Topic: Bitcoin's volatility is a non-issue (Read 2115 times)

At the existing, bitcoin’s volatility makes it a rather doubtful shop of value, however it guarantees nearly frictionless cost transfer.  Since these two drivers of the cutting-edge spot charge of Bitcoin range against the greenback and other fiat currencies, we see that Bitcoin's price can swing based on information activities lots as we look at with fiat currencies.

Bitcoin is a crypto currency. And we all know. That price changes in crypto currency all the time. Which we can call a volatile market. But some people have trouble with this volatile market. Because of which they want to make it a issue. But there is no benefit to this.

Speculations about the fact that there will be something wrong with Bitcoin, we will probably still hear a huge amount, and the more the Bitcoin ecosystem develops - the more such statements will occur, people have always loved to dramatize and assume everything that one can imagine but not all what they are talking about is the real thing.

No i dont mean that, government regualtion in one of many factor why bitcoin price volatile. Off course many reason why bitcoin volatile but negative news and fake news give big impact to bitcoin price fluctuation

Yes. I agree completely with you that the volatility of bitcoin is a no issue.
People who do not fully grasp what bitcoin is exactlity and how it functions I believe are those who are making the volatility an issue.
Bitcoin as a decentralized virtual currency has as it's core feature volatility..
Let's try to understand that.

Bitcoin as an investment is very good because many have proven its success. If the price drops now, that is very reasonable. It is predicted that soon the price of bitcoin will rise. Many issues hit, even attacking bitcoin, but bitcoin will not die. Bitcoin users continue to trade, because of the high belief that bitcoin is a digital currency that will someday be used globally.

indeed there is no problem, it is precisely the main problem that is the function of bitcoin towards real estate to be used as a means of payment. Bitcoin should be more focused on becoming a payment instrument, and forget for a moment about volatility.

I think the volatility is getting lower every year. I do not understand what it is connected with, but I constantly analyze this situation. By itself, volatility is perceived by people in different ways. For someone, a stable market is a great situation for trading, although I do not understand how you can earn good money in a relatively stable market. The cryptocurrency market has always attracted people with its volatility.

I do not think that we should be afraid of that volatile market of Bitcoin. Because if the Bitcoin market stabilizes, we will not have any special benefit from it. And due to being a volatile market, we often get good profits. Therefore, the volatile market is proving to be good for us.

Proper education, awareness, bravery, and open-mindedness, all of these play a big role in the world of cryptocurrency. Volatility has been the nature of Bitcoin but most of us have viewed it into something disadvantageous. We must learn to understand and weigh things out of the advantages and disadvantages of its functionalities. Volatility is a sign of growth and profit. It's never going to be an issue if we realize how truly beneficial this technology is. It's very important to always do research, explore, and discover it yourself of what is the true essence of Bitcoin, than barely listening and reading from fake sources of information. Authenticity is what we value and we should start doing it.

Entering in this kind of system must accept the fact that bitcoin's volatility is in its nature. Bitcoin has no exact value that it depends on how the flow of investments and tradings are.

yes it is a non-issue but some people and some media are creating fear amount investors and benefiting themselves people has to understand that.

Although Bitcoin is extremely cool, and although there are some concerns, I think there are a few points in your message that should be addressed:

#1. A currency, regardless of whether Bitcoin can be properly defined as such, is not necessarily sound money (like gold/silver).

#2. "... one party is guaranteed always to be fine with the volatility." This is not true. You would need to be actively trading and gaining profits on both the ups and the downs to be always fine with the volatility.  

#3. "The purchaser of a bitcoin has still spent the same amount of fiat no matter what the volatility after the purchase." - this negates the argument, as yes they've spent the same amount of fiat, but if Bitcoin swings down and stays down, then they've lost value, and can only hope it will return. While this may also be true with other assets, it is not as likely as it is with Bitcoin, it would seem.

#4. Comparing to stocks, and shoulda, coulda, woulda... the argument seems to be more along the lines that Bitcoin is much more volatile than these assets, and higher volatility is not favorable as a store of value. It can be highly liquid if you plan on actively trading it, and have the ability to confidently predict it's next price movement in time.

#5. "If Bitcoin were impractical as a currency, the dark web would not use it." This is not necessarily true, as the dark web is often proliferated by illegal activities and morally depraved things, Bitcoin offers (or at least it did offer) the promise of anonymity, which is exactly what such people who engage in these activities want.

#6. Stocks and bonds are highly volatile as well. Bitcoin has growth potential as well - to my current, limited understanding, Bitcoin is still MUCH more volatile than stocks or bonds. When you invest in a stock or bond, you are not expecting to lose $500 a stock in one day, and gain $1,200 in two weeks, and then lose $800 in half a week, etc (just examples, nothing specific). Potential growth - while there are some who believe the entire paper market is in trouble if the economy crashes, there are also others who believe that Bitcoin could go to zero or near zero based on its nature, lack of intrinsic value or even connecting to or representing anything of intrinsic value, and the circumstances we find ourselves in. It could continue to grow, but we shall see.

#7. Even if BTC is useful as a currency or mode of transaction (which it is to an extent), it is not necessarily ideal for storing value, not only because of the high volatility factor, but also for the fact that it is purely digital. What will you do if the internet gets shut down/censored, or if the power goes out, or if the government finds a way to censor it, etc?

Just some food for thought.
The Cyberius team.

I think for those investors that really knows the market value of bitcoin maybe they will not think it as non-issue but for those newbies on this kind of file maybe it is a big issue.

Indeed, it will be no problem if you using it for trading. But imagine when you using it as a currency.
Imagine that you can buy a car in december 2017 with only 1 btc, and now you cannot buy any car because the price of btc has dropping.
Volatility won't become an issue if you not use it as a real currency like fiat.

I beg to differ, bitcoin volatility is always  causing people to partake in panic selling. People would always get scared at a huge drop in price of bitcoin. I think this is a problem that needs to be given the needed attention. This is a very serious issue with respect to investor confidence.

Because the price is volatile, nothing is denominated in it. Because you don’t know how much of something you will be able to buy with it, you won’t hoard it. It wouldn’t be an issue if it weren’t for Digital Gold people...
If one assumes Bitcoin is just a currency meant for transacting, day to day volatility isn’t a big problem.

But still Bitcoin will be impractical to use as a currency when it comes to mainstream market and when fiat is a better alternative available. Dark web uses cryptos for hidden transaction and for leaving no money trails. It is bit convenient to use cryptos than fiat in dark web.

I still believe high volatility is a problem when it comes to mainstream acceptance of Bitcoin as a currency.

I agree. Its volatility might excite many investors since there are chances of earning big in just for a shorter time. But, bitcoin might replace fiat if it is not volatile.

Price volatility is often bad for transaction of value. Say I buy a car now for 1 bitcoin and the fiat exchange rate doubles in a year, i've effectively spent twice as much on that car compared to paying in fiat. Alternatively if i sell a car for 1 BTC and the price crashes, i've lost money cause my real world expenses are in fiat. If i only bought and sold goods in crypto, 1 BTC would always equal 1 BTC and it wouldnt matter, but because we have to transact in both, volatility makes it hard to use.