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Topic: Can the volatility of Bitcoin be curbed? - page 2. (Read 589 times)

newbie
Activity: 52
Merit: 0

It is limited by the support and resistance, it can not be limited, so the player can control it.
newbie
Activity: 12
Merit: 0
Until btc price stabilizes, I don't think we will get new average Joe's money come into the market
newbie
Activity: 29
Merit: 0
it will definitely decrease
newbie
Activity: 66
Merit: 0
Should limit the fluctuation of Bitcoin, giving users more losses, and greater profitability
member
Activity: 504
Merit: 10
ONe Social Network.
One of the major strengths Bitcoin has is it's freedom. The fact that it can operate freely without external influences and intervention is what makes it attractive, foe the volatile status to be eliminated, there must be some sort of control on how BTC operates which will greatly affect it's freedom. The volatile nature can be curbed only if BTC is centralized, something that i sot see happening anytime soon especially with most governments battling BTC so much so that some are doing away with it completely
newbie
Activity: 37
Merit: 0
In my opinion, the fluctuation of bitcoin is not necessarily limited by the fact that it fluctuates much, it is just showing the trader and interacting, thanks to the fluctuation that I have embarked on bitcoin.
sr. member
Activity: 700
Merit: 250
Actually volatility of bitcoin is natural. Only thanks to it we can make profit and earn money quickly. If you like stable fluctuating you can just trade in forex for example. But personally I like such volatility, because it provide us opportunities to buy cheap and sell in high.
member
Activity: 532
Merit: 17
One major obstacle toward Bitcoin's acceptance by the mainstream is its extreme volatility. Effectively, this volatility means that Bitcoin is more a commodity than a currency.

That being the case, if, and that's a big 'IF', we wish to further the cause of Bitcoin as a currency with mainstream acceptance, there needs must be a mechanism in place to 'dampen' the volatility.

Central Banks stabilise their International fiat currencies through some exchange rate mechanism, that prevents excessive volatility. Can a similar mechanism operate for Bitcoin?

But, who will be in charge of a setup that is not just intentionally decentralised, it is explicitly anti-centralised?!

Are these just the design limitations of Bitcoin that we have to put up with; or can Bitcoin evolve?


 

indeed, volatility is the main characteristic of cryptocurrency. I dont know well what makes crypto so volatile but it is not always bad.
i think there is no guarantee bitcoin's volatility will be gone if it going to be centralized. Bitcoin and crypto should be stay decentralized.
newbie
Activity: 7
Merit: 0
It's hard to see Bitcoin having a stable price until all coins are mined. With the supply and demand and circulation changing it's not easy or impossible to have a stable price for bitcoin. Sometime we've seen wallets , exchanges and certain ICO's put a average price for Bitcoin or ethereum to exchange  other than that any tokens price will be on rapid changes when they traded in the market.

Until all BTC are mined it will still be volatile. Best shot we have to see how a stable price for a crypto currency would work is check out the price change of a token or coin that's already fully pumped to the market. until that happens this advantage and disadvantage is here to stay.
I very much agree
Bitcoin's price will gradually stabilize as it is tapped
Because bitcoin is lost again, when some wallets are forgotten, the bitcoin inside disappears.
legendary
Activity: 1806
Merit: 1029
One major obstacle toward Bitcoin's acceptance by the mainstream is its extreme volatility. Effectively, this volatility means that Bitcoin is more a commodity than a currency.

That being the case, if, and that's a big 'IF', we wish to further the cause of Bitcoin as a currency with mainstream acceptance, there needs must be a mechanism in place to 'dampen' the volatility.

Central Banks stabilise their International fiat currencies through some exchange rate mechanism, that prevents excessive volatility. Can a similar mechanism operate for Bitcoin?

But, who will be in charge of a setup that is not just intentionally decentralised, it is explicitly anti-centralised?!

Are these just the design limitations of Bitcoin that we have to put up with; or can Bitcoin evolve?

Things that tend to dampen volatility are widespread adoption and use, lots of volume on exchanges so price doesn't move very quickly, and intrinsic value.

Bitcoin has some serious challenges for widespread adoption, and its decentralized, leaderless nature pretty much guarantees those challenges will not be effectively addressed for the time being.

A centralized exchange rate mechanism would pretty much defeat the purpose of decentralized peer to peer transactions, so I wouldn't recommend it, and I don't think it would work anyway.

I don't see Bitcoin evolving in a way that could curb the volatility, though it might be dampened somewhat by significantly more speculators getting into the game.

For an example of a cryptocurrency that is proactively addressing these challenges with Bitcoin and gearing up for widespread global adoption, take a look at DNotes and its sister company DNotes Global. The project is not widely known at this point, has been operating largely under the radar, but over the past four years it has been very steadily and quietly building up and putting together the pieces, and one day, probably in the next couple years, it's going to take the world by storm. All of a sudden, there will be a digital currency that seamlessly bridges the gap between cryptocurrency and traditional financial structures, that is totally user-friendly and intuitive to use, and which is supported by an extensive ecosytem to give it intrinsic value. You don't build something like that overnight, but for most people it will appear like the proverbial overnight success.
legendary
Activity: 1666
Merit: 1001
People love Bitcoin because of its decentralization and with decentralization the volatility couldn't be avoided, and there is no way to control the volatility, because most of the people used Bitcoin as investment, and there are tons of traders active every day, it's makes the volatility even worse
member
Activity: 756
Merit: 16
We All Can Make It
I don't think they're design limitations rather they're what the hodlers/traders/users have turned Bitcoin into. Maybe in the long run, Bitcoin price will achieve stability.
hero member
Activity: 686
Merit: 500
Volatility is one of the main feature of bitcoin which is used by traders to gain huge profits and it could not be controlled as it is a decentralised currency.
full member
Activity: 476
Merit: 100
One major obstacle toward Bitcoin's acceptance by the mainstream is its extreme volatility. Effectively, this volatility means that Bitcoin is more a commodity than a currency.

That being the case, if, and that's a big 'IF', we wish to further the cause of Bitcoin as a currency with mainstream acceptance, there needs must be a mechanism in place to 'dampen' the volatility.

Central Banks stabilise their International fiat currencies through some exchange rate mechanism, that prevents excessive volatility. Can a similar mechanism operate for Bitcoin?

But, who will be in charge of a setup that is not just intentionally decentralised, it is explicitly anti-centralised?!

Are these just the design limitations of Bitcoin that we have to put up with; or can Bitcoin evolve?


 

Volatility measures the variance of the price of a certain financial instrument within a certain period of time. It is commonly associated with the risk level of the instrument, a highly volatile instrument is regarded as risky and a less volatile instrument as less risky.

Therefore, it is important to understand the volatility of bitcoin and other cryptocurrencies if you are looking to invest or trade in the cryptocurrency space.

Here are the most important take-aways of the bitcoin volatility analysis based on our data:

Bitcoin weekly volatility reached up to 60% per annum during the previous year (Figure1), but other coin pairs saw even bigger swings. Bitcoin is definitely the most liquid coin, its order books show the deepest sell and buy offers, therefore a big trade will have a smaller price impact, hence a smaller price volatility. Bitcoin is, however, still more volatile than any fiat currency pairs.

When comparing Bitcoin trading versus fiat currencies, we observe that BTC versus CNY is the most volatile market (Figure2). This is mainly due to the previously zero trading fees on Chinese exchanges that bumped up volume.

Bitcoin volatility can be traded

we can't change it because that is how we traders earn always think that even bitcoin drops there a big opportunity to earn, for me volatility is a good thing also.
see further details here https://www.cryptocompare.com/coins/guides/5-things-you-need-to-know-about-bitcoin-volatility/
member
Activity: 434
Merit: 10
Sometimes i don't want to give too much of a hope when there is not any. The volatility of bitcoin cannot be curbed because the primary reason for which bitcoin was created has been thrown away and know people have implemented their own reasons for personal gains. Bitcoins were supposed to be a mode of payment for transactions but not holding it like an asset which has a specific value against time. It is so funny that we the crypto enthusiasts who are wishing so bad for the legalization of bitcoin will not agree to dumping it, because people would lose huge sum of money but i must be honest i don't see any other way out aside dumping the coin.
member
Activity: 238
Merit: 10
I do not yet know a way to reduce the volatility of bitcoin prices and it seems to me that it will be very difficult to do because bitcoin is decentralized, also bitcoin is used now as a tool for investing and reducing the volatility of bitcoin prices will lead to a decrease in investment interest.
newbie
Activity: 283
Merit: 0
It is quite possible although it is a very long shot. Looking at the prices over the past three months, it is obvious that the volatility has decreased significantly but then, it is Bitcoin,right? You never can predict accurately what might happen next
newbie
Activity: 112
Merit: 0
It's the nature of Bitcoin and altcoins to be volatile, so anytime their value changes ang we can't just stop it or slow its changes since every people's transaction to Bitcoin it will move the price as well.
newbie
Activity: 5
Merit: 2
For the volatility of bitcoin to be checked, most people joining bitcoin markets and trading have to understand the true value of bitcoin. People join through FOMO and sell at lower prices than they bought because of FUDs. Also, holders who owe significant amount of bitcoin have a role to play. But most of the big holders would always want more. When you let your coins slide, they'll gladly hold it. It's almost impossible to curb volatility since the power is in the hands of every individual holder of bitcoin. Perhaps it may be possible to control volatility when we all start thinking the same suddenly.
full member
Activity: 392
Merit: 100
Not easy to do and the volatility in nature of crypto currency is the fear of some people not investing in Bitcoin as they see it as ponzi scheme.... Its only government that can reduce the volatility by making it legal and accepted by all.
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