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Topic: Can Bitcoin Volatility Be Controlled? - page 31. (Read 12142 times)

sr. member
Activity: 980
Merit: 255
August 08, 2017, 12:52:06 PM
Its volatility is its only important weapon actually, based on which businesses are adopting Bitcoin as a new way of financing themselves to nurture the beauty of something that is money itself and provides interest to you to keep it. Controlling it would rather remove interest of many who are in it just for the sake of trading.
Not only that but the only way to control the volatility of bitcoin will be to control the bitcoin supply, so if the price of bitcoin goes up then new coins will have to be mined in order for the supply to go up and the price to be stabilized and that goes against everything that bitcoin represents.
legendary
Activity: 1218
Merit: 1007
August 03, 2017, 12:26:26 PM
Its volatility is its only important weapon actually, based on which businesses are adopting Bitcoin as a new way of financing themselves to nurture the beauty of something that is money itself and provides interest to you to keep it. Controlling it would rather remove interest of many who are in it just for the sake of trading.
sr. member
Activity: 980
Merit: 255
August 03, 2017, 12:20:55 PM
Volatility can't be controled but it will get more and more reduced as market cap and daily volume increases over time. Bitcoins volatility is proportional to its value, at higher valuations it takes more fiat to move the price in either direction.
This, we must not forget that bitcoin is still a new and untested technology, so it makes sense there is a lot of volatility as time goes on and more money is moving in bitcoin then the volatility is going to get lower and lower until it is just a memory in the distant past.

The bitcoin can be in the test phase, but if the volatility is variable it turns out that there are many parts, so it does not make much sense for me that the volatility will become stagnant after the test is over.
Look at the market cap as you look at weight, a light object can be moved very easily, a piece of paper can go flying with just the smallest amount of wind, but if an object becomes very heavy then it becomes very difficult to move, so if the market cap goes very high then the price of bitcoin will be a lot more difficult to  move.
hero member
Activity: 812
Merit: 501
August 02, 2017, 05:37:11 PM
Bitcoin are real marketplace. No one can control the volatility of this currency. It is based on the market demand and supply. One thing that tru to control bitcoin is bitmain. The fact bitcoin split to BCH and BTC. BTC is legacy bitcoin that can't be control. The users have voice on the vote. MOst voters prefer to use BTC than BCH. Now bitcoin is getting strongger, I think many parties will offend with the growth of this community. Bitcoin not only currency but also community. When an institution want to control decentralized community, they will fail. They can control the money but they can;t control decentralized power, bitcoin community has its own power.
hero member
Activity: 2646
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August 02, 2017, 03:31:28 PM
I don't think there is any way to control the volatility of Bitcoin as it is a free market of trading without any government control, but this is also one of the reason why bitcoin is attractive to many investors, as there is no limits on how high the values of bitcoin could rise, there is always a potential to get a huge profit from trading bitcoins.
we all can see the users of the bitcoin is increasing with the time so how can we say bitcoin volatility can go down when it is increasing its circle very rapidly, and the price of the bitcoin is getting bigger as the time passes and the supply and the demand of the bitcoin in the market is very high now the people who are interested in bitcoin are ready to pay the high market price just to own bitcoin  so I think the volatility of the bitcoin cannot be controlled that easily .
Volatility of digital currencies whether they are bitcoins or any other coins is tough to control. The volatile nature is main thing that attracts people towards digital coins. Bitcoins, no doubt are increasing in demand and gaining too much popularity worldwide. All this will directly increase its value.
legendary
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August 02, 2017, 02:07:06 PM
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.)
hero member
Activity: 882
Merit: 506
August 02, 2017, 11:53:44 AM
"Can bitcoin volatility be controlled" is just a subquestion of the larger "Can any volatility be controlled?" Short of fixed prices, the answer is no. The free market moves based on supply, demand, forward-looking expectations and many other facts. Further, whereas the government can "fix" prices through the use of force for some items in the real world (although, to limited effect), I don't see a technical way to enforce a set price on bitcoin. All the shortcomings of real world price fixing is amplified by the technical setup of a decentralized ecosystem. 

That is definitely a problem the governments cannot even directly influence. To combat volatility of fiat currencies, government can only do indirect actions such as increasing the rates for bonds to lower the supply of money in circulation. Generally that volatility in fiat is in terms of inflation.

In bitcoins though, we can't really control this because indeed it is a freemarket and supply and demands does dictate the price. However, the problem is that since the market value of the whole bitcoin economy can easily be influenced by some whales we have that problem of possible manipulation.
legendary
Activity: 2044
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August 02, 2017, 11:45:55 AM
"Can bitcoin volatility be controlled" is just a subquestion of the larger "Can any volatility be controlled?" Short of fixed prices, the answer is no. The free market moves based on supply, demand, forward-looking expectations and many other facts. Further, whereas the government can "fix" prices through the use of force for some items in the real world (although, to limited effect), I don't see a technical way to enforce a set price on bitcoin. All the shortcomings of real world price fixing is amplified by the technical setup of a decentralized ecosystem. 
sr. member
Activity: 868
Merit: 289
August 02, 2017, 11:01:59 AM
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?
Of course, it can't be control. Because example, you cannot control the buyers if they want to buy something whether the value price is cheap or high also we cannot control the sellers too if they want to sell something because they want to earn. Same thing with bitcoin volatility, I think is the hearth of the traders in any exchange site platform.
sr. member
Activity: 1914
Merit: 328
August 02, 2017, 10:21:44 AM
I don't think there is any way to control the volatility of Bitcoin as it is a free market of trading without any government control, but this is also one of the reason why bitcoin is attractive to many investors, as there is no limits on how high the values of bitcoin could rise, there is always a potential to get a huge profit from trading bitcoins.
we all can see the users of the bitcoin is increasing with the time so how can we say bitcoin volatility can go down when it is increasing its circle very rapidly, and the price of the bitcoin is getting bigger as the time passes and the supply and the demand of the bitcoin in the market is very high now the people who are interested in bitcoin are ready to pay the high market price just to own bitcoin  so I think the volatility of the bitcoin cannot be controlled that easily .
hero member
Activity: 2002
Merit: 535
August 01, 2017, 05:22:23 PM
I don't think bitcoin's volatility in current situation can be controlled as its adoption among the people is very much up. Only due to its readily acceptance and its popularity all over the globe, its demand is always in an increase. These combined contributing factors make it difficult to control its volatility.
There is a small contradiction with your point of view,if the adoption of bitcoin among people is increasing on a daily basis then the so called volatility in the price of bitcoin will drop considerably and that is the only possible solution to control the big movements.
sr. member
Activity: 1400
Merit: 251
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August 01, 2017, 01:57:13 PM
Every traded sure have volatility. As well bitcoin, even bitcoin which is clearly not regulated by any institution or country makes price occurs is purely on demand and supply.
sr. member
Activity: 854
Merit: 253
l0tt0.com
August 01, 2017, 01:15:36 PM
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.
Although not anyone can't control Bitcoin's volatility, but they still can make the mentality of trader panic, fearing, happy, interesting ...  as their want anytime. Just by some breaking news, they can "control" all crypto on market with support from trader on market Grin
sr. member
Activity: 1176
Merit: 301
August 01, 2017, 12:27:10 PM
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?
I don't really think that it could ever be controlled.
There is no one that could ever control it even the government it is made for everyone .
newbie
Activity: 27
Merit: 0
August 01, 2017, 11:48:51 AM
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.
legendary
Activity: 1974
Merit: 2124
August 01, 2017, 11:47:21 AM
I don't think bitcoin's volatility in current situation can be controlled as its adoption among the people is very much up. Only due to its readily acceptance and its popularity all over the globe, its demand is always in an increase. These combined contributing factors make it difficult to control its volatility.
hero member
Activity: 907
Merit: 500
August 01, 2017, 11:30:10 AM
All that can be controlled by the team behind it, some of them provide a fake price that moves to get its own profit, what it is called its control.

Many people say that it is very possible to control fluctuations, just like manipulating prices. I do not really know about this. Because I also have not seen firsthand how to manipulate bitcoin prices but see prices fall when panic selling is due to low demand and large supply. It makes me a little confident about manipulation
The fluctuations are ultimately controlled by the customers. If people are giving up on bitcoins continuously and quickly, the prices dump and vice versa. This is my opinion. I don’t know the exact method of creating and controlling fluctuations in the crypto market. I belie fluctuations are important for the survival of the digital currencies.
legendary
Activity: 1372
Merit: 1008
August 01, 2017, 04:46:09 AM
All that can be controlled by the team behind it, some of them provide a fake price that moves to get its own profit, what it is called its control.

Many people say that it is very possible to control fluctuations, just like manipulating prices. I do not really know about this. Because I also have not seen firsthand how to manipulate bitcoin prices but see prices fall when panic selling is due to low demand and large supply. It makes me a little confident about manipulation
full member
Activity: 293
Merit: 100
August 01, 2017, 03:20:44 AM
Bitcoin isn't the currency to be used in the industries or shopping mall. It's high tech chain of blocks containing sensitive information yet very secure in the public.


Quote
the volatility of Bitcoin that is preventing many people and many businesses to fully adopt Bitcoin


Th volatility is the reason it is giving out us profits from investments and trades that we open up. If bitcoin value gets stabilised then on what you will put your stakes. There won't be any reason to do this and bitcoin will collapse because then there won't be any difference between gold and bitcoin and other stuff in the market.

It's better be volatile man!

Better for whom? Big players and whales? I agree that many people earn from this fluctuations but for mass adoption bitcoin will need stability. That is one of the primary things that bitcoin needs, because if there is stability whales will not be able to earn so much and move the market as they wish. Market should be independent and decentralized, if some people can interfere as they wish that will not be a good thing for people.
I believe that bitcoin can be stable one day, price can't rise forever, in one moment bitcoin settle on some price, when will that happen  nobody can't say, but for sure not in any time soon.

That's not going to happen any time soon

First, there is no reason for the price to settle at a certain level, and if it continues to rise (which is good), volatility will be rising too (and likely even faster than the price itself). Second, price stability can happen if Bitcoin ceases to be (mostly) a speculative asset. That would mean building a real economy around Bitcoin, though we are not there yet. In fact, we didn't even come close enough to that. Anyway, this is not going to happen until the price stabilizes. So we are in a sort of endless loop, in a vicious circle of sorts

Yes, I agree with you mate! Bitcoin volatility is hard to control.Law of supply and demand always take part of it. If more and more people will use it then bitcoin will continue to rise however if in the near future bitcoin will be of no use and less people will use it, it will then drop. And the thing is, we really never what the future brings, what people needs today and what people needs tomorrow so bitcoin will continue to be volatile.
legendary
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August 01, 2017, 02:12:16 AM
The speculative investing causes volatility.  If Bitcoin was widely adopted for commercial use (buying and selling products and services), then the volume would go up so drastically that the buying and selling of traders would have a far smaller impact.

It is not just volumes (or the speed of circulation) but value which matters as well. The market capitalization of bitcoin should increase to such an extent that whales cannot move the market.
As the market is not influenced by the external stock markets or any such forex the volatility will continue forever. Its one among the key feature that creates an increased circulation of digital currency all around through the trading. If the price seems stable, then the usage as an trading commodity will not be preferred. It gets used as an value storage token. The fluctuating price generates a buying and selling leading to circulation and increase in volume.
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