It is possible bitcoin will naturally stabilize on its own as time passes and the market behavior of crypto currencies becomes a more thoroughly investigated and quantified phenomena. Potentially positive aspects of bitcoin such as it being deflationary and having a limited supply in terms of only 21 million coins being issued could take months or years to fully kick in and affect its price. The best way to stabilize bitcoin and crypto could be mass adoption. Higher market caps and trading volume would go a long way towards reducing rampant speculation and coordinated market manipulation.
I think growing pains are an integral part of the learning process and of new and emerging technologies like crypto currencies. There is no fast forward button to accelerate knowledge or development on a project like bitcoin and if there were it could upset or stagnate the natural process which is necessary for new and emerging technologies to fully mature.
Topic: Stabilising the valuenof crypto. (Read 125 times)
If you could stabilise the blockchain so that the value of a bitcoin (or altcoin) would stay the same (relative to fiat)without any third party. Would you do so?
This would eliminate any gains but also keep network fees low and allow it to be more.cash like.
I hate this huge price drops which make people nervous as well as result in losing big sums of money from time to time. It might be unfair, that's true, but that is how it all works! The whole idea of cryptocurrencies was to let the market pave its own way, let the demand and supply truly decide what should happen and which prices are suitable! Stabilizing the market will make coins not so different from fiat and the experiment with the free market will be over. Moreover, I think it is safe to say that nowadays the majority of people is using coins for trading. Without volatility, trading will not make much sense which could be a bigger threat to the market, than all the bad news we already saw. This would eliminate any gains but also keep network fees low and allow it to be more.cash like.
Most coins would not be possible as there are limited in supply and investors who are buying them will bid up the price.
What you are referring to are stable coins like tether whose purpose is to provide a coin which is peg to USD or any fiat that the stable coins is designed for.
Stable coins is important and there needs to be more such stable coins so that usage of crypto as a currency can be better promoted.
No one wants to use BTC as the value is volatile.. but with a stable coin, there is no difference from fiat so people will use it more readily
What you are referring to are stable coins like tether whose purpose is to provide a coin which is peg to USD or any fiat that the stable coins is designed for.
Stable coins is important and there needs to be more such stable coins so that usage of crypto as a currency can be better promoted.
No one wants to use BTC as the value is volatile.. but with a stable coin, there is no difference from fiat so people will use it more readily
If you could stabilise the blockchain so that the value of a bitcoin (or altcoin) would stay the same (relative to fiat)without any third party. Would you do so?
This would eliminate any gains but also keep network fees low and allow it to be more.cash like.
This would eliminate any gains but also keep network fees low and allow it to be more.cash like.
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