While the price screams, technology advances silently.
The word 'volatility' is often used as if it were a moral judgement, an intrinsic flaw that separates the reliable from the unreliable.
However, volatility does not describe an emotion; it describes a measure.
It is the variation in returns over time.
However, without specifying what it is in relation to, over what period and in what context, it is meaningless.
If we view Bitcoin without fear or ideology, we can see that its fluctuations are neither mysterious nor an absolute flaw.
They are an expression of a growing technology.
In the early years of any innovation, there are sudden movements due to little liquidity, information and players. Then time does its work.
The data show a clear trend: Bitcoin's volatility decreases as the network grows, and as market depth, infrastructure, user numbers and, above all, knowledge increase.
This is the natural progression of any network technology.
Volatility is not a mystical entity. It is the result of information, expectations and human behaviour. It also reflects the underlying asset: the pound sterling has political and credit-related underlying assets, while Bitcoin has energy- and cryptography-related underlying assets.
These are two different worlds with two different forms of stability and two different ways of measuring risk.
Claiming that Bitcoin is 'too volatile' without providing a point of reference is akin to saying that the sea is 'too rough' without specifying your location and the time of year.
The idea that Bitcoin is seven times more volatile than equities belongs to the past. Today, the gap is narrowing, and in some periods it is comparable to that of certain innovative technology sectors. Like any living process, volatility changes over time. It changes with us.
Bitcoin is a social asset currently in its growth phase. Its volatility is not a negative thing, but a sign that a global network based on distributed energy and verification is establishing itself in the world of economics. The noise is decreasing, the structure is strengthening and the technology is advancing.
We fear what we do not understand. However, when concepts are restored to their true meaning, fear gives way to reason. Always.
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