Volatility in Crypto

Outside of ‘stablecoins’, it is difficult to imagine the world of crypto without significant volatility. As Dr Amber Ghaddar states in this week’s episode of the Novum Insightful podcast:

It’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 ‘Ethereum-killer’ platforms such as Solana and Cardano catching the eye of Dapp(decentralised app) developers thanks to their speedier transaction systems, a “bifurcation in price” 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 another’s market risk.

(Dr Amber Ghaddar of AllianceBlock)

Amber Ghaddar is the founder of AllianceBlock - “a 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.”

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.