Why Bitcoin Would Eventually Become Stable

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Well Bitcoin is indeed one of the most valuable asset class in the financial market and it's core values are undisputed and clearly visible to all and with an insane utility on a wonderful blockchain network and the very first cryptocurrency created with the goal of solving the economic financial crisis and discrepancies we see while bridging the gap between the poor and wealth and providing equal opportunity for all, indeed facilitate cross border payment as well as other valuable uses which includes being a wise investment choice as no one who invested in it 10years back till now are all in mad profit.

But yet for all Bitcoin's value it has been subject to criticism for the insane instability often experience in it's price, it's often hard sometimes to see bitcoin price at one level for long, its a highly volatile asset class infact it's so volatile that most financial advisors warns against investment in it and this no doubt contribute to the general instability in the cryptocurrency market.

Bitcoin has been described as digital gold for it's value and indeed seen by many as a true store of value and a place to run to when needing hedging but yet despite this the instability in it's price raises serious concern for it's investors who often have to brace up most times to withstand the toil in emotions that comes with this sudden price movement often in an unexpected direction which makes us wonder if really it could be possible for it to ever become stable like how a true digital gold should.

Well I believe it could be possible for Bitcoin to achieve stability but for this to happen some factors have to play in real nice and some of this include factors that could help Bitcoin in achieving stability is what I will be highlighting this night.

Factors That Could Lead Bitcoin To Be A More Stable Asset class

One of the things I believe that could immensely contribute to Bitcoin becoming stable is technological advancement. As improvement comes to a project it makes it value increase and when it's technogically advanced and up to date with times it makes it always needed by the masses which means despite how bad the market condition is in general it wouldn't be affected much because the value it provides would ensure users still uses it network in their day to day activities, so that would help to make such an asset not to be affected badly in bad times and thus helping it remain relatively stable, so with continuous improvement in Bitcoin's core technology I believe it would help it maintain a steady value at the very least.

Also Bitcoin unstable nature could also stem from the fact that it's a relatively younger market when compared to the stocks and bonds, it's considerably a younger asset class with lots of room to grow. So when an asset is still new it's often more speculative than others and there isn't as much liquidity as in the traditional asset class which means that there is more chance of it being manipulated by hedge funds which is all the more reason for it's often insane volatility.

So I believe with considerable amount of time when the cryptocurrency market matures more and with passage of time it might take a while though but with maturity comes increase number of people who would be involved in this market which would no doubt make the Bitcoin market more harder to be manipulated by anyone and thus reduce the volatility and help to increase the likelihood stability of Bitcoin price.

Well I believe as time progress Bitcoin would gradually gain more mass adoption both by individuals and businesses alike its only a matter of time and infact even presently it's really amassing quiet an amazing number of institutions currently who have adopted it as a means of transactions now imagine what would happen in a large scale adoption by almost everyone all most individuals as well as being used regularly in commerce and businesses that would ensure that there is active participation of world wide users which would ensure Bitcoin is able to maintain a relatively stable price. So mass adoption seems the way to go.

Most times instability in Bitcoin market prices is often due to changing regulations which may often be too sudden, when this regulations comes it could be rather shocking and may lead to investors pulling their money out because of fear and this lead to sudden change in price and this is not the case with the well regulated markets so if there is a clear regulatory framework for Bitcoin globally it would help to ensure a measure of price stability in this asset class, this I strongly believe as changing regulations often contribute to the fluctuations in market prices.

Well what about the sudden rise of Bitcoin often often due to the halving, well eventually the effect experienced by the market due to Bitcoin halving may reduce drastically with the passage of time, Bitcoin would continue to halve but until it's fixed supply it's all in circulation gradually with time the halving maynot longer ad much bullish as it does now and this would ensure also for a stable price instead which would make bitcoin a true store of value and digital gold.

Conclusion

So for me these factors could help in greatly ensuring that Bitcoin price remains stable overtime but before then let the one who has the heart for it enjoy the volatility now and this present volatility often could be a curse or a blessing, but aslong as Bitcoin is concerned it is a blessing for long term investors.