Why Bitcoin’s Stability In Volatile Markets Makes It A ‘Must Own’ For Long-Term Investors

For a currency marked by volatility, Bitcoin has been remarkably stable against the U. S. Dollar over the last couple of months, essentially trading in a $320-$420 range. For those attracted to the virtual currency as a trading instrument due to massive volatility in the past that is no doubt a disappointment, but to those who are more interested in the blockchain as a game-changing payment system and the currency as a potential store of value in an inflationary environment, it is welcome news.
They would argue that this relative stability is a sign of maturity in the market, while those who look for the negative in anything to do with crypto-currencies would no doubt claim it is a sign of a growing indifference. To some extent, both may be right, but either way it is a good thing for Bitcoin’s long term prospects. Of course, a trading range of 30 percent or so still represents enough volatility to keep even the most ardent currency trader occupied, but after establishing those levels of support and resistance BTC/USD has begun to narrow its own range and has spent the last week or so hovering around the mid-point of $370.

This post was published at Nasdaq on December 02, 2014.