September 22, 2021 Ā· 2 min read

Volatility in Crypto

Outside of ā€˜stablecoinsā€™, it is difficult to imagine the world of crypto without significant volatility. As Dr Amber Ghaddar states in this weekā€™s episode of the Novum Insightful podcast:

Itā€™s a double-edged sword - you can make a lot of money with high leverage but you can lose a lot as well.

(Comparative Volatility of Bitcoin to FTSE 100 and Dow Jones since 2016)

The value of crypto currencies however are not completely superficial. Fundamental network-technologies and the facilitation of innovation are what will ultimately determine positions in the market. With so-called ā€˜Ethereum-killerā€™ platforms such as Solana and Cardano catching the eye of Dapp(decentralised app) developers thanks to their speedier transaction systems, a ā€œbifurcation in priceā€ within the crypto asset class is inevitable. Amber warns however that investors must be prudent with the knowledge that one investor's potential opportunities are anotherā€™s market risk.

(Dr Amber Ghaddar of AllianceBlock)

Amber Ghaddar is the founder of AllianceBlock - ā€œa decentralized, blockchain-agnostic layer 2 that bridges traditional and decentralized finance and automates the process of converting any digital or crypto asset into a bankable product.ā€

Visit the AllianceBlock website.

For the full discussion as well as more topics, listen to this episode of the Novum Insightful Podcast on Apple Podcasts or Spotify.