Topic: Bitcoin's volatility is a non-issue - page 10. (Read 2115 times)

Volatility is common to all trading instruments, I dont think  that should be an isolated issue to be hammered on bitcoin alone. Every investment has it's risk and every investor should know this as well as know why they are investing into it. The value doesn't depreciate even with volatility so investors should jot be bothered about it.

You make good points about merchants with razor-thin margins -- which is the condition of a lot of merchants, probably most by far. Those merchants would not be able to afford the risk of holding the bitcoins and so would miss out on any appreciation in their value after a sale. Clearly such businesses would only put a Bitcoin logo on their door if they thought it would bring in more business. It it was too much hassle too soon without benefit they would take the decals off.  I'm not sure what you mean that use of a payment processor defeats the purpose. The purpose is to increase sales and profits. If passing their bitcoins instantly through Coinbase for transfer to their bank account still results in enough more money to make the effort worthwhile, they would do it. I've made the point in other posts here that merchants might increase the feasibility of bitcoins by stipulating that there are absolutely no returns on bitcoin sales -- all sales final, and it would say so on the receipt. Also, bitcoin pricing could be highly flexible -- when the BTC price is rising, prices for BTC sales could be lower than the cash/credit-card price. When the BTC price is falling, such prices would be higher, maybe a lot higher -- ruthless pawn-shop rates.

I suspect that such merchants will eventually realize that, while BTC has volatility risk, it also has benefits that might be of unique value to them, more so than a chain or big box.

Good point, but I think the Lightening Network should eventually resolve the fee problem, and as I understand it fees are already a lot lower than they were during the last feeding frenzy. Eventually SegWit will become the dominant address format, helping to keep fees under control. But also, if Bitcoin fees do go sky high, more and more people will be willing to use Ether or Bitcoin Cash or Litecoin instead. Excessive Bitcoin fees will eventually go away completely because fewer and fewer people will be willing to pay them and will know how not to.

Like you said OP the bitcoin volatility in nature is not an issue cause bitcoin volatility always work to the pumping is price aspect but the FUD which was said or posted online and the GOX flooding the market are the cause of the dumb in prize. Therefore, bitcoin is a good store of value.

I just included Ethereum because it is a leading crypto, nothing stealthy intended. I should add that I bought Ethers during their presale and have been hodling ever since. If it's a scam it's an incredibly good one. But it is not a scam.

But how did it get expensive in the first place? There was positive information which led to FOMA and worked as a domino effect and bitcoin appreciated in one or several days. This is indeed worthy of attention. Whether it is a problem in this case depends on whether you held on or sold before the appreciation. But it is my point that the problem is actually just one of perception. If you bought a bitcoin and transferred it for a good or service before the spike, that spike has not really hurt you. It may irritate you, but you paid a price for it that you decided was a good price for your immediate purposes at that time.

I basically like your arguments and agree with them. I agree that high volatility is a non-issue in itself. Nevertheless you are missing one important aspect: transaction fees. They are low but whenever the volatility gets high, they get insanely high. And I think that the biggest issue currently is high transaction fees in times of large volatility and it is in fact a blocker for bitcoin being used as a currency.

For people that all in and can't afford for things to dip then, I think it is a huge issue. But otherwise, I actually think it is a blessing.

I also find it difficult to use bitcoin as a stable currency.
More often just as a zero sum game.

Bitcoin has launched lightening network which would make blockckain network fast and reduces the cost involved in transection. Also Bitcoin can fall 30% to its top value, while other Crypto can fall 10% of their top value So Bitcoin is more stable than other Crypto.

Volatility in connection with Bitcoin can be viewed negatively or positively depending on the person or the type of person we are talking with. I am sure that traders are quite happy with Bitcoin's volatility because it can be an opportunity to earn more money but can be viewed in apposite by a newbie investor that can be rattled fast with the movement of Bitcoin value in the marketplace. Many merchants are also worried about volatility though there are now many ways they can protect their Bitcoin. Less volatility is not actually a guarantee that Bitcoin can be reaching the very mainstream population so the bottom line is that we just have to leave it to the market on what it will decide on this matter.

It is an issue of course because everyone is vigilant with the bitcoin price everyday, but its volatility is also a part of its market fluctuation that we have to pass thru and that cannot be avoided situation, we just have to stay positive and believe that bitcoin is going live and lasts and it is worth investing and one day you will enjoy your profit also😊

i think you are confusing two things. volatility being an issue and volatility making bitcoin useless. there is a big difference between these two. volatility is an issue but at the same time the merchants/businesses will continue to accept it and people will continue to use bitcoin as payment (the millions of dollar that is being processed by the merchants is proving that.
but if volatility stopped and bitcoin became more stable then this usage will be increased by a lot which is showing it IS an issue.

While I agree with you that volatility should not influence the store of value, I would disagree with you that it influences the merchants, when they accept Bitcoin directly. Some people cancel out this disadvantage by using payment processors for any payments that are received, but this is not the perfect solution.

The best way to avoid volatility is for you to change strategy. Take say 20% of all bitcoins received and hoard them and convert the other 80% to fiat, almost immediately to avoid too much volatility.

but it's still concerning lots of people tbh, you juat can't pretend like it ain't there?

You don't think this is a big issue at all? A small business with razor thin margins could very easily lose money and lose the capability to pay their suppliers in case of a slide. That alone makes accepting it unnecessarily risky and very far from ideal. It's fine peer-to-peer, but when you have an obligation to pay and a business to run, it's a significant variable you could just do away with. They could use a payment processor to mitigate the risks, but that also defeats the purpose.

Volatility could very well be a deal breaker in a few scenarios. While I acknowledge that it gets blown out of proportion here and there, it's certainly not a non-issue. If it works for you, and it does for most of us, great. That doesn't mean it will work for everyone else though. Volatility is a problem that can presumably be solved by time and adoption, and shouldn't be swept under the rug.

The volatility is really an issue. An issue in the sense that it is usually the base currency and naturally, it should be so. It should not border traders though. It rules and control the other cryptocurrencies.

good catch. they usually do this! they make an article which is about bitcoin at heart but they slyly include another altcoin's name in it to say this article is also covering that altcoin.
the fact is ethereum is one of the worst things you can invest in, not because of its volatility but because it is inflationary. there is no stopping that. the cap which should have been there is not there and there will be an unlimited number of Ethers in existence eventually. the future of it looks something like future of Doge coin.

My opinion is that if bitcoin was not so volatile that wouldnt suit traders.
Traders love the volatility, well experienced traders that is, the ones who
Can read the charts etc.

And if bitcoin was not so volatile there could probably be mor acceptance
in the marketplace for it to be used as a currency.