Will Bitcoin Always Be This Volatile? Answers from a Senior Economist at Deutsche Bank

According to Marion Laboure, a senior economist and market strategist at Deutsche Bank, humans have traditionally shown a great inclination to deposit their money in assets that are not regulated by governments or authorities. As a result, Laboure sees Bitcoin as “a type of digital gold” that individuals may use to keep their wealth. Ethereum, she continued, would be the “digital silver” if Bitcoin is often referred to as “digital gold.”

When it comes to volatility, Laboure claims that gold was formerly turbulent as well. She swiftly followed up with a word of warning. It’s crucial to remember that Bitcoin is hazardous and that it’s now too unpredictable to be a stable store of value, she added.

Laboure added, “expects it to remain ultra-volatile in the foreseeable future”.

Laboure outlined why she believes Bitcoin’s price will stay “ultra-volatile” in an extensive Q&A on DB.com. According to her, the primary reason for the volatility is that around two-thirds of Bitcoins are utilized for investments and speculation. “Second, because of its restricted tradability, a few more major purchases or market exits can dramatically alter the supply-demand balance,” she continued. The third reason, she added, is that the value of the world’s oldest cryptocurrency will fluctuate based on what people feel it is worth.

“Small changes in investors’ overall perceptions about Bitcoin can have a large impact on its price,” she explained.

While there are numerous concerns about the realm of cryptocurrencies, Laboure considers the absence of regulation to be the most serious. Furthermore, the top economist stated that the environmental harm is enormous. According to Laboure, Bitcon’s yearly power usage is comparable to that of a country with the population of Pakistan.


Laboure, on the other hand, believes that no other cryptocurrency will ever be as popular as Bitcoin. What is the cause behind this? She called it a “network effect,” and claimed Bitcoin took advantage of the first-mover advantage.

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