Is Bitcoin More Stable Than the Stock Market?

The Recent Stability in Bitcoin’s Price Compared to Top Stocks
By 
Coin Cloud Team
, published on 
January 23, 2019
Is Bitcoin More Stable Than the Stock Market?

One of the barriers that Bitcoin has faced while achieving widespread adoption is its high volatility levels. Most experienced investors don’t like investing in highly volatile assets because… well, the answer is kind of obvious. They want to keep the risk of losing money as low as possible. However, it looks like things have changed. In this blog post, Coin Cloud discusses the recent stability in Bitcoin’s price and compares it to other top stocks on the market.

Bitcoin Is An Investment

Over the years, Bitcoin’s price has risen substantially, having started at $0.08 in 2009 and reaching as high as $19,738 in late 2017. The profits yielded through this massive jump in price have made the eyes of several investors light up with glee. However, we live in a world of yin and yang — what rises can also fall. Due to Bitcoin’s volatility, both new and experienced investors have shied away from investing in the cryptocurrency.

Things Have Changed

According to the Chicago Board Options Exchange (CBOE), Bitcoin’s volatility is as low as Apple, the largest company in the world; so low that it’s more stable than two of the most popular stocks on Wall Street, Amazon and Netflix.

Today, Bitcoin’s volatility is at a stable level of just 31.5 percent. That’s roughly 4 percent lower than Amazon’s volatility rate of 35 percent, and over 20 percent lower than Netflix’s 52 percent.

According to a senior instructor at the CBOE, Kevin Davitt, “one standard deviation move for bitcoin at present is about $475, or +/- 7.3%.” In comparison, earlier this year, “the standard deviation measured $4,640 or +/- 42%.”

What Does This Mean For Bitcoin?

This is huge for the cryptocurrency market as a whole. Previously, Bitcoin’s extreme volatility frightened new and existing investors, influencing them to invest in the stock market instead. However, that may change moving forward. With prices holding stable, the cryptocurrency market is starting to become a safer and less-risky investment.

Granted, we are still too early in its stabilization to conclude that this is the new ‘normal’, but it is an early signifier of what’s to come once the market fully matures. Only time will tell how things progress, but we are looking forward to all that’s to come.

Buy and Sell Bitcoin Using a Coin Cloud BTM

One of the easiest ways to buy and sell Bitcoin is through a Coin Cloud Bitcoin ATM. Coin Cloud boasts the largest network of two-way Bitcoin ATMs in the world.

By using a Coin Cloud Bitcoin ATM, users will be able to buy and sell Bitcoin without having to endure the long transaction times that online exchanges have, all while only sharing minimal personal information. Also, if you are a first-time buyer and/or are having issues with your transaction, don’t worry; our live support team will help you throughout the entire process.

Disclaimer: The information and views supplied on the Coin Cloud blog are for educational and entertainment purposes only. We are not financial advisors, so please do your research and consult with a trusted financial specialist before investing your money.

What is Coin Cloud?

Founded in 2014 in Las Vegas, Nevada, Coin Cloud is the leading digital currency machine (DCM) operator. With over 4,500 locations nationwide, in 48 states and Brazil, Coin Cloud operates the world’s largest and fastest-growing network of 100% two-way DCMs, a more advanced version of the Bitcoin ATM. Every Coin Cloud DCM empowers you to quickly and easily buy and sell over 40 cryptocurrency options with cash.

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