Your post is great and i absorbed alot from it. The following are the points i am repeating again and again to memorize.
Both are durable. Neither gold nor cryptocurrencies "expire" in any meaningful way, like paper money does.
Both are fungible. Fungible currencies are ones where a specific unit can be replaced for any other. An ounce of gold is worth an ounce of gold once it is melted and purified. A Bitcoin is always worth whatever the market says Bitcoins are worth at the moment.
Both are scarce. There is a finite amount of gold on Earth. Likewise, the Bitcoin protocol stipulates a hard limit of 21 million BTC – the most that will ever exist.

Cause the market is volatile.

Great post. As a stock/options trader, volatility is very important to me...nice to read someone talking about its' implications for cryptocoins.

I would point out, though, as you fiat curreny ("paper money" as you put it) i extremely volatile as well..Almost 24/7, currencies from across the world are trading on the various forex exchanges. While it might easy to pass that off, because most of the times these changes are .001. But because it's currency that people and businesses use everyday, those small changes can most definitely have a large impact on the transactional value of that currency when doing something with your country's currency that involves another country and theirs.

With that said,  good post!

@ckcrytpoinvest great article 👌👍
Upvoted and following

Units must purchase pine sol before value diminishes.  Much pine sol @ckcryptoinvest

Thanks for an informative post! :)

Mining is causing difficulties to spike fast, do you think that will affect the volatility?

I have an analysis on cloud mining profits but its all subject to price volatility...

I have my analysis here if anyone wants to check it out
https://steemit.com/genesis/@corpsecreate/cloud-mining-profitability-analysis

Excellent article, with me - subscription.

This crypto market is wild. In order to make money from trading Altcoins one has to get in near the bottom on a red day and sell before everyone else dumps it. In the process those who missed their exit are stuck bagholding.

Good article, but it also has to do with the SegWit:
https://steemit.com/bitcoin/@cryptopaul/when-are-the-cryptocurrencies-going-up-again

Unlike tulips, you can spend Bitcoins and Ethereum tokens on goods and services. The reason that prices are volatile right now is because people can't spend their cryptocurrencies on any good or service. 

Back to back sentences that seem to contradict each other.  Which idea to you want to keep?

STEEM On!!

Dave

i followed you, pls follow me back, 
 anybody that follows me, i will follow him back,lets be active steemers and help each others

These cryptos are what we need today! Thank you for the post and information!

Quite an informative post.
So a time will come when speculation will be less profitable. I think I get that.

Its a good investment for near future. Believe it would be  new world currency such as current paper cash.

I think we overestimate the demand for stable cryptocurrencies. Many stablecoins have come and gone, and then we have the pegged bitUSD and the USDT IOU, but people use them only for hedging. Most people are interested in crypto because of potential capital gains, not the tech *per se*. Maybe things could change if there was a cryptocurrency which was stable and appreciated constantly and predictably in value, if it was marketed to the masses as such.

Very informative. Enjoyed reading this post.

one thing you didn't mention is that the coin prices are being manipulated by the community.  If you don't agree, review the trollbox chatter on btc-e.

Baron Rothschild, of the famous banking dynasty, said the best time to buy was " when there is blood in the streets.

Also, the technology hasn't quite met up with where the demand will be. Look no further than bitcoins "scaling issue."

Am i the only one seeing a bubble brewing with the cryptos?
With ICOs springing up all around and attracting the attention of gamblers as against investors (the difference is one places his fund based on evaluation while the other just wants to cash in with the boom) and once there is a little blip in the ride there would be moves to either take profit or cut loses which would further depress the prices as there would be more sellers than buyer (law of demand and supply kicks in), Because they are in for profit as against distruptive long term use. This would result in the demise of most cryptos but a few would bounce back stabilise and be there for the long haul.
Good risk/reward consideration and funds management is advised in the coming months .
Acceptability and use would ultimately determine intrinsic value and stabilize prices within a reasonable band

Very informative and detailed. I think there are some good points in here especially about volatility and tulipomania. We will just have to hope for some stability and a return to normality in the cryptocurrency market.

Really liked this post.
Thank you.

Thank you. This was very informative..

Thanks information :

Hey, good luck on your journey in our fine community! I'll follow your account to see how you doing :). Please follow me @nakedchef89.

Hey, good luck on your journey in our fine community! I'll follow your account to see how you doing :). Please follow me @nakedchef89.

Intersting words thanks a lot. Feeling better after reading ;-)

I am also confused trading since 3 month with 300%++ but was at 600%. I am buying and buying the right things now. And I think these days many coins are cheaper then ever.

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thanks

A lot of cryptocurrencies trade on low volumes. Any new information or bigger then average buy/sell-orders can have a more exacerbated impact in such an environment. Having not a lot of spending opportunities is helping neither. An article about (mass) adoption of innovative technology: https://steemit.com/bitcoin/@remyremy/a-50-drop-in-a-couple-of-days-and-a-35-recovery-in-24-hours-should-you-worry

People are waiting to get involved but are hesitating due to this volatility.  But they will come in eventually due to the Fiat currencies around the world.  People are waking up to the fact that while their purchasing power of these fiat currencies are heading down...Cryptos are moving steadily up (with large dips of course).

Is it safe to invest in cryptocurrency?

I get frustrated that speculation on so many coins over-rides the real value proposition, either over or under valuing them.  Look at the recent spate of ICOs, giving over millions of dollars to people based on nothing but a website and a white paper, while actual working coins are ignored; bizarre.

This was an excellent post and I agree with most of it except for some... Gold is also government owners in the sense of the world government being the Rothschild and other huge families. They literally have like 98% of gold stored away which will never be seen in day light in order to keep the prices inflated, same with diamonds. 

I think bitcoin will see a massive rise after august the 1st or somewhere in the first weak, it may even hit ATH once again, spectating and waiting to see. 

Thanks for the informative article.

I hope you like this post on similar lines:

https://steemit.com/cryptocurrency/@shrirang/where-are-cryptocurrencies-headed-in-rest-2017

Cryptos are still relatively new. I think new ICOs , profit taking and the next new thing increase the price volatility. I think they will stabilize more over time and cryptos are a great hedge against inflation. I prefer to buy and hold, so the dips give great buying opportunities. Thanks for posting.

who want it to stabilize, NOT ME! Big volitility = big money

If you want low volatility cryptocurrency you should check STABLE project ( https://stable.foundation/ ). We will create Stable token (“STB”), which construction is aimed at delivering much lower (about 5-10 times lower) price volatility than the most established tokens. Therefore we will provide a social service of closing price differences between different digital tokens markets and geographies via custom made algorithms. But we will not promise anyone to make 200%-300% profits. More details you can find on our web page (ICO is in progress). The Stable will have a form of ETH-based tokenized arbitrage hedge fund.

Very useful, thank yuo and follow

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Such a nice post. I just upvoted this post. Cheers :-)