According to Erik Voorhees, Bitcoin has become as stable as a large cap stock.
The ShapeShift CEO pointed out Bitcoin’s rise in stability, and how that development silences one of the foremost criticisms of the cryptocurrency’s early stages, via Twitter:
Bitcoin has achieved the stability of a large cap stock. This is immensely impressive and puts to rest one of the earliest criticisms.— Erik Voorhees (@ErikVoorhees) July 29, 2016
Bitcoin’s recent stability achievements
Contrasting with its previously infamous volatility, Bitcoin has displayed significant signs of maturing. During the lead-up to the United Kingdom’s vote to exit the European Union, Bitcoin tracked gold as a hedge against economic uncertainty, solidifying its place as a more reliable option than the traditional financial system.
Immediately after the Brexit vote the British pound’s volatility passed that of Bitcoin, making cryptocurrency a more attractive investment opportunity.
The old global financial system not doing so well
As Bitcoin continues to do better globally, the old financial systems run into more and more issues. Japanese Prime Minister Shinzo Abe announced a stimulus package for Japan to the tune of $265 billion, which is both a sign of continued economic stagnation and of future yen devaluation.
In Europe, Deutsche Bank estimates that EU banks, in particular those in Italy, require a $166 billion bailout, or else they could collapse. Because of these economic indicators, former US Federal Reserve Chairman Alan Greenspan predicts massive hyperinflation, and urged a return to the gold standard as sound money to prevent economic catastrophe. Meanwhile, 71% of Americans believe the economy is rigged, demonstrating a lack of faith in the old financial system. This could be a perfect time for Bitcoin to step in.