this supply of energy since it is required to keep the ledger activated by recording all the transactions taking place.