Does everyone want bitcoin to be stable in price? - page 9.

witcher_sense

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Quote from: bbc.reporter on October 02, 2022, 10:53:04 PM

I ask this because stability makes bitcoin become a good store of value and medium of exchange. Volatility makes it good for trading and speculation.

I strongly disagree with both of these statements. Price stability is an invention of the fiat economy because you only can dictate the prices of goods if you can manipulate the supply of money. By meddling with the supply of money, you ensure that all prices remain relatively stable. That is not possible in the free market based on non-government currency such as bitcoin. In the free market, the price of money, a.k.a purchasing power of money, is the result of fluctuations in balance between the supply of and demand for money. These fluctuations in turn directly influence the prices of all non-money goods and services, making them volatile like money itself. There is no "stability" in such a market because the balance between supply and demand highly depends on the decisions of individual participants.
What makes bitcoin or any other asset a decent store of value is not the stability of the price, but limitations of total supply and issuance coupled with relatively high demand. But given that fluctuations in demand cannot be alleviated by corresponding fluctuations in supply, the price of a good is always fluctuating and cannot stabilize near a particular level.

EarnOnVictor

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Some debates/arguments about Bitcoin baffle me at times, they shouldn't have been initiated in the first place if the debaters truly know the mechanism behind the structure/operation of Bitcoin. Bitcoin can never be stable, it already has its technology and foundations as such, and it is an asset that could be held and traded in the interbank market. How could such be stable? Many decisions are dragging the price of Bitcoin, it will always fluctuate due to that, while the side with the highest liquidity takes the trophy just like any other floating market where demand and supply decide the price.

bitcampaign

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if bitcoin is stable it is the same as fiat money, I will not agree with that, even though so far we know bitcoin remains stable like 1 BTC is worth 1 BTC, so it will only be worth if it is exchanged for fiat money not with btc to btc, I guess no one wants to see bitcoin stabilize with fiat money and not everyone wants that

hosseinimr93

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Quote from: Detritus on October 03, 2022, 12:55:47 AM

OP, I could not find @mr_jk's thread.

Here is the thread OP talking about.
What will happen If Bitcoin got stabled ?

Quote from: Detritus on October 03, 2022, 12:55:47 AM

About this topic, Bitcoin is not a fiat crypto so there's no need it should be stable in price.

As mentioned by pooya87 above, even fiat isn't stable.
People believe that dollar is stable, because 1 dollar has been always 1 dollar.
If we measure bitcoin value in the same way, bitcoin is stable too. 1 bitcoin has been always 1 bitcoin.

Kakmakr

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The majority of the people will want volatility, because they are speculators and hoarders ...seeking profits for their investments. They do not care that retailers and shops that accept Bitcoin as a payment option, wants less volatility.

Some of the early Bitcoiners will tell you that low volatility are good for Bitcoin as a "Currency" ...because shops and customers does not want to deal with extreme volatility when they pay for goods and services. (Just imagine how shops have to display their prices for their goods... if the price goes up and down every second.) Roll Eyes

hyudien

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Quote from: bbc.reporter on October 02, 2022, 10:53:04 PM

I was reading some of the replies in of @mr_jk's thread when he asked what will happen if bitcoin's price became stable?

The replies were unexpected hehehe. Much of them argued why or how can bitcoin be stable? This makes me ask the question do much of the holders of bitcoin want the price to be stable or do they really want it be volatile? I ask this because stability makes bitcoin become a good store of value and medium of exchange. Volatility makes it good for trading and speculation.

I'm not sure if a stable Bitcoin price is really what some users want. But so far I think Bitcoin has always worked as it should even though the price volatility is so volatile it doesn't stop people from owning more. I honestly admit this question is easy to say but looking for the right answer will be a bit biased. Because even though the current Bitcoin price is unstable, the fact is that it is still the target of investors. Vice versa if the price of Bitcoin is stable, adoption may be much greater where stock investors will flock to buy (what I said could be wrong) may be criticized!

Detritus

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OP, I couldn't find @mr_jk's thread. I think it would have been so helpful to some readers like myself if you had include the thread link, so that those with interest to read the replies you talked about can easily go over it, instead of the stress to searching the topic.

About this topic, Bitcoin is not a fiat crypto so there's no need it should be stable in price. About Bitcoin halving on every 4 years, I believe lots of investors invests into Bitcoin during bear market and wait for the next halving or bull market. So I think Bitcoin volatility is not a problem which in my opinion is better to continue that way.

mk4

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Regardless if we want it or not, stability should come if it's the case that bitcoin becomes big enough(probably à la gold or bigger) in market cap some time in the future. But before(and if) we get there, bitcoin needs to go through this heavily volatile phase.

pooya87

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Quote from: bbc.reporter on October 03, 2022, 12:16:49 AM

@pooya87. Stable in value against what, however? Where would we get the basis for bitcoin's value?

It is hard because value itself is mostly measured in terms of fiat and if we measure it in terms of anything else (gold, a barrel of oil, bag of potato, ...) that too can be volatile. But I suppose the best way is to measure it in terms of a combination of goods and services instead of fiat.

For example we can say bitcoin value is stable if your cost of living is 1BTC and remains that way regardless of what happens to the price ($1k to $10k to $100k to $1000k).

bbc.reporter

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Quote from: hd49728 on October 02, 2022, 11:06:08 PM

Stable price does not helpful for both investors and traders.

Investors need to see price growths to get profit so stable price can not help for investors.
Traders need high volatility in order to have waves and good entries as well as good exits to get profit. Traders would prefer to see highly volatile price, not stable price.

Because Bitcoin has four-year halving, it won't be stable for too long time. There are always highly volatile, medium volatile and very minor volatile periods in price but in general, we will see volatility.

Are you implying that bitcoin would be no use to the holders if the price becomes stable or if the price does not increase anymore?

I am not antagonizing. I am only asking everyone this challenging question that appears to have been avoided many times.

@pooya87. Stable in value against what, however? Where would we get the basis for bitcoin's value?

Also, agreed to your reply that we need bitcoin to be stable in value.

pooya87

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We want bitcoin to become stable in value not in price because if its price becomes stable that means its value is dumping over time since fiat currencies are always dumping and a stable price means losing value alongside fiat.

We want stable value because it helps bitcoin adoption as a currency but the problem is that increasing adoption means rising value since bitcoin has fixed supply (unlike fiat). Which is why I think we should first have mass adoption then the stable "value" would happen naturally.

The only people who don't want it are those who thought bitcoin should make them rich overnight.

hd49728

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Stable price does not helpful for both investors and traders.

Investors need to see price growths to get profit so stable price can not help for investors.
Traders need high volatility in order to have waves and good entries as well as good exits to get profit. Traders would prefer to see highly volatile price, not stable price.

Because Bitcoin has four-year halving, it won't be stable for too long time. There are always highly volatile, medium volatile and very minor volatile periods in price but in general, we will see volatility.

bbc.reporter

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I was reading some of the replies in of @mr_jk's thread when he asked what will happen if bitcoin's price became stable?

The replies were unexpected hehehe. Much of them argued why or how can bitcoin be stable? This makes me ask the question do much of the holders of bitcoin want the price to be stable or do they really want it be volatile? I ask this because stability makes bitcoin become a good store of value and medium of exchange. Volatility makes it good for trading and speculation.

Topic: Does everyone want bitcoin to be stable in price? - page 9. (Read 1794 times)