Topic: Is mass adoption or/and regulation more likely to reduce volatility? (Read 520 times)

Your comment or discussion is a little off topic from the OP, but regardless, I will still have to correct you on something.

There is a higher possibility that the higher the adoption of Bitcoin, the more profitable the price will be. That's what the law of demand says. But the higher the number of people who are holding and owning Bitcoin, the more likely it is that a mass dump will also happen. I seriously disagreed with that. This is because when five people share a particular good within themselves and three of these five people want to sell off their goods because they actually need the money for something else, the price of the goods they want to sell will reduce but not the value. This is because the number of people selling might be greater than the number of available buyers.

But when we have higher numbers of holders, we will not have to worry much about price dumps. Bitcoin is not an altcoin where the liquidity can be pulled by a few individual holders; the price will always drop and go up; that's the nature of Bitcoin. We will always have bullish and bearish markets and price corrections.

There is  difference between unique addresses and the number of individuals to have adopted bitcoin. Whole one can be determined and that is the vase of unique addresses the number of individuals to have taken up bitcoin investments, either having it stored somewhere or trading can't be accurately determined. Perhaps the once on centralised exchanges could be determined as accounts are verified, even as simple as cell phone number verification, there still presents some challenges as, most individuals have got several cell phone numbers and the closest to proper documentation is running kyc which is avoided in the crypto space.
Now, unique addresses can't be tied to a each user as well. As crypto investors, your allowed the luxury or owning more than one address and even switching in between addresses.

When we talk about regulation and volatility, the main issue with volatility as we have it is in the demand of the currency. Will the regulation be able to check demand? If no, then its okay to understand that it solves no problem.

If more people start using bitcoin and governments begin to control it, this could help reduce its price volatility. When more people own bitcoins, the market becomes more stable. Also, the involvement of large financial companies can lead to sustainability. If governments impose rules and restrictions on bitcoin, this could create more clarity and protection for people, which could reduce anxiety and price fluctuations. However, it is important to remember that bitcoin will still have some degree of volatility and investing in it still carries risks.

Based on what I understand from Satoshi's previous statements about why he did not wish to instantly promote the use of Bitcoin to everyone, I believe that someone will keep a large amount of Bitcoin due to hype. If we go back in time, the authorities blocked Wikileaks from transacting money through their website, thus utilizing Bitcoin is the best way to continue some exchange of goods, which Satoshi does not agree with because he wants to strengthen the Bitcoin. So, if Satoshi agrees with RHorning, it is possible that the Bitcoin price is quite volatile today since many individuals own a lot of Bitcoin and can dump it.

As per my analysis based on market information and understanding, which is subject to inaccuracies, the root cause of volatility is the relatively small size of crypto market which can be easily manipulated by big players, while in contrast , the commodities and stock markets as their market capitalization is much bigger than crypto space. There is no doubt that when general public involves through massive adoption, it can potentially increase the demand, and subsequently stabilize market in the long run.

Adoption and growth rates for btc is different thing but prices are controlled by the market factors and volatility depends on them.But with increased adoption and regulations the demand will go up and coming halving the supply will be reduced which can push prices high so you see volatility factor remains there which can't be eliminated with these regulations.

Indeed, increased adoption and effective government regulation of Bitcoin are driving increased usage of Bitcoin, is leading to greater liquidity. This, in turn, has the potential to result in significant increase in market capitalization of Bitcoin and ultimately contribute to market stability. These major developments address the major issue of crypto market which is volatility. As Bitcoin becomes more regulated, widely accepted, and its market becomes resilient, it will certainly reduce its unpredictability and fluctuations.

Bitcoin is the number 1 top trusted crypocurrency. And of course it is considered the pioneer in the field because it is the... pioneer in the field.

If the government in any country had the ability and resources to regulate Bitcoin, they would have done so already. They cannot regulate Bitcoin. They can regulate centralized entities like cryptocurrency exchanges or cryptocurrency casinos. Anyone in the world can mine Bitcoin, anyone in the world can own and transact with Bitcoin. All they need is an internet connection.

The worldwide adoption is a question of when not if. The volatility will continue to exist. But that is not a bad thing, BTC may always have changes in price, due to pure speculation. The value, however, stays the same.  

In a scenario wheee everyone has a bitcoin, and they all use said bitcoins they own for transactions, effectively circulating the supply and fostering a currency-type economy, there is a huge possibility that bitcoin’s price will stabilize, but it must be said that this will also dump the value of bitcoin by a huge margin. There’s also the discussion of regulation which will definitely play its part when the topic of global adoption is raised. Still, it’s gonna take a long time for this to even warrant discussion, as it stands today bitcoin is valuable not for its currency nature, but for the fact that it is used by many to gain profits, so not only is bitcoin’s volatility rate really essential in rhe growth of the cryptocurrency king, but also its massive kryptonite.

That's much pretty is, there will really be no one from the forum that might be alive by that time and who knows if the forum will still be in existence by that time or even Bitcoin but I hope so. The supply isn't increasing anymore, there's a fixed one.

But the volatility, we'll never know if it's gonna be fixed when the whole supply is already mined by that means, we'll never see it happen because we're no longer here anymore by that time.

There are whales that will keep as much as they can but they will influence the market. And these whales could also be the financial companies that we're seeing jumping the bandwagon of Bitcoin and having their interest publicized so that everyone knows that they're already in.

There's gonna be always the demand for Bitcoin and we're only in one path of it. It's gonna be harder to obtain one every single year that will pass and every single halving comes.

I suppose it's the matter of time: if adoption process is rapid, then it can reduce volatility and bring instability in total, while slow and rational adoption process most probably won't affect volatility.

Regulation.

Regulation is not directly going to happen with Bitcoin, regulation can only work with where people sell and buy their Bitcoin, that's crypto exchanges and that's even centralized exchanges, regulation can bring in some trusts but it won't reduce volatility, I am glad you don't ask for erasing volatility like a member on this forum that wished that Bitcoin goes stable, some people are too blind to see and they will never learn.

Mass Adoption

Mass adoption is not something that can be rushed, since Bitcoin is decentralized, it's greatest enemy is the government and that's why the adoption is slower, but Bitcoin was created for strong community in mind, and to keep the community in good hands, more trust must be in place, mostly among the adopters, Bitcoin was not created for the government or any kind of law to support, the strength of Bitcoin comes within it's holders and community.

Assuming loads of people start adopting Bitcoin today, the value will grow in huge numbers and those who bought at, let's say 20,000$ can start selling, meaning Bitcoin is leaving some people's hands and going into another hands, and the new hands will sell at a certain amount too, maybe 200k per Bitcoin.

Bitcoin will always go around, from hand to hand because of it's price, only very few people will want to hold and those holders are already millionaires who don't care about what will happen in future, but for the who came from struggling background, they need to survive, they need to solve their families problem and help their people,  those people are much more in numbers compare to those who are already millionaires.

Volatility with Bitcoin will always be here, and the next dip of Bitcoin can be 50,000 and we will be hoping for 300k in the next bull market, things will always be like this for Bitcoin.

Wow, looks like an interesting discussion, let me respond first. The concept of regulation in the cryptocurrency market is a topic of ongoing debate at the moment. While some argue in favor of regulation as a means of promoting stability, protecting investors, and promoting mainstream adoption, others express concern about potential drawbacks such as invasion of privacy and individual freedoms.

My view is that mass adoption and regulation items have the potential to contribute to reducing volatility, it is important to review and all the factors that affect market prices, including sentiment, global events and technological advances, but it is not possible to eliminate all items as OP Yuriy1991 stated and it can the reasons and arguments because maybe he has read the current developments.

Concerns about potential invasion of privacy and freedom should also not be ignored in my opinion, because what you said above is also true and makes sense. however, if the Regulations are applied carefully, it can help build a more transparent and trustworthy environment for investors and ensure that market participants adhere to certain standards, thereby reducing the risk of fraud and other activity. I think regulation can promote market integrity, improve investor protection, and encourage institutional engagement, thereby increasing trust and attracting more participants.

If more people use Bitcoin and the government successfully regulates it to some extent, Bitcoin’s volatility may be reduced. Increased adoption and regulatory actions can help stabilize the market by  increasing investors’ trust. However, it is crucial to note that the cryptocurrency market is influenced by a variety of factors, including global economic conditions and investor attitudes, which can still contribute to price changes. Although regulation and widespread adoption may have a stabilizing effect, the volatility of Bitcoin cannot be completely eliminated.

Are you advocating regulation? I don't see any benefit that regulation will bring to the market, especially since it would seriously violate our privacy and freedoms. Moreover, reducing market volatility is never good for us, we invest for profit, and to get profit requires strong volatility. If these 2 things reduce the volatility of bitcoin, I really don't expect it.

Mass adoption and regulation can reduce volatility in the crypto currency market. Mass adoption could lead stability in the market by increasing the overall demand for the crypto currencies. The more people will use Bitcoin on a daily basis the market will become less dependent on speculative trading that could help reduce volatility. Regulation could also help reduce volatility by providing a more stable legal framework for crypto currencies. It could increase investors confidence and reduce the risk of fraud and manipulation.

Bitcoin, the granddaddy of cryptocurrencies, is certainly a force to reckon with, no doubt about it. With a user base larger than the population of some countries, it’s made a space for itself in the digital world. And now we're imagining a future where Bitcoin's user base is as populous as a continent, and Uncle Sam's got his regulatory hat on. Will Bitcoin finally mellow out? Here's my hot take.

Increased adoption might bring more stability. More people, more transactions, a more balanced market, right? But let's not forget, Bitcoin's like a wild stallion – it thrives in the wild, free and unregulated. Throw in government regulations, and we might be messing with the fundamental ethos of decentralization. However, if Bitcoin were to become less volatile, it could potentially emerge as a new form of 'digital gold' – a beacon of stability amidst the chaos. But remember, this is the crypto-verse, expect the unexpected!

People will always see this from two view points. One will see Bitcoin as a method for payments or a digital currency to use freely. On the other hand, the rest of the people will see it as an asset to invest in and make profits from it. Both are good in a sense that they are getting what they want, and it's all coming from Bitcoin.
There's a theory that once all the Bitcoins are mined, it will become somewhat stable. I don't know how much of it's going to become a reality, but only time will tell. As for my point of view, as long as people see Bitcoin as an asset and a medium for making profits, then these kinds of volatility will still remain in the future too. If it becomes stable, many people will lose interest in it. These are just predictions and not 100% accurate. So forget about the future and just enjoy while you can.

Bitcoin operates within its own ideological movement and is subject to the influence of regulators and governments. While complete regulation may be challenging, governments can align themselves with Bitcoin to some extent.

Regarding volatility, it is inherent to Bitcoin's nature and development. As a digital asset, Bitcoin aims to have value equivalent to traditional currencies like the dollar. This pursuit of value parity means that Bitcoin will likely continue to experience fluctuations regardless of its level of adoption. Its status as a "digital gold" contributes to its volatility as well.

Mass adoption and regulation both have the potential to contribute to reducing volatility in the financial markets. Mass adoption refers to a widespread acceptance and use of a particular asset or technology, such as cryptocurrencies or blockchain. As more people and institutions adopt and integrate these innovations into their daily lives, the market becomes more diversified and resilient. This broader participation can help stabilize prices and reduce the impact of large-scale trading activities. On the other hand, regulation plays a crucial role in establishing clear guidelines and oversight mechanisms for financial markets. Well-designed regulations can promote transparency, discourage manipulative practices, and enforce accountability among market participants. By instilling confidence and trust in the market, regulatory frameworks can mitigate risks and dampen speculative behavior, thereby contributing to a decrease in volatility. Ultimately, a combination of mass adoption and effective regulation is likely to have the greatest impact on reducing volatility and creating a more stable and sustainable financial environment.