Perhaps, volatility is considered as the greatest setback for Bitcoin adoption worldwide. However, the recent report indicates that oil is more volatile than the crowning cryptocurrency, Bitcoin.
As per Coindesk which cited the stats of West Texas Intermediate (WTI), the volatility of oil stood at 105.3 percent in February. However at the end of January this year, oil has had a high ratio of volatility, i.e 119.6 percent. In contrast, the data from Skew markets reveal that the volatility of Bitcoin has dropped to 42.3 percent, a figure lower since September.
Noticeably, WTI’s volatility at the start of January was 38.7 percent and hit the height of 119.6 percent on Jan 27. Comparatively, Bitcoin has less traveled the path of volatility, it declined from 66 percent to 42 percent in mid-February.
However, in early 2019, a journalist shared his views via ‘the guardian media’ and stated that he has learned crypto trading from oil professionals. Oil and Bitcoin are the two most great targets of all the times. While the former has tangible uses, the latter is striving to chase greater adoption virtually.
In a similar report, it was mentioned that environmentalists predict oil could be “futureless and unnecessary”.
More so, with the latest reports into consideration, the oil price has become highly volatile due to two reasons. First being the US-Iran tensions, and, second, being the continued sell-off due to the burning issue of coronavirus. The first event led WTI rose from $61 to $65 within a few hours, on the other side, the second event dumped down WTI to $49.50.
Within a similar period, the price of Bitcoin rose from $6000 figure to a value of over $10000. With respect to these figures, Bitcoin’s historical volatility is said to lower than that of oil.
However, at press time, Bitcoin is currently trading at $9670.95 against USD, surging by 0.66 percent within the past 24Hrs. In contrast, a barrel of oil at the time of reporting this valued $54.40.