Every skeptic says the same thing: the bitcoin price is too volatile to be a real currency. And they’ve got a point. Bitcoin’s huge swings make it risky as an investment and difficult as a day-to-day payment method. But it’s slowly changing. As more money flows into bitcoin, it’s becoming less volatile. And that means it’s becoming better money.
As you can see, the graph shows extreme daily price movements are much less common in 2018 and 2019. BTC is growing more stable. CoinMetrics co-founder Nic Carter recently confirmed the trend, citing standard deviation, a common measure of market volatility.
In simple terms, bitcoin has grown more stable as more money enters the cryptocurrency market. With a larger market capitalization, bigger sums of money are required to move the price.