Topic: Isn't speculation and volatility a problem for Bitcoin? (Read 425 times)

Rather than an opportunity itself than on seeing this as a problem.For those who couldnt able to bare out moving price or volatility then this is a bad thing for them which they do prefer on staying up with fiat
or something which does have stable value but for those who are business minded or who could take risk then this market is the best thing for them even though its risky but they do look after on the
brighter side which these are the things which others couldnt able to see.I dont see it for it to be bad and as long you do accept the reality on how this market moves then its your choice to make.

Speculation and volatility  isn't a problem for Bitcoin even with the high risk to reward ratio it posses. I think a good knowledge of how to take advantage of the both could be a plus for both the trader and holder alike. I see no problem with either of them it's the both that defines the structure of the market and it's quick ROI

I'm not going to talk about speculation because it's not unique to bitcoin or other crypto assets but talking about volatility, it's a unique attribute of Bitcoin and the entire crypto market as a whole and I think that's one of the defining factors that makes Bitcoin and all of crypto different from other markets. I also wanted to point out that stablecoins like USDT and BUSD might not be popular to everyone especially people who just buy and old but it's important to people who trade since it provides and option that you can hedge to when market goes sideways.

Logically, it should look like a problem but in reality, that's the charm of bitcoin. Speculations and high volatility are linked with each-other (well, volatility alone sticks with bitcoin). This is the real reason why bitcoin is a popular investment option. Just see, one day you can wake up and see 20% growth on your invested capital. If you catch the good moment of fall and open short position in futures trading, even if there is 30% decline in bitcoin's price, you can wake up with 30% profit and even more bitcoins than before.

You want stable coins? There are USDT, BUSD and others. But they aren't popular in crypto world, so you know now.

If we look at a non-crypto perspective, speculation and volatility are terms that may bring negativity. But in the eye of a bitcoiner, speculation and volatility may mean profits. They are the reason why bitcoin value reach any heights and fall into its deepest dip. And without them, the crypto market will not be as exciting as today because these two meaningful words has kept bitcoin and the whole crypto market alive and more interesting especially for newbies. Volatility is what giving us more opportunities to gain good profits particularly if we started it from long term holding until we witness its new all time high.

I don't think speculation and volatility are a problem at all to bitcoin. Both aforementioned factors are what makes bitcoin what and where it is today. In my opinion, speculation and volatility are actually beneficial to bitcoin's price value making it profitable to the users who are investing, trading, and holding it.
Speculation is what triggers the volatility and volatility is the one that is in charge of the trend of bitcoin on the market. I think both play a great role in maintaining bitcoin's value and popularity to the masses. With speculation, people will start to wonder if it's a worthy investment and with volatility, they will be encouraged and enticed to risk into it based on what they have researched.

Biggest problem is giving basic knowledge about bitcoin and crypto because recently we have some good number of feuds and disinformation about this around the world, so peoples have no basic information and good knowledge about this if we were able to spread this then surely we will be able to have some good adoption and many countries automatically unban this because they feel peoples understand this and can handle it's all volatility.

If you are understood then speculation and volatility can't give you serious trouble you need some strategy which help you to settle things in better way, but education is more important.

The biggest problem is the number of countries that have banned Bitcoin so that development is very slow, I'm sure if it is legalized, there will be many benefits that can be obtained with bitcoin, speculation and volatility are things that we usually get from investment, and because speculation and volatility make people interested in getting into the business. bitcoin in the hope of making a profit.

Volatility bro

That will depend on how you can filter the news or make the right analysis so you are not just speculating with the market. The volatility will be with bitcoin price and I think that will happen like that in the future. Someone who invests in bitcoin will need to know how to deal with the volatility because if they can not do that, I am afraid that they will not be able to keep their bitcoin for a long time. After all, they will panic when the price drops too deep.

Volatility is the master thing in crypto which makes greatest trades ever. Peeps actually make genuine profits just because of the heavy price movement of crypto over short period of time they book handsome profits. The crypto volatility also gives chance to the staking market, the confidence of price movement over period of time has always seen in upward direction! So either way we can use this drawback for the profit making if done in proper ways.

Also I dont get it, why speculation is problem here? Speculation is just way to understand and forecast the value trends in the near future. I am pretty sure that speculation is way common thing in the share market, stocks, golds and what not. Everything runs on it and its not a problem at all.

While a currency needs to have stability to become feasible, an asset doesn't need to obey the same principle. A means of exchange needs to be stable, durable, divisible, and difficult to be counterfeit, on the other hand, an economic asset doesn't need to abide by these same principles. Volatility in Bitcoin may be a problem for someone who uses it as a currency, but it can also be a good thing for someone to speculate. That said, depending on what you want to do with your bitcoin, volatility and speculation can be a good thing.

Speculation is a big problem for Bitcoin of course. Because FUDs can affect the price really seriously sometimes. But in the recent times, I see that Bitcoin is stronger than before. For example, we have newly seen that China tried to affect the price with a FUD like they banned cryptocurrencies. But Bitcoin price still stayed strong and even increased as you can see now. When it comes to volatility, it is not a problem actually. Because it is the biggest reason that people invest into Bitcoin. If it was a stablecoin, then there would be so many people who would stop investing into it. Because their main goal is to make serious profits in Bitcoin.

Bitcoin's ups and downs don't just happen once or twice, but will keep on repeating like any other investment instrument. There will be many periods as we see today, where negative catalysts have changed the technical chart and it's all getting worse when market participants start taking profits. , but I personally think the volatility that occurs will never make people panic, because most people invest in the long term, I think many people will never question the problem.

speculation and vitality is indeed a problem for bitcoin, but it all depends on the person who invests, if they invest in the short term, maybe it will be a problem for them, but not for those who invest in the long term, because they will not worry about all of that, in my opinion that's about it.

I think because Bitcoin is a speculative asset and its price is also very volatile, that is the attraction of Bitcoin. Because Bitcoin is different from
other assets, investing in Bitcoin can generate huge profits in a short period of time. This means we can get rich faster if we focus on investing
in Bitcoin, because the price of Bitcoin is volatile that's why it can generate large profits if we are able to take advantage of it. But indeed the risk is
very high, we can also experience big losses if we make the wrong decision. That is the importance of learning about Bitcoin first, before deciding
to invest in Bitcoin, so that we understand how Bitcoin works and finally the decisions we take are also right.

A good reason why bitcoin is so big with cryptocurrency investors is because of the fact that it has good volatility rate that could pump the price up the same way it could dump it down as well. Really volatility is a double-edged sword for investors because most of them use these sudden price surges and drops as a means to earn money with cryptocurrency. The same goes with speculations. Exactly. Bitcoin being this dynamic is what caused all this craze anyway. So it's not entirely bad for cryptocurrencies to be this way at least while they are still a store-of-value asset. The narrative changes however once they become accepted as bona fide currencies that could be used for everyday menial transactions because the slightest fluctuations could cause problems if volatility is not solved.

If BTC is not speculative and volatile then we don't see that much activity in crypto. Its this volatility that is attracting more and more  investors towards this system. If you play your cards sensibility then there are bright chances that you will get good profit from here. If you dont like this volatility then go and invest in banks.
"The higher the risk, the greater the reward"

speculation ? or volatility ? in all investment places speculative is part of discussion because that
will decide if one investor to keep holding or will sell.
and also the speculation is one way of misleading people so the market will move up and down, because in the end it is the strong hodler will win and the weak hands will lose.
Bitcoin will never has a problem instead it is the people who use this will made this difficult to happen.

This question cannot be answered unequivocally. Bitcoin is widely used now as a speculative financial asset and has very high price volatility. By this, it attracts most of the participants in this market, since it provides an opportunity to receive high profits, which are much higher than in other markets. However, the use of bitcoin mainly as a speculative asset does not allow it to be widely used as a means of payment and, thus, it does not fully fulfill its purpose.
The price volatility of bitcoin, like that of all cryptocurrencies, is both a boon and a downside. But this is inherent in the nature of decentralized cryptocurrency and it is unlikely that anything can be changed here.

Not a problem as I am aware of the market situation about volatility. We can never rid of this thing that is why we should have to deal this or the 2nd option is to leave. I don't think this has become a problem for us because in the first place, making the volatility of the market making it more alive. But what I see is the problem, it is between us who can accept the reality.
We'd come out of this speculation because of the volatility of the market that needs for us to live on as we are in the crypto world.

Indeed, higher volatility of the market could be a problem and can be an opportunity for other people at the same time. Traders and investors take advantage of the volatility of the market, resulting in better profits and losses as well. I think the volatility factor is the reason why most people are into BTC and it will never be stable because that's what makes it different from traditional securities such as stocks. So if you have a better risk management, then crypto is for you.

True. Everything depends on your needs on the currently moment. Knowing how to use bitcoin for your own benefit at the right situations to achieve your goals, speculation and volatility won't be a problem at all. Probably they will be even an advantage. However awareness and wisdom are needed, because if the person thinks bitcoin's characteristics are fully benefical or fully prejudicial in every cases they will lose money and golden investment opportunities that may not be disponible again soon.

actually these 2 things are not a problem for bitcoin and is fairly normal when it comes to crypto and even normal in the stock market, people can't help to speculate the price of bitcoin because through this speculation you can predict what the price of bitcoin will be, and volatility is a factor that will always be present in bitcoin because the price of bitcoin is dependent on the demand on it. so if the demand for bitcoin is lower than its supply then the price of bitcoin will also be lower and vice versa.

It's no different then the speculation that happens with ANY currency. People hedge one currency against another all the time all over the world in many markets.
As for the volatility? A bit, I don't think it's that bad since it gets some people moving their BTC so it keeps it circulating.

Just my view, as always everyone is going to see it differently.

-Dave

If it was that much a problem then we wouldn’t have gotten to this level that we are at today. Yes, the price has been volatile from the start and there has been so many people who are afraid of investing in bitcoin because of the fact that it is volatile and they have also missed a good opportunity for them to make wealth just because they are scared of the volatility of bitcoin.

Same thing with the speculation thing, yes there are lots of them in this market, but it’s all up to you to not pay attention to them and just do your thing. That’s why it’s important for you as a trader to have a knowledge of what you’re doing and know how to read the chart yourself so that you wouldn’t have to be relying on anyone at all.

It's not a problem for me either. People who are new to bitcoin, they look at it as something bad and very problematic with it.
But after understanding bitcoin, it's actually a good thing that they have to look at as an advantage upon learning that there's a reason why people like volatility.

I wouldn't say it's not a problem, but it's not that big of a problem, really. Bitcoin, even with its decade-old existence, is still getting riddled with volatility since it's still regarded more as an asset and less as a currency. Not to mention that a lot of traders are still seeing it as a prime asset to trade and profit from, hence the volatility.

If we got a wider adoption rate in the next few years, perhaps volatility will pose a huge problem from a user standpoint. Then again, most big companies that causes the domino effect are acknowledging bitcoin as a top-performing asset and not so much as a currency.

This and that is why many regulation comes up as well. The "uncertainty" becomes like a way for a single holder to either become broke or a millionaire in no time and at the same time, this one makes people to use stablecoins instead of the common coin that have unstable price.
To old holders, I don't think that the "uncertainty" or "volatility" will matter much that now.

Exactly. If it was such a problem, then stablecoins have solved it and yet we still do not see merchants accepting USDT or people spending USDT the way they do with Bitcoin.

Adoption in Bitcoin is still way higher than any stablecoin and thousands of stablecoins out there prove this. Any currency is volatile when it is new,,, until adoption becomes mainstream.

Almost certainly not a disaster as they put it, though I would say it's far from ideal for those that use Bitcoin as a currency rather than an investment. Although, those do seem to be rather thin. Most users here, and most people I know invested in Bitcoin are doing it to eventually cash out back into fiat.

Ideally, it would be nice to see the volatility be below 1% over a extended period of time, at least from a user point of view. The investors probably wouldn't be happy with that, and undoubtedly would start posting about Bitcoin being dead.

It's the fees, and the volatility which is the stumbling block for being able to use Bitcoin for every day items, and needs I would say. Though, progression is definitely being made towards bettering the fees, and  think it's a common thought process that the volatility will get better in time.

Bitcoin is a good thing for us to make long-term investments, the main key is to be patient to wait so we can get profit, speculation is a natural thing in investing because without the courage to speculate we will never get big profits.

The bitcoin volatility is not that bad to be called a "disaster" as you put it. It is annoying at best. For example if you look at the past 60 days we only had 2 big rises and 2 big falls that are bigger than 10% and covered about 5 days, the rest of the time meaning most of the remaining 55 days market was moderately calm. For example in the past 10 days the biggest thing we had was a 2.5% drop and a 4% rise!
This is just the most recent case, in the first 4 months of 2019 (~120 days) price was a lot more stable and for much longer.

From the beginning bitcoin was designed as decentralized so that volatility became commonplace, with the number of users continuing to grow and the number of stocks being fixed, bitcoin was widely used for speculation so that it became the most attractive investment even during a pandemic like now.

I think it depends on the purpose of how you are going to use Bitcoin and your strategy. If you want to pay with Bitcoin, its volatility is a real disaster for you. But if you are a trader, you can earn on its constant fluctuations. If you are a long-term investor, you just don't have to worry about volatility, as your target is holding for several year.

It will be a problem if we respond to that things by not controlling ourselves or controlling our emotions when price movements show a decline or heard some bad issues about Bitcoin.
Well, that's actually nothing wrong with speculation and volatility, that's indeed from the absolute side of the characteristics of Bitcoin from the start it existed till nowadays.
We here must be able to respond to it positively and optimistically so as not to invite high losses, or make us weak in determining the next step or what to do.

I don't think that's a problem, because since the beginning of bitcoin has a price, bitcoin has been volatile. however, it attracted so many new investors and developers to create something similar. many people see the volatile nature of bitcoin as an opportunity to increase their asset count. however, if this were a problem, then bitcoin wouldn't have made it this far long ago.

I don't see any problem with it. As for me, Bitcoin's volatility wouldn't change because that's a normal characteristic of it. Speculations will always exist since Bitcoin is volatile but if we'll do research first then we don't have to get confused or affected by lots of speculations that we might hear around us.

It will always be a good driving force for bitcoin to keep on going despite its sudden crash on the market. Maybe for new comers this will be a complete challenge for them but i know eventually, they will be used to it and start loving them. Just like what the long term investors are exactly doing. If the crypto market will always be affected with news and social media events, then definitely its speculations and volatility will always here to stay. For some, it might be a destruction, but for others its what keeping them more attached to crypto.

Merchant would definitely choose on being stabilize because they dont want to lose profits whenever the price dumps but same goes on making profits have might changed other merchants perspective.

There are people/businesses who doesnt really like moving prices and thats why they dont intently to get engaged nor stepped into crypto market specially with bitcoin.If volatility and speculative market was the main problem

then we wont really be seeing this market for this to be this big and now we are actually seeing the opposite which the community did really make out some big support.

Speculation and volatility in bitcoin are two situations in which we are accustomed but for the new ones who are just learning how to handle it it is a complete challenge. Some are fearful of losing their money, others assume it. I think both are natural characteristics in bitcoin.
I remember a few months ago I introduced my brother to crypto in the recent bitcoin crash he kept calm and continued to invest.

Speculation and volatility are not a problem for me who is already familiar with Bitcoin, it is a problem for people who do not understand Bitcoin.
So it's best before investing in Bitcoin learn everything about the crypto world, so we will not complain about Bitcoin as a speculative asset or
the volatile Bitcoin price. Even for people who understand Bitcoin, the volatile Bitcoin price is an advantage in itself to be able to make a profit.
The conclusion is don't invest in something we don't understand, it will indeed be a problem.

High volatility of bitcoin makes it good for investment. This is why a lot of crypto users are going into btc because of this characteristic. They are hoping that their investments will earn a lot in short period of time. And actually, some really do make good money out of it. It may be a problem for some, but just look at the positive side of it as we can't avoid this yet for bitcoin. Just take advantage of this volatility aspect of bitcoin to gain from it.

Speculation and the market's volatility will never be a problem, but for weak hands it will always be. If you have been here in the market for long, you will probably discover that speculation and volatility are even the reasons why the market is still alive. These what make all the investors get thrilled and excited whatever the result it causes to the market. Either it gives a bullish or a bearish trend, it will not be a problem because long term traders will always turned it into an opportunity to makes profits. Strong hands make it a way to be even more profitable, while weak hands often lose from this market's speculation and volatility.

Speculation and Votality will benefit those who do have the power to manipulate the market so it is very easy to speculate. High volatility is certainly very risky, but in fact bitcoin does have high volatility. this provides a faster way of investing but needs to be careful.

Speculation and volatility become a problem when we can't control it or take advantage of it. Reading with technical analysis and fundamentals will be very helpful so as not to get caught up in market speculation.

The two are something different. For its volatility, it will be a problem for people who only expect about rising price again and again without any correction. And if there is no volatility, it means it is like stablecoin, well, we may not be able to see the skyrocket of Bitcoin price.
But on the contrary for the daily traders, scalpers, investors, no, exactly, volatility of Bitcoin is not a problem, except they are panickers.

And about speculation, it will be a matter if we only speculate about something without any analysis. We are here about prediction and speculation, but how we speculate and predict will determine the results. There is no 100% speculation and prediction that are right.

Why it is? Bitcoin has been known as an speculative asset and its market is very volatile so why it should be a problem?
Well, maybe for those who have less experience about volatile markets, it is a problem if they lack of awareness.

yes, a long as majority of people and businesses are willing to believe and accept central bank backed fiat currrencies for their good and services it will be.
The tide has to turn into the same people accepting Bitcoin for their goods and services.

Yeah, it's also in the design of Bitcoin. I was trying to touch upon that above, however Bitcoin is actually designed to have some level of volatility, and the older Bitcoin becomes, and the closer we come to mining the total supply, then the volatility should probably be much lower than current levels. However, that doesn't change the fact that currently the volatility is what's stopping Bitcoin from being used as a everyday currency.

The volatility is directly tied into why Bitcoin is being used as a investment, and a stepping stone if you will to a speculative investor. Most investors currently don't want to use it as a currency, and probably don't even see it as a proper legitimate currency, and instead have the long term goals of withdrawing back into fiat once they've made their money.

IMO, I find it as a challenge in cases where you want to use Bitcoin for payment. Imagine a product price is showed in BTC and then you create a budget for that product just to later realize that there's a change in BTC worth and hence a change in what you have to pay. This can literally happen to anyone and I don't see any solution but to budget more for anything you want to pay for with BTC because the price can make numbers change against your plan(though this should happens only when BTC price goes higher). But, volatility is the nature of Bitcoin so let's embrace it the way it is.

Why it did become a problem?

If you do know on what you are talking then its completely the opposite because if bitcoin wasnt volatile at all then you do really think that there would be lots of investors or traders would join
or engage on this market? For sure none.

Let do things to happen and if you dont like volatility then you could always avoid or leave out this market but if you do look things into bigger perspective then you
would realize that these are main things on most people love the most.

Depends on what point of view you are seeing this. If you are seeing bitcoin as an asset, then nope. Speculation and volatility isn't a problem. Invest, hold or take advantage of the volatility and make profit. Now if you are thinking about bitcoin as a regular currency to make day to day transactions, then yes. It is a big problem. Price uncertainty due to high volatility will put off merchants and common people from using bitcoin. Imagine accepting a huge payment in bitcoin and then the price crashed around 5% within few seconds (this is what we have been seeing the last few days).

Indeed, speculation is part of our daily lives, even a small step to what you want will lead to speculations. But the thing is that speculation can be good/bad depending on the understanding you put into it, so for me, take advantage of speculations and the outcomes will be in your favor (most of the time). and with regards to volatility, it's not a good thing, but I've been introduced in to btc with quotes that says "Volatility is very a common part of BTC, so be wary" and up to now, I've been able to put plans in investments/trading which I consider volatility as part of it.

Nope, both aren't any problem for Bitcoin. Bitcoin is a cryptocurrency and cryptocurrencies are speculative instruments. The crypto industry does well in speculation. That's one. The second issue – volatility. That's what makes Bitcoin what it's today. I don't like it when Bitcoin isn't showing any sign of volatility. When there's no volatility, the market becomes full and without action. I, for one, don't like it whenever the market shows signs of drag or inaction. So, the two items you listed above are the sparks Bitcoin needs. It's a plus and not an effect to Bitcoin.

But usually speculation is also used to profit in trading. That's also true, if bitcoin were to be used as the official currency of the world, this would be a problem. It seems like bitcoin is no better fit to invest than as a modern finance.

This is such a tired question that gets asked over and over again - Speculation and volatility isn't great, it isn't a feature unique to bitcoin either.

The volatility aspect of fiat currencies are built in at a loss of 2-3 percent every year, set by the central banks. That's what the target is, and many times they exceed those numbers. Not very predictable, and it sure is tough for built in inflation to be considered a feature, and not a bug. Why is there no talk about volatility in this regard? If you expand time axis for Bitcoin, those volatility spikes flatten out dramatically, and you see an increase in your initial investment (or purchasing power, depending on the way you look at it).

Not a problem, it's an overblown concern. And you could also say that with wider adoption, the price fluctuations will decrease.

Speculation & volatility is an opportunity whilst it’s still here & the market is young. We seem to be following 4 year cycles still so it’s obviously not a bad thing to buy what you can in the bear market & then sell in the bull.
This won’t last forever though, as time goes on & bitcoin becomes more mainstream & widely adopted there will be far less volatility.

Investment certainly takes courage to take risks, if you don't dare to take risks then putting money under your pillow is a good choice. I think bitcoin is a good type of investment but risky so it is not suitable for those who want to get rich suddenly without ever being patient and learning.

Speculation can hurt newbies if they fall for it, and it can sometimes affect the price (but I'd say that this is neutral because sometimes the price decreases, but other times it increases). Volatility has been relatively low, IMO, excluding specific periods when Bitcoin is rising or falling very fast. So, while of course Bitcoin's stability is nowhere near that of a good fiat currency, it's manageable even if we're talking about using Bitcoin as money. Price tags can regularly or constantly be updated, or the prices can be fixed in fiat with a possibility of being with Bitcoin. As for traders, it has been mentioned that volatility is a positive thing for them because that's what gives them an opportunity to profit.

Speculation is apart of literally anything and everything in life and it's good to specualte on anything and everything..it's how we figure out what's legitimate and what's not in life.  Volatility is of course a problem, but as the old saying goes.. Rome wasn't built in a day.  We are still in the first, maybe second inning of bitcoin and cryptocurrencies lives..it's going to take some time.

Nope speculation given by traders toward bitcoin is not really a problem on bitcoin since it can help people to get curious about what will be the next move of bitcoin, if you think its a problem then best not to listen if someone gives their own speculation since we bitcoin is cannot be predicted by anyone.

Also volatility will be a problem if a trader is greedy and don't know what he do on his coin bough but for experience traders they always be happy to see how market moves fast since every move it creates a possible profit experience traders can earn.

I don't think it's right to say it's a problem. Everyone knows this and that is precisely what makes you profit. When the price goes down it's a good time to buy the coin and once the market goes up sell the coin. But all things must not be separated from a risk or problem as well as for Bitcoin. When you are deceived by shitcoin it can be one of the risks you have to face. Especially in cryptocurrencies known for their high risk, but behind that all cryptocurrencies can also bring big profits.

Imagine if one day, Bitcoin suddenly becomes less volatile and only moves 1% in a month. Who is going to be trading it anymore except on futures markets and with 100x leverage?

It is a problem as a business currency for retailers especially but anyone who has ever asked for payment in Bitcoin intends to hold on to most of it or as much of it as possible.

Why? Keeping $100 today and Keeping $100 worth of Bitcoin today means you cannot know if it is $100 or $10 in a week but you know in 3 years it will be the same value as what $100 could buy today.

In a way, yes it is a problem.

We have created a "peer-to-peer electronic cash system" and this currency called "bitcoin" works best if it is not extremely volatile. However, we have to be fair and consider that bitcoin is still growing and compared to initial years the volatility has decreased significantly even though we still consider bitcoin volatile.
So in another way it is not a big problem because we consider this phase (which may last another decade or half of it) is the adoption phase and volatility and unpredictable moves is the inherent property of this phase. Eventually the market will grow and stability will dominate it.

P.S. Speculation will always exist regardless of volatility since the price will always move even if it is 0.5% at a time. Not to mention that "bitcoin price" (bitcoin value will be fixed) is determined by how much value the fiat you are comparing with is losing due to inflation.

Yes and no.

Bitcoin’s price relies on the markets around the world for price discovery, and in the markets’ current level/situation/form, Bitcoin is very volatile, but it might become more stable as it grows to multi-trillions in volume.

It's not, that's an indicator that the market is doing well because volatility is directly tied to how many people are selling and how many are buying, speculation is just that, think of it as a misplaced hope or something like that.

Since you have a view on speculation and volatility that means you are learning to trade. Speculation is just the game they play but volatility is the fluctuation of the price. Volatility is a double-edged sword. You can see it as a tool to make money or it could also cause you to lose money depending on which market you trade.

Becoming skillful in trading and speculating the price in Futures Market and you will survive to take advantage whichever the price will go.

It depends on how you're actually looking at Bitcoin. As an investment? It's both a good and bad thing, good thing is you can instantly profit huge amounts depending on your capital if you were able to ride the market wave, but the opposite could also happen. If you're looking at Bitcoin as a currency, then it is indeed something bad, but not to the point that it's close to unusable. After all, there are many instances right now that would show you how some people use Bitcoin to buy stuff. It's mostly regret and whatnot that most people feel really, especially since that big example where someone bought Pizza with Bitcoin way back then, I mean, just imagine how much that amount is today, who wouldn't regret no?

I think like you, but I wouldn't put it that way. Actually, volatility and speculation have been key to Bitcoin being the world's most profitable asset since its birth. Without them it would not have become so famous and would not be hovering around $50k, the price would be much lower.

Another thing is that in theory:


It is normal for volatility to gradually decrease.

It actually depends on how you treat Bitcoin. If you want to start a business which uses Bitcoin as the primary currency, you might see it as a problem. Furthermore, if you want to use Bitcoin as money, it could also be a problem. But if you are using Bitcoin simply as a speculative asset, then volatility is not really a problem. It could be a double-edged sword but it is generally worth appreciating knowing that your goal is to predict the pattern of the rise and fall of its price and make money out of it.

Depends on how you look at it, traders an speculators see it as a positive, volatility can make them money. For long holders, they might frown upon seeing the price swing, they just want to see their portfolio growing.

So still in the middle, nevertheless, I think majority has accepted the fact about Bitcoin's volatility, so it's up to you, better embrace it and not see it as a problem.

I'd argue if the volatility continued in the long run, then yeah it would be a problem, at least if you are looking to use Bitcoin as a currency, or even using it as a reserve. However, the vast majority of new investors are likely in it for the short term, and wanted to cash out into fiat eventually which then volatility could actually be seen as something amazing. 

Stocks, and other investments which are subject to volatility aren't trying to be a currency. If Bitcoin is to operate like a traditional currency, i.e a currency which people use for daily items, transactions, and not just investment then absolutely stability is key to that. So, I would argue that ideally we would like Bitcoin to be different to stocks. Although, the volatility is to be expected, and is to be expected for a little bit longer. Generally, as we get closer to the 21 million Bitcoin out in circulation, volatility should at least drop a little. After all; Bitcoin was sort of designed this way, it's not like volatility is a unexpected side effect, it's actually part of the plan of Bitcoin.

Besides, volatility actually increases adoption in the short term, and those that invest in for the short term, will become familiar with the currency, and potentially adopt it in the long term. Volatility seems to always catch a negative stigma, and while it isn't ideal for a currency, as an investment opportunity it's literally a traders wet dream. I would go out on a limb here, and say that there's no other market which repeatedly gives you the potential to double or triple your investment.

Its not so much volatility most have issues with. Its market uncertainty. Retailers sometimes complain about price shifts which can cut into their bottom line. One reason why there could be a future for a stablecoin for merchants to cut down on price shifts.

Speculation has many different facets to it. Which require time and experience to recognize and comprehend.

Neither volatility or speculation is entirely good or bad. Its important to be accurate on details in financial trading and investment. Oversimplifying the basic fundamentals is usually a recipe for failure.

The volatility is in the nature of bitcoin and that is due to the fact that it is not centralized and not controlled by anyone so selling and buying form different people is creating this volatility and to be honest it is not a bad thing because it constantly keeps the market active and alive, and so as the speculation always whenever a big news about some company adopting it it creates this hype and excitement and incentive for people to buy and so as the bad news, which keep the market active.

expecting too much on it isn't safe, i mean you should build new strategies in order to get the right timing to dump, and also if you already obtain good profits on it just save it because market volatility is so unpredictable wherein even market is fine there's still an unexpected downtrend without any sign. And that's the problem with crypto market and maybe that's what OP trying to say. Lol  isn't safe to be honest unless if your are long term hodler.

problem for bitcoin? definitely not a problem for bitcoin. What attracts people to buy bitcoin is precisely because of the high volatility and speculation. You've probably noticed for yourself how happy people are when the price of bitcoin soars and they walk away with big profits. there are people who keep showing that they had profits of 10X others of 5X so volatility is not a problem, even when bitcoin is used as a payment method it is not a problem. the problem might be if someone received salary in bitcoin

I'm sure the traders who can react to the markets wouldnt necessarily think
the volatility is a problem.

If we dont react at all to the volatility and "zoom out" its not a problem.

The volatility is a result of the decentralisation of Bitcoin, the centralised
traditional markets go into panic if they move more than 2 or 3%.

Experienced Bitcoiners have strong hands and nerves of wrought Iron.

Then should the price of Bitcoin be equivalent to stable coin? If in the end the speculation aims to have a level of hope and also the impetus for investors to make requests?
Meanwhile, the existence of volatility encourages this to make a differentiator for investors to make profits within the specified timeframe. So while the issue of speculation and volatility is the hallmark of Bitcoin's development so far, I don't think the problem is with the level of price stability.

I think it isn´t a problem. Bitcoins volatility is widely known and people who use it already take it into account. Volatility could be a problem if people expect stability from it.

Is it a problem for FOREX or stocks traders? No and yet both have the same traits. Why should the crypto scene be any different?

Quite the contrary in my opinion. If the price or there is no volatility like it is with Bitcoin, do you really think it will be this widely adopted and traded within the few years that it has existed? I believe that this is what makes Bitcoin what is today and like @Yogee said here



People will choose how they see BTC even though I also believe the even the long-term investors still believe in the volatility even if they don't care about it in the short term.   

Are you asking bitcoin the cryptocurrency or Bitcoin blockchain?

It depends on who you're asking if it's the cryptocurrency.

A day trader would probably think the volatility is a great opportunity to earn money.
A long term investor probably wouldn't care about the short term ups and downs.
A merchant accepting BTC could choose to be either of the two or both.

Isn't speculation and volatility a problem for Bitcoin?