than the 15 drop of BTC. Both of these features will most likely be coming to bitcoin as layer two protocols in 2017. Here are the most important take-aways of the bitcoin volatility analysis based on our data:. Conclusions I started this study to double check my assumptions that bitcoin was well ahead of the pack in network effects. Its pretty clear that liquidity can be won very quickly. When I look at payment coins, I see that very strong economic network effects are in play. It might seem quite intuitive for you that high volatility coincides with high volume and price drop. Bitcoin price moves together with other cryptocurrency prices. I ran a check of 30-day volatility, and it varied between Thats literally off the charts, lightning network bitcoin explained so well need wait some time before we see any meaningful trends.

(3.51 bitcoin, volatility, index, charts vs Dollar More

All of these coins are well above 5m market cap, navCoin and others at less than 3m have been excluded. If you want to buy or sell a currency, and theres millions of buyers or sellers on the other side of the market wanting to take your order, you will see a very small change in price movement from your trade. This article originally appeared on Woos blog and has been republished with his permission. Disclaimer: This article is not intended to provide, and should not be taken as, investment advice. With high volatility, theres too much risk holding funds, and with insufficient liquidity, wallet recharge and merchant fees will be high. When comparing Bitcoin trading versus fiat currencies, we observe that BTC versus CNY is the most volatile market (Figure2).