Technically speaking, Bitcoin works much better than any value transfer system that has existed in the history of mankind. In view of this , it is puzzling that there is such a level of volatility in the exchange rate of Bitcoin .Bitcoin volatility is caused by a combination of several factors. First, is a new currency and , simultaneously , a new concept , so it carries a higher risk than "established" systems around which markets are organized. Second, the Bitcoin economy is still small
enough to react with large fluctuations to the movements of a handful of investors. Third, certain level of mysticism surrounding Bitcoin continues : there are few who really understand their rationale, and we can not expect this to suddenly change .
If it has not been overlooked root fault in a simple and elegant as Bitcoin system ( something increasingly unlikely ) , presumably temporary imbalances tend to overcome lapse ever shorter time. Bitcoin has many advantages over the known monetary systems. So if it is used if only a single purpose important enough (which might already be happening) , its utility will not disappear overnight .
While governments , legislators , banks and other powers that be do not find an effective way to cripple the Bitcoin economy (and unfortunately for them there is not) , it is expected that any devaluation motivated by a state / corporate attack is merely transitory , and then the price of bitcoin experience a rebound to even higher than previous levels .
How are governments contrive to ban criptomonedas and other distributed data exchange systems? So far they have only been able to block centralized websites, like The Pirate Bay. Needless to say that is not enough to curb a decentralized movement expanding.
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