Nope, I don't want to stabilize Bitcoin price, so count me out.
If Bitcoin price is stable, Bitcoin no longer decentralized anymore because someone is controlling Bitcoin price to burn the coin or add the supply. Since Bitcoin has maximum supply and there's no way to reduce the circulation intentionally, Bitcoin price will never be stable.
Topic: Let's Stabilize Bitcoin - page 3. (Read 621 times)
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I hope you already understand that it's not possible to control the price of Bitcoin. But I believe Bitcoin price will be somewhat more stable than how it is now. The supply won't add much Bitcoin to the network, and it will increase the scarcity. If Bitcoin demand remains the same or it increases further, the price will increase as well. But it won't be stable at all.
There will be negative effect if people try to control the price of Bitcoin. People will lose interest from it. Even though Satoshi wanted to use it as a currency, we people use it as currency and most of consider it as investment.
There will be negative effect if people try to control the price of Bitcoin. People will lose interest from it. Even though Satoshi wanted to use it as a currency, we people use it as currency and most of consider it as investment.
Why are you thinking of stabilizing bitcoin, it will take a long time to do so bitcoin is unstable and more popular for price fluctuations. Bitcoin is decentralized and not controlled by the central government if you want to invest in savings. Stablecoins play a key role in the trading market as their price is usually pegged to a fiat currency simply put, they are often considered digital cash in the trading market but have risks. Bitcoin investment medium is more volatile because investing in bitcoin has no fundamental basis if a bubble is formed in its market it will burst very easily long term investment will give good returns.
BTC is created by the electricity it took to mine it providing some likeness of a backing.
This is just nonsense. There is no "backing" in bitcoin either. Electricity can also be used to extract gold from the ground, does that qualify as backing for gold? its diesel and labour for gold.. which is why you will never see gold tip below ~$900 ever again because the underlying cheapest mining of gold on the planet stops those from being able to sell gold for profit below that lowest cost thus no one sells below cost..
its called economics
Is it possible to stabilize prices through market mechanisms due to this?
Very difficult. Usually, stabilization comes with tough regulations, but bitcoin is very hard to regulate. It's also used by very little percentage of people as currency, so it's even less likely. BTC is created by the electricity it took to mine it providing some likeness of a backing.
This is just nonsense. There is no "backing" in bitcoin either. Electricity can also be used to extract gold from the ground, does that qualify as backing for gold? Remember that the beauty of Bitcoin technology is the volatility that it brings with it. It becomes more appealing to some investors as a result.
Unfortunately, that's the truth. It's also that damn law about bad money driving out good. People won't utilize as currency, unless it becomes the "bad money".
Bitcoin is meant to be progressive over the period of time and that’s how everything is set in its algorithm. Get this, it’s progressive by means of its limited circulation. It gets more and more difficult to mine with the time and also the reward halves as you might have studied with the bitcoin halving process. All these characteristics are meant to happen and they are there for a reason. With the time it will get more value just because of that. In addition to this, the bitcoin Volatility is due to decentralisation nature and if you wanna make it stable then you will have to Back it up with something. If you start doing that then it will lose all its properties and it won’t be a bitcoin. It would be just another shit coin that is being controlled with something.
Is it possible to stabilize prices through market mechanisms due to this?
Bitcoin is indeed an open source which allows people to be part of it as it develops.This doesn't mean that we have to suggest that the price issue be more stable.
What if you use Bitcoin with a concept that has been created in such a unique way without needing the price to be more stable like other currencies.
If you want stable prices, I firmly say don't use Bitcoin. Please look for another currency.
Bitcoin is so far perfect in my opinion as a currency designed by Satoshi and the Bitcoin system is the best compared to the system owned by the central bank.
Since the prices of the three currencies are not the same, you can profit from the difference.
In order for Bitcoin to be widely used for payments, it is necessary to stabilize price fluctuations.
Question,
Bitcoin and other currencies A and Prepare B.
A and B are equivalent exchangeable and can also be equivalently exchanged for Bitcoin.
Is it possible to stabilize prices through market mechanisms due to this?
Question,
Bitcoin and other currencies A and Prepare B.
A and B are equivalent exchangeable and can also be equivalently exchanged for Bitcoin.
Is it possible to stabilize prices through market mechanisms due to this?
Market mechanisms can't bring stabilization at all, market is always unstable, so when price for something rises, prices for all the other things are affected (some prices are affected heavily, while other prices have so little fluctuations that it is unnoticed). So market mechanisms create prmanent unstability of BTC price. So, I think, it's not the problem for adoption... IMHO adoption rate doesn't depend on price stability, it's just one of the factors contributing to cryptocurrency price dynamics.
Bitcoin will never be stable. Or even if it would be possible, people from this forum wouldn't be able to make it.
Why do you want it to be stable anyway?
Why do you want it to be stable anyway?
I also think so for BTC, of course it will be difficult to be stable, because of course there are a lot of people selling and buying BTC, which of course will make the price of BTC fluctuate. If BTC is only used as a means of payment, of course it will be better if the price of BTC is stable, but if it is used as an investment asset, of course it will be difficult to make a profit.
Bitcoin prices will remain volatile. Traders won't like it if Bitcoin prices are stable or stagnant and don't change up or down because they can't take advantage of the price difference. And if the price of Bitcoin stabilizes over the long term, it won't be a good investment anymore.
lol of course , who and what will use to trade if there is a stable price? and also this is the reason why we are all here, because of the volatility and the chance to earn .And even though Bitcoin will become an alternative means of payment, its price will remain volatile. Even the stablecoins you know are unstable and prices keep changing.
not untill all bitcoin were mined ,then there will be maybe that price will be stable and altcoins may remains volatile.When the price of Bitcoin stabilizes, people will no longer be interested in investing in Bitcoin or trading Bitcoin because they can't make a profit. And chances are people will leave Bitcoin because it is no longer attractive to be a way to make a profit. They will look for others who are more promising.
wrong again people will not leave bitcoin just because the price is stable, instead bitcoin will remain as secondary if not the net generation currency .
The first step to stabilizing the price of Bitcoin is to stop measuring it in dollars or any other fiat currency, but this is a long way off at the moment.
If Bitcoin is not measured in dollars, what standard will we use to determine the price of Bitcoin? Even if this standard is acceptable in one country, it will not be acceptable in other countries. We need a unified global standard that is accepted by all countries of the world, and this will not happen unless the collective adoption of Bitcoin by all governments around the world.
This is theoretically, but in practice it is almost impossible, because there are many factors and variables that prevent the stability of the price of Bitcoin, and there are many people, you can even say the vast majority of them, no longer want or care about the stability of the price of Bitcoin.
If Bitcoin is not measured in dollars, what standard will we use to determine the price of Bitcoin? Even if this standard is acceptable in one country, it will not be acceptable in other countries. We need a unified global standard that is accepted by all countries of the world, and this will not happen unless the collective adoption of Bitcoin by all governments around the world.
This is theoretically, but in practice it is almost impossible, because there are many factors and variables that prevent the stability of the price of Bitcoin, and there are many people, you can even say the vast majority of them, no longer want or care about the stability of the price of Bitcoin.
It is highly unlikely that your statement will ever materialize, bitcoin assuming the position of fiat as a universal measuring unit is simply impossible. That will only happen if the government finds a way to control bitcoin and they still care about bitcoin.
When talking about bitcoin becoming a currency, everyone wants it to be used as a currency, but when talking about bitcoin's stability, no one wants that to happen. This is quite a controversial issue for any of us. We all want to maintain bitcoin's volatility and want it to become a currency, that will never happen.
Yes, this is a controversial issue because we want to get global adoption and at the same time we want to continue to get profits through volatility, this contradiction cannot be solved simply!!!
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OP, Bitcoin was not designed to be a stable coin or asset, and trying to change that now is going to definitely cause a new problem. Perhaps Bitcoiners are used to how the asset is, in my opinion, Bitcoin doesn't need to be a stable coin in order for it to be really adopted by any individual or business. Although there is no cryptocurrency that can be compared to Bitcoin, the truth is that we have fiat and other stable coins, so anyone looking for a stable coin can possibly still hold their funds in fiat. Bitcoin is an asset that doesn't depreciate in value and isn't affected by inflation, but if Bitcoin becomes a stable asset, it would not really get the attention of an asset that can be very profitable; Bitcoin is just cool the way it is.
Keeping the price of Bitcoin stable is really hard because lots of things can make the price go up and down, like how much people want it and what's happening in the world. even big banks can not stop regular money from changing it's value completely.
With bitcoin and other cryptocurrencies, it's even trickier. they have special things about them, and lots of people buy and sell them hoping to make a quick profit. this makes it tough to keep their prices from bouncing around a lot.
think of it like this: imagine you're trying to keep the price of a rare rock steady. but many people want it, and the price can go up and down a lot, even if you try really hard, you cannot control what everyone does. That is like trying to keep the price of bitcoin stable, it's hard because lots of people buy and sell it, and they all have their own reasons. so, making it stay at the same price all the time is almost impossible.
We can try to make things more stable by using stablecoins or making better rules for how cryptocurrencies work.
With bitcoin and other cryptocurrencies, it's even trickier. they have special things about them, and lots of people buy and sell them hoping to make a quick profit. this makes it tough to keep their prices from bouncing around a lot.
think of it like this: imagine you're trying to keep the price of a rare rock steady. but many people want it, and the price can go up and down a lot, even if you try really hard, you cannot control what everyone does. That is like trying to keep the price of bitcoin stable, it's hard because lots of people buy and sell it, and they all have their own reasons. so, making it stay at the same price all the time is almost impossible.
We can try to make things more stable by using stablecoins or making better rules for how cryptocurrencies work.
I don't believe that Bitcoin will ever be stable IMO. If you're looking for stability in crypto, you could simply use USDT or BUSD.
If Bitcoin were to become stable it would lose its investment appeal and it would be like a stable coin with no profit potential. That's not favorable and personally I don't like it and I believe many others share that same opinion.
If Bitcoin were to become stable it would lose its investment appeal and it would be like a stable coin with no profit potential. That's not favorable and personally I don't like it and I believe many others share that same opinion.
It would really hard to believe that Bitcoin would be stable with the consumers by just simply buy and sell every time. Plus it's a decentralized system where it would be hard to manipulate and control by the government like the USDT for sure it would be possible for BTC to be stabilized. And I don't see BTC yet as a every day used currency since it is used for investment due to it's volatility where investors take advantage from it. I'm with you with that cause if it's stable it would be hard to get profit. Just like the current market value where Bitcoin almost maintain it's price for months and many people were panicking.
I agree that Bitcoin price volatility must be handled for it to be a viable payment method. Business and individual users avoid it for daily transactions because to its instability. Regarding currencies A and B: If A and B are interchangeable and worth Bitcoin, their value is connected to Bitcoin. Their prices are stable due to their link with Bitcoin, demand, supply, and external market forces.
However, stablecoins, or pegging these new currencies A and B to cash or commodities, may mitigate Bitcoin's volatility. This could stabilize prices through market mechanisms. It would take market adoption and faith in these new currencies. Remember, market sentiment and perception greatly affect cryptocurrency value.
However, stablecoins, or pegging these new currencies A and B to cash or commodities, may mitigate Bitcoin's volatility. This could stabilize prices through market mechanisms. It would take market adoption and faith in these new currencies. Remember, market sentiment and perception greatly affect cryptocurrency value.
Is it possible to stabilize prices through market mechanisms due to this?
No single individual or group can stabilize bitcoin price. Bitcoin has no central authority on it to define its worth and the price is determined in a decentralized system through various bid and ask prices on it.Come to think of it, if this was to be done, looking at the available volume of bitcoin both in circulation, pre-mind volume and lost coins due to unavailability of private key or seed phrases;
Where would one hope to cap the price at?
The total volume of bitcoin wouldn’t be enough to serve the world’s population and the bitcoin idea wasn’t meant for a few but, for the world to use in everyday transactions. This makes attaching an price to it as per stability an idea that don’t particularly suit its capped nature.
Since there are so many stablecoins in the market why would you want to make bitcoin stable by excluding them. If Bitcoin is a stable currency then investors will not invest in this currency. Market volatility is the reason why investors invest in the market. If the market is stable then an investor will not lose his money nor will his money grow as a result of which people will not invest in Bitcoin. And even if we tried, I don't think we could turn Bitcoin into a stable coin. There will always be such volatility in the Bitcoin market and the market will always fluctuate due to buying and selling. Since the market of other coins depends on the market of Bitcoin, if Bitcoin is ever stable then the market of other coins will be stable, so there is no possibility of Bitcoin being stable.
If the price of Bitcoin is stabilized, then everything will be ruined. When you see the price of Bitcoin steadily control, that market will crash and crash even worse. Bitcoin is designed in such a way that it will never stabilize, but will fluctuate in price. And if you want to use such stable coins then there are many stable coins you can use like USDT, BUSD, USDC, etc. there are some stable coins. Their price never fluctuates like bitcoin, they are very stable, and these stable coins can be controlled.
In order for Bitcoin to be widely used for payments, it is necessary to stabilize price fluctuations.
Question,
Bitcoin and other currencies A and Prepare B.
A and B are equivalent exchangeable and can also be equivalently exchanged for Bitcoin.
Is it possible to stabilize prices through market mechanisms due to this?
Question,
Bitcoin and other currencies A and Prepare B.
A and B are equivalent exchangeable and can also be equivalently exchanged for Bitcoin.
Is it possible to stabilize prices through market mechanisms due to this?
Actually, it is not impossible to stabilize the price of Bitcoin as you mean, but rather it is difficult to keep the price stable as you say. Because Bitcoin is not a stable coin which can be exchanged for the same amount of value for a certain currency, you have to understand this more so that you don't keep thinking about stabilizing prices which are basically unstable.
Now everything is quite clear and everyone can choose according to their own wishes, where if you want more profits you have to choose coins whose prices are unstable, whereas if you want coins that are more stable, then the choice is stablecoins. But the level of profit will also be very small because the price increase is non-existent, whereas for the unstable ones it will be inversely proportional to the stable ones. And clearly there are risks for each of these choices.
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