Topic: Less Volatility Is Needed? (Read 1908 times)
Volatility is a necessity for being a payment method in everyday life. Because Volatility is high, Bitcoin is only interested in finance and stock market. What I want is low volatility and Bitcoin is used as a payment method.
Volatility will go lower with higher price (bigger market). Look at the volaitlity back to 2010, 2013 and today. Today a 20% change is 800~1000USD, which is already a lot, at that time a 50% correction can be seen. So when the price will reach 50k USD, I think the volatility will be much smaller.
I would agree if it was guaranteed that price would go up to $50.000
(At least, the probability of lower volatility in these price regions is much higher).But that is still very far away from now. It is well possible that in its current incarnation (with still very high volatility) the necessary adoption of Bitcoin by the average Joe (or at least the "big capital") will never happen. We however may be lucky and one or two bubbles later we see those prices combined with high liquidity and everything is fine. But my stance is that we should find ways to control volatility a bit more, so the way up will be less bumpy and more straightforward.
i think as of now, the volatility is still good, compared to others. we all know that it is in the nature of bitcoin to be very volatile, however, it seems to be on the positive side, if we look back and see the price when bitcoin started, it was valued to be less than a dollar, and due its being volatile in nature, bitcoin rose to 5000 usd,, however it had a price drop, down to 4000 usd, and now we are seeing a correction in the price of bitcoin, however we can see that whenever bitcoin rises up, it tends to go down, but not to the point it will suddenly go back to its price being lower than a dollar, it will become less volatile and moves sideways, but whenever an event comes up and brings positive news to bitcoin, you can clearly see is movement to be rising and that;s a good thing when it comes to its volatility, more upward movement, means more capital gains, however a bad news, if not verified or clarified will cause panic, and cause bitcoin's price to lower down, but what you will see is bitcoin being less volatile, whenever it happens. i think we need bitcoin to be more volatile at this point, since it has not yet reach its highest value, and be lesser volatile, whenever there are negativity around.
Volatility will go lower with higher price (bigger market). Look at the volaitlity back to 2010, 2013 and today. Today a 20% change is 800~1000USD, which is already a lot, at that time a 50% correction can be seen. So when the price will reach 50k USD, I think the volatility will be much smaller.
I read somewhere that someone suggested that Bitcoin should have less volatility if it wants to be part of the mainstream financial system or be adopted by a greater part of the global population. The logic is that if there is too much volatility, the would be less demand for Bitcoin.
Volatility has been identified as one of the most important barriers to its global adoption (though right now there is no question that Bitcoin is getting popular every day!) especially on the side of the merchants or business entities.
Now, we know that volatility can be minimized once more and more Bitcoin holders would be looking at Bitcoin more as a currency than a commodity but right now this is not yet happening because as the value of Bitcoin is rising we all become speculators.
Is volatility a thing we have to accept as a normal thing as far as Bitcoin is concerned?
All currencies in the world experience volatility and this also happens to bitcoins that we must accept as normal. The volatility that occurs in bitcoin is currently not of great effect on bitcoin demand. I think sooner or later volatility in bitcoin will decrease as the price of bitcoin will keeps increasing over time.
I read somewhere that someone suggested that Bitcoin should have less volatility if it wants to be part of the mainstream financial system or be adopted by a greater part of the global population. The logic is that if there is too much volatility, the would be less demand for Bitcoin.
Volatility has been identified as one of the most important barriers to its global adoption (though right now there is no question that Bitcoin is getting popular every day!) especially on the side of the merchants or business entities.
Now, we know that volatility can be minimized once more and more Bitcoin holders would be looking at Bitcoin more as a currency than a commodity but right now this is not yet happening because as the value of Bitcoin is rising we all become speculators.
Is volatility a thing we have to accept as a normal thing as far as Bitcoin is concerned?
I read somewhere that someone suggested that Bitcoin should have less volatility if it wants to be part of the mainstream financial system or be adopted by a greater part of the global population. The logic is that if there is too much volatility, the would be less demand for Bitcoin.
Volatility has been identified as one of the most important barriers to its global adoption (though right now there is no question that Bitcoin is getting popular every day!) especially on the side of the merchants or business entities.
Now, we know that volatility can be minimized once more and more Bitcoin holders would be looking at Bitcoin more as a currency than a commodity but right now this is not yet happening because as the value of Bitcoin is rising we all become speculators.
Is volatility a thing we have to accept as a normal thing as far as Bitcoin is concerned?
I read somewhere that someone suggested that Bitcoin should have less volatility if it wants to be part of the mainstream financial system or be adopted by a greater part of the global population. The logic is that if there is too much volatility, the would be less demand for Bitcoin.
Volatility has been identified as one of the most important barriers to its global adoption (though right now there is no question that Bitcoin is getting popular every day!) especially on the side of the merchants or business entities.
Now, we know that volatility can be minimized once more and more Bitcoin holders would be looking at Bitcoin more as a currency than a commodity but right now this is not yet happening because as the value of Bitcoin is rising we all become speculators.
Is volatility a thing we have to accept as a normal thing as far as Bitcoin is concerned?
But on an average, its value is annually increasing. So dealing with it is always profitable...
Volatility has got termed as an issue, in reality it's the one that provides the availability to profit through the difference in price happening with time. Maybe in future people will never think of the volatility as an issue. Volatility will continue with digital currency forever.
I read somewhere that someone suggested that Bitcoin should have less volatility if it wants to be part of the mainstream financial system or be adopted by a greater part of the global population. The logic is that if there is too much volatility, the would be less demand for Bitcoin.
Volatility has been identified as one of the most important barriers to its global adoption (though right now there is no question that Bitcoin is getting popular every day!) especially on the side of the merchants or business entities.
Now, we know that volatility can be minimized once more and more Bitcoin holders would be looking at Bitcoin more as a currency than a commodity but right now this is not yet happening because as the value of Bitcoin is rising we all become speculators.
Is volatility a thing we have to accept as a normal thing as far as Bitcoin is concerned?
If you are being paid with bitcoin for work then you should be concerned about the volatility of the price. But for trading this is good. This is why lots of traders are attracted by it. And one this is good for the bitcoin is despite of its volatility in daily basis if you calculate its value in the end of the year it is always increasing.
I read somewhere that someone suggested that Bitcoin should have less volatility if it wants to be part of the mainstream financial system or be adopted by a greater part of the global population. The logic is that if there is too much volatility, the would be less demand for Bitcoin.
Volatility has been identified as one of the most important barriers to its global adoption (though right now there is no question that Bitcoin is getting popular every day!) especially on the side of the merchants or business entities.
Now, we know that volatility can be minimized once more and more Bitcoin holders would be looking at Bitcoin more as a currency than a commodity but right now this is not yet happening because as the value of Bitcoin is rising we all become speculators.
Is volatility a thing we have to accept as a normal thing as far as Bitcoin is concerned?
yes, if bitcoin wants to be part of financial system, less volatility is needed. maybe someday if bitcoin is known by all country and almost all people is using bitcoin, the volatility will be too often and bitcoin can enter to the financial system as a new currency. right now, volatility is the main problem for bitcoin but I think it is good because as long as there is any different for buying price and selling price, we can take profit and right now, I think its no problem if bitcoin can not accepting as currency because we can use bitcoin to in online.
[...] to be honest if I was a merchant I will prefer to keep that bitcoin instead, since I believe in bitcoin not only as a currency but as an investment.
It's easy to say this in a bull market, where optimism is widespread. But in a bear market like in 2014, it would be very, very difficult to accept Bitcoin in its "pure" form for a typical merchant that has expenses to pay. I sometimes bought things from an online grocery that accepted Bitcoin (without using Bitpay or similar "conversion-to-fiat" tools) in my city in 2014, but they didn't survive the following bear market.
(It's actually not clear if we still are in a bull market or if the mood is beginning to turn bearish again - and the $4400 peak was only a bounce ...)
What merchants instead can do - if their margins are high enough - is to offer their goods for a fixed Bitcoin price over a short time period like 24 hours, where a >10% crash is unlikely and a >30% crash only happens once in two years or so. That would stabilize the currency "on its own" because it has an effect like a buy order that won't be removed.
Well I believed this would be one of the best solution in order for the merchant not worry so much about bitcoin crashing. Bitcoin is enticing to make as payment option because of the tendency of it to increase in value because of its volatility which is both an advantage and disadvantage thus to avoid such discrepancy and loss, the merchant should protect his business first by having an allowance to the price so that in case the price of it go es down, he still have some profit because he may end up closing his business as what you said if he would not have some kind of protection to his funds.
[...] to be honest if I was a merchant I will prefer to keep that bitcoin instead, since I believe in bitcoin not only as a currency but as an investment.
It's easy to say this in a bull market, where optimism is widespread. But in a bear market like in 2014, it would be very, very difficult to accept Bitcoin in its "pure" form for a typical merchant that has expenses to pay. I sometimes bought things from an online grocery that accepted Bitcoin (without using Bitpay or similar "conversion-to-fiat" tools) in my city in 2014, but they didn't survive the following bear market.
(It's actually not clear if we still are in a bull market or if the mood is beginning to turn bearish again - and the $4400 peak was only a bounce ...)
What merchants instead can do - if their margins are high enough - is to offer their goods for a fixed Bitcoin price over a short time period like 24 hours, where a >10% crash is unlikely and a >30% crash only happens once in two years or so. That would stabilize the currency "on its own" because it has an effect like a buy order that won't be removed.
I read somewhere that someone suggested that Bitcoin should have less volatility if it wants to be part of the mainstream financial system or be adopted by a greater part of the global population. The logic is that if there is too much volatility, the would be less demand for Bitcoin.
Volatility has been identified as one of the most important barriers to its global adoption (though right now there is no question that Bitcoin is getting popular every day!) especially on the side of the merchants or business entities.
Now, we know that volatility can be minimized once more and more Bitcoin holders would be looking at Bitcoin more as a currency than a commodity but right now this is not yet happening because as the value of Bitcoin is rising we all become speculators.
Is volatility a thing we have to accept as a normal thing as far as Bitcoin is concerned?
Indeed already from the beginning bitcoin, it have very high volatility. Some happy about that and some are sad because they lose their funds. Actually no loss of funds. Their money just changed hands. Example "in the year 2013/2014 Bitcoin increased prices up to 1200 dollars and that time decreased drastic to 200 dollars. There is someone who buys Bitcoin at the price of $1200, then the price drops until $200. I think he does not lose if he can manage it by holding / hold Bitcoin until now, and see for yourself the bitcoin price in this year yesterday can reach almost 5000 dollars. You have nothing to lose but just change hands."
Volatility is a chance for traders. This is For daily traders and short-term investors not annual traders, Bitcoin's volatility provides a great opportunity to make a profit. By predicting short-term trends in Bitcoin properly, the traders can generate huge profits; far more than investors who have a buy-and-hold strategy like the story above.
Volatility is main problem why payment systems dont want to add bitcoin as option.
Bitcoin volatility is indeed great for investors who consider fluctuations as buying opportunity to increase their holdings. But merchants and vendors would refrain from using highly volatile currency. The reason being they can't afford their earned amount to undergo 30% drop the next day. They need to analyze profit and loss margins of their business and have to give tax on gains. There are lots of complications in the business and Bitcoin is certainly not suited for such things.
The volatility of Bitcoin effects its utility. Utility is the base for price growth. Volatility will remain for many more years to come. But with time there will be decrease in volatility when user base will expand more and distribution becomes more uniform.
But this is not correct, a business owner can receive payments in bitcoin and convert them immediately to his own currency, that way they can avoid the volatility you are talking about and still accept payments in bitcoin with ease, but to be honest if I was a merchant I will prefer to keep that bitcoin instead, since I believe in bitcoin not only as a currency but as an investment.The volatility of Bitcoin effects its utility. Utility is the base for price growth. Volatility will remain for many more years to come. But with time there will be decrease in volatility when user base will expand more and distribution becomes more uniform.
Noone is going to open a new business model just thinking to convert bitcoins to fiat after accepting payments from customers.There are new ICO projects which offer less volatile coins and instant exchange opportunity for businesses.
High volatility mean we have not a lot of whales here and the market is tiny. Huge potential to grow.
Bitcoin volatility is indeed great for investors who consider fluctuations as buying opportunity to increase their holdings. But merchants and vendors would refrain from using highly volatile currency. The reason being they can't afford their earned amount to undergo 30% drop the next day. They need to analyze profit and loss margins of their business and have to give tax on gains. There are lots of complications in the business and Bitcoin is certainly not suited for such things.
The volatility of Bitcoin effects its utility. Utility is the base for price growth. Volatility will remain for many more years to come. But with time there will be decrease in volatility when user base will expand more and distribution becomes more uniform.
But this is not correct, a business owner can receive payments in bitcoin and convert them immediately to his own currency, that way they can avoid the volatility you are talking about and still accept payments in bitcoin with ease, but to be honest if I was a merchant I will prefer to keep that bitcoin instead, since I believe in bitcoin not only as a currency but as an investment.The volatility of Bitcoin effects its utility. Utility is the base for price growth. Volatility will remain for many more years to come. But with time there will be decrease in volatility when user base will expand more and distribution becomes more uniform.
Noone is going to open a new business model just thinking to convert bitcoins to fiat after accepting payments from customers.There are new ICO projects which offer less volatile coins and instant exchange opportunity for businesses.
Bitcoin volatility is indeed great for investors who consider fluctuations as buying opportunity to increase their holdings. But merchants and vendors would refrain from using highly volatile currency. The reason being they can't afford their earned amount to undergo 30% drop the next day. They need to analyze profit and loss margins of their business and have to give tax on gains. There are lots of complications in the business and Bitcoin is certainly not suited for such things.
The volatility of Bitcoin effects its utility. Utility is the base for price growth. Volatility will remain for many more years to come. But with time there will be decrease in volatility when user base will expand more and distribution becomes more uniform.
But this is not correct, a business owner can receive payments in bitcoin and convert them immediately to his own currency, that way they can avoid the volatility you are talking about and still accept payments in bitcoin with ease, but to be honest if I was a merchant I will prefer to keep that bitcoin instead, since I believe in bitcoin not only as a currency but as an investment. The volatility of Bitcoin effects its utility. Utility is the base for price growth. Volatility will remain for many more years to come. But with time there will be decrease in volatility when user base will expand more and distribution becomes more uniform.
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