Value

Bitcoin

Raise

Since the inception of Bitcoin in 2009, it has been the subject of discussions regarding its worth. At first, Bitcoin was viewed as an escape from central bank influence and monetary volatility. However, it has not fully achieved these ideals.
Bitcoin was anticipated to either supplant conventional financial systems or act as a stable digital currency. However, it has transformed into a highly risky investment category. In the last one year, the price of Bitcoin has ranged from $ 25000 to $ 70000. This instability poses a problem to its reliability as a form of value storage.
However, it does provide some value in countries with acute monetary problems, such as Venezuela, but it does not act as a currency in countries with stable central banks.&nbsp;
It takes minutes or hours to complete a transaction on the Bitcoin network, and using third-party processors does not address the questions of security and stability inherent in the traditional financial system.
Further, the freedom that Bitcoin offers as an escape from government regulation has also been an issue. Surprisingly, the Bitcoin ledger is transparent and can reveal transaction histories if associated with individual wallets. This transparency erodes privacy and can expose financial transactions to the government.
However, in periods of economic downturn, for example, during the COVID-19 pandemic, the BTC/USD fluctuates. It failed to act like a hedge against inflation or global volatility.&nbsp;
For instance, gold rose during the pandemic, whereas Bitcoin’s price was relatively stagnant in the beginning and then spiked. This unpredictable behavior makes it a less stable investment compared to traditional forms of assets.
Recent events have shed light into the fact that Bitcoin is an instrument of speculation. It is volatile and its value has recently gone <a href="https://www.cryptotimes.io/2024/08/05/bitcoin-price-drops-10-to-52000-amid-global-market-panic/" target="_blank" rel="noopener noreferrer nofollow">down by 10% on a Monday</a>. This behaviour is more akin to the dotcom bubble rather than being a reliable form of money.
Bitcoin looks more like an online slot machine than a viable replacement for traditional money. It can be helpful in avoiding currency controls or in collecting ransomware payouts but is not stable and reliable as expected from a “digital gold.”
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 Also Read: <a href="https://www.cryptotimes.io/2024/08/09/bitcoin-price-surges-back-to-62k-after-crypto-black-monday/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin Price Surges Back to $62K After Crypto Black Monday</a>
</blockquote>

Bitcoin’s Value Swings Raise Questions About Its Stability

The Crypto Times

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