Topic: High volatility and sudden crashes will kill bitcoin, unless... - page 2. (Read 2495 times)

As to me, that's sheer nonsense

And it is not nonsense just because the idea is conceptually flawed (though it still is) but since there cannot possibly be a value reference point that would remain the same in any "coordinate system", so to apeak. In other words, whatever you may choose as a reference point (for taking or copying the value off it), it will be prone to value changes on its own (in respect to other valuable assets). You may take energy and you may even take time itself (which looks a better idea) as a basis for reference, but you will still face and have to deal with the change in the values of these references themselves. This is what any hard currency backed up by some asset is set to face inevitably. In this way, just limiting the number of coins to 21M is a step ahead since it allows to get rid of such issues altogether

Nobody will kill bitcoin in any way what bitcoin competitors do though they have the same sma bitcoin. Believe it or not but there are a lot of people with cash in their bank waiting outside bitcoin to include it at the right price and in every accident.

I totally agree, this was no crash but a periodic volatility before it settles , those of us who have been following Bitcoin for sometimes now never panicked because we are used to this and was confident it will be coming back to normal after a few balances here and there.

Correct, in fact I have some problems calling the reduction in price we got a crash at all, bitcoin even at the lowest did not go below the previous level, it only went as low as 1900 so that was not a crash at all that was just the market trying to find the price of bitcoin and the ups and downs were nothing but a signal the market was having some issues to find the right price

no it won't!
the only effect that a high volatility always had and will continue to have is that it will make people think twice before using bitcoin as a currency and prefer it more as their investment and the thing they trade.

and it is not an strange or even restricted to bitcoin only thing. it happens with every new technology that has a growing demand.
someone actually posted a screenshot (that i will add if i can find it) of Apple shares and it has a very similar movement to bitcoin price.

this is how all the markets work.
smart money comes in first, then the masses find out and start FOMO buying, price go up fast. smart money sells to make profit and because they know a correction is on the way. price comes down in correction, smart money buys back more shares.
in bitcoin, unlike stock market, there are a lot more newbie wannabes that will panic easier and they make the movements even bigger.

Honestly I think that's a great idea and have often wondered why we haven't started yet. I think it's a much bigger barrier for the average joe to have to put up $2000 to get 1 btc (which in their head makes them feel like small fish, not worth the time, missed the boat, etc) than volatility will ever be.

If we can get fees sorted out, which it looks like we are finally closing in on a solution, I could see trading in smaller increments as a giant boon for Bitcoin. Think of it like when Google hit's $1000 bucks then they stock split 1:10 in order to make the share price $100 again. It makes Google once again more accessible to the average joe.

We all remember as kids preferring ten $1 bills as opposed to one $10 bill. More is always better (even if it isn't actually more lol).

Nice name btw, cheers.

If limited supply is the core reason for drastic fluctuations then I guess we need to switch over to satoshi based trading instead of current doing BTC based. For example dogecoin are having lesser volatility as they are having huge number of units and no total supply cap.

I agree that volatility is bad for a currency used to transact. As Dinofelis said, cash with a finite supply is inheritly volatile. Fiat is able to control giant swings with policy changes & fresh currency, this is something that bitcoin seeks to avoid. We can't add mechanisms for price control and then in the same breath call Bitcoin a "freely traded market", which imo is one of the more appetizing features of BTC.

I think the adage applies here "don't invest what you aren't willing to lose".

That being said, I definitely think it's a mistake to dislike volatility (speaking being we are all here for profit). It's more the natural progression of a trend, look how slow price started rising from $200 and how volatility (ups & downs) progressively got bigger and bigger as price rises. This is something we see repeat in nearly every market. A good example is a 10 year graph of Amazon/Google, look how slow it started and how it's basically going straight up now.

It's more about people feeling they are on the "sidelines" and buying in so they don't "miss out". Little do they realize, they were buying at the top before a very large correction. There is a reason most profitable traders on Wallstreet are contrarians. The goal is to use human psychology against your peers.

Bitcoin to me is a vehicle for speculation now a days, nothing more. If we want to talk global currencies, we got to start USING them as global currencies. Right now it's just a hoarding game.

As most people say "smart money buys bitcoins, dumb money sells bitcoins". That's a self-fulfilling prophecy for continually rising prices. That's NOT how a currency is supposed to be used, if anything we use Bitcoin more like Gold than a currency. It's a really volatile store of value (oxymoron lol)

PS - as a trader, I love the volatility, as I'm sure many of my peers do. Bitcoin has made me some of the greatest pecentage gains over the years.

Yes there are people who are loving the extreme volatility of bitcoin markets. They must be traders who can enjoy the ups and downs of bitcoin price movements to make use of them for their trading.

But when we are thinking from the point of innocent investors who are entering into bitcoin and losing their investment with sudden crashes, might be leading to have negative impression about bitcoin investment and which may end up not suggesting to their friends to guide them getting into bitcoin ecosystem.

Hence I think we need bitcoin prices to be more stable like it should move up to +/- 10% per day. But I do not think it would be possible to have such ideas to be implemented.

Author, you started a good topic about volatility of bitcoin and other crypto. It`s a good question of how to tie bitcoin to real economy assets to avoid sudden ups and downs. But your idea of solar energy or other sounds little utopian. How to count energy, especially solar energy, it does not belong to anyone and is almost infinite.

To the bitcoin holders sudden crash and volatility means opportunity and profit. To the early adopters way back to 2013 when we speak of sudden crash it would cause a big panic and many will lost their capital. But today bitcoin holders are no longer affected by sudden volatility. If they see a huge price spike it would mean time to sell and if they see a huge dip it would mean an opportunity to buy.

well in skyrockets and crashes are pretty normal in cryptocurrency market so, if you don't know how dance with it you will lose money and the crash happened a few days ago is not the worst compared in the past which is doesn't kill bitcoin instead they came back stronger and became popular

also the volatility makes the bitcoin more interesting to investor and they used the volatillity of bitcoin to make profit.

Unless the support will be strong enough to defend the crashes and control the high volatility and we are witnessing it right now because if you see some crashes in bitcoin, it still pump and fighting back to the top.

Crashes like this are just mild compared to what have been witnessed in the past which in the real  sense does not kill bitcoin rather makes it come back stronger and more popular. To me, I see the crashes as lessons to both outsiders and those in the know that bitcoin is not a quick rich scheme that will just continue to increase like that but a little set back for us to go back to the drawing table and set our priorities right.

If you find yourself stay away as stated by the above mate. No need of making it an big issue, from my opinion users who mostly use bitcoin loves the volatility. It is the one that helps get a profit, which is not possible with any other traditional currency. How hard you manipulate or adoption goes on the volatility always stick to it.

I don't know why people really love to make things complicated thinking off that crypto currency do really works on this way they are might some disadvantages but people do still love to engage with it.Period. and theres nothing to debate off.If you don't like the volatility then you can anytime leave and stick into the tradition old ways as simple as that.

Crypto can be a value reference.

John Nash's "ideal money", for example, involved a currency's inflation rate to be as close to zero as possible without being negative.  The idea was that everything else could be measured against it, like a meter or something.

With a limited supply, if it was a kind of "reserve currency" the value would be far more stable.

Those prehistoric crash are little indicator of other on believing on bitcoins when there's certain downfall occuring on it thats why we can see another great pumps after it to be happen and time before are different from now since adoption and its votality are further more increasing and I think Big crashes will not occur on this point since price will actually reach for more after for years will pass on it.

that's true , cryptocurrency market has pretty different characteristic compared to any other digital market or any market . i even think the high volatility could live for long time enough as it's how the crypto market work , it could be a new trend . we have face several shocking crash , and so far we pass it and even getting better situation after that crash .

Crypto currencies is still at the early stages and as such we expect price manipulation, hard forks issues and pump and drop by greedy traders. But time will come that its capitalization will increase to the level that it can't be manipulated. We need all this manipulation of price now to create popularity for crypto currencies in general. Renewable energy project is also good.