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Topic: Isn't speculation and volatility problem for cryptocurrency? (Read 1442 times)

hero member
Activity: 2884
Merit: 794
I am terrible at Fantasy Football!!!
Hey guys! Just want to double check if speculation and volatility is a problem for bitcoin?
It is a problem for business and people like that, but for traders bitcoin is a dream come true, they can make in bitcoin in a day what they could make in the stock market so I’m sure for the true trader bitcoin could not be any better, it has great volatility and yet it is a very liquid market.
full member
Activity: 126
Merit: 100
Hey guys! Just want to double check if speculation and volatility is a problem for bitcoin?

It might be a problem for traders but not to bitcoin popularity itself. It helps bitcoin where it stands right now. Public won't be aware if they see only stagnant price of bitcoin. The thrill and the risk making bitcoin more exciting to invest in.
legendary
Activity: 3024
Merit: 2148
Hey guys! Just want to double check if speculation and volatility is a problem for bitcoin?

Bitcoin is traded on totally free market, and some people believe that it's the only way to determine the true value of something and that speculation and volatility are not inherently bad things. And on the contrary, regulated markets don't reflect true value of something, which eventually leads to a crisis. Also, volatility works both ways - sometimes you receive even more than was inteded, or spend less than later. And people receive Bitcoin are more likely to believe in it and hodl, which might pay off with a huge profit.
hero member
Activity: 896
Merit: 521
Volatility keeps investors interested in cryptos. Volatility offers various points for investment and withdrawing. Speculation is something that keep currency running. Speculation is second most effective price driving force after of course supply and demand. It might not be healthy. But volatility and speculations go hand in hand and thus can't be avoided in decentralised market as that of cryptos.
sr. member
Activity: 616
Merit: 250
Speculation and volatility precipitate formation prices, as well those bitcoin and altcoin. speculation is best part of trading to take return from volatility. Isn't a problem, because cryptocurrency has value that can be a comparison against other.
legendary
Activity: 3234
Merit: 1214
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There are people who have a negative thinking about the volatility and this being an speculative asset. Same time most of the users who have been making good earnings in term of bitcoin as well through other altcoins available were through the speculative approach and the price volatility happening in accordance to it. Based on this this isn't an issue for cryptocurrency.
member
Activity: 122
Merit: 10
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legendary
Activity: 1596
Merit: 1005
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Extreme volatility and speculative nature of the market is both problem and the greatest strength of bitcoin, or cryptocurrencies in general.
How do you think volatility and speculation is being dealt with in case of fiat? Of course, we have a central bank which is pulling the strings, controlling the money.
Fiat money is centrally steered, and for normal, everyday usage this is probably a good feature to have. But now imagine the value of your stashed fiat money after 20, 30, 40 years.
Not so fancy thought when your money will lose 30%, 30%, 40% purchasing power.
sr. member
Activity: 434
Merit: 252
For me, volatility is not a problem of bitcoin. It's just his personality. I had learned to deal with and it doesn't bother me. If the fall in prices continued for years, this could be a problem. Such volatility as we are seeing now can be seen as a virtue. It allows many people to earn good money.
legendary
Activity: 3122
Merit: 2178
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We're still in the process of finding the "right" price for Bitcoin, hence the volatility. It will decrease with growing market cap. Once Bitcoin becomes boring we know that we've succeeded Smiley

Until then volatility and speculation are what bootstrap the Bitcoin economy. Merchant adoption will only increase once Bitcoin's scalability has been improved with transaction fees reaching saner levels again.
sr. member
Activity: 420
Merit: 255
I think its the reason why people come into cryptocurrency. I don't think it's a problem. But people would definitely think it as problem if they are using USD as its price isn't that volatile by day.
For me, the price fluctuations of bitcoin are not the problem. Yes indeed you can lose some of their money because of falling prices, but a maximum of one month the price will return to its place and even increase. This is not a problem. A Fiat money is falling in value and never come back to place.
legendary
Activity: 3024
Merit: 2148
Hey guys! Just want to double check if speculation and volatility is a problem for bitcoin?

Speculation and volatility is caused by free unregulated markets and relatively low volumes. Free markets are necessary for Bitcoin's existence, because mining is based on economic incentives - you invest some value in form of equipment and electricity to earn profit by selling your block rewards. Value of Bitcoin on regulated markets may not represent real value of Bitcoin on free markets, making mining harder to operate, thus disrupting the natural balance of Bitcoin. As for volume, it will keep growing and will make price more stable in the long run.
sr. member
Activity: 475
Merit: 251
VTOS
I think its the reason why people come into cryptocurrency. I don't think it's a problem. But people would definitely think it as problem if they are using USD as its price isn't that volatile by day.
member
Activity: 83
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Be a part of the revolution
Depending on what use bitcoin want to be, as a haven for investment and decentralized means of exchange or a mainstream currency used internationally. Volatility works for trading while stability for currency, if you ask me, it better a disruptive currency that it is, in the class of gold imo
staff
Activity: 3206
Merit: 575
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I don't think speculation and volatility is a big problem for crypto-currency, instead I see it as a uniqueness point to attract more investors to invest into crypto-currency, as it is the only market in this world without having much government interference, and that is why someone could became a millionaire in one night due to the huge volatility of it.
sr. member
Activity: 406
Merit: 255
Without centralized control volatility problem can not be solved. I do think that this is not necessary. All users are accustomed to the roller coaster and learned to benefit from it. The market itself will put everything in its place.
newbie
Activity: 31
Merit: 0
volatility can help us to make profit because it always changing so we can buy at lower price and sell in high price. speculation is good too as we can predict how much bitcoin will rise or how will bitcoin trend. if we are understand with this two, i am sure in the end we can follow no matter how much price is up or down and we can still make money from it.

For me it's a normal scenarion of crypto currency since from the beginning you start your investment from it.  So those speculations is not the problem, but the real story is the investor's decision making ob how he handled their emotions on trading.
hero member
Activity: 2912
Merit: 541
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volatility can help us to make profit because it always changing so we can buy at lower price and sell in high price. speculation is good too as we can predict how much bitcoin will rise or how will bitcoin trend. if we are understand with this two, i am sure in the end we can follow no matter how much price is up or down and we can still make money from it.
legendary
Activity: 1666
Merit: 1001
Volatility and speculation is not a problem for Bitcoin, infact that is one the reason why Bitcoin price is so high, speculation is going to make more demand and supply and that will drive the volatility to move, traders love volatility, when there is volatility the traders will try to make profit and that will create another fluctuating price, with more transactions Bitcoin will become more valuable
legendary
Activity: 3710
Merit: 5286
Hey guys! Just want to double check if speculation and volatility is a problem for bitcoin?

After 9 years speculation and volatility still not a problem! But thanks for checking in!

Come back and double check in another 9 years, mmkay?

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