Bitcoin volatility is down over the last three years. Here’s the chart that proves it
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Bitcoin’s detractors have for some time argued that the cryptocurrency’s high volatility makes it unsuitable even as a medium of exchange, because volatility increases the cost of hedging. Companies such as Bitpay and Coinbase, who process Bitcoin payments for merchants who only want to deal in dollars, take on the risk of currency fluctuations between the time they receive the coins and the time they can sell them. These companies have to hedge. They seem to be able to do so and charge fees of only 1%, so the cost of hedging can’t be prohibitively high.
Bitcoin volatility is down over the last three years. Here’s the chart that proves it
Bitcoin volatility is down over the last…
Bitcoin volatility is down over the last three years. Here’s the chart that proves it
Bitcoin’s detractors have for some time argued that the cryptocurrency’s high volatility makes it unsuitable even as a medium of exchange, because volatility increases the cost of hedging. Companies such as Bitpay and Coinbase, who process Bitcoin payments for merchants who only want to deal in dollars, take on the risk of currency fluctuations between the time they receive the coins and the time they can sell them. These companies have to hedge. They seem to be able to do so and charge fees of only 1%, so the cost of hedging can’t be prohibitively high.