If you look at volatility, aka the rise and fall of prices at a very fast pace, it is caused by the concentration of Bitcoin ownership and thin market volume.
So this impact is one of the biggest obstacles to the big adoption of Bitcoin in real-world transactions, where many people understand that Bitcoin is notoriously very volatile because of the rally over the past year from US $ 4,000 (March 2020) to over US $ 40,000 (early January 2021) and then back to US $ 30,000.
In a financial crisis, crypto assets, particularly Bitcoin and Ethereum are more likely to be sold by investors during a market crisis, such as the one that occurred at the start of the pandemic in March 2020.
But increased participation by institutional investors such as asset managers with long-term time horizons, rather than retail buyers or hedge funds can help increase liquidity, reduce volatility and cause price action to be driven more by fundamentals than speculation.
Today the appeal of the Bitcoin currency among young people is partly due to its nuance of comfort and convenience. Bitcoin and other crypto-assets are also easy to store on digital wallets. This differs from precious metals or other assets which often need to be stored in a secure physical location and cannot be easily used for everyday transactions.
Plus the flip side of this, they are easier for scammers to steal. There is also a reputation risk as crypto assets have been widely used by criminals, money launderers, and others who wish to take advantage of their anonymity.
Another potential disadvantage is that while the supply of the precious metal is relatively limited, future launches of new crypto assets could potentially devalue other existing crypto assets.
Due to the volatility of crypto assets, this could be the reason why they do not allow crypto assets to be used in day-to-day transactions.
The limited supply of crypto assets, such as Bitcoin, makes it unable to facilitate the growth of economic activity. Even the current government tends not to tolerate an outright challenge to monetary sovereignty. That is why several central banks have developed their own digital currencies using blockchain technology.
We know the Government is very wary of any technology that could potentially replace the national currency. This will reduce the ability of policymakers to issue new money during an economic crisis.
From this point of view, seeing Bitcoin Cash as another crypto asset from Bitcoin tends to be more pronounced for use as a currency substitute. Where the advantages have been proven by the existence of faster transactions, lower costs, and conditions as a facilitator of economic growth that can be used by a government.
The reason that Bitcoin Cash can be a facilitator of economic growth rather than Bitcoin even though it is the same in a limited amount is, Bitcoin Cash will be able to rotate quickly in the market because of the continuity of use by each party. Unlike Bitcoin where most people tend to save so, it will reduce productivity in use to build economic growth.
According to Roger Ver, Bitcoin Cash is popular because it can be stored and spent similar to cash, making it possible to use it in everyday life. Roger Ver appears to have a positive Bitcoin Cash price prediction and expects it to show good growth in the coming months.
So, for now, which conclusion is better between Bitcoin and Bitcoin Cash really depends on your preferences.
Regardless, for the foreseeable future, there is a possibility that Bitcoin and Bitcoin Cash could play an important role.
Bitcoin can be "digital gold", or a store of value, and Bitcoin Cash acts as "digital money", or a safe and convenient payment method.
Bitcoin Cash has been making constant efforts to become more acceptable in the world of online payments. In conclusion, most of the views above have taken a positive view of the future of Bitcoin Cash. Also, when you consider factors like the advantages of the technology over Bitcoin, the community, new developments, etc.
So, what do you think about the future of Bitcoin Cash? Will he have great growth?
source:
https://read.cash/@Alther/bitcoin-as-an-asset-bitcoin-cash-is-a-choice-75a3176a