Volatility has become one of the major sources of FUD used on Bitcoin in institutional investment circles. Here’s the general theme of how I respond to it. Hope it helps.
"Bitcoin is too volatile to have as a store of value" is not a fact, it is an admission of ignorance. At worst, it is intentionally misleading. Here's why.
Firstly, yes Bitcoin is volatile.
Bitcoin’s short-term volatility mirrors Amazon stock’s trajectory: similar drawdowns and exponential growth. But this misses the point:
As a Fund Manager of a Pension or Sovereign Wealth Fund that invests in Stores of Value, the only chart that matters is Bitcoin’s 200-Week Moving Average (~4 years)
Notice it
âś… Is not volatile
âś… Is always up and right
âś… Outperforms all assets
Why 4+ Years Matter
Institutions (pensions, sovereign funds) hold SOV assets for 10–30 years. Bitcoin’s 4-year cycle aligns perfectly with intergenerational strategies.
Volatility is irrelevant if:
→The long-term trend holds (200WMA ↑),
→ Fundamentals strengthen (adoption/scarcity),
→ It outperforms alternatives (stocks, gold, fiat)
(Which Bitcoin does on all three counts)
The "Stability" Paradox
The Traditional view says "A store of value must be stable (e.g., gold’s slow moves). However this is not just an outdated view, it is factually incorrect to conflate short term stability with long term store of value.
For example, USD is "stable" short-term but loses ~90%+ purchasing power over 50 years (very poor store of value).
Bitcoin by contrast is only volatile short-term, but it is also the best SOV ever created.
Volatility Actually Matters only if:
❌ The asset fails to recover (e.g: hyperinflating currencies)
❌ It loses adoption (e.g: unlimited-supply crypto imitators of Bitcoin)
❌ A superior alternative emerges (e.g: gold at some point being superseded as a SOV by Bitcoin)
Here's why short-term fluctuations seem important (but aren’t to strong hands)
Psychological Impact: volatility can scare weak hands into selling
Liquidity Needs: If you’re forced to sell during a dip
Narrative: Short-term volatility fuels media FUD ("Bitcoin is dead!")
In other words, short term fluctuations are an issue to fund managers who base their investment decisions on emotions not fundamentals, have mismanaged their fund and need short term liquidity, or who rely on the media rather than institutional alpha.
To put it bluntly, short term fluctuations matter to weak hands, mismanaging hands, and uninformed hands.
For long term holders such as Pension Fund and Sovereign Wealth Fund Managers, short-term noise is irrelevant. They zoom out and act on fundamentals, not emotions (assuming they are following their fiduciary duty).
By contrast, to claim "Bitcoin is too volatile for a SOV" admits either:
Ignorance of Bitcoin’s non-volatile 4-year trend, or
Emotion-driven investing (a shocking flaw for any fund manager).
If you hear a fund manager say "Bitcoin is too volatile as a store of value", they are revealing more about themselves than they are about Bitcoin. Specifically, they are telling you that they don't have strong, steady, well-informed hands.
In which case, find someone who does.
