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Bitcoin Becoming a Medium of Exchange…


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“…It is only a matter of time”–Paul Ebeling

Macro strategist Lyn Alden believes that it is only a matter of time before the volatility of Bitcoin falls thereby enabling it to be a practical medium of exchange.

Currently, Ms. Alden says in a What Bitcoin Did podcast (below) that the flagship crypto asset fails as an “ideal medium of exchange.”

“In the really early phases, unless you specifically need censorship resistance or unless you’re in an unbanked environment, for a lot of people in developed countries Bitcoin is not the ideal medium of exchange. Unless they are de-platformed or they just really want to use it right um they’re they are super into it.”

According to the macro strategist, Bitcoin’s volatility will decline as the adoption level rises.

“If you go through five more of these cycles, and we’re 20 years in the future, and Bitcoin is more steady state, and it’s held by 30% of the world population, whatever number it is, you’d expect it to be a lot less volatile in that environment than it is now.”

Besides the low adoption rate, the macro strategist says that the speculation and leverage in the crypto market contribute to Bitcoin’s high volatility levels.

“[Bitcoin is right now] held by actually a pretty small percentage population, there’s hidden pockets of leverage in the system, like we’ve seen with some of these lenders. For example, it’s often used as collateral to make bets on altcoins and things like that. And so there are multiple things that can add or decrease volatility.

So when it goes up in price a lot, a lot of new people discover it for the first time. Or at this point, they’ve heard of it but they might not have really looked into it and they start to look into it again.

So there’s new buyers flooding in that add upward volatility and then when you get that leverage and that speculation, you get sharp downward volatility.”

Knightsbridge monitors cryptocurrencies as regulations and technology evolve. While some traders have made money on the change in price of Bitcoin or other cryptocurrencies, most investors continue to treat them as a speculative asset primarily for trading with money outside a traditional long-term portfolio.

The Knights Platform is an electronic network that links the trading floors of every relevant Crypto Exchange

Market participants, Brokers and market makers can take a price on any of the linked exchanges to find and execute the best price available. Eventually, as they are on boarded, a broker on the floor of one exchange could directly place an order through Knights rather than going through a broker on another exchange.

A tip of my hat to sovereign individuals with satoshis and Bitcoin in cold storage with our firm. Click here

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Have a prosperous weekend, Keep the Faith!

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Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.