Can Bitcoin Volatility Be Controlled? - page 39.

Jherek

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Quote from: iamTom123 on July 03, 2017, 01:12:02 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?

1. I do not think that volatility of bitcoin is a particularly big concern. In fact even in uncertain times like right now, bitcoin has barely moved. It's hanging around $2500ish quite nicely at the moment, no major fluctuations happening.
2. Volatility will not be an issue as soon as mass adoption happens, right now speculators far outweigh regular economic activies conducted on bitcoin, but as soon as this swings the other way around volatility will be solved by itself.
3. Any measures of artificially reducing or increasing the price of a commodity or currency involves a central entity, and bitcoin doesn't and shouldn't have one. Some altcoins do have stability funds, but imo thats just another excuse for the founders to premine coins. I believe nautiluscoin is an example.

investinator

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Once the marketcap of bitcoin increases another 10x and doesn't have huge crashes we will see relative stability in price because at those levels it will take huge sums to move the price in either direction. I think just comparing bitcoin volatility now at its current marketcap to that of 3-5 years ago the trend is clear, higher valuation brings more stability.

In other words we don't need to do anything to achieve that, just wait. Obviously there will always be some volatility but it will be relatively stable like any mainstream fiat currency, or like gold.

d5000

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There were two concrete proposals to control volatility in the last weeks. Unfortunately, they didn't get much traction. Maybe most Bitcoiners are happy with the volatility - at least if the price trend goes up Grin

- and so it would be better to promote these solutions when there is the next crash.

This proposal is modelled after a "federal reserve" for Bitcoin and is totally decentralized - all participants move regularly BTC to fiat on their preferred exchange. Everyone can participate already today, although a trading bot would make things easier.

This proposal, instead, proposes to back the Bitcoin price with goods and services. The idea is that merchants can be given the option to guarantee a price for 24 hours, for example - the idea is that they benefit from higher sales in the case of a downmove or crash. In theory this proposal can be implemented by every merchant on his own, or by merchant platforms and payment processors like Bitpay.

DivisionHuxm

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One of the reason it existed was for no one could controlled it, but people always find the way to do it. Maybe like a very damn % are able to do it if they wanted to.

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Quote from: quarkyplum on July 03, 2017, 12:31:28 PM

Quote from: iamTom123 on July 03, 2017, 01:12:02 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?

Yes, some people can control the market cryptocurrency, not only Bitcoin. They can create some waves a trend up or down call is breakout or crash, then seek to spread the news to the community and waiting trader continue this waves they created. Final, take profit and kill trader go backward the trend

No it can be controlled. Well not for the long term. The price of bitcoin will always be volatile. And as far the people that can control, you are referring to whales. Those people or entities that holds huge amount of bitcoin that a simple selling order will really crash the market. But I doubt investors like that still exist now. Bitcoin has som many investors and every a backing of a country. So its hard to manipulate the price of bitcoin unlike bitcoin where the Chinese can easily do it with fake volumes.

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Quote from: amaral1977 on July 03, 2017, 09:41:50 AM

If BTC becomes a more centralized speculative asset, i dont think volatility can be controled. If it finds a way to work around it´s limitations and gains widespread usage the "true" decentralization would mean less volatility IMO

well bitcoin is known by all the countries now and it is being use on a high level so I think it’s really hard and tough task to control its volatility now infect its nearly equal to impossible as bitcoin is spreading all around the world everyone wants to get max amount of bitcoin so it’s not possible.

quarkyplum

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Quote from: iamTom123 on July 03, 2017, 01:12:02 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?

Yes, some people can control the market cryptocurrency, not only Bitcoin. They can create some waves a trend up or down call is breakout or crash, then seek to spread the news to the community and waiting trader continue this waves they created. Final, take profit and kill trader go backward the trend

bouren

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Quote from: iamTom123 on July 03, 2017, 01:12:02 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?

I don't feel volatility of bitcoin could be control taking any measure. Bitcoin is now mainstream as investment and large number of users use it as speculative mean and hardly concern its utility.
Also we noticed that commodity's volatility controlled when flow of money increase as larger the cap, lesser the volatility. But in case of bitcoin we are far from this as even bitcoin cap is 3 times the last year but still it fluctuates $500-1000 weekly.

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Historically volatility grew less with growing market cap. Which makes sense, because the higher the market cap, the more money it takes to move the price in any meaningful way. I think this trend will continue.

https://www.buybitcoinworldwide.com/volatility-index/

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From most merchants' perspectives, there is no volatility at all. They don't need there to be volatility, because as soon as they receive a payment they can convert their coins back into good old fiat, which is what they wanted all along. The idea that they "accept Bitcoin" is misleading, because while you can pay in Bitcoin, what they're really looking for is fiat.

There are even companies like Bitpay which can let a merchant accept Bitcoin and then give them fiat deposits directly into their bank account without them having to lift a finger, and all this is done with just a 1% fee.

I know 1% sounds like a high fee, but Visa, PayPal and most other payment systems charge much higher fees than that.

So volatility absolutely doesn't stop merchants accepting BTC, nor is it something that can be changed easily.

Lampaster

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No one can control bitcoin. That is why the price of all crypto currencies is not stable. When you develop trade with bitcoin then the price can be stabilized, but this is not a fact. The state has created many different mechanisms for regulation of various markets, but they are powerless in the face of bitcoin.

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Quote from: iamTom123 on July 03, 2017, 01:12:02 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?

I think volitality is something we can not control since the majority of bitcoin shares is not in our hand thus we have out of control of it. However this is somthing can be lessen if we will all work together to widespread crypto currency.

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Quote from: Doms on July 03, 2017, 01:17:21 AM

Quote from: iamTom123 on July 03, 2017, 01:12:02 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?

I think the only way that volatility can be managed is if bitcoin is being used by more people where there is less control of the few to dictate the price. This will not happen in the near future as bitcoin is still a very young currency and still in its development stage. But as years go by and more people are able to use it, the price is going to reach a point where it will stabilize and only minor movements are to be seen.

Yes this can probably stabilize the volatility a little, but still, there will be traders who deal in high amounts and which will ultimately lead to this volatility in price. The main reason for the volatility is because BTC is still considered as an investment venture rather than a currency because of that many people just want to buy low sell high.

Caladonian

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Quote from: Sled on July 03, 2017, 04:44:48 AM

Bitcoin volatility cannot be controlled because bitcoin is decentralized so there is no person or organization that can control the volatility of bitcoin even the bitcoin itself because it is only depending to the demand of the people in the market so as long as there is demand in the market then the price or volatility will still occur because there is no fix number of demands in a free market.

Correct its still be depends on how the market moves and how the value will bring volatility will be there and can never be control by people around demands and supply just like how economics works the only thing is those who understand and have the time to wait are those who really enjoy and earned.

amaral1977

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If BTC becomes a more centralized speculative asset, i dont think volatility can be controled. If it finds a way to work around it´s limitations and gains widespread usage the "true" decentralization would mean less volatility IMO

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Quote from: gregory51gosh on July 03, 2017, 08:22:44 AM

It is because BTC should not be treated as a micro-payment method. It is not equal to money as we know.

Bitcoin volatility cannot be controlled as bitcoin is based on decentralization and demands. It can be price dumped and pumped depends on the users. Bitcoin already address its volatility of the price thats why it cannot be controlled.

gregory51gosh

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It is because BTC should not be treated as a micro-payment method. It is not equal to money as we know.

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Quote from: iamTom123 on July 03, 2017, 01:12:02 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?

Sure it can. Bitcoin is just currently at a very young stage, therefore there will be problems, bugs, innefficiencies, and the like. Hopefully in the very near future these problems will be adressed. Also, bitcoin needs to be more newbie friendly, to a point where everyone will very little knowledge can use it. I can only imagine bitcoin's price being stable a few years after global adoption.

itsallpc

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Just like decentralization,volatility is the nature of bitcoin.Due to decentralization,there is no central authority to control bitcoin price.So bitcoin price reflects its original value.Bitcoin price increases or decreases directly in proportion to increase or decrease in demand for bitcoin.It is due to this volatile nature traders make profits.So bitcoin volatility could not be controlled by any means.

timerland

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Quote from: iamTom123 on July 03, 2017, 01:12:02 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?

Decentralized currencies have this innate volatility, it's just how it works.

If you want to make bitcoin completely stable then you'd obviously have to have some sort of centralized entity that controls the monetary supply, dumps coins when the price is high and buys when the price is low. Basically what central banks do these days trying to retain the competitive edge on exporting goods, especially in india and china which is high volume exporting countries.

This defeats the whole purpose of bitcoin though. And imo, bitcoin volatility is quite attractive as it brings up investment opportunities, and it means that bitcoin isn't dependent on the fiat monetary system.

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