Bitcoin has emerged as one of the most novel methods to transact business in the present times. The dependency on this form of currency is increasing with time. The currency is available in the form of bitcoin and at the same time, it is available in the form of distributed ledger technology. In this situation, there is a further need to ensure the fact that the valuation of bitcoin is being done with the utmost amount of precision. However, ever since this cryptocurrency has been launched there has been an increase in the number of speculations that are being associated with the value. The value of the bitcoin has been fluctuating in these years. These fluctuations have not been like the ones which are seen in the share market.
There are usually different from them. In order words, the lesser degrees of jumps and falls which could be observed in the shares and stocks is completely negligible in front of this menace. When it comes to bitcoin, the fluctuations become of a greater degree and at the same time, it is in the position to speed up to a greater extent. The fluctuations which are prevalent in this phenomenon are so grave and so dwelling that it has the potential of changing the route of anybody’s fortune in the minimum possible time.
This is what we call instability. There is hardly any speculation which will prove the bitcoins to be stable. At the same time, there would be in the position to ensure that the person who is investing would be promised a greater return. This level of unsurety has become of the most important reasons as why a majority of the people of the world are unsure about making an investment in this field. However, there have to certain steps taken to stabilize the value of bitcoins.
Steps for Stabilising the Currency Value
The foremost steps which would be ideally taken to stabilise the value of the security have been summarised as follows:
- The first and foremost step which would play a determinative role in deciding the value of the currency is the authentication from the government.
- Once the government has given the status of legal tender to this form of currency there would be a limited degree of speculation and at the same time, the level of stability will be enhanced.
- The next step which should ideally be followed is an open sale and purchase of securities that are available in the form of bitcoins. This would help make the level of the transaction open in public. This would also enhance the level of trust.
- Regulation of the entire range of demand and supply plays an important role in ascertaining the functioning of the value system.
With these steps, a necessary amount of stability could be promised. This would be helpful to cater to the needs of the economy in the best possible manner. All these factors can prove that the bitcoin will become stable shortly if some points are kept in mind.