Topic: Solution to bitcoins "volatility" problems. (Read 182 times)

the volatility should be considered a norm as people generally compared BTC volatility to traditional assets.  But BTC isn't suppose to be a traditional asset class as its not government control. 

If people want to get into BTC and expect it to behave in a certain way, than this probably is not for them.

Somehow, with the help of Lightning Network soon it will be resolve immediately without having of a stack unconfirmed transactions. We can't really fix this volatility problem because of this slow transactions and the day traders is quite active, also it will never be fix when there's a manipulation that's going on in the price and that we call them whales.

Unfortunately, that Bitcoin in current time is in big drops and the price is volatile and in massively decreased which became less than $ 9000. Furthermore, the solutions will achieve when the problems will be resolved, which led to this huge crisis. And the most problems are:
The higher number of unconfirmed transactions (for example more than 35 000 unconfirmed transactions in Blockchain in this period).
The increase of the selling value in this period and which has led to drop in price of Bitcoin.

No you are right, Lightning Network will fix the lag but it won't fix the massive energy consumption it takes to run the Bitcoin Network and it wont fix the high fees. So you will see me investing into other new coins but not any Bitcoin.

No neither the USD or Bitcoin is perfect. The USD is a terrible currency and the American economy has been getting worse since 1950, the poor keep getting poorer and the rich keep getting richer. 1 million dollars today would be only worth 14000 dollars 100 years ago. Bitcoin is also a terrible currency with the lag and high fees and massive energy consumption.

bitcoin will never replace USD. The volatility of bitcoin could possibly end ONLY if it is not on the market which won't happen. When you want the price of bitcoin to rise then you must accept that it could also fall like "Newtonian relativity" of yours. Dollar and bitcoin is doing great, it's just people who don't accept the fact, it's already perfect on it's own way.

that would be the case if people are getting fixed salary in bitcoin nominal
can employers pay their employees with fixed bitcoin amount (instead of value)
and what would happen when the 21 mio btc were out and mostly HODL,
would there be enough bitcoin for mass daily transactions? and could the network handles the entire (world) economy?
are we going to create IOU in BTC currency in case of shortage? which against the idea of blockchain and decentralization

there's a lot of things to improve before bitcoin can actually replace USD or any other fiat currencies
as of now, the best thing we can do is to use bitcoin side by side as complement to fiat

Bitcoin is volatile, because we have a uneven distribution of coins in the market. You still have huge Bitcoin whales that are dumping large amounts of coins to manipulate the price and then buying large amounts of coins to pump the price.

When these coins are bought by more people, the coins get re-distributed to more people and this effectively takes the manipulation power away from these whales.

Global Reserve currencies like the US Dollar and the Euro are also being manipulated, but the people manipulating these currencies are the government.

Ok, ok, most of us are really anticipating this kind of scenario.

But what's important here is your title "Solution to Bitcoin's 'volatility' Problems", seems like I can't find your point in the OP what you meant by the title.
I'm dumbfounded, can you please explain?

I don't think you understood anything I said. You keep talking about governments, but I told you there would be no more governments, just a one world government. And once you can buy major things with bitcoin, such as potato chips, the price will not be "volatile" since the price of potato chips will be tied to the price of bitcoin. Bitcoin is only "volatile" relative to the price of the dollar. And it is only volatile because people are new and constantly buying and dumping it because the dollar is more valuable to them. But once bitcoin is more valuable than the dollar, the dollar will be the volatile one.

First of all, a reduction of spelling errors, should encourage people to take "cripto space" more seriously.

Give me a bit and I will think of an answer.

"Just hire a lawyer." Well most people don't live in Japan. And you cant go into Walmart and buy potato chips with bitcoin. Second the older generation of computer incompetents like Warren Buffet are keeping bitcoin down. But once everyone in society has a computer bitcoin will moon to 1 million dollars like bill gates said. Because nobody will be using the dollar anymore and infact by that time "1 million dollars" will be like saying 100k today.

However, if bitcoin keeps the high fees of 0.001 and the laggy transaction times, bitcoin then it will never moon, it will be replaced by altcoins such as NEO and upcoming altcoins. Ethereum will not moon either, because ethereum is laggy as well and is inferior to bitcoin because it has no address verification, a lot of people will be angry after losing their money. This means all eth based coins (ALL ETH BASED TOKENS) will eventually fail by 2020 once the public realities it has no address verification like Bitcoin does.

I see you are a scholar on the subject.

What are your thoughts on Bitcoin replace the euro, rather than the USD?  Would this also cause hyperdeflation?   

What if bitcoin replaced the North Korean won?  Any notion on how this may impact the price of cabbage, or a head of lettuce?

How about the euro, pound, yen, won? Bank notes , or should i say legal tenders or fiat money are a separate entity on bitcoin. Look, even the price of the bitcoin drops, any currency in this world isnt affected and vice versa. Bitcoins price doesnt need to be connected on any other currency. But if all parts of the world adopt on this crypto currency and you can use bitcoin on any item in every place, an item would digitaly way cheaper than the usual.

Ok- so the fundamental volatility is down to a lack of market depth- money tends to be 'sticky' because it links into an asset in the long term. Right now, most of the value of Bitcoin is speculative and not linked to an actual use case- it's not a good payment system at the moment because of Tx time vs cost, 'Store of Value' is a misnomer because it's too volatile to store anything least of all value. BTC needs to solve it's scalability issues, reduce tx costs and increase tx volume- when that happens, and it becomes easier to use then it'll get more use cases and then the value will breach the current speculative cycle. Right now, that's not looking to happen in the short term- and alternative chains like Ethereum are showing more utility by doing different things (computation validation & asset linkage in Ethereum's case). It's not enough to be 'first'- BTC needs to keep evolving, that's the nature of digital technology.

People can buy stuff using bitcoin since a few years ago, even right now you can use it to buy some goods even buy a house, just hire a lawyer to make it happen.
in fact, people in Japan can buy almost anything using bitcoin, pay electricity, a ticket for airplane, for food, etc.


Bitcoin won't replacing USD, the US government has stated bitcoin as a commodity, not a currency even though it can be used to buy something.
But, the government can prohibit bitcoin to be used as a currency just like happened in many countries.

I think your opinion is wrong. The dollar or the currency issued by the governments never disappears that is certain. The bitcoin either. Bitcoin was designed as a digital currency (bone use on the internet). Bitcoin is volatile, this is a reality that nobody will change. I've always said that bitcoin can be worth 100k or a pizza because the value is assigned by people. Now the important thing is the technology that uses bitcoin which is the most important thing.

If we all agreed on a price for each bitcoin would be perfect, but people can give you any value.

Any Idea have to get people into Cripto space?(7 Billion )

People say bitcoin will never "take off" because it has "volatility".

But once people can buy stuff using bitcoin, it will be the US dollar which becomes volatile. It is a bit like Newtonian relativity, things don't seem like they are moving, if you are on it.

Bitcoin replacing USD will completely help the entire economy, because of reverse inflation, the value of bitcoin will rise, and each day prices of products will appear to be getting cheaper and cheaper...next thing you know a Lamborghini will only cost 1 bitcoin...