Does Bitcoin’s historically low price volatility make it a currency yet?

Does Bitcoin’s historically low price volatility make it a currency yet?

The Bitcoin price has suffered greatly over the past year. At the same time, its volatility is at an all-time low. Will BTC critics finally admit it is a currency?

Crypto markets are recovering in January, but there is no certainty whether the bottom has been reached. Almost all major cryptocurrencies have risen by double digits on the seven-day chart.

Bitcoin price has risen over 20% and crossed the $20,000 mark.

Crypto Markets Explode to Start 2023: BTC Rises 23%

Crypto markets seem to be reacting positively to the latest CPI report. Official U.S. inflation measures pushed prices lower in December, calming global recession fears.

But the crypto price explosion still has a long way to go before anyone can talk about a steady recovery in Bitcoin price.

However, one interesting aspect of this crypto winter is the freeze in Bitcoin price volatility. Even with an overwhelming crypto price rally, Bitcoin's 24-hour price volatility has barely moved upwards.

While a recent report in Yahoo Finance speaks of Bitcoin's "Volatility Smile," the reader should be advised: The Volatility Smile article refers to crypto derivatives, Bitcoin put and call futures options.

Bitcoin price volatility itself has no wry smile on the charts heading into this mid-January weekend. The price remains very stable with a smooth arc while the original gangster crypto trades upwards.

Bitcoin volatility is at a long-term historical low

In the long term, Bitcoin's volatility has remained very stable in a historic downtrend for over a year. Some benefits of volatility are that it often accompanies an extended bull run, experienced crypto traders can make profits from it, and it incentivizes liquidity and attracts more capital to crypto.

So volatility isn't all bad. However, on the other hand, Bitcoin's critics say that it is not a currency due to its volatility. They argue that it cannot be used as a medium of exchange if it is worth significantly more or less in the afternoon than in the morning.

Well, that seems to be changing. Bitcoin price is stabilizing, although it is spending a few months looking for where to consolidate.

So since volatility is steadily decreasing, does that make BTC a currency? All the anti-Bitcoin people in Davos or on CNBC keep saying it's not a currency because it's too volatile. Who would buy coffee with it?

Now it is achieving greater daily price stability on a larger scale than ever before. Will any of the naysayers admit that it could one day become your household's daily driver? What if one of these years does before 2030? Will they then admit it (maybe even use it to grab their morning coffee)?

This is an opportune time to ask the question: Is Bitcoin already a currency?

Because when Bitcoin is in a bull market, its critics say it is too volatile to be a currency. When it's in a bear market, they say it's not an inflation hedge. Which one is it to spare the logicians of crypto critics from still having their cake and eating it too?

.