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October 3, 2022
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Frances Coppola: BTC volatility will not disappear –

Cointelegraph portal organized video debateattended by Bitcoion Skeptic Frances Coppola and Mike McGlone, Senior Commodities Strategist at Bloomberg. The conversation revolved around the subject of Bitcoin economics and market manipulation.

Frances Coppola vs. Mike McGlone

Coppola is skeptical about cryptocurrencies. He does not believe that Bitcoin will ever be successful as a store of value due to its high volatility. According to her, this phenomenon is directly related to the issue of digital currency supply.

– With a steady pace of supply growth (…) the only thing that can adapt to changes in demand is price She explained. Fluctuations in demand mean, in her opinion, that Bitcoin’s volatility will remain with us permanently.

In turn, the analyst McGlone believes that ultimately a constant supply of Bitcoin will lead to a decrease in price volatility, but we must wait for it.

– The simple rules of the market are such that you have supply and demand. Both factors are uncertain. This is what causes volatility – he explained. However, as he added, “according to the laws of economics, Bitcoin’s volatility should decrease “, but not until some time.

Watch out for Tether!

Another subject of debate was allegations that Tether’s stablecoin could be used to manipulate the Bitcoin market. According to McGlone, these allegations “they do not make sense”given that Tether’s market cap is only a tiny fraction of the value of the overall Bitcoin market.

– It’s like saying a little fish kicks a whale – he argued.

Coppola disagreed with this, pointing out that Bitcoin’s market capitalization includes a huge number of coins that are not in circulation.

– What Tether affects is flow [kapitału] – she said – So I think Tether can actually change the price [BTC] – she added.

Frances Coppola is a CoinDesk columnist and freelance writer. She has spoken about banking, finance and economics many times. Her book, The Case for People’s Quantitative Easing, explains how modern money creation and quantitative easing works. She is also a supporter of “helicopter money”, an economic solution that is based on giving money to people to help the economy recover from recession.

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