What is The Bitcoin Volatility Index?
What is volatility?
Why is volatility important?
Volatility means that an asset is risky to hold—on any given day, its value may go up or down substantially.
The more volatile an asset, the more people will want to limit their exposure to it, either by simply not holding it or by hedging.
Volatility also increases the cost of hedging, which is a major contributor to the price of merchant services.
If Bitcoin volatility decreases, the cost of converting into and out of Bitcoin will decrease as well.