, journalist Timothy Lee penned a polemic about the perils of Bitcoin volatility, however, sought to reassure readers that this was largely due to its relative infancy, and the fact that it was, at the time of writing, a “startup currency”.
Whilst for many traders, volatility is the primary incentive for them to participate in the financial markets, there are those for whom the volatility inherent to Bitcoin and the wider crypto market serves as an obstacle to adoption; it can lead to reticence and a reluctance to enter the digital asset investment space, with risk-averse traders seeking the safety and security of more stable, stationary assets.
The opportunities presented by market volatility are so well established, and experienced traders have been savvy to them for so long, that ____of the most widely used and well-known trading strategies which investors employ to capitalize on market fluctuations. The implications of this are profound and particularly pertinent to the crypto markets; trading the Bitcoin VIX, for example, means that investors don’t need to speculate on which way the price of Bitcoin will move - an endeavor reminiscent of Warren Buffett’s infamous “Monkeys throwing darts” axiom. Rather, all they will need to do is take a view on whether there will be volatility in the markets at all - a far more probable proposition.