I'm not talking about these supposed stablecoins like Tether, but normal coins. Let's say an agreement was made among all the major Bitcoin exchanges. Starting January 1, a Bitcoin is worth $5000 USD, plain and simple, and that's it. The price never goes higher or lower. A Bitcoin is $5000 today, tomorrow, next week, next month, etc. NOTHING changes it. Not a war, not the economy, not Trump getting re-elected (which he will, he's doing a great job), nothing.
I wonder if that could be done and what the effect would be.
One effect is that I wouldn't be buying BTC, because with no price volatility, how could I ever make a profit? But one good thing is that normal companies may be more inclined to use Bitcoin, since its price is now fixed and does not change.
If the price of the Bitcoin is fixed, then I simply don't see the importance and use of Bitcoin in the mainstream and its use in everyday life. If the price of the Bitcoin is stable (fixed), then why in the world would I exchange my government backed fiat currencies which are accepted everywhere for crypto like Bitcoin which have a very limited acceptance and can be banned by government any day they like. If I prefer stability then I would prefer fiat over any investment because value of 1$ will always be 1$ so no need for me to let go of my money. Fiat is without any doubt the more stable than anything in the world.
The only use of that crypto left would be anonymous transactions which will be needed by a very few people on a daily basis and that crypto would loose all its popularity and I don't see a very long future for this kind of coin at all.