How high a of a market cap would bitcoin need to have to be 'stable'? - page 5.

MICRO

legendary

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Quote from: GangkisKhan on June 19, 2014, 01:58:31 PM

Quote from: Dalmar on June 19, 2014, 01:52:33 PM

Even gold with its huge market cap is still relatively volatile. Bitcoin will always be relatively volatile as long as it isn't used as a widespread unit of account.

Fiat is stable because it is being regulated by government.

Bitcoin is regulated by free market. And free market is Chaos.

I wouldn't call it "Chaos" .
As for market cap, well... Its rly hard to say, once it becomes mainstream and more and more people start to use it , else when we go to extreme with diff , it should stabilize ...

But again we all know how things can change so fast with bitcoin, its rly hard to predict a future for it.

Dalmar

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Life is short, practice empathy in your life

Quote from: GangkisKhan on June 19, 2014, 01:58:31 PM

Fiat is stable because it is being regulated by government.

Bitcoin is regulated by free market. And free market is Chaos.

The main reason why first world countries' currencies are stable is because people plan long term projects in them. Almost nobody plans things in terms of gold or bitcoin. Hence, the volatility and the twitchy nature of the market.

GangkisKhan

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Quote from: Dalmar on June 19, 2014, 01:52:33 PM

Even gold with its huge market cap is still relatively volatile. Bitcoin will always be relatively volatile as long as it isn't used as a widespread unit of account.

Fiat is stable because it is being regulated by government.

Bitcoin is regulated by free market. And free market is Chaos.

Dalmar

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Merit: 500

Life is short, practice empathy in your life

Even gold with its huge market cap is still relatively volatile. Bitcoin will always be relatively volatile as long as it isn't used as a widespread unit of account.

Este Nuno

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amarha

Would it take governments deciding to hold bitcoin in their reserves for bitcoin's market cap to reach these heights or not? Or is private capital sufficient to get bitcoin to the 100 billion, 500 billion or 2 trillion dollar market caps mentioned?

beatljuice

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(Note that I have no education and little experience in these things)

Apple seems to vary less than 1% most days and its current market cap is ~550 billion.

Canadian dollars are worth ~2 Trillion US dollars and seems to vary as much as Apple so it seems that market cap is only part of what ads stability.

TrailingComet

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100bn $ upwards is the minimum viable stabilising threshold I think
15 to 20x from here

Este Nuno

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amarha

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.

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