For a long time, the main debate within the crypto market has been the quality of Bitcoin as an active reserve of value.
Because, in order to be an efficient value refuge, one of the main characteristics that an asset must have is price stability. But although many believe that with its maturity Bitcoin will reach this stability, for Changpeng Zhao Bitcoin Future it will never be stable, as he commented in today’s Tweet:
Bitcoin Maturity Allows for Quick Recovery
Stability will not reach Bitcoin
One of the main characteristics of cryptomoney is its volatility. Thus, users of the crypt world are used to experiencing sudden increases and sharp drops from one moment to the next, in the price of virtual currencies such as Bitcoin. This has made many critics consider crypto currencies as merely speculative financial products. With no real value to guide their price.
This isn’t the position of most crypto users, for whom the reason behind the instability of crypto currencies like Bitcoin is their immaturity. For, being a relatively new financial product, the amount of capital within its market is still limited. Therefore, the movements of large investors known as whales, end up having an inordinate influence on its price.
For Changpeng Zhao, the price of Bitcoin will never be stable. Source: CoindeskFor Changpeng Zhao, the price of Bitcoin will never be stable.
The natural conclusion of this argument is that when the Bitcoin market reaches sufficient maturity, it will also achieve stability in its price. However, not everyone agrees with this idea. Thus, Bitcoin CEO and founder Changpeng Zhao wrote through his Twitter account, assuring that BTC will never be a stable financial asset:
„Bitcoin will not be an asset of stable value against fiat. Get over it. And that’s a good thing.
This tweet would be a response to a message from Anthony Pompliano, in which crypto-influence ensures that more and more people will accept Bitcoin as a refuge of value. Clarifying, however, Changpeng Zhao, that the fact that Bitcoin isn’t considered an asset of value like gold isn’t necessarily a bad thing. On the contrary, it could be an advantage for cryptomoney, providing it with greater flexibility.