One of the main criticisms of Bitcoin as a currency has been price volatility. While most people are attracted to the low costs and quick settlement offered by the blockchain, those same individuals do not like the idea of holding on to an asset that has sometimes lost large chunks of value within short periods of time.
Price volatility has definitely been an issue for mainstream adoption up to this point, but Gemini cofounder and president Cameron Winklevoss does not believe this problem will last forever. At SXSW Interactive 2016 in March, Winklevoss claimed, “[Price volatility] is less and less an issue every day.”
Bitcoin Is Not a Mature Market
Winklevoss was interviewed alongside his brother Tyler by Freemit CEO John Biggs at SXSW, and he was happy to answer questions related to trends in Bitcoin’s price. In Winklevoss’s view, one of the main problems currently holding back price stability is the fact that Bitcoin is not a mature market with advanced hedging methods. He explained:
“It’s not yet a mature market. It does not have mature hedging tools. Equity markets are volatile, but there are always ways to hedge with derivatives. There are all sorts of instruments that don’t