kenson Investments | Understanding Bitcoin's Volatility: More Than Just a Risk

Understanding Bitcoin’s Volatility: More Than Just a Risk

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In the world of cryptocurrency, Bitcoin’s price volatility often sparks debate among investors. Recently, Roundtable anchor Rob Nelson and Armando Pantoja, a futurist and founder of Quant Index, discussed the implications of Bitcoin’s fluctuating prices, providing a nuanced perspective on what this means for the future of investment in digital currency.

Growth or Concern: Bitcoin’s Price Fluctuations

Bitcoin’s volatility is not uncommon in cryptocurrencies, but the perception of this volatility varies significantly between casual observers and seasoned investors. Rob Nelson pointed out the common fears associated with Bitcoin’s price swings, stating, “A lot of people will say to me, it’s volatile, it’s going up, it goes down.” He countered this concern by highlighting Bitcoin’s youth as a currency and its expected developmental trajectory. Nelson optimistically predicted, “I don’t think we’re going to see it drop to 40, and eventually we’ll see it go up to, I think by the end of the year we’ll see it at 80 or 90.”

Historical Context and Future Projections

Armando Pantoja provided historical context, comparing Bitcoin to the early stock markets, particularly those of the 1920s, which were known for their high volatility. He noted, “Bitcoin is an immature market; it’s only been around for 14 years, almost 15 years.” Pantoja suggested that as Bitcoin matures, with more regulatory measures and derivatives entering the market, “the market will get more stable.” However, he cautioned that with this stability, the potential for massive gains might diminish, saying, “You won’t have these 300% gains anymore.”

Opportunity in Volatility

Nelson highlighted that for true investors, volatility is not a deterrent but an opportunity. The availability of options trading in Bitcoin allows for strategies that can capitalize on its price movements. “People don’t like volatility; investors do,” Nelson remarked, suggesting that the current market conditions offer a prime buying opportunity.

Looking forward, Pantoja relayed insights from entrepreneur Michael Saylor, who analogized investing in Bitcoin to investing in Manhattan real estate over the last hundred years—a consistently valuable endeavor. Pantoja believes that Bitcoin will maintain its value appreciation, making it a perennially smart investment choice: “It will always have appreciation, and there’ll never be a bad time to buy Bitcoin.”

Take Action with Kenson Investments

For those intrigued by Bitcoin’s potential and seeking to navigate its volatile waters, Kenson Investments offers expert guidance and strategic digital asset consulting solutions. Reach out to learn how to optimize your investment strategy in the dynamic world of cryptocurrency.

Disclaimer: The information provided on this page is for educational and informational purposes only and should not be construed as financial advice. Crypto currency assets involve inherent risks, and past performance is not indicative of future results. Always conduct thorough research and consult with a qualified financial advisor before making investment decisions.

“The crypto currency and digital asset space is an emerging asset class that has not yet been regulated by the SEC and US Federal Government. None of the information provided by Kenson LLC should be considered financial investment advice. Please consult your Registered Financial Advisor for guidance. Kenson LLC does not offer any products regulated by the SEC, including equities, registered securities, ETFs, stocks, bonds, or equivalents.”

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