Bitcoin Volatility | Bitcointalksearch.org

Argoo

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Quote from: GreatArkansas on April 01, 2023, 04:10:10 AM

Quote from: alastantiger on March 31, 2023, 12:23:49 PM

(....)
My query is: How will Bitcoin's volatility diminish over time, or what is the single biggest element that could result in a reduction in Bitcoin's volatility?

I am also curious about this what if in the future the market cap of Bitcoin is already huge just like already x10 or more of the market cap right now?
And another thing is what if the block rewards are already also very few?

I am thinking of as the market develops and adoption rises, bitcoin's volatility may decrease over time.

There is an opinion that with an increase in the adoption of bitcoin and its liquidity, price volatility will decrease. But I believe that volatility will always be a hallmark of this market in all its stages. But how it will actually be, time will tell.

But due to the high price volatility of the cryptocurrency market, you can make good profits in a short time, and this is what attracts a significant part of its participants. If it were not for the high price volatility of the cryptocurrency, it would not cause such great interest among people.

Gyfts

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Quote from: Fullcoinese on April 01, 2023, 09:46:23 AM

Quote from: alastantiger on March 31, 2023, 12:23:49 PM

My query is: How will Bitcoin's volatility diminish over time, or what is the single biggest element that could result in a reduction in Bitcoin's volatility?

Bitcoin's volatility is a turn-off for those who are not used to fast-moving markets. maybe those who are familiar with the stock market and gold will indeed avoid the Bitcoin market because of the high volatility. but not too different. the stock market also sometimes has extraordinary movements when something happens to the project. and it affects the stock price.
I'm not sure this volatility can be suppressed or controlled. but what I realized, many of them entered the Bitcoin market because of the volatility that gave them the urge to play in the market.

Not every Bitcoin user is using it as an investment, though. It's not reasonable to expect someone who relies on Bitcoin for their finances to have large shifts in their purchasing power so I understand where the concern is. IMO it's Bitcoin's biggest hurdle to widespread adoption. I do offer the counter point to concerns of volatility that Bitcoin's deflationary nature will insure that the purchasing power you have with crypto won't systematically be decreased by any central authority. No one can predict the inflation rate so it's not as if fiat doesn't have its own volatility issue. If you're dealing with unstable government, the currency can only exist as long as the government exists. There's nothing more unstable for fiat currencies than regime changes.

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Quote from: alastantiger on March 31, 2023, 12:23:49 PM

Bitcoin's volatility is one of its features that turns off a lot of people. When someone expresses interest in investing, the majority of financial counselors advise them to avoid doing this. Because it is one of the most volatile assets ever, I believe that is why the adage "invest only what you can afford to lose" exists.

My query is: How will Bitcoin's volatility diminish over time, or what is the single biggest element that could result in a reduction in Bitcoin's volatility?

In any form of investment, risk would be present. And to most of the assets, expect volatility in the market price simply because the value depends on demand from the majority and demand on the other hand is changing because of several factors. Many people are indeed being scared or worried of engaging towarda this technology for the same concern but for sure many people stayed because of market price volatility. Investors have taken advantage of these changes because it simply generates profit faster than with other kinds of investment. Problem is people seek for what's easily earned which is why they do complain to such characteristic of this technology. Unfortunately, we cannot do something about it and no one's required to do it as well.

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Quote from: alastantiger on March 31, 2023, 12:23:49 PM

Bitcoin's volatility is one of its features that turns off a lot of people. When someone expresses interest in investing, the majority of financial counselors advise them to avoid doing this. Because it is one of the most volatile assets ever

Financial counselors are naive to the potential of Bitcoin being volatile and the opportunity that comes with it cause the same volatility nature of Bitcoin is the reason why it's the world's most profitable asset.

Quote from: alastantiger on March 31, 2023, 12:23:49 PM

I believe that is why the adage "invest only what you can afford to lose" exists.

The adage is to prevent investors from greed and make them focus more on risk management.

Quote from: alastantiger on March 31, 2023, 12:23:49 PM

My query is: How will Bitcoin's volatility diminish over time, or what is the single biggest element that could result in a reduction in Bitcoin's volatility?

I believe the volatility of the Bitcoin market can only decrease when all 21 million coins are mine. People will value their BTC more and there's going to be high demand and little supply.

Fullcoinese

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Quote from: alastantiger on March 31, 2023, 12:23:49 PM

My query is: How will Bitcoin's volatility diminish over time, or what is the single biggest element that could result in a reduction in Bitcoin's volatility?

Bitcoin's volatility is a turn-off for those who are not used to fast-moving markets. maybe those who are familiar with the stock market and gold will indeed avoid the Bitcoin market because of the high volatility. but not too different. the stock market also sometimes has extraordinary movements when something happens to the project. and it affects the stock price.
I'm not sure this volatility can be suppressed or controlled. but what I realized, many of them entered the Bitcoin market because of the volatility that gave them the urge to play in the market.

dimonstration

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Quote from: alastantiger on March 31, 2023, 12:23:49 PM

Bitcoin's volatility is one of its features that turns off a lot of people. When someone expresses interest in investing, the majority of financial counselors advise them to avoid doing this. Because it is one of the most volatile assets ever, I believe that is why the adage "invest only what you can afford to lose" exists.

My query is: How will Bitcoin's volatility diminish over time, or what is the single biggest element that could result in a reduction in Bitcoin's volatility?

Bitcoin volatility is the main reason why many people is interested on Bitcoin aside from the privacy feature. Bitcoin will not reach the current price from scratch if it’s price is not volatile and many people preferred Bitcoin this way for an easy growth on investment. Only regulators and Bitcoin critics usually use the volatility against Bitcoin while its beneficial if the volatility is continuously on the upside.

Bitcoin volatility will diminish if the Bitcoin supply will be evenly distributed to multiple user and not the current situation which many whale holders such as exchange, institutional investors and whales holds the majority of Bitcoin that can give huge impact to the price once they move their asset.

kryptqnick

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If Bitcoin wasn't volatile, it wouldn't be of interest to traders at all. As for long-term investors, they shouldn't worry over temporary changes as long as the general tendency of growth is there. Furthermore, I think Bitcoin doesn't have an issue of being not popular enough. It's been called the most successful performing asset a couple of times now based on its price dymanics over a certain period of time and Bitcoin continues growing over time, so there's enough interest to fuel that growth.
It's also worth noting that Bitcoin's volatility is pretty low during long periods, actually. It can stay within a small price range for a few months (like it stayed at around $20k in September and October, and then it was around $17k in November and December, and there've been longer relatively stable periods years ago), so it's not that bad, especially when you get used to it.

AnonBitCoiner

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People think volatility as a dangerous feature of bitcoin but actually volatility is a good feature for those who desires to make investment in it because at higher price investment become risky. To cope with volatility it is necessary to hold bitcoin for lengthy time so therefore you will have no worries about the price's ups and downs.

A successful man is always a risk taker so if you are able to tolerate tough situation then success will be your fortune. Bitcoin is volatile but it always gives a positive outcomes to its user, some people loses money due to investment in bitcoin, the reason is not the volatility but the reason is their little knowledge and their quick decision during bear season.

As you know that in previous year the Bitcoin's price was very low but it doesn't persist for longer time and now it very high. Therefore a successful man is that who has patience at the time of lowering worth.

ilovealtcoins

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On the contrary, I like its volatility, if it is stable like gold, I will invest in gold instead of bitcoin because gold is safer and equally profitable. Those who don't like the volatility of bitcoin can consider other assets like gold, don't invest in bitcoin if you don't like the roller coaster feeling.

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Quote from: alastantiger on March 31, 2023, 12:23:49 PM

Bitcoin's volatility is one of its features that turns off a lot of people. When someone expresses interest in investing, the majority of financial counselors advise them to avoid doing this. Because it is one of the most volatile assets ever, I believe that is why the adage "invest only what you can afford to lose" exists.

My query is: How will Bitcoin's volatility diminish over time, or what is the single biggest element that could result in a reduction in Bitcoin's volatility?

Yeah, the volatility is what making people take a look back and walk away, because they can't bear the price jumping up and down. The volatility is often of the biggest concern when it comes to crypto currency investment. But this should only be a problem to those are willing to hold short term and sell it quick. If those holders see the chart, they will realize that no matter what the volatility was, in the long run, it only went up. But this is for those that are going to use bitcoin as a store of value. Anyone that is going to use bitcoin as a regular currency, will actually avoid using it. One way to reduce Bitcoin's volatility is mainstream adoption. As more people use it for everyday transactions (instead of holding it and dumping it whenever they feel like), the demand and price fluctuations may become more predictable.

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Quote from: alastantiger on March 31, 2023, 12:23:49 PM

Bitcoin's volatility is one of its features that turns off a lot of people. When someone expresses interest in investing, the majority of financial counselors advise them to avoid doing this. Because it is one of the most volatile assets ever, I believe that is why the adage "invest only what you can afford to lose" exists.

My query is: How will Bitcoin's volatility diminish over time, or what is the single biggest element that could result in a reduction in Bitcoin's volatility?

Ohh finally something decent and good to talk about, so let's start with the Bitcoin volatility and community attraction. I do agree that bitcoins volatility is the reason that many people invest in the Bitcoin market with appropriate time to make money as they belive in the bitcoin cycle and demand-to-supply efficient model. Things are changed now you can see in the crypto market from 2021 back to back stable coins are behaving crazily and these incidents put more of a bad impact on the investors most of them even myself too consider that Bitcoin is more stable as compared to crypto market Stablecoin and even with the rage of Inflation you can say that I coming days Bitcoin will be more effective, efficient and stable than fiat money.

The point when you compare the trust ratio the stablecoins lost their reputation in the market and I am expecting that at a particular time, the most Shaddy stable coin USDT will be the reason for the market crash and I am expecting that time very soon.

fenixosup

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I think that bitcoin will always be volatile because it's nature. A lot of people are here because of it

HedgeFx

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Quote from: alastantiger on March 31, 2023, 12:23:49 PM

My query is: How will Bitcoin's volatility diminish over time, or what is the single biggest element that could result in a reduction in Bitcoin's volatility?

Volatility usually increases when there is interest in an asset, or in periods in which emotion increases due to factors external to the asset (wars, government crises, etc.). It is therefore difficult to find a solution to decrease the volatility of an asset that is still "young" like bitcoin and therefore more exposed to speculation.

GreatArkansas

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Quote from: alastantiger on March 31, 2023, 12:23:49 PM

(....)
My query is: How will Bitcoin's volatility diminish over time, or what is the single biggest element that could result in a reduction in Bitcoin's volatility?

I am also curious about this what if in the future the market cap of Bitcoin is already huge just like already x10 or more of the market cap right now?
And another thing is what if the block rewards are already also very few?

I am thinking of as the market develops and adoption rises, bitcoin's volatility may decrease over time.

Z-tight

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Quote from: alastantiger on March 31, 2023, 12:23:49 PM

How will Bitcoin's volatility diminish over time, or what is the single biggest element that could result in a reduction in Bitcoin's volatility?

I think adoption of more strong hands than weak hands may make BTC to be less volatile. Fud and fomo are two reasons i think BTC's price moves up and down so much, Fud is when weak hands start dumping their BTC's in exchange for shitcoins on centralized exchanges or liquidating it for fiat, this makes the price to drop fast. Fomo is when people who refused to buy when the price is low and a little bit stable start rushing to buy when there is a sign of a pump, this makes the price to rise very fast. Because of these reasons, i think if we have 80% or more bitcoiners who are strong hands, volatility may reduce.

Salahmu

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The volatility is based on supply chain, when the demand is high the market becomes volatile, but is actually good for traders were as they make more money when the price is not stable. If there was know Volatility and its value remain the same, many people couldn't buy it as it price won't pump. Same thing to hodlers of bitcoin where they can't profit if it isn't volatile.

Ultegra134

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Quote from: Lorence.xD on April 01, 2023, 12:26:51 AM

Quote from: drwhobox on March 31, 2023, 06:45:33 PM

Quote from: alastantiger on March 31, 2023, 12:23:49 PM

Bitcoin's volatility is one of its features that turns off a lot of people. When someone expresses interest in investing, the majority of financial counselors advise them to avoid doing this. Because it is one of the most volatile assets ever, I believe that is why the adage "invest only what you can afford to lose" exists.

Agreed, I saw people avoid bitcoin because of its volatility, but I love bitcoin for that. Volatility gives me more chances to buy bitcoin and store them for the future. I don't know which financial counselors advise people not to invest in bitcoin but I am sure that those so called gurus don't have any prior knowledge about finance.

That's the point of Bitcoin's volatility. If its price doesn't change for a long time which its value remain the same, many people couldn't buy its price as it won't pump. Same thing to hodlers of bitcoin where they can't profit if it isn't volatile. It's volatility increases more the possibility of benefits especially if you have prior knowledge and experience about Bitcoin.

If you don't have those knowledge and experience about how Bitcoin works, then it's volatility can be deadly for you and those losses that you get would benefit more to others.

What's the point of Bitcoin, or any kind of investment, if the price remains stable? Investments are supposed to yield results based on price fluctuations; if Bitcoin was somehow, hypothetically speaking, a stable currency, it wouldn't be what it is today, and investors wouldn't be intrigued by it. Even fiat currencies are volatile; a simple check at the EUR/USD exchange rate in the past two years speaks for itself. We wouldn't hold Bitcoin if we weren't anticipating a price increase in the upcoming years either.

Lorence.xD

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Quote from: drwhobox on March 31, 2023, 06:45:33 PM

Quote from: alastantiger on March 31, 2023, 12:23:49 PM

Bitcoin's volatility is one of its features that turns off a lot of people. When someone expresses interest in investing, the majority of financial counselors advise them to avoid doing this. Because it is one of the most volatile assets ever, I believe that is why the adage "invest only what you can afford to lose" exists.

Agreed, I saw people avoid bitcoin because of its volatility, but I love bitcoin for that. Volatility gives me more chances to buy bitcoin and store them for the future. I don't know which financial counselors advise people not to invest in bitcoin but I am sure that those so called gurus don't have any prior knowledge about finance.

That's the point of Bitcoin's volatility. If its price doesn't change for a long time which its value remain the same, many people couldn't buy its price as it won't pump. Same thing to hodlers of bitcoin where they can't profit if it isn't volatile. It's volatility increases more the possibility of benefits especially if you have prior knowledge and experience about Bitcoin.

If you don't have those knowledge and experience about how Bitcoin works, then it's volatility can be deadly for you and those losses that you get would benefit more to others.

Solosanz

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The current Bitcoin marketcap is $552,393,326,519 which is really high to manipulate it, the government can print new money but it will increase inflation rate. When the Bitcoin circulation supply already near to 21 Millions and the demand is high, the Bitcoin price will keep increase. It's just a matter of time the volatility will decrease and Bitcoin price could be more stable.

If Bitcoin price was $1,000 and now $10,000 it's mean the price is 10x times higher.

But if Bitcoin price was $1,000,000 and now $1,100,000, it's just 10% even though the increment higher.

fuguebtc

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Quote from: Obari on March 31, 2023, 03:03:30 PM

I personally believe the volatility in Bitcoin is one of the major reason why people are making money off Bitcoin and that's why Bitcoin is been referred to as an asset and I don't think the volatility will ever get diminished and if it ever does, then I don't think most persons will still want to be in Bitcoin.

Exactly, the volatility of bitcoin is the reason for us to invest in it instead of other assets, high volatility will generate big profits, and I see that as the advantage of bitcoin rather than fear it. But the volatility of bitcoin is decreasing and getting smaller, bitcoin is no longer growing thousands of percent like in the early years of its development. Its profit is getting smaller and smaller compared to shitcoin, and that's also why people don't choose bitcoin but choose altcoin to invest.

Topic: Bitcoin Volatility (Read 235 times)