Topic: Bitcoin monetary policy (Read 349 times)
Imo, all the markets are volatile. Though, crypto may be the most volatile but forex and stocks are also volatile. It is important that one knows how to identify potential opportunities for making profits.
Easily volatility. If I wanted regular boring investment, I would have invested into stock market and would make money that way, why would I do something like that when it is a lot easier to make a profit this way?
It's clear to me that the best way to make money right now would be to wait and earn that INSANE return, because crypto will be like that very soon, we have been down for nearly a year right now, or it is getting there at least during this Q4, and the return will be something crazy like 10x or even more.
Stable would mean that all of that would be gone, and what's the point of crypto investment if we are not going to lose a lot and earn a lot, we need to get that high ups and downs to make it different.
It's clear to me that the best way to make money right now would be to wait and earn that INSANE return, because crypto will be like that very soon, we have been down for nearly a year right now, or it is getting there at least during this Q4, and the return will be something crazy like 10x or even more.
Stable would mean that all of that would be gone, and what's the point of crypto investment if we are not going to lose a lot and earn a lot, we need to get that high ups and downs to make it different.
That's a good question, actually. I thought of it before, and I think I'd be okay with a stable reasonable price (say, $40k). That would be good for adoption and usage of Bitcoin as money, and it would make people less afraid of Bitcoin because it wouldn't be so volatile. But I also know a person whose well-being basically depends on the constant growth of Bitcoin and the ability to sell and high points and stay with reasonable savings for the future. And volatility is what attracts both traders and investors. Also, I can't say that I mind it when Bitcoin rises, it doesn't hurt to have more than you used to have. So I'm okay with it being volatile, but I guess it would be better if it didn't lose as much value and in return grew at a slower rate.
A bull or a bear, there will always be a topic for it on this forum because this is a bitcoin forum so people here must track all the on going movements of this coin but those who complains and dislikes the bear or the fall in the price are clearly came here for the profit and not because of the technology of it. All they want all the time is to earn but they can not accept losing which is not a normal thinking anymore but in any types of business, there must always be a risk. Btc is volatile but it is already proven to be successful since it got this far (over 13 yrs of existence) and most of the feedbacks are also positive. This is what makes it unique to other normal currencies.
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If you look for example now at bounty payments, campaigns that pay in usd are in a shitty position since they run out of btc quickly and vice versa. A more stable currency makes your business more predictable and therefore more successful.
They are in a shitty position because their project are simply shitty as well. They don't run out of btc, because they didn't held any btc at the first place since bounty campaigns only pays in tokens but they only do an estimation in the form usd. Being successful or predictable isn't about the stableness of the currency but it's about how they develop their projects. For those looking to escape living their life pay check to pay check, then volatility makes sense if they can time it right. For those that want massive amounts of adoption, and also consumer confidence, a steady price is what you want.
For me, I'm comfortable with Bitcoin being volatile for the time being. However, in the future I would want, and expect it to become a more stable currency. It's basically designed this way, as time goes on, and less Bitcoin is being mined, and therefore introduced into the network, the less volatile it becomes. You can almost compare block rewards like printing money off, expect it's already preplanned in Bitcoin to have these injections, and it gets smaller as time goes on, until it's no longer anything. However, for the short term while we do have these mini injections, we see somewhat the same as if the governments printed money off in fiat. We get a sudden increase in the amount of Bitcoin available, which theoretically pushes prices down, because while the demand might still be the same, there's ultimately more coins in the network.
When block rewards are gone, Bitcoin should theoretically become very stable.
I would guess that both could happen together, doesn't really require anything changing from the current market. How? Well, simple really, people who are looking to espace paycheck to paycheck could end up liking a stable bitcoin which goes up decently without much volatility, doesn't need to make like 10x profits like it does now but shouldn't crash neither.For me, I'm comfortable with Bitcoin being volatile for the time being. However, in the future I would want, and expect it to become a more stable currency. It's basically designed this way, as time goes on, and less Bitcoin is being mined, and therefore introduced into the network, the less volatile it becomes. You can almost compare block rewards like printing money off, expect it's already preplanned in Bitcoin to have these injections, and it gets smaller as time goes on, until it's no longer anything. However, for the short term while we do have these mini injections, we see somewhat the same as if the governments printed money off in fiat. We get a sudden increase in the amount of Bitcoin available, which theoretically pushes prices down, because while the demand might still be the same, there's ultimately more coins in the network.
When block rewards are gone, Bitcoin should theoretically become very stable.
Or, if we can't stop the volatility, then people who want adoption could get it adopted a lot via either volatility being a good thing, or stablecoins like USDT or BUSD offering more stable entrance to crypto for other people. So we could have both of those people in this current market.
The world of cryptocurrency is dependent on Volatility. For example, if the price of Bitcoin was as stable as it was in 2013, I don't think Bitcoin could raise such a hype. Not only this , Traders are also trade based on volatility, but agree that high volatility often puts us at risk.
I will disagree with this. There could have been the same hype but with different people. We could have seen a hyoe under small business owners to accept bitcoin. Instead we saw a hype for speculators who want to make money and started to see less and less adoption by business since the value was to unsteady and it was for example impossible to write a price tag because the price changes to fast.
The world of cryptocurrency is dependent on Volatility. For example, if the price of Bitcoin was as stable as it was in 2013, I don't think Bitcoin could raise such a hype. Not only this , Traders are also trade based on volatility, but agree that high volatility often puts us at risk.
I don't know why these attributes are only called Bitcoin when all products on the market are subject to the same standards. I believe that the current situation of the market is the reason for spreading concerns about Bitcoin, which is what prompts people to do more reviews and analyzes, but I do not think that this allows Bitcoin to be removed from its general framework as a virtual product, that is, it does not have a physical presence and is subject to all these standards like other products .
For those looking to escape living their life pay check to pay check, then volatility makes sense if they can time it right. For those that want massive amounts of adoption, and also consumer confidence, a steady price is what you want.
For me, I'm comfortable with Bitcoin being volatile for the time being. However, in the future I would want, and expect it to become a more stable currency. It's basically designed this way, as time goes on, and less Bitcoin is being mined, and therefore introduced into the network, the less volatile it becomes. You can almost compare block rewards like printing money off, expect it's already preplanned in Bitcoin to have these injections, and it gets smaller as time goes on, until it's no longer anything. However, for the short term while we do have these mini injections, we see somewhat the same as if the governments printed money off in fiat. We get a sudden increase in the amount of Bitcoin available, which theoretically pushes prices down, because while the demand might still be the same, there's ultimately more coins in the network.
When block rewards are gone, Bitcoin should theoretically become very stable.
For me, I'm comfortable with Bitcoin being volatile for the time being. However, in the future I would want, and expect it to become a more stable currency. It's basically designed this way, as time goes on, and less Bitcoin is being mined, and therefore introduced into the network, the less volatile it becomes. You can almost compare block rewards like printing money off, expect it's already preplanned in Bitcoin to have these injections, and it gets smaller as time goes on, until it's no longer anything. However, for the short term while we do have these mini injections, we see somewhat the same as if the governments printed money off in fiat. We get a sudden increase in the amount of Bitcoin available, which theoretically pushes prices down, because while the demand might still be the same, there's ultimately more coins in the network.
When block rewards are gone, Bitcoin should theoretically become very stable.
What would you do if you could influence the monetary policy of bitcoin?
1. Since I know that Bitcoin's "monetary policy" cannot be influenced like that, the answer is irrelevant.
2. I will add that since Bitcoin is not a company or government, nor a stable coin, it doesn't have and it doesn't care about "monetary policy"
3. Even fiat currencies are not stable, so the "steady price" is some fairy tale situation.
4. Less wild fluctuations of the price are supposed to be seen as a sign of maturity and are supposed to happen in the not so far future. It's not "steady price", but still.
5. Like in Forex, seasoned traders will be able to squeeze profits even from small fluctuations of the price, also some will lose money even there. Your logic looks flawed.
But what if you promised to pay a specific rate in bitcoin for example 0.002 BTC per week. If the price does rise than you will have to pay more than you would have planned. Same goes if you promise to pay in USD but hold BTC. And yes you can argue that you can exchange all the currency needed at the beginning of the campaign, but thats not possible if your campaign runs for a long time. Also campaigns are just one example of even more complicated examples in the real Business world.
After writing this I was thinking that you are right because normally in the capaigns funds are sent in escrow, let's see an example:
This will be a long-lasting campaign with planned duration of a minimum of 6 months.
To prove the company’s seriousness, 2 months’ worth of funds have already been escrowed (18k$ in current BTC price).
The escrowed funds are already under our control and can be seen at the following wallet address.
To prove the company’s seriousness, 2 months’ worth of funds have already been escrowed (18k$ in current BTC price).
The escrowed funds are already under our control and can be seen at the following wallet address.
Code:
bc1qrajyse6qjt2w8a8qnjmetdh9fhafxf6x0fgsf5d6x6gvjgnkl3js9p2qkn
As this was written on June 9, the drop in the price affects, as the campaign pays the equivalent in USD, so you were right I think. I don't know if it works this way in all cases but we see that at least in some cases it does.
Since the price has gone down drastically many new topics arise in this forum about disappointed members that think bitcoin will fail or will never recover from this. This makes me wonder if people are in the Bitcoin ecosystem because they want to make money.
Our dear bitcoin has deviated from the original reason it was created. Even the creator didn't know bitcoin will turn out to be like this. But that is technology for you, it can evolve to what you don't anticipate.
So, the original idea of satoshi was that bitcoin will be a currency. Bur it's good we have seen it also as an investment opportunity.
But 95% of the users of bitcoin are either using it as investment and waiting for it to appreciate or they are using it because of some kind of anonymity they can achieve with bitcoin. Others bitcoin of liberty to control their wealth, it is very few that is using it as currency. Assuming we are all using it as currency, we shouldn't be crying much during bear market. Though even in fiat we save but without expectation of increment. This cannot be said of fiat and it is a great advantage of bitcoin over fiat.
Stability looks good but in the current situation of Bitcoin where it has not been globally adopted yet, I think I will go with volatility. With volatility, the market will never be boring. It also caters to more investors which can be a pillar of the future of Bitcoin. Let it be a speculative investment until global adoption is achieved. When that happen the market itself will give way to the path of price stability.
If you look for example now at bounty payments, campaigns that pay in usd are in a shitty position since they run out of btc quickly and vice versa.
That makes no sense. If you have to pay $1K in Bitcoin, on the day of payment you exchange the fiat or stable coin you have for Bitcoin and that's it, no matter the change in price.
But what if you promised to pay a specific rate in bitcoin for example 0.002 BTC per week. If the price does rise than you will have to pay more than you would have planned. Same goes if you promise to pay in USD but hold BTC. And yes you can argue that you can exchange all the currency needed at the beginning of the campaign, but thats not possible if your campaign runs for a long time. Also campaigns are just one example of even more complicated examples in the real Business world.
If you look for example now at bounty payments, campaigns that pay in usd are in a shitty position since they run out of btc quickly and vice versa.
That makes no sense. If you have to pay $1K in Bitcoin, on the day of payment you exchange the fiat or stable coin you have for Bitcoin and that's it, no matter the change in price.
What would you do if you could influence the monetary policy of bitcoin?
There is no monetary policy because Bitcoin does not depend on a centralized entity that varies the Bitcoin issued according to political decisions.
The theory is that going forward, as the price goes up and Bitcoin is adopted by more people, the volatility will go down, but that does not depend on the decision of certain people, as it does with the ECB's monetary policy.
When a person cannot control the price of bitcoin he/she runs to create an alternative. One that won't solve a problem at hand. In my opinion, stabilizing bitcoin is close to impossible. No central body that can carry out the decision on bitcoin that's why Satoshi made it decentralized. I think "decentralization" is the first word a trader or investor gets as an answer on bitcoin. However, if the control of bitcoin is in my power I'll rather leave it the way it was made. Or provide a means to stabilize bitcoin on a certain price for a long time such that the price falls in smaller amounts. A process that will affect bitcoin's price growth too. But, the world will love bitcoin if it rises too high and plunges afterwards. Than, rotating on a small amount of profits and loss. The market is filled with traders who are ready to take the big profit and scared of the huge loss in profit.
Since most people aren't aware of how bitcoins work, I prefer for them to experience volatility first then they can decide whether to stay in the industry or not but when the time comes bitcoins will gonna be expanding its popularity, we only see a few of event where the volatility occur and most of the time it will gonna have a stable price like we had last year when after the bull run season. Right now is another trial and only strong investors that have already experienced such kind of scenario in the past will stay and gonna invest more later.
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The world of cryptocurrency is dependent on Volatility. For example, if the price of Bitcoin was as stable as it was in 2013, I don't think Bitcoin could raise such a hype. Not only this , Traders are also trade based on volatility, but agree that high volatility often puts us at risk.
I agree with you, i can say with all seriousness that the volatility (no matter what other persons think or say) has done Bitcoin more good than harm, the volatility in the price of Bitcoin and cryptocurrencies in general is actually a blessing in disguise, but this blessings can only be tapped into by those who take their earnest time to learn how to turn the volatility into profit rather than loss.The high volatility in the price of Bitcoin and cryptocurrencies in general has brought alot of popularity to this space than it would have if prices were relatively stable, alot of people has made alot of money in the shortest period of time through the unstable prices of bitcoin and every other crypto coin out there, cryptocurrency trading is highly profitable(as well as risky) because prices are highly unstable, to cut out the risky part, and turn your cryptocurrency venture into a highly profitable one, all one have to do is learn the basics, research more and invest wisely.
The world of cryptocurrency is dependent on Volatility. For example, if the price of Bitcoin was as stable as it was in 2013, I don't think Bitcoin could raise such a hype. Not only this , Traders are also trade based on volatility, but agree that high volatility often puts us at risk.
As if it had not happened before. I'm sure majority of those who complain are the ones who have not experienced this back in 2018. If they got in Bitcoin trading this 2021, this is the first time they see how disappointing the bear market. The 2nd time around, they may get used to it already.
Steady price will not encourage holders.
Steady price is not going to make investors richer but traders will be force to go for leverage trading in hopes to a tiny spike can make them more money. But with volatility, its all about both for holders who has patience and people with trading skills.
Steady price will not encourage holders.
Steady price is not going to make investors richer but traders will be force to go for leverage trading in hopes to a tiny spike can make them more money. But with volatility, its all about both for holders who has patience and people with trading skills.
The level of BTC has been traded could Increase in the coming hours/Days..? Any Thought's
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