Most everyday consumers are wary of Bitcoin because its price has turned out to be quite volatile. While this statement is true for the most part, Bitcoin is far from the only currency in existence that is suffering from a volatile price. Nearly every fiat currency, precious metal, digital asset, or anything issued by a bank or government is constantly fluctuating in price as well. Anyone in the world can openly track the Bitcoin price, and see which part of the world is influencing it.
Make sure to read: ABN Amro’s Arjan van Os: “Bitcoin is Ancient History To Us.”
Every Commodity is Volatile, Do Some Research
Regardless of how you want to look at the financial world, there is no such thing as a guaranteed investment or purchase. Any commodity or item that represents some form of value – either large or small – is constantly fluctuating in price. This is part of the reason why investments are only for the brave and bold, as they can usually take a few financial hits along the way.
Even when somebody decides not to invest at all, and just stick to the fiat money they “own” – a term being used loosely as there is no “owning” of something with no value – the value of their wealth is constantly fluctuating. Most consumers have noticed a decline in purchasing power over the years, as the one dollar/Euro/GBP they had in 2006 is not worth as much as one dollar/Euro/GBP is today.
The world of finance is constantly moving, and there is no guaranteed “value” tied to anything that is used as a payment or barter method. Even resources, such as grain, sugar, and oil, are fluctuating throughout the day. But most people don’t realize that, there being no convenient way to access this type of data.
Which brings us to the main problem in the world of finance, money, and value we live in today. There is a huge lack of transparency, and people will only know about major value changes when mainstream media runs a headline on it. Oddly enough, the information regarding fluctuating prices in any market is publicly available to people all over the world, if they would only bother to look it up.
All it takes is a Google search for your country’s stock exchange, and one of the first five results will give you the details you will need. Most of these results will also have an overview of bonds prices, fiat currency pricing, and various other market types around the world. Take a look at those charts for 15 minutes, and you will get an idea of how volatile the financial world really is. Not to mention, how you as an individual are affected by manipulation from traders who decide to pump or dump a certain commodity for monetary gain.
Bitcoin Is Traded Like Other Commodities, But Offers More Price Transparency
Looking up the current Bitcoin price is not all that difficult. Any decent Bitcoin news site has a customer price ticker, which aggregates the Bitcoin price average from various exchanges around the world. Furthermore, the charts site, BitcoinWisdom, is one of the most convenient tools to check the current Bitcoin price at any time.
In a way, finding out the Bitcoin price is more transparent compared to other valuable commodities in the world. In particular, when it comes to fiat currency prices, the information seems to be stored away neatly and requires some effort to be found. But there is a good reason for doing so.
Governments and financial institutions have been guiding everyday consumers in the financial aspect of life for many generations. While these “bodies” only sell empty promises and “trust” to consumers, we have grown accustomed to relying on them to tell us everything is alright in the world. Hardly anyone even bothers to give the current value of fiat money a second thought.
And trust me, governments and financial institutions intend to keep it this way for as long as they can. While everyone knows we are still in the middle of an economic crisis – with no improvement in sight for the next few years – it seems no one is wondering why things are the way they are. All it takes is a small effort, and you will see the world through a set of whole new eyes. And once that happens, Bitcoin won’t look so volatile and precarious anymore.
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