Bitcoin Volatility

Two years ago, I made the prediction that Bitcoin would become more volatile over time due to its lack of fundamental use value. The price is in no way reflecting its value as a means of exchange, and with no other practical value, prices can fluctuate wildly without Bitcoin becoming more or less desirable for that reason. Detached from reality, any price can be seen as reasonable.

As it turns out, Bitcoin has been a lot more volatile over the last two years than it was the two previous years, and the last two days has seen some truly insane volatility. It is up some 50% in less than 48 hours. While exiting to those holding Bitcoin, this is in no way a good sign as it further undermines the idea that Bitcoin will some day be money.

For something to be money, it has to be a unit of account and a store of value. High price volatility relative to all other assets renders it useless. Bitcoin can never become money, and it seems to me that we are seeing its final death throws. As predicted back in 2017, Bitcoin will become wildly unstable right before its final demise. The past 48 hours may be evidence that this is indeed what's going on.

Brass token currently priced at around 10,000 dollar

By Steve Jurvetson - https://secure.flickr.com/photos/jurvetson/8410385932/in/photostream/, CC BY 2.0, Link