Topic: Less Volatility Is Needed? - page 4. (Read 1908 times)
As stated above such frequent volatility could be problem for vendors/sellers. Assume you want to buy a car using Bitcoin. Seller supports this feature targeting converting Bitcoin to fiat as soon as they receive transaction from your end. But rapid price fall can cause them loss. To avoid such issues, they will try to add more commission which can make buying and selling using bitcoin pointless.
The only problem the volatility causes is for businesses that accept bitcoin as a payment but need to convert to fiat to pay their suppliers. A sudden fall in price can leave them making a loss, so they can only operate if they can quickly exchange income. If the price keeps increasing and therefore the market capitalisation increases then volatility will decrease at the same time as the same amount of trading will be a smaller part of the overall value. So yes for it to become a mainstream currency volatility does need to reduce, but if it's successful, then that will naturally happen.
Actually when you are a trader in the crypto market, making a profit 10% per day with small funds is possible is normal, even it very easy for traders have experience. Only that, this profits can pass the profits from save your money in bank 
You are right that traders make a lot of profit from crypto market but even if that is the case bitcoin still needs to be less volatile as the title stated otherwise it wouldn't be a part of the mainstream financial system. It won't also be adopted by a greater part of the global population if bitcoin continues to be this volatile because if it is very volatile, most of the users that use btc would just use it for speculation not for its original purpose. 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.
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. This is another side of the story which many in the cryptocurrency sometimes overlook in view of the excitement caused by sudden surge in value of any digital currency. Sure, as speculators, we can get on the edge watching Bitcoin jumping from one position into another and this kind of movement can really attract more players and then there is some sort of a frenzy until there is the needed correction. In the stock market, they call this as hot money...money that is just taking advantage of a temporary upsurge or growth and then it immediately left at any sign of going down. Though we really have to admit that tinkering with this set-up can bring on more problems. We are in an open market and so we can not stop anyone from participating in the market and make some money in the process. We are always motivated by money, of course.
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.
The volatility of bitcoin price is an issue and problem for many people but honesty I like it and I see it as a beautiful feature of bitcoin. This is what makes the bitcoin market attractive to the people to get a chance to buy bitcoin again and again and also to many new people who want to get bitcoin. I think the bitcoin price will now remain above $4000 till the end of this year.
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.
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.
bitcoin price is not really "uncertain" any more. it has actually been moving up and down pretty logically for at least 2 years and probably even more. the fact that you sometimes don't understand why it is moving in a direction or is volatile doesn't mean it has no reason and it certainly doesn't mean it was "uncertain".
and as long as it is predictable you can say volatility is good for traders because they can make the most profit out of a market like this. and bitcoin makes profit easier because you can be sure that even if you made a mistake and bought too late the price will recover and you will be in profit eventually.
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.
Look what the price of Bitcoin was at the beginning of this year! And look where it is now! So you as an investor have already made a shit ton of money, despite the volatility.
See the bigger picture. Zoom out! As long as it is upwards volatility it is fine. You as investor make profits and for traders it's a paradise as well. Both are winning.
So stop whining. We will have this volatility for at least another 10 years I would guess. Live with it or just leave this space. With shitcoins it's much more extreme.
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.
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.
We have no option but to accept the fact that volatility is going to be with us for a lot of time in bitcoin, but that is going to change since bitcoin is still growing, think of bitcoin as a baby, a baby can grow very rapidly but when bitcoin reaches adulthood then it is not going to change much after that.
I remember the crash from 1k to $400 was fast.
What makes you think it cannot repeat?
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?
The logic is right but how exactly are we going to solve the volatility problem quickly? There is no central bank or anything to control the monetary supply, and this is a part of why bitcoin is so volatile right now.
Is it really a huge problem though? I'm fine with bitcoin volatility. Fiat gives you the illusion of being stable, but really there will be a financial crisis sooner or later due to central banks printing too much money, and the whole thing just spirals out of control. Bitcoin might not be stable right now, but it just proves that it is away from intervention, and i love that. That's why i invest in btc.
Time will do the trick, honestly. As adopters start to pile up for bitcoin, the value will stabilize. No central bank needed.
We have no option but to accept the fact that volatility is going to be with us for a lot of time in bitcoin, but that is going to change since bitcoin is still growing, think of bitcoin as a baby, a baby can grow very rapidly but when bitcoin reaches adulthood then it is not going to change much after that.
I remember the crash from 1k to $400 was fast.
What makes you think it cannot repeat?
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?
Spot on. This is exactly what we need for the bitcoin price to stabilize, and there is really no other way than a central interventionist bank which none of us bitcoiners want, nor is it possible to build on bitcoin.
I'd let it do its own thing and just ride the rough patches out for now. Sooner or later, people will realize the actual usefulness of bitcoin for global instant transactions, and merchants will be starting to accept BTC directly instead of accepting bitcoin as simply a payment gateway for fiat.
Volatility is normal with everything, it's just that with a decentralized, unregulated cryptocurrency, it is more evident. I do not worry about bitcoin price that much though.
As long as there isn't a global orderbook as is the case with how stock exchanges operate, we will keep seeing this market remain severely volatile in the forthcoming years. Don't forget that the further the price is increasing, the lower the overall buy support gets, and that while whales are only seeing their coin holdings increase.
Example of how buy support becomes weaker and weaker as per example of $1,000,000 in funds per certain price level.
$1,000,000 accounts for 2000BTC at a level of $500.
$1,000,000 accounts for 1000BTC at a level of $1000.
$1,000,000 accounts for 500BTC at a level of $2000.
$1,000,000 accounts for 250BTC at a level of $4000.
$1,000,000 accounts for 222.22BTC at a level of $4500 where we currently sit at.
In that regard, we should expect the volatility to become worse, where at some point a 1000BTC dump, will be enough to crash the rate of a certain exchange with like 20-25% - that's insane! Imagine how things will be when Bitcoin hits $50,000 per coin - $1,000,000 will then 'only' be 20BTC in buy support.
Example of how buy support becomes weaker and weaker as per example of $1,000,000 in funds per certain price level.
$1,000,000 accounts for 2000BTC at a level of $500.
$1,000,000 accounts for 1000BTC at a level of $1000.
$1,000,000 accounts for 500BTC at a level of $2000.
$1,000,000 accounts for 250BTC at a level of $4000.
$1,000,000 accounts for 222.22BTC at a level of $4500 where we currently sit at.
In that regard, we should expect the volatility to become worse, where at some point a 1000BTC dump, will be enough to crash the rate of a certain exchange with like 20-25% - that's insane! Imagine how things will be when Bitcoin hits $50,000 per coin - $1,000,000 will then 'only' be 20BTC in buy support.
bitcoin price is determined on exchanges and these exchanges are still very small despite seemingly having high daily volumes. if you look at the order books a small volume can change the price a lot and that is contributing to the big swings and the volatility, big time.
although to be fair this has been getting a smaller issue as time goes by and more people are starting to get involved with bitcoin. but we are still far from the day where there is little volatility and price is above 100K
although to be fair this has been getting a smaller issue as time goes by and more people are starting to get involved with bitcoin. but we are still far from the day where there is little volatility and price is above 100K
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?
Not really needed, it'll sort itself out.
Right now bitcoin is still in the early adoption phase, and less than 0.1% of the world population uses it i would say. It would be obvious to anyone that under those circumstances, bitcoin will fluctuate. When merchants accept bitcoin at a large scale then this wouldn't be an issue.
Plus, is volatility necessarily a bad thing? Would you rather have a bitcoin that is pegged to the USD value? Volatility means that bitcoin is decentralized, and completely outside of government influence. But as i said, it'll sort itself out as more people join btc.
Volatility would surely discourage the large investors who want a bit of security to their investment.
Bitcoin by it's nature is still an illegal investment in most part of the world and is too volatile to predict the future.
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?
Not really needed, it'll sort itself out.
Right now bitcoin is still in the early adoption phase, and less than 0.1% of the world population uses it i would say. It would be obvious to anyone that under those circumstances, bitcoin will fluctuate. When merchants accept bitcoin at a large scale then this wouldn't be an issue.
Plus, is volatility necessarily a bad thing? Would you rather have a bitcoin that is pegged to the USD value? Volatility means that bitcoin is decentralized, and completely outside of government influence. But as i said, it'll sort itself out as more people join btc.
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