Macro analyst Lyn Alden says Bitcoin (BTC) is on track to become a medium of exchange – here’s why

Macro strategist Lyn Alden believes it is only a matter of time before Bitcoin’s (BTC) volatility decreases, thus enabling it to be a practical medium of exchange.

Alden He says in a What Bitcoin Did podcast that currently, however, the flagship cryptocurrency fails as an “ideal medium of exchange”.

“In the early stages, unless you specifically need censorship resistance or unless you are in a bank-free environment, for many people in developed countries, bitcoin is not the ideal medium of exchange. Unless they’re de-platforming or just want to use it right, ahem, they’re super into it. “

According to the macro-strategy, Bitcoin’s volatility will decrease as the level of adoption increases.

“If you go through five more of these cycles, and we’re 20 years into the future, and Bitcoin is more stable and held by 30% of the world’s population, whatever the number, you’d expect it to be much less volatile in that environment than it is. don’t be now.

In addition to the low adoption rate, the macro strategist says speculation and leverage in the cryptocurrency market contribute to Bitcoin’s high levels of volatility.

“[Bitcoin is right now] actually held by a rather small percentage population, there are hidden pockets of leverage in the system, as we have seen with some of these lenders. For example, it is often used as collateral for placing bets on altcoins and things like that. And so there are many things that can add or decrease volatility.

So when it goes up a lot in price, a lot of new people discover it for the first time. Or, at this point, they’ve heard of it but may not have really looked into it and start looking into it again.

So there are new buyers flooding with upside volatility and then when you get that leverage and that speculation, you get strong downside volatility ”.

I

Don’t miss a beat – sign up to receive cryptographic email alerts sent directly to your inbox

Check out the price action

Follow us on Twitter, Facebook And Telegram

Navigate Hodl’s daily mix

Check out the latest news headlines

READ ALSO  Japan Struggles With Self-Regulation During Crypto Crash

&nbsp

Disclaimer: The views expressed by The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any losses you may incur are your own responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock / SergZSV.ZP / Fer Gregory

Tinggalkan komentar