What are the reasons behind bitcoin's much higher price volatility compared to fiat currencies, given that it has often been cited that one of the uses of bitcoin is as a currency?

Bitcoin served its originally intended purpose as a currency for a short time in the very beginning of its life.

It served as a carrier of value in illegal transactions paid in fiat/paper currency. Ironically this exchange did legitimize bitcoin and did assign value to it.

Once bitcoin got ever increasing value it stopped being used as currency and started being used as a financial instrument in trading - just like a stock traded on the ordinary stock market.

Project home               Q&A home

    Send us an email        Instagram - Decentralized Web        Twitter - Decentralized Web        Telegram - Decentralized Web        Tik-tok - Decentralized Web

Go To Top               Become a User - start getting rewards