AIER: Bitcoin is Less Volatile than Other Cryptos

American Institute For Economic Research (AIER) has informed that Bitcoin has significantly been less volatile than other digital assets since 2013
22 June 2018   1252

AIER conducted a study in early 2018, comparing Bitcoin to major cryptocurrencies and digital assets including Litecoin, Ripple, Ethereum and Bitcoin. AIER revealed that Bitcoin has been consistently less volatile than the 4 major cryptocurrencies and discovered an interesting trend in the cryptocurrency market. The researchers pointed out that there exists a variety of ways economists measure volatility of a currency or an asset. In its study of cryptocurrencies, AIER researchers utilized a basic method of observing the daily price movement of Bitcoin and other digital assets in the global market.

Economists and statisticians measure a variable’s volatility in many ways. We choose a relatively simple metric: the average daily percentage change in price. We average the absolute value of daily percentage returns for each cryptocurrency and year.
Researchers, AIER

As the daily price movement of Bitcoin (BTC), Litecoin (LTC), Ripple (XRP), and Bitcoin Cash (BCH) were compared since 2013, AIER created a database of averaged daily price movement of every cryptocurrency over the past 5 years. Considering that Bitcoin Cash debuted in late 2017, the price movement of BCH since September of last year was included in the analysis.

Major cryptocurrencies and their volatility rates comparison by AIER
Major cryptocurrencies and their volatility rates comparison by AIER

From 2013 until 2018, Bitcoin demonstrated the lowest volatility rate amongst the 4 major cryptos, that have also been less unstable in comparison to small market cap assets and tokens. The claims of most cryptocurrency analysts that the market valuation of the majority of initial coin offering (ICO) tokens and small blockchain projects is mostly ETH have shown the lowest level of volatility and highest level of stability amongst all cryptocurrencies in the market.

Most Crypto to Fail, Digital Currency Group CEO Says

Barry SIlbert believes Bitcoin is a king and when the mood among major investors changes, BTC is waiting for serious and aggressive growth
14 February 2019   240

Barry Silbert, head of Digital Currency Group, continues to believe in Bitcoin’s great future, but questions the long-term prospects of most existing cryptocurrencies and digital tokens, saying in an interview with CNBC that they will all be worthless in the future.

I'm not a believer in the vast majority of digital tokens and believe most will go to zero. Almost every ICO was just an attempt to raise money but there was no use for the underlying token. The vast majority of what's out there will be eliminated.
 

Barry Silbert

Head, Digital Currency Group

At the same time, Barry Silbert is convinced that Bitcoin, despite the current “terrible schedule”, enjoys great interest from institutional investors and “won the fight for the title of digital gold”.

According to him, the new generation of investors no longer sees gold as a “safe haven”, and the money that is now in gold will be converted into cryptocurrency.

I'm convinced that whatever money is in gold is not going to stay in gold. That gets handed down to millennials. I'm highly confident a lot of that will go into bitcoin.
 

Barry Silbert

Head, Digital Currency Group

Barry Silbert believes that the buy and hold strategy is fully justified, although it is still difficult to say exactly when large institutional money will go into Bitcoin. Nevertheless, he noted, at the beginning of 2019, all the necessary infrastructure was already in place, listed the upcoming launch of the Fidelity custodial solution and investment opportunities such as the Bitcoin futures platform Bakkt.

When the mood among major investors changes, Bitcoin is waiting for serious and aggressive growth, Silbert added.