Question

1. Given all the volatility in the stock market, what are your thoughts on why there is so much volatility? Defend your position and why.

2. I'd also like to hear your thoughts on Bitcoin and cryptocurrencies and how it relates to the stock market.

Answer 1

1. Volatility in the change in the price or the returns involved in the stock price. The reason for volatility in the stock market is mainly due to the changes in the demand and supply in the market, the rapid changes in the information that available in the market, technological advances etc. As the external environmental and internal conditions of the company change, the return on the stock will change.

2. Bitcoin and cryptocurrency is a form of digital payment. It is not a physical currency and is virtual in nature. Of late there has been proposals to allow stock market trading in crypto currency as well. The Jamaican Stock market has already accepted cryptocurrency for stock trading. But this will increase the volatility on the stock market even more as the value of cryptocurrency is not fixed and keeps changing.