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Topic: Bitcoin's Volatility Problem - page 3. (Read 370 times)

full member
Activity: 1414
Merit: 129
The first decentralized crypto betting platform
April 20, 2023, 11:15:01 PM
#17
I agree with you, the volatility of bitcoin creates a challenge for businesses that want to use bitcoin as a payment method. No one wants their money to lose 10% of its value within 1 hour of being paid, and that's why I don't like using it as a payment method.
But on the contrary, the volatility of bitcoin is a good thing for investors like us because the more volatile, the higher the return. For me, volatility is a good thing because if bitcoin becomes stable, I'm not sure many people will invest in it, and I don't think it would be as popular as it is today if it were stable.
hero member
Activity: 2240
Merit: 848
April 20, 2023, 10:59:15 PM
#16
Volatility is not a problem. Volatility is due to Bitcoin being a financial asset that trades in a free market, and a new one at that.

Volatility is good for investors and traders. For people spending or taking payment of Bitcoin they can use a service to convert it immediately into fiat if they want, or otherwise they know about the volatility and accept it. So its not a problem either way.
mk4
legendary
Activity: 2870
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April 20, 2023, 10:40:54 PM
#15
Bitcoin being volatile has little to no relation to it being decentralized. Even if bitcoin was heavily heavily regulated in all aspects you can imagine, it would still be volatile because of it being a very young and hence very speculative asset.
sr. member
Activity: 1372
Merit: 348
April 20, 2023, 10:26:18 PM
#14
The value of bitcoin can fluctuate rapidly and dramatically, sometimes within a single day. This can create challenges for individuals and businesses that use bitcoin as a means of payment or as an investment.

For example, if someone were to receive payment in bitcoin BTC for a product or sevice, the value of that payment could decrease significantly before they have chance to exchange it for a more stable currency. Similarly, business that hold bitcoin as an investment may experience significant losses if the value of bitcoin drops suddenly.

This high volatility is fixed by converting Bitcoin payment in real time.  The merchant who give options to pay in BTC uses a third party apps that have an option to either accept the BTC or convert it to cash as soon as the payment is received.  So I do not think that the high volatility is still a challenge or problem for Bitcoin in terms of merchant accepting BTC.  It has been long fixed.  The only problem I see is the government regulation and its stand on Bitcoin being a legal tender or a mode of payment.


the decentralized nature of bitcoin can make it difficult for government and regulartory agencies to monitor and control its use. This can create challenges in areas such as tax collection, money laundering prevention, and consumer protection.

This might be a problem for the government but the decentralized nature of Bitcoin gives its user the freedom from the controlling effect of the government.  There is always positive and negative points but I think Bitcoin is more on for the masses than being a tool of the government to milk its constituents of their hard earned money.

Overall, while bitcoin BTC has the potential to offer many benefits ,its volatility and lack of regulation can create significant challenges for business, governments and us people around the world.

The government had already known the problem and created steps or system to at least minimize these challenges.  The KYC on centralized exchanges, the declaration of accepting Bitcoin as mode of payment and some country as legal tender, creation of regulation where in it impose the government demands toward using Bitcoin.  Bitcoin has no problem itself, it is the government who wanted to have a share on the pie of Bitcoin Industry so they have to adjust in order to rake the benefits.  I don't see any government problem on taxing registered businesses since these businesses are bound to report their annual gain and be taxed on it.
legendary
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April 20, 2023, 10:07:50 PM
#13
The value of bitcoin can fluctuate rapidly and dramatically, sometimes within a single day. This can create challenges for individuals and businesses that use bitcoin as a means of payment or as an investment.

As a means of payment, yes, but not as an investment. Whoever invests in bitcoin already knows what is out there, and if they don't, they should have informed themselves beforehand. As a means of payment, as things stand, volatility is a major reason for it not to become widespread, but it is currently successful as an investment, as a store of value, and everything suggests that it will continue to be so in the near future.

hero member
Activity: 518
Merit: 547
April 20, 2023, 09:55:35 PM
#12
The value of bitcoin can fluctuate rapidly and dramatically, sometimes within a single day. This can create challenges for individuals and businesses that use bitcoin as a means of payment or as an investment.

For example, if someone were to receive payment in bitcoin BTC for a product or sevice, the value of that payment could decrease significantly before they have chance to exchange it for a more stable currency. Similarly, business that hold bitcoin as an investment may experience significant losses if the value of bitcoin drops suddenly.
This is the nature Of Bitcoin. When you accept Bitcoin as a payment method. You are aware of the risk and its volatility. It's possible to see a massive crash in the market, while it's also possible to see a good pump within a short time frame. You have to do the proper risk management for your business. You should be ready for a possible market crash. Also, You can expect a pump. This is how Bitcoin works, and we all know that. You shouldn't worry about it.


Overall, while bitcoin BTC has the potential to offer many benefits ,its volatility and lack of regulation can create significant challenges for business, governments and us people around the world.
Tell me where the regulations come from. What was the initial plan for Bitcoin? Bitcoin users are supposed to be anonymous, and they shouldn't ever be regulated. I don't care if businesses allow Bitcoin as a payment method. But, If regulations start to regulate Bitcoin, I will have to leave Bitcoin. I don't use Bitcoin to make money. I don't want to be regulated. You guys do not understand the concept of Bitcoin and its purposes.
sr. member
Activity: 1190
Merit: 251
April 20, 2023, 08:58:44 PM
#11
Bitcoin is very volatile, so using it as a business payment method is not a wise idea. Almost no large businesses accept bitcoin for payment, only a few small businesses of bitcoin lovers use it for payment. But I bet the revenue from bitcoin will be insignificant because people are looking at bitcoin as an asset for profit speculation rather than to be used as a currency. Bitcoin is too volatile and no one wants to spend more on purchases.
legendary
Activity: 2576
Merit: 1860
April 20, 2023, 08:37:59 PM
#10
You must have read this elsewhere. But these are indeed legitimate concerns. Although there certainly are advantages and disadvantages of Bitcoin's volatility and decentralization, certain disadvantages are a hindrance for its adoption. In addition to your example, we have also heard of people who accept salaries in Bitcoin. I reckon that these people are not completely dependent on their regular salaries. Or even if they are, their salaries are huge enough that they have enough savings and they need not convert their salaries immediately to fiat. To those who are completely dependent on what they receive weekly, bi-monthly, or monthly, however, it could happen that as soon as they convert their salary to fiat, it has already lost 5%.
hero member
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April 20, 2023, 08:35:33 PM
#9
The value of bitcoin can fluctuate rapidly and dramatically, sometimes within a single day. This can create challenges for individuals and businesses that use bitcoin as a means of payment or as an investment.

For example, if someone were to receive payment in bitcoin BTC for a product or sevice, the value of that payment could decrease significantly before they have chance to exchange it for a more stable currency. Similarly, business that hold bitcoin as an investment may experience significant losses if the value of bitcoin drops suddenly.

the decentralized nature of bitcoin can make it difficult for government and regulartory agencies to monitor and control its use. This can create challenges in areas such as tax collection, money laundering prevention, and consumer protection.

Overall, while bitcoin BTC has the potential to offer many benefits ,its volatility and lack of regulation can create significant challenges for business, governments and us people around the world.

Again, I was just surprised to see this kind of threads when bitcoin is on a sort of bull run. Many newbie account suddenly popping up and trying to downplay bitcoin's growth and says negative things about it.

To answer though, it's either you embrace bitcoin's volatility or not, simple as that. If you can't then you might as well go and invest and trade on traditional market like stocks where there is less volatility and government have control over them, or there is a stringent set of regulations that the companies will have to follow.
legendary
Activity: 2044
Merit: 1018
Not your keys, not your coins!
April 20, 2023, 08:25:31 PM
#8
The value of bitcoin can fluctuate rapidly and dramatically, sometimes within a single day. This can create challenges for individuals and businesses that use bitcoin as a means of payment or as an investment.
Is it more volatile than crude oil in 2020 with negative trading price?

Is it more volatile than stocks of some banks which collapsed or filed for bankruptcy weeks ago?

Bitcoin is volatile but it is not a most volatile asset. Anyone tell you it is most volatile asset is a liar.

What happened to oil prices in 2020
copper member
Activity: 2170
Merit: 1822
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April 20, 2023, 06:59:43 PM
#7
For example, if someone were to receive payment in bitcoin BTC for a product or sevice, the value of that payment could decrease significantly before they have chance to exchange it for a more stable currency. Similarly, business that hold bitcoin as an investment may experience significant losses if the value of bitcoin drops suddenly.
How about the positive side...huh?
What if the same Bitcoin price spikes by 20% in a day after payment is made. Do you still complain on about the profits made?

the decentralized nature of bitcoin can make it difficult for government and regulartory agencies to monitor and control its use. This can create challenges in areas such as tax collection, money laundering prevention, and consumer protection.
Then use your messed-up fiat for transactions. No one is forcing you to use Bitcoin

The purpose of Bitcoin is very clear when you read the white paper. It's an alternative electronic peer to peer payment system for those who value some level of privacy and don't want any middle man involved in their transactions/payments.
sr. member
Activity: 686
Merit: 301
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April 20, 2023, 06:19:56 PM
#6
The concept of bitcoin's volatile nature makes it impossible for those who think similarly not to invest in it. Perhaps you are unaware that the price fluctuation makes it a risky investment to make. You only stated the disadvantage when the price lowers, but what if the price rises? Would you still not take the profit or would you prefer to collect the money as it was before the price rise? If you do not want any of this, you can easily convert your bitcoin to a stable coin when you receive it as payment.

The decentralized nature has greatly aided the government's inability to restrict its use. Everyone wants complete control over their money, which bitcoin has offered. That is a significant benefit to users and a reason why they should continue to use it.
hero member
Activity: 3024
Merit: 745
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April 20, 2023, 06:13:37 PM
#5
The value of bitcoin can fluctuate rapidly and dramatically, sometimes within a single day. This can create challenges for individuals and businesses that use bitcoin as a means of payment or as an investment.
Everyone who gets to know bitcoin should always be aware that bitcoin is volatile in nature and that feature will never be gone but will always be the first to be recognized. While it's true that for some businesses, it's a challenge to accept bitcoin because they should have a good cashflow to make their business keep on going. For individuals, I don't think that this is a big challenge to think of. Before, many have seen the opportunity instead of challenge with bitcoin's volatility and that's why it really depends on how we look at it. The opportunity comes in as an investment but being a payment as an individual, it isn't a challenge either.

For example, if someone were to receive payment in bitcoin BTC for a product or sevice, the value of that payment could decrease significantly before they have chance to exchange it for a more stable currency. Similarly, business that hold bitcoin as an investment may experience significant losses if the value of bitcoin drops suddenly.
That's why there are third party services that they can use and it is their option to opt with those services so that, they won't just hold and lessen its value while holding it but they can convert it quickly to their preferred currency or cash.

the decentralized nature of bitcoin can make it difficult for government and regulartory agencies to monitor and control its use. This can create challenges in areas such as tax collection, money laundering prevention, and consumer protection.
They can just be after the exchanges and that's why KYC is mostly implemented to the exchanges but then, bitcoin isn't really made for that purpose. Thus, that's why it's decentralized in nature.

Overall, while bitcoin BTC has the potential to offer many benefits ,its volatility and lack of regulation can create significant challenges for business, governments and us people around the world.
Bitcoin survived on its early days without their intervention and will still survive whether they're in or out. Those aren't really challenges at all IMHO.
legendary
Activity: 2422
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April 20, 2023, 04:22:06 PM
#4
I did like to see this from different angle, honestly, if bitcoin was a stable currency, how many people do you think would have invested in it, and beside, would there have been any need to invest when you know that your investment will not yield any profit or loss for days, weeks, months, or even years?.

I personally see the high volatility of bitcoin as it's blessing, several hundreds of thousands of people around the world have become millionaires of different levels, not by bitcoin's stability, but by its volatility.

And besides, if as a business accepting bitcoin as payment, you fail to convert bitcoin into a more stable coin before the price falls, you can wait for the price to come back up, remember, you have not lost your money until you sell at a loss.
legendary
Activity: 2436
Merit: 1104
April 20, 2023, 01:19:45 PM
#3
For example, if someone were to receive payment in bitcoin BTC for a product or sevice, the value of that payment could decrease significantly before they have chance to exchange it for a more stable currency. Similarly, business that hold bitcoin as an investment may experience significant losses if the value of bitcoin drops suddenly.
or the value of that payment could increase significantly before they exchange it for a more stable currency and the businesses that hold bitcoin as an investment may experience a significant increase in profit from their investment when bitcoin's price increased suddenly.

Overall, while bitcoin BTC has the potential to offer many benefits ,its volatility and lack of regulation can create significant challenges for business, governments and us people around the world.
would you mind elaborating as to why the lack of regulation on Bitcoin creates significant challenges for people like us?
hero member
Activity: 1204
Merit: 545
April 20, 2023, 12:53:23 PM
#2
Well, halelujah for the blazing insight, Sherlock Roll Eyes Roll Eyes! Who could've guessed Bitcoin's value fluctuates? Mind = shattered.

But for reals, despite Bitcoin's rollercoaster nature and decentralized state, it's chock-full of perks for payments and investments. Granted, it's not a rock-steady currency, but hey, who wouldn't trade monotony for heart-hammering portfolio peeks?

Regarding the government and regulators' inability to snoop and control Bitcoin, isn't that just the cherry on top? After all, who craves an Orwellian overlord dictating our crypto moves?

So let's all dive headfirst into Bitcoin's chaotic charm and bask in the capricious crypto trading escapades. Because, honestly, who needs snoze-worthy stability when you can have a blast?
newbie
Activity: 55
Merit: 0
April 20, 2023, 11:47:33 AM
#1
The value of bitcoin can fluctuate rapidly and dramatically, sometimes within a single day. This can create challenges for individuals and businesses that use bitcoin as a means of payment or as an investment.

For example, if someone were to receive payment in bitcoin BTC for a product or sevice, the value of that payment could decrease significantly before they have chance to exchange it for a more stable currency. Similarly, business that hold bitcoin as an investment may experience significant losses if the value of bitcoin drops suddenly.

the decentralized nature of bitcoin can make it difficult for government and regulartory agencies to monitor and control its use. This can create challenges in areas such as tax collection, money laundering prevention, and consumer protection.

Overall, while bitcoin BTC has the potential to offer many benefits ,its volatility and lack of regulation can create significant challenges for business, governments and us people around the world.
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