Topic: Can Bitcoin Volatility Be Controlled? - page 25. (Read 12120 times)
Bitcoin volatility can be controlled, once all the government and banks takes action into controlling bitcoins prices then the price of all cryptocurrencies will become stable. Governments have the power to stabilized a market and monitor every movement and transactions that will be made. The banks on the other hand can provide financial support and structure so that the use of cryptocurrencies will be more stable.
I have read some posts and some concerns that it is the volatility of Bitcoin that is preventing many people and many businesses to fully adopt Bitcoin. This can be the main factor why big online shopping stores are not yet adding Bitcoin into their payment facilities (though there is now a circulated petition for this but I doubt if it can make a dent).
Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?
Volatility, according to google dictionary, is defined as the liability to CHANGE RAPIDLY and UNPREDICTABLY, especially for the worse. So there's no way for us to control the VOLATILITY of bitcoin. Bitcoin is a DECENTRALIZED cryptocurrency, which means that no one can completely take control of it. We, the people who uses bitcoin, are the one who give a part of how bitcoin value moves, but we can't completely control its value.Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?
Also, I don't think that bitcoin's volatility is a bane. For me, it is a boon. It's up to users on how to manage their investment on it.
Volatility from an investment perspective is any change over time, not just downward movement. Volatility is usually associated with a negative connotation because people want their investments to maintain a stable value. Wild swings are associated with risk. While it's true that this creates opportunities for traders, it doesn't create stability, which is an important component of a currency. I suppose it comes down to what you want out of bitcoin. Do you want a wild vehicle so you can trade it, or do you want a stable currency so you can use it to transact business? I would consider these two things to be mutually exclusive.
It dependd on how they control the price people speaks on higher as on their sides. We could simply put on mind that bitcoin prices are controlled but not on all occassions. I think they just put away this topic because no one knows how to control bitcoin's volatile.
I have read some posts and some concerns that it is the volatility of Bitcoin that is preventing many people and many businesses to fully adopt Bitcoin. This can be the main factor why big online shopping stores are not yet adding Bitcoin into their payment facilities (though there is now a circulated petition for this but I doubt if it can make a dent).
Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?
While this is impossible, I do not see the prerequisites for managing volatility, or rather, small price changes, only when people stabilize it. How yes, all just keep it afloat and not sell at the first opportunity. Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?
I don't think so - regular FIAT currencies aren't stable too, nothing like bitcoin though, but not too different. At some point, bitcoin will find its true value and plateau around the price.
Mate, it's a world of difference. The USD depreciates slowly over time. Bitcoin routinely experiences price swings in a single day that the USD has never seen in a month. There's absolutely no way to look at the data and conclude that it experiences volatility that is "not too different" than bitcoin. Going back to 1914, the highest monthly inflation rate on record for the USD is 23.7% in June of 1920, and the last time it's been above 10% in a month was 1981. For the last 30 years, it was been remarkably stable (compared to the inflation it experienced in the early part of the 20th century).
http://www.usinflationcalculator.com/inflation/historical-inflation-rates/
Yeah, but the American dollar is not the only pebble on the beach
What about the German mark of the Weimar Republic depreciating thousands percentages per month in the early 1920's or the Zimbabwean dollar following its lead pretty close not so long ago in 2000's? And there are quite a few currencies in between these extreme examples of stability and volatility. It is only a dozen (or even half a dozen) major fiat currencies that are stable enough on the timeframes of decades. The total majority of other fiat currencies are outright trash if we look at their performance beyond just a few years
I do think it can be controlled when there will be many holders of the currency and volume goes up. It is still new so it is still very volatile because there are so many speculations yet of what would be the true value of bitcoin. There are so many who are still positive that it is worth more than its value today and there are others who are still doubtful about it. There's a lot of people who are still new to the market and vulnerable to the movement of prices so when they see that its price dips, they panic sell. It may take years or decades for it to be stable but then the beauty of bitcoin now is its volatility because there zre so many trading opportunities.
I have read some posts and some concerns that it is the volatility of Bitcoin that is preventing many people and many businesses to fully adopt Bitcoin. This can be the main factor why big online shopping stores are not yet adding Bitcoin into their payment facilities (though there is now a circulated petition for this but I doubt if it can make a dent).
Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?
If you are going to think of it. Bitcoin's volatility is one of the main reason why more and more people are getting attracted with bitcoin nowadays. The importance of volatility of bitcoin is very essential for its nature on being one of the most effective ways to earn money. Investors are really attracted to this knowing that they have a higher percentage on earning higher money due to the changing of bitcoin's value over time.Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?
I have read some posts and some concerns that it is the volatility of Bitcoin that is preventing many people and many businesses to fully adopt Bitcoin. This can be the main factor why big online shopping stores are not yet adding Bitcoin into their payment facilities (though there is now a circulated petition for this but I doubt if it can make a dent).
Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?
Volatility, according to google dictionary, is defined as the liability to CHANGE RAPIDLY and UNPREDICTABLY, especially for the worse. So there's no way for us to control the VOLATILITY of bitcoin. Bitcoin is a DECENTRALIZED cryptocurrency, which means that no one can completely take control of it. We, the people who uses bitcoin, are the one who give a part of how bitcoin value moves, but we can't completely control its value.Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?
Also, I don't think that bitcoin's volatility is a bane. For me, it is a boon. It's up to users on how to manage their investment on it.
I don't think so - regular FIAT currencies aren't stable too, nothing like bitcoin though, but not too different. At some point, bitcoin will find its true value and plateau around the price.
Mate, it's a world of difference. The USD depreciates slowly over time. Bitcoin routinely experiences price swings in a single day that the USD has never seen in a month. There's absolutely no way to look at the data and conclude that it experiences volatility that is "not too different" than bitcoin. Going back to 1914, the highest monthly inflation rate on record for the USD is 23.7% in June of 1920, and the last time it's been above 10% in a month was 1981. For the last 30 years, it was been remarkably stable (compared to the inflation it experienced in the early part of the 20th century).
http://www.usinflationcalculator.com/inflation/historical-inflation-rates/
Bitcoin volatility can not be controlled and is not affected by the direction of change, bitcoin volatility only measures the quantity of change regardless of whether the price of bitcoin can rise or fall. From its fluctuating nature depending on the supply and demand of market prices, many traders take advantage of price movements always changing.
Traders and investors are very passionate when it comes to that situation. Taking advantage of its fluctuating trend is there chance to make profit, that's why they are very focus and always on the screen to have a look out in any price changes. Anyway, price stability isn't a problem because we already know that is a characteristic of bitcoin and it is for us on how to adopt that kind of character.Bitcoin's volatility will never be controlled, just look at other commodities like gold and see the big swings that happen there. Even fiat currencies often have large swings in their valuation.
"Big swings" is relative. Neither gold, silver, or other mainstream commodities, and especially not fiat, see volatility on the order that crypto has experienced in its short lifetime. Gold on rare occasions can swing 10% in a day, and that's a big move. Crypto routinely swings 20% or more in a day. Fiat is generally more stable than gold, and a few percent in a single day is a dramatic move. (Fiat during hyperinflation is another matter, it's not common and not normal, and is generally a one-way track.)
You forget to mention another commodity
Which perfectly cuts it as a mainstream one and which has volatility quite on par with that of Bitcoin. I obviously refer to crude oil which you kinda forget to mention. I guess it is as mainstream as mainstream itself is concerned, and it is not uncommon to see huge swings in the price of this commodity within a couple of days (up to a few dozen percentages). And it is not just about short-term volatility either. Long-term volatility of crude oil is also quite remarkable. But you certainly know that even better than myself
Yes, a perfectly fine addition to the list of mainstream commodities, but I wouldn't go so far as to say oil has volatility like bitcoin. How often does oil trade on swings as large as bitcoin in as short a time? Oil is comparative to gold and silver, but not bitcoin. In addition to oil, gold and silver have the ability to trade "a few dozen" percent in a few days time, but not nearly as frequently as bitcoin. Bitcoin's volatility I would put a whole magnitude higher, both in terms of the percentage swings, the time frame those swings occur (which are shorter), and especially in the frequency with which those swings occur in those time frames
I tend to disagree with this view
It could be claimed that Bitcoin is more volatile than oil overall, but certainly not at the scale of "a whole magnitude". We have seen Bitcoin crash like 6 times within a little over a year, from above 1,100 dollars down to below 200 dollars per coin in 2014-early 2015. But we have seen oil going absolutely the same path and basically within the same time span. Oil went down from over 120 dollars to 25 dollars per barrel in 2014. And this was not a one-off event by any means. In 2008 it fell from over 140 dollars to below 40 dollars per barrel, and before that we had seen huge price swings as well. How is Bitcoin's volatility time span shorter than that of crude oil if we consider the periods of maximum price swings? Regarding more short term swings, then again it is nowhere near being orders of magnitude difference (or just one magnitude). Right now oil seems to be more stable than Bitcoin, but let's not forget its wild swings just a year ago when its price jumped like mad pretty much Bitcoin style
I don't know how deeply you want to parse "a whole magnitude," but it's certainly not close. You've identified two very broad data points over a long period of time (which smooths out volatility and just becomes a trend) and that tend to support your claim, but if you drill down with any specificity you will see that it doesn't hold up. Bitcoin volatility crushes oil volatility as a rule in any specific period (monthly, weekly, daily), and in number of overall periods with significant swings. I've drilled down on monthly data below, but the disparity only grows larger the shorter you make the time frame (and since time is a component of volatility, shorter time frames equal higher volatility).
Average monthly price change Nov 2012 - June 2017
- Oil 6.23%
- Btc 29.33%
Number of 10% monthly changes:
- Oil 12
- Btc 36
Number of 20% monthly changes:
- Oil 3
- Btc 20
Number of 50% monthly changes:
- Oil 0
- Btc 6
There's no denying oil experiences volatility. But it's not in the same league as btc. Shorten the time frame and the volatility disparity is even more pronounced.
I don't think so - regular FIAT currencies aren't stable too, nothing like bitcoin though, but not too different. At some point, bitcoin will find its true value and plateau around the price.
I have read some posts and some concerns that it is the volatility of Bitcoin that is preventing many people and many businesses to fully adopt Bitcoin. This can be the main factor why big online shopping stores are not yet adding Bitcoin into their payment facilities (though there is now a circulated petition for this but I doubt if it can make a dent).
Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?
If you are going to think of it. Bitcoin's volatility is one of the main reason why more and more people are getting attracted with bitcoin nowadays. The importance of volatility of bitcoin is very essential for its nature on being one of the most effective ways to earn money. Investors are really attracted to this knowing that they have a higher percentage on earning higher money due to the changing of bitcoin's value over time.Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?
I have read some posts and some concerns that it is the volatility of Bitcoin that is preventing many people and many businesses to fully adopt Bitcoin. This can be the main factor why big online shopping stores are not yet adding Bitcoin into their payment facilities (though there is now a circulated petition for this but I doubt if it can make a dent).
Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?
If you are going to think of it. Bitcoin's volatility is one of the main reason why more and more people are getting attracted with bitcoin nowadays. The importance of volatility of bitcoin is very essential for its nature on being one of the most effective ways to earn money. Investors are really attracted to this knowing that they have a higher percentage on earning higher money due to the changing of bitcoin's value over time.Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?
I have read some posts and some concerns that it is the volatility of Bitcoin that is preventing many people and many businesses to fully adopt Bitcoin. This can be the main factor why big online shopping stores are not yet adding Bitcoin into their payment facilities (though there is now a circulated petition for this but I doubt if it can make a dent).
Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?
If you are going to think of it. Bitcoin's volatility is one of the main reason why more and more people are getting attracted with bitcoin nowadays. The importance of volatility of bitcoin is very essential for its nature on being one of the most effective ways to earn money. Investors are really attracted to this knowing that they have a higher percentage on earning higher money due to the changing of bitcoin's value over time.Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?
I have read some posts and some concerns that it is the volatility of Bitcoin that is preventing many people and many businesses to fully adopt Bitcoin. This can be the main factor why big online shopping stores are not yet adding Bitcoin into their payment facilities (though there is now a circulated petition for this but I doubt if it can make a dent).
Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?
If you are going to think of it. Bitcoin's volatility is one of the main reason why more and more people are getting attracted with bitcoin nowadays. The importance of volatility of bitcoin is very essential for its nature on being one of the most effective ways to earn money. Investors are really attracted to this knowing that they have a higher percentage on earning higher money due to the changing of bitcoin's value over time.Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?
I think that you can control the volatility of bitcoin by launching a bad or good condition. Good news will increase the price, and the bad will be lowered on the contrary.
Sorry mate, but this cannot control volatility but will even make it more volatile. What do you think has been going on all this few years. I am not sure if you understand the control we are talking about here but the control scenario you just said is apparently not a way to control it. Controlling is more like finding a way to make the volatility stop and not increase.
I agree Bitcoin volatility cannot be controlled, though there might be manipulation from time too time but it is just temporary. Bitcoin Volatility is driven by supply and demand, sometimes demand is so great that it push the product up and sometimes other people wanted to sell their stash so a sudden flock in of supply to the market make the price goes down.
I think that you can control the volatility of bitcoin by launching a bad or good condition. Good news will increase the price, and the bad will be lowered on the contrary.
Sorry mate, but this cannot control volatility but will even make it more volatile. What do you think has been going on all this few years. I am not sure if you understand the control we are talking about here but the control scenario you just said is apparently not a way to control it. Controlling is more like finding a way to make the volatility stop and not increase.
I agree Bitcoin volatility cannot be controlled, though there might be manipulation from time too time but it is just temporary. Bitcoin Volatility is driven by supply and demand, sometimes demand is so great that it push the product up and sometimes other people wanted to sell their stash so a sudden flock in of supply to the market make the price goes down.
I think that you can control the volatility of bitcoin by launching a bad or good condition. Good news will increase the price, and the bad will be lowered on the contrary.
Sorry mate, but this cannot control volatility but will even make it more volatile. What do you think has been going on all this few years. I am not sure if you understand the control we are talking about here but the control scenario you just said is apparently not a way to control it. Controlling is more like finding a way to make the volatility stop and not increase.
I agree Bitcoin volatility cannot be controlled, though there might be manipulation from time too time but it is just temporary. Bitcoin Volatility is driven by supply and demand, sometimes demand is so great that it push the product up and sometimes other people wanted to sell their stash so a sudden flock in of supply to the market make the price goes down.
I think huge found not can control it pretty easy... It's still far for the crypto market to start working without that because it's not that big now
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