Bitcoin is on track to become less volatile than state currencies, says analyst

Charlie Taylor

Bitcoin has been widely criticized for its use as currency because of its volatility, in response to these criticisms, the famous analyst Willy Woo, said that BTC will come to a time when it will be less volatile than fiat money, as euro, dollar or real.In a series of tweets, the prominent crypto-market analyst rebutted the arguments that Bitcoin is too volatile to be used as cash or as a stable unit of account. Woo compares Bitcoin's gradual decrease in volatility as it undergoes widespread adoption with the volatility of the EUR / USD pair. He predicts that within a decade and a half, the BTC will be at the same level of volatility as the euro-dollar pair.

In reality, the BTC's peak of volatility is on track to fall below fiduciary volatility (EURUSD) in 13 years, roughly when its adoption base will be similar to that of the Internet.

Bitcoin volatility compared to its adoption. Source: Willy Woo. The analyst adds that Bitcoin is volatile now because it is denominated in U.S. dollars, but he says that could change in the coming years.


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“It really depends on what the future of money will be and who is in the denominator. If it reverses the current fiduciary regime and becomes part of the new monetary base, the unit of account becomes widely expressed in BTC; everything else becomes volatile against it. The volatility you see now is the upward volatility associated with its rapid exponential rise toward global acceptance. This will become clearer to the world when 1 billion people find exposure to this asset. With current growth, less than four years to go. ”Woo too highlights that Bitcoin's volatility encourages valuable market share that ends up generating exponential growth.

Volatility brings traders, traders bring liquidity, liquidity unlocks institutions, institutions unlock sovereigns. On a certain scale, money is redefined. But it starts with volatility.

What do you think about the analyst's optimistic lines? Leave your opinion in the comments section below.Read more: Mexico will require new cellphones to provide biometric data for users to the government

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