Record-breaking Olympic champion Michael Phelps (top R) and members of the U.S. National Swim Team participate in Surf Passage at Naval Special Warfare Center at Naval Amphibious Base Coronado, California, March 19, 2009. This is one of several physically demanding evolutions the team went through as they experienced a morning in the life of a Basic Underwater Demolition/SEAL student. The Basic Underwater Demolition/SEAL program is a 6-month training course where more than half the students are eliminated during a rigorous

  • Bitcoin has been plagued by extreme volatility.
  • European COO of exchange BitFlyer says big moves down to the relative size of bitcoin market compared to other assets.
  • Foreign exchange is like an “oil tanker on the open sea,” while “bitcoin, relatively speaking, is like a dinghy.”
  • Expects volatility to decline as the cryptocurrency grows.

LONDON — Why is bitcoin so volatile?

The cryptocurrency captured headlines in the run-up to Christmas due to its rapid rise, climbing from around $5,000 at the start of November to a high above $19,000 in December?

It fell back from its highs and a cryptocurrency “bloodbath” in recent weeks has seen it fall back to around $10,000. Moves of 5% or even 10% on a day are not unusual.

Critics claim that the currencies extreme volatility make it not fit for purpose as a method of exchange and some retailers have in fact stopped accepting it as a result.

But Andy Bryant, the European COO of bitcoin exchange BitFlyer, says that the current volatility is simply a symptom of bitcoin’s evolution and will not be a permanent feature.

“Of course, objectively, bitcoin is volatile,” Bryant told Business Insider. “But when I talk about volatility I like to zoom out a bit and take a step back. Bitcoin as an asset class is still only, give or take, $200 billion. Cryptocurrency as a whole, including bitcoin, is $600 billion.”

Andy Bryant, COO, bitFlyer Europe 1“If you look at just one company, Apple, they’re $900 billion. Bitcoin is less than a quarter of an Apple. It’s only two Warren Buffets.

“You could keep going — look at the global gold market, $8 trillion; global stock markets are $75 trillion; global currency markets $90 trillion; real estate is $200 trillion, that’s already 1,000 times bitcoin’s market Read More Here