Topic: Less Volatility Is Needed? (Read 1910 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.
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. 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.
How could low volatility be imposed?
Only by external forces, that is contrary to free market and to Bitcoin, and would kill it.
Or what is the alternative?
Only by external forces, that is contrary to free market and to Bitcoin, and would kill it.
Or what is the alternative?
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.
Bitcoin hasn't spread evenly to many people around the world, and this's why most bitcoin holders still make it a commodity. But later, I also realized that the volatility bitcoin will decrease so its status can be like fiat.
I think this has become a cycle. There are many who are getting into Bitcoin because it can suddenly surge in value making its volatility so high which in turn make it more attractive to investing type of people. Volatility is a part of the many reasons why Bitcoin caught the attention of the many and can be the same reason why many merchants are not yet accepting Bitcoin as one of the modes of payment.
Yep, true. Definitively a dilemma. The idea I outlined above ("merchants backing Bitcoin") would provide a solution, but it would need massive adoption until it has the desired effect on volatility. So it's a chicken-and-egg problem and I'm still thinking about ways to solve it
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I have been saying this many times that there should be a way for merchants to get protected from its volatility so we can all promote Bitcoin to them. Correct me if am wrong but there seems to be ways now for merchants to accept Bitcoin and not to worry more on its volatility.
For now, the basic "volatility protection system" are obviously Bitpay-like payment processors, but they're centralized and not very "bitcoinic" (ideologically-wise).
Another way I have read somewhere is a contract-for-difference which the merchant could enter with another party, for example, a Bitcoin trader. The merchant would pay the speculator an "interest" rate, while the Bitcoin trader would guarantee a minimum exchange rate to the merchant. Essentially that would be pretty similar to Bitshares' BitUSD. To do this "decentrally" on a blockchain (without a "centralized" provider like a bank) however needs a pretty powerful smart contract language like Ethereum's, and the interest rate would probably be pretty high because the trader would have to offer a high collateral in the case a crash happens. So BitPay-like centralized services very likely would be less expensive.
But what can be done is to try to limit "irrational" volatility. That is, basically, panic selling and FOMO buying. Here I have often proposed a system where merchants that sell goods and services for Bitcoin could opt to back the Bitcoin price for a day or a couple of days. This would be a win-win system because if their clients can get a discount, the merchants' sales would increase - in a crash, their losses would be outweighed very probably by a drastic sales increase so they benefit especially if they sell goods with low marginal costs. But as long as most of the Bitcoin users are in as "investors" and want to ride a bullish wave, then "use as a currency" will be marginal and such ideas will have low support.
I think this has become a cycle. There are many who are getting into Bitcoin because it can suddenly surge in value making its volatility so high which in turn make it more attractive to investing type of people. Volatility is a part of the many reasons why Bitcoin caught the attention of the many and can be the same reason why many merchants are not yet accepting Bitcoin as one of the modes of payment.
I have been saying this many times that there should be a way for merchants to get protected from its volatility so we can all promote Bitcoin to them. Correct me if am wrong but there seems to be ways now for merchants to accept Bitcoin and not to worry more on its volatility.
There should be more and more people and businesses that must accept Bitcoin as form of payment so we can reach the mainstream much faster. An infrastructure must be provided for them so they can be encouraged to be a part of the Bitcoin movement.
In my opinion volatility is a part of the financial industries, price changes everywhere in the market business are not stable. Consumers are findings way which they can gain and benefit more, some business closes some rises. Which is why we take risks investment we make it is a part of the decision you have to make acceptance and analysis.
My stance on this topic is: We should seek ways to reduce volatility, but we won't completely erradicate it because of Bitcoin's inherent inflexibility to demand fluctuations.
But what can be done is to try to limit "irrational" volatility. That is, basically, panic selling and FOMO buying. Here I have often proposed a system where merchants that sell goods and services for Bitcoin could opt to back the Bitcoin price for a day or a couple of days. This would be a win-win system because if their clients can get a discount, the merchants' sales would increase - in a crash, their losses would be outweighed very probably by a drastic sales increase so they benefit especially if they sell goods with low marginal costs.
But as long as most of the Bitcoin users are in as "investors" and want to ride a bullish wave, then "use as a currency" will be marginal and such ideas will have low support (I agree with @pooya87 here).
Here you're contradicting yourself a bit: If Bitcoin is only useful for "instant transactions" and volatility should be "normal", why should merchants then accept it without fiat gateways? Who would hold the bag? That only makes sense for merchants if there is a kind of "volatility-reducing" plan behind it, like I outlined one above.
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 partly disagree. Bitcoin holders have many possibilities to intervene in Bitcoin's price (see below). However, the deterministic supply scheme that governs Bitcoin since Satoshi installed it makes impossible a real "peg" to a currency or commodity, because it would never work to totally equilibrate the (real) demand fluctuations.But what can be done is to try to limit "irrational" volatility. That is, basically, panic selling and FOMO buying. Here I have often proposed a system where merchants that sell goods and services for Bitcoin could opt to back the Bitcoin price for a day or a couple of days. This would be a win-win system because if their clients can get a discount, the merchants' sales would increase - in a crash, their losses would be outweighed very probably by a drastic sales increase so they benefit especially if they sell goods with low marginal costs.
But as long as most of the Bitcoin users are in as "investors" and want to ride a bullish wave, then "use as a currency" will be marginal and such ideas will have low support (I agree with @pooya87 here).
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.
Here you're contradicting yourself a bit: If Bitcoin is only useful for "instant transactions" and volatility should be "normal", why should merchants then accept it without fiat gateways? Who would hold the bag? That only makes sense for merchants if there is a kind of "volatility-reducing" plan behind it, like I outlined one above.
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 is needed for exponential growth.
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.
I'm afraid Bitcoin volatility is something that you can't avoid and can't influence on so the best thing to do is to accept it. Afterall, on volatility traders make their profit so what would Bitcoin be without volatility. Some users don't like that and think that volatility and pumps and dumps are arranged by whales but I think this is not true, it's simply how Bitcoin technology is functioning.
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 am accepting bitcoin volatility as a normal thing because if we talk about economic law, then its should related with supply and demand. and if supply is less than demand, then the price will be up and vice versa. but if bitcoin is accepting in many country and each people have bitcoin, i think the volatility can be less because bitcoin will be something that a "must have" for them like the money. maybe if we are in this situation, then we can see bitcoin price is not always change the price and maybe it will be sideway for a long time like for example if halving is come that will make the price is down a little and then going to go up.
Not necessarily. Bitcoin can still be mainstream with all this rollercoaster moves. Every day new people join, newspapers write it, tv programs show it, Bitcoin is already in the beginning of mainstream phase. Volatility is a part of this business. If more people buy Bitcoin then we can see less volatile market. It's not need, it's conclusion.
still going to be a long time before bitcoin becomes less volatile so much speculation on how high the price can go
Bitcoin being a decentralized currency,volatility is its basic nature.As there is no central authority to control the bitcoin price,its price usually fluctuates.Bitcoin exhibits its original value.Bitcoin's price increases or decreases with increase or decrease in demand for bitcoin.Its the biggest issue for which retailers do not come forward to accept bitcoin as payment.But we saw in japan after bitcoin legalization,retailers just left the volatility issue and came forward to accept bitcoin.So,in future,if bitcoin gets legalized,volatility would not be an issue for retailers.
Being decentralized makes btc known, if it became stable there were no thrill on it,it will be like a noral coin so let's just learn to adopt it's volatility, it's the risk we need to face to wait when it vaues pump. The volatility is a joke. It makes Bitcoin look like a sh!tcoin that is constantly pumped and dumped by whales.
10% moves in a day are standard, that cannot be if Bitcoin actually wants to be used seriously.
I thought that by now, with such a high market cap, that the volatility would be greatly reduced, but if anything it is worse than ever!
I look at the price, it is $4400, I look back 10 mins later, it is $4050! What has happened I think, oh nothing, it's just Bitcoin. When the 10% moves become 1% moves, I'll be happy.
10% moves in a day are standard, that cannot be if Bitcoin actually wants to be used seriously.
I thought that by now, with such a high market cap, that the volatility would be greatly reduced, but if anything it is worse than ever!
I look at the price, it is $4400, I look back 10 mins later, it is $4050! What has happened I think, oh nothing, it's just Bitcoin. When the 10% moves become 1% moves, I'll be happy.
I don't think we will see stabilization within 1% range anytime soon.
Bitcoin being a decentralized currency,volatility is its basic nature.As there is no central authority to control the bitcoin price,its price usually fluctuates.Bitcoin exhibits its original value.Bitcoin's price increases or decreases with increase or decrease in demand for bitcoin.Its the biggest issue for which retailers do not come forward to accept bitcoin as payment.But we saw in japan after bitcoin legalization,retailers just left the volatility issue and came forward to accept bitcoin.So,in future,if bitcoin gets legalized,volatility would not be an issue for retailers.
Volatility is something common because bitcoin is decentralized and volatility is the one that makes the traders got profit, but if the volatility is too high, it will be hard to be adopted and sometimes the the bitcoin volatility is too high and people become hesitates to used it for transaction, less volatility will be good for bitcoin to be accepted as transaction currency
The volatility is a joke. It makes Bitcoin look like a sh!tcoin that is constantly pumped and dumped by whales.
10% moves in a day are standard, that cannot be if Bitcoin actually wants to be used seriously.
I thought that by now, with such a high market cap, that the volatility would be greatly reduced, but if anything it is worse than ever!
I look at the price, it is $4400, I look back 10 mins later, it is $4050! What has happened I think, oh nothing, it's just Bitcoin. When the 10% moves become 1% moves, I'll be happy.
10% moves in a day are standard, that cannot be if Bitcoin actually wants to be used seriously.
I thought that by now, with such a high market cap, that the volatility would be greatly reduced, but if anything it is worse than ever!
I look at the price, it is $4400, I look back 10 mins later, it is $4050! What has happened I think, oh nothing, it's just Bitcoin. When the 10% moves become 1% moves, I'll be happy.
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.
For vendors yes, but for traders is a very good oportunity to make profit. If you have been buying/selling BTC inside an exchanger in the past 24hs you may be able to earn a couple of hundreds, so is not that bad at all.
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.
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?
It is an issue, there is no point denying that.
However i am actually fine with it. I look at my finances in mostly bitcoin figures now, and i don't really take into account the fluctuation of it as much as before. You sort of get desensitised about fluctuation the more you use bitcoin. Sure, i like to speculate on the price every now and then. But for day to day transactions, it is really not an issue for me.
I understand that for merchants they need to have less volatility so that they don't lose out on profits, but there are services where you can instantly convert your payments into fiat if you wish to as soon as you receive them(bitpay etc.).
My opinion is that really, there is nothing to worry about. As bitcoin gains more traction, more people will accept it, and as a result, its market cap will grow, trades will outweigh speculation, and volatility drops in the long run.
Volatility will be a fact of the BTC life until it finds a fair value. At current prices, there are literally millions of people that can move the markets 10% with a tiny fraction of their net worth.
This. Bitcoin is still worth less than Apple, and is easily manipulated. It is also behaving more like an asset like gold than a currency that can be used in daily life.
But the good news is that the cryptocurrency space is now so large that people can hold onto bitcoins as a store of value and use alts instead for everyday use.
Volatility will be a fact of the BTC life until it finds a fair value. At current prices, there are literally millions of people that can move the markets 10% with a tiny fraction of their net worth.
This. Bitcoin is still worth less than Apple, and is easily manipulated. It is also behaving more like an asset like gold than a currency that can be used in daily life.
But the good news is that the cryptocurrency space is now so large that people can hold onto bitcoins as a store of value and use alts instead for everyday use.
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?
Volatility will be a fact of the BTC life until it finds a fair value. At current prices, there are literally millions of people that can move the markets 10% with a tiny fraction of their net worth.
for adoption and implementation i prefer to less volatility,
but for trader and investor of course the volatility itself.
there're a lot of people afraid using it as their payment because of the volatility,
they're afraid if they buy something and when they buy it the price goes down and they need to recharge it again,
which is more cost than original price.
but for trader it's the opposite,
if it's always sideways many people will stop trade it and move to another assets.
so it's like 2 different coins.
but for me,i prefer to less volatility but steady increase in value.
volatility will always be a charateristic of Bitcoin.
so we should accept it even though we don't like it
but for trader and investor of course the volatility itself.
there're a lot of people afraid using it as their payment because of the volatility,
they're afraid if they buy something and when they buy it the price goes down and they need to recharge it again,
which is more cost than original price.
but for trader it's the opposite,
if it's always sideways many people will stop trade it and move to another assets.
so it's like 2 different coins.
but for me,i prefer to less volatility but steady increase in value.
volatility will always be a charateristic of Bitcoin.
so we should accept it even though we don't like it
in my opinion volatility causes the change in type of adoption. a high volatility attracts more investors, more traders who want to make more profit from it. and that is still an increase in adoption. and there is nothing that can be done about this as long as bitcoin is on the early stages of its adoption, the price will continue rising fast and remain volatile like this.
what high volatility prevents is the adoption as a currency which we should really be looking for. when price is something today and twice that in a short while, people are going to be less willing to spend their bitcoin and that makes bitcoin mostly an investment.
what high volatility prevents is the adoption as a currency which we should really be looking for. when price is something today and twice that in a short while, people are going to be less willing to spend their bitcoin and that makes bitcoin mostly an investment.
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?
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