For now we cannot avoid volatility because bitcoin is still a young technology and currency. The problem, I think, is that adoption and stability goes hand in hand. We cannot achieve one without the other. As the technology ages, it gets adopted and become more stable as well.
Bitcoin has been volatility ever since, it is one of the main factor why users, investors believes in bitcoin. Yes I agree we cannot really avoid the fluctuation. So still there is a need of less fluctuation for bitcoin to be one of the mainstream and be adopts as a global currency. 
Topic: Less Volatility Is Needed? - page 2. (Read 1908 times)
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?
Less volatility in bitcoin maybe necessary, in order to be adopted as a currency by many parties around the world. But the impact, speculators will be reduced because it means close to stable.
less ? nooo. We need High volatility because that's one of the reason why there's a lot of new investors in bitcoin. remember high demand is equals to high price of bitcoin. so if there's a big dump many people would buy bitcoin and that's the demand so it will enter the economy that make the price of bitcoin to go high. bitcoin is popular and also known because of it's volatility.
I am not so sure if volatility attracts investors. As an investor, I want my money to grow. Not to see it change its worth up and down every day. Volatility means uncertainty as well.
When I look at the stock market, whenever there is uncertainty for a specific stock, the price goes down because a part of the investors sell.
I think that the volatility only attracts traders. Sure, they bring money into the market as well. But as quickly as they deposit it, they withdraw it again.
For now we cannot avoid volatility because bitcoin is still a young technology and currency. The problem, I think, is that adoption and stability goes hand in hand. We cannot achieve one without the other. As the technology ages, it gets adopted and become more stable as well.
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.
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.
Yes,volatility is the basic nature of bitcoin.It could not be changed.Bitcoin being a decentralized currency having no central body to control its price,it exhibits its true value either by increase or decrease as per its demand.Its true that this volatility has become a great barrier for merchants accepting bitcoin payment.But in japan,after legalization,thousands of retailers have started accepting bitcoin payment just not considering even about its volatility.Same would be the scenario with other parts of the world.If bitcoin gets legalized,then volatility would not be a issue.
I agree that the volatility should be more stable, but it is not that easy to controlled it, since crypto currency is all about supply and demand, but with more people adapting Bitcoin the volatility could be pressed down, with the high volatility like it is disadvantage to used Bitcoin as currency, but volatility also plays an important role for traders and it is one things that keep Bitcoin alive
Bitcoin volatility could be reduced as time goes on. Fiat currency has been around for centuries and backed by government, that's why fiat currency just fluctuate a bit depend on a country economy development. If more people, business and companies adopt bitcoin which make this coin spread widely without only some people hold big portion of bitcoin, will be a step toward stable price.
still going to be a long time before bitcoin becomes less volatile so much speculation on how high the price can go
Probably it could be hard, unless someone will take controlled on bitcoin. Because price change everytime, bitcoin is totally dependent on the flow of demand and supply in the market. 
How could low volatility be imposed?
Only by external forces, that is contrary to free market and to Bitcoin, and would kill it.
"Contrary to the free market" would be a single, central "external force" (like a central bank).Only by external forces, that is contrary to free market and to Bitcoin, and would kill it.
But there could be many, decentrally operating forces that control volatility, and that would not be against the "free market". At least much less against it than mega-whales manipulating the price at their will
I have already linked to a possible solution above. Another one is simply to increase the percentage of traders that use a "rebalancing" or "contrarian" strategy, like outlined here. A open source, easy to use bot (with a GUI?) that does rebalancing would be a first step in this direction.
I know volatility is always good if the price curve points in the right direction
But at the long term, Bitcoin can gain much more ground (use cases etc.) if volatility is significantly lower than now. The goal should be that the probability to run into a crash of more than 10% in 24 hours approaches <1%, and a 5% crash, let's say, less than 2-3%.
We just need to go with the flow of the market, when we think that we will lose on it then better wait a little while,hold on to that coins until everything seems fine. In volatility we xan earn we just need to know when it's the time for our coins.
That is the typical "trader's point of view". Traders think they can outperform the market.You even could have luck for some longer time frame, but sometimes you lose ... and often, you lose badly.
One of my objections to this point of view (and to the general concept that "Bitcoin's volatility is fine") can be resumed in the following few lines:
- Bitcoin holders think that Bitcoin will, in the future, conquer the world and get mass adoption. Only that view is justifying the current price and market cap.
- But while Bitcoin is volatile, it can only get adoption as a speculative asset (and for some minuscule use cases like instant remittances, but never really "as a currency")
- And finally, while Bitcoin is a speculative asset, it will be volatile, because every now and then people will massively "take profits", what leads to our "beloved" crashes
If Bitcoin were less volatile, then there is at least a chance it could be used "as a currency" in some moment.
How could low volatility be imposed?
Only by external forces, that is contrary to free market and to Bitcoin, and would kill it.
"Contrary to the free market" would be a single, central "external force" (like a central bank).Only by external forces, that is contrary to free market and to Bitcoin, and would kill it.
But there could be many, decentrally operating forces that control volatility, and that would not be against the "free market". At least much less against it than mega-whales manipulating the price at their will
I have already linked to a possible solution above. Another one is simply to increase the percentage of traders that use a "rebalancing" or "contrarian" strategy, like outlined here. A open source, easy to use bot (with a GUI?) that does rebalancing would be a first step in this direction.
I know volatility is always good if the price curve points in the right direction
But at the long term, Bitcoin can gain much more ground (use cases etc.) if volatility is significantly lower than now. The goal should be that the probability to run into a crash of more than 10% in 24 hours approaches <1%, and a 5% crash, let's say, less than 2-3%.How could low volatility be imposed?
Only by external forces, that is contrary to free market and to Bitcoin, and would kill it.
"Contrary to the free market" would be a single, central "external force" (like a central bank).Only by external forces, that is contrary to free market and to Bitcoin, and would kill it.
But there could be many, decentrally operating forces that control volatility, and that would not be against the "free market". At least much less against it than mega-whales manipulating the price at their will
I have already linked to a possible solution above. Another one is simply to increase the percentage of traders that use a "rebalancing" or "contrarian" strategy, like outlined here. A open source, easy to use bot (with a GUI?) that does rebalancing would be a first step in this direction.
I know volatility is always good if the price curve points in the right direction
But at the long term, Bitcoin can gain much more ground (use cases etc.) if volatility is significantly lower than now. The goal should be that the probability to run into a crash of more than 10% in 24 hours approaches <1%, and a 5% crash, let's say, less than 2-3%.
Of course, Bitcoin needs to be stable to have a better use as a currency and international medium of exchange. For the growth of economy, we need a stable currency. We can't trade using a volatile currency which might decrease to half of its value the other day. Economy won't sustain that way. Bitcoin is less likely to become that stable in near future. Because of limited cap, supply will remain limited whereas with time demand will increase. Price will stay in appreciation but as it is speculative asset, there are always some factors which can bring a dump and hence volatility will remain unless the user base expands enough.
But here is the problem with that.
Less volatility is achieved by forcing people to use their money the way you want it used. The New York stock exchange was as volatile as bitcoin until it was managed. Now it is controlled to the point of being gamed.
If you want to end the volatility just hard fork to a coin controlled by the federal reserve. They can decide when you will sell and buy, how much, where you can spend. They could set a value for bitcoin that is stable. That way you won't make any mistakes with your money. Such as getting rich without permission.
Less volatility is achieved by forcing people to use their money the way you want it used. The New York stock exchange was as volatile as bitcoin until it was managed. Now it is controlled to the point of being gamed.
If you want to end the volatility just hard fork to a coin controlled by the federal reserve. They can decide when you will sell and buy, how much, where you can spend. They could set a value for bitcoin that is stable. That way you won't make any mistakes with your money. Such as getting rich without permission.
Less volatility will come with time. Please keep in mind that that this market is still in it's infancy so with time more money will start flowing in that will naturally diminish the volatility.
I don't find the volatility a major concern, because without this we won't get the opportunity to earn. Though it's in the infancy stage the growth is much bigger than that happened with some sort of investment portfolios. Based on the fact I don't expect such low volatility or a stable price.Less volatility will come with time. Please keep in mind that that this market is still in it's infancy so with time more money will start flowing in that will naturally diminish the volatility.
I don't find the volatility a major concern, because without this we won't get the opportunity to earn. Though it's in the infancy stage the growth is much bigger than that happened with some sort of investment portfolios. Based on the fact I don't expect such low volatility or a stable price. Volatility is what make us money. Volatility is attracting value investor. And as bitcoin grow we can allow more development while less volatility. Bitcoin Rocks
Volatility will bring you money only if you are extremely lucky. Trading may bring you profits 80% of the time, and loss the remaining 20% of the time. But the problem is that the losses will always be heavier than the profits. So even if you are incurring a loss after four successive profitable trades, all of your returns will be wiped out.
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