With time, the traders and their sentiments have remained mixed and constitute a state of refusal and denial, seeing the trends of crypto. As the wind blows and the market makes certain corrections, there are more chances of safe trading. Lots of traders and market gurus are now hoping to see Bitcoin making certain corrections, there are chances of people and new entrants looking to make fine adjustments. This would help them fine-tune their crypto portfolios. Although Bitcoin traders and its market are thriving on the edges and covering certain leaps and bounds, there is a need for positive sentiment. Some crypto experts are now completely positive about the next market correction. And therefore, ready to take the plunge.
To minimize the crypto market rumors and unnecessary FUD, there is a need to create awareness and more investors should start traveling to the next bull run. Bitcoin is the only currency in the crypto world that can absorb shocks, shifts, and corrections. No matter how low it travels or displays a vivid trough, there are always some stark chances of ultimate recovery. This makes Bitcoin defensive against shocks and surmounts financial impediments.
The crypto world and its arena showed an extensive downside since its launch and there was much frenzy and hope seen in this respect as well. The resilient force of springing back and restoring the previous price marks has been the penultimate characteristic of Bitcoin. The concept of antifragility of Bitcoin is a classic term coined by Nassim Nicholas Taleb in his famous book Antifragile: Things that gain from Disorder. As Bitcoin is heavily bought and sold in numerous exchanges worldwide, the coin gained much popularity and bulky trading volume from renowned online trading platforms. We would quickly peek into the concepts drawn around the antifragility of Bitcoin. And what makes it the most popular, stronghold, and investable coin of the crypto community.
What is Antifragility?
According to Nassim Nicholas Taleb, the following quote demonstrates the antifragility concisely for the Dollar as well as for Bitcoin.
“ Some things benefit from shocks; they thrive and grow when exposed to volatility, randomness, disorder, and stressors. Antifragility is beyond resilience and robustness. The resilient resists shocks and stays the same; the antifragile gets better.”
According to Taleb, resilience and robustness are meek terms absorbing the shock and staying the same, whereas, in the case of an antifragile asset, the underlying asset does not only remain the same but also gets better with time. The antifragile asset shows exponential growth indicators and can turn themomentum of the market. Not only does the growth momentum travel uphill, but the market sentiments as well as traders stay positive even in a down slump or in crypto winters. The context of economics also demonstrates that the antifragility situation always incurs as there are no constraints, impediments, and government inclusion.
What makes Bitcoin antifragile are these core facets. It is free and independent of any government inclusion and interference. In contrast to cost/loss and stress/change along with gain/benefits antifragility is the point where innovation occurs, therefore Bitcoin exhibits the same point for antifragility. Seeing the government as the intermediary role in implementing the policies and regulations keeps the asset fragile or at least resilient.
The more innovative asset is unique with back-end technology, we can always expect it to be grown on momentum and move beyond shocks and repairs. As Bitcoin is not a stock, share or even a startup, it stands out as a pioneer and flag bearer of the crypto revolution. As market traders, behold strong sentiments towards Bitcoin even in case of severe downfall, the coin always exhibits signs of utmost reverberation. The current trading platforms, constituting centralized or decentralized protocols and exchanges, total market capitalization is around $200 billion as of now. To invest in crypto, Bitcoin has always remained the trader’s top choice and serves as the antithesis of fragility.
Bitcoin’s Critical Flaw
Although the sole reason behind the creation of Bitcoin was financial freedom and the removal of the constraining financial system, which leaves masses crushed under rising loan and interest rates. From mortgages to student loans, a commoner has nothing significant left to invest in. Bitcoin gave hope and financial freedom to individuals to look for a promising return on their savings. But this notion and thought pattern led to the demise of the current market scenario and even those that happened in the past. Bitcoin and its design demonstrate that if at one point in time, it promises safer returns, it may go to insignificant low amounts.
Before you invest, always opt for a reliable trading platform, especially one that provides you with safety and security, such as Binance, OKX, and Bitflex. There are many hybrid crypto trading platforms, where you can trade even if you are just a beginner. Now, let us look at some of Bitcoin’s Critical Flaws that make it more volatile and require careful consideration along with diligence from an investment point of view.
Limited Supply
The limited supply mechanism works on an intelligent financial to make its supply limited and label it later as a speculative asset. Let us see how this works. The maximum amount that can be mined is 21 million Bitcoins. As per estimations, the complete 21 million mark is achievable by 2025. The more the mining is done, there would increase the more complexity of the mining procedure, unless there is nothing to mine and a limited supply of Bitcoins. Those bitcoins would work as a store of value as they are acting now, and they would work as a class of digital speculative assets.
Price Volatility
As the crypto market evolved, there were sudden and unexpected price hikes and slumps. This price fluctuation made it highly volatile in terms of crypto market pricing. At the start of 2013, Bitcoin was from $13.36 to $1124.76 just in nine months. This made a cumulation hike of 8000% plus an increase, posing high volatility in terms of pricing. Not only does it reward the good market speculators but has rewarded the diamond hands. Those hodlers who held Bitcoin since it was in the preliminary stages showed little or no signs of growth. What constitutes the higher price of the coin are those people who do not want to spend this in kind and thus sit on it and expect a multifold return. To stabilize the price
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