How high a of a market cap would bitcoin need to have to be 'stable'?

Mobius

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Quote from: botany on August 09, 2014, 11:37:23 AM

Quote from: InwardContour on August 09, 2014, 11:07:37 AM

It's really hard to predict but when the market cap will be as high as the Apple one,
then the times should be mature enough to have a stable price.

We shouldn't really be comparing the value of a currency to the market capitalization of a company.

I agree. The market cap of a company is a reflection of what the market thinks it will make in the future (future earnings) while the market cap of a currency is the reflection of the potential value and adoption of the currency.

DannyElfman

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Quote from: Swordsoffreedom on August 09, 2014, 06:30:09 PM

Quote from: DannyElfman on August 09, 2014, 03:38:13 PM

The deeper the order books, the more stable a currency will be.

Well that is also true guess it would depend how much money is around a price range to make it move up or downward that would make a currency or Bitcoin stable, but by market cap is the question ^_^.

True, but market cap can a coin make more instable!

Think about a highly valued coin with very thin market books. If someone wants to cashout a chunk, the market will tank.

The same cap with highly liquid markets would eat up that sell in seconds!

Swordsoffreedom

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Quote from: DannyElfman on August 09, 2014, 03:38:13 PM

The deeper the order books, the more stable a currency will be.

Well that is also true guess it would depend how much money is around a price range to make it move up or downward that would make a currency or Bitcoin stable, but by market cap is the question ^_^.

BTCfaucetTIME

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Quote from: DannyElfman on August 09, 2014, 03:38:13 PM

The deeper the order books, the more stable a currency will be.

I agree, it is more how liquid the market is, instead of how high of the total value BTC has.

DannyElfman

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The deeper the order books, the more stable a currency will be.

botany

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Quote from: InwardContour on August 09, 2014, 11:07:37 AM

It's really hard to predict but when the market cap will be as high as the Apple one,
then the times should be mature enough to have a stable price.

We shouldn't really be comparing the value of a currency to the market capitalization of a company.

InwardContour

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It's really hard to predict but when the market cap will be as high as the Apple one,
then the times should be mature enough to have a stable price.

botany

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The velocity of money, rather than market cap, would determine price stability.

freedomno1

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Quote from: DannyElfman on August 07, 2014, 08:37:12 PM

Quote from: unpure on August 07, 2014, 04:16:51 PM

Bitcoin price will never be stable if price in fiat. The problem is paper money is too volatile.

Thats the spirit! Hahaha good one.

That would a good quote actually nice one Wink

So when will the price be stable never guys paper money is to volatile ^_^.

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Quote from: unpure on August 07, 2014, 04:16:51 PM

Bitcoin price will never be stable if price in fiat. The problem is paper money is too volatile.

Thats the spirit! Hahaha good one.

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Bitcoin price will never be stable if price in fiat. The problem is paper money is too volatile.

counter

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Quote from: Gargulan on July 19, 2014, 10:27:05 PM

Quote from: Este Nuno on July 18, 2014, 04:28:57 AM

Quote from: counter on July 17, 2014, 11:08:54 PM

Quote from: Este Nuno on June 19, 2014, 12:47:40 PM

Or at least different market caps for different levels of stability.

What is your estimate for +-1% variation and +-3% variation. Or what do you think is the most realistic +-% range that we'll see?

Gold is what, 9 trillion? And it's still often volatile. I'm guessing this is purely due to speculation.

I agree this is purely speculation so why not post the thread in the speculation section so it gets the proper amount of attention it deserves?

Anyway I guess a market cap approaching 2 billion for some stability.

I assume that was a typo and you meant 2 trillion, right?

Probably as the market cap right now is over 8 billion.

Yeah that was a fail on my part. Good catch, I'm thinking I meant at least 200 billion dollars and don't know what was going threw my head at the time I posted that. My main point was we need some real growth and big money to enter the scene to expect any long term stability.

aminorex

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It's not about market cap. When enough people have obligations denominated in BTC, they will be forced buyers. That will create a price support which prevents the unfettered momentum trading from reaching absurd extremes.

Gargulan

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Quote from: Este Nuno on July 18, 2014, 04:28:57 AM

Quote from: counter on July 17, 2014, 11:08:54 PM

Quote from: Este Nuno on June 19, 2014, 12:47:40 PM

Or at least different market caps for different levels of stability.

What is your estimate for +-1% variation and +-3% variation. Or what do you think is the most realistic +-% range that we'll see?

Gold is what, 9 trillion? And it's still often volatile. I'm guessing this is purely due to speculation.

I agree this is purely speculation so why not post the thread in the speculation section so it gets the proper amount of attention it deserves?

Anyway I guess a market cap approaching 2 billion for some stability.

I assume that was a typo and you meant 2 trillion, right?

Probably as the market cap right now is over 8 billion.

Este Nuno

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Quote from: counter on July 17, 2014, 11:08:54 PM

Quote from: Este Nuno on June 19, 2014, 12:47:40 PM

Or at least different market caps for different levels of stability.

What is your estimate for +-1% variation and +-3% variation. Or what do you think is the most realistic +-% range that we'll see?

Gold is what, 9 trillion? And it's still often volatile. I'm guessing this is purely due to speculation.

I agree this is purely speculation so why not post the thread in the speculation section so it gets the proper amount of attention it deserves?

Anyway I guess a market cap approaching 2 billion for some stability.

I assume that was a typo and you meant 2 trillion, right?

counter

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Quote from: Este Nuno on June 19, 2014, 12:47:40 PM

Or at least different market caps for different levels of stability.

What is your estimate for +-1% variation and +-3% variation. Or what do you think is the most realistic +-% range that we'll see?

Gold is what, 9 trillion? And it's still often volatile. I'm guessing this is purely due to speculation.

I agree this is purely speculation so why not post the thread in the speculation section so it gets the proper amount of attention it deserves?

Anyway I guess a market cap approaching 2 billion for some stability.

hollowframe

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Quote from: Erdogan on July 17, 2014, 04:55:06 PM

Quote from: hollowframe on July 14, 2014, 02:05:28 AM

Quote from: Este Nuno on July 12, 2014, 04:19:51 AM

Quote from: Harley997 on July 11, 2014, 08:17:52 PM

Quote from: Este Nuno on July 11, 2014, 03:48:18 AM

Quote from: DannyElfman on July 10, 2014, 07:08:34 PM

Quote from: Este Nuno on July 09, 2014, 03:51:35 PM

Quote from: desired_username on July 09, 2014, 03:07:11 PM

Stability doesn't have anything to do with market cap, but the distribution of coins.

If the market cap is 1 trillion, but there are still whales with considerable amount of btc then they will be able to crash the markets.

I wouldn't say it doesn't have anything to do with market cap, but that both things are issues related to stability. The larger the market cap the more money it's going to take to move the market on a day to day basis. But yes, someone who holds a large percentage of coins will have the ability to crash the market in most cases unless the buy support is incredibly large.

But when the market cap is higher, people who have the ability to manipulate the price will have less of an incentive to do so as they have more to lose. Also people who have existing amounts of bitcoin would have less incentives to try to crash the price as they now have a lot more to lose.

Right. Unless they receive some non public information or early public information that might want to cause them to sell all their coins at once. Like some sort of government crackdown or major technical issue. If they feel that they would lose more by holding then that's one situation where they might have more to gain by unloading all their coins at once.

It would not just be from non-public information, it would be any potential negative information that would cause people to wish to sell bitcoin. The thing is that by the time bitcoin would get to be at a level that is "stable" the vast majority of these issues would likely have worked themselves out.

Yeah, hopefully. But there is always going to be some risk just as there is in any technology or any endeavour for that matter.

Bitcoin will need to be more diversified in terms of who holds large amounts of bitcoin. Until the distribution of bitcoin is more even, or less top heavy, bitcoin will be a very volatile asset to own.

Bitcoin will be stable when distributed to people who decide to hold them for other reasons than speculation. For instance a business holding some amount to support the day to day payments.

I agree that speculators need to be holding less bitcoin for it to have a stable price, but it also needs to be more evenly distributed. Another catalyst that would cause bitcoin's price to be more stable would be more trade taking place in bitcoin and a higher overall market cap.

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