Topic: The BTC price must stabilize in the long run. - page 3. (Read 1158 times)

If Bitcoin is going to be a solid and reliable currency that is used for into the future it needs to act like the biggest existing currencies which have reasonably low volatility like you say. Speculators are bad for the future of Bitcoin, because they are people who have the most fear and are the most erratic in their dealings with the currency. Volatility can also breed a lot of misunderstandings, put off newcomers who might only have sparse knowledge of how it works and create warning bells for politicians who will be more inclined to regulate against them. Stability will breed confidence and it'll actually be good once all the possible Bitcoin are mined, even though the newly minted stuff is in much lower supply than it used to be.

Uh...bruh are you so sure about that, in my opinion investors will not like stability, they want fluctuations in price so they could buy low, and then sell high and make profits, fluctuations do not make investors panic, it makes them happy, gives them opportunities to accumulate, though they are going to have to hold it for long. If any investor will panic about fluctuations then it'll be those who are in for the short term. It goes without saying that people who spend bitcoins, and take it as a currency that it is are the ones that are more passionate about stability.

I believe it is not necessary for Fiat to collapse util we get some sort of Bitcoin standard. Both the USD standard and the Bitcoin standard could happily coexist. Currently we have a strong USD standard*, and (a bit weaker) Euro and Renminbi (yuan) "standards" which act as anchors for prices in international trade, each one more important in certain regions and less in others. Something similar could occur with Bitcoin.

Once the Bitcoin price stabilizes a bit more (like I described in my previous post) it could be attractive in some countries with high Bitcoin adoption and a weak or non-existing (like in El Salvador) local currency to price at least some services in Bitcoin. Perhaps El Salvador could do this with services like the "Chivo Pets" veterinary hospital which already are heavily subsidized (the cost is USD 0,25; "real cost" of the service - salaries etc. - should be much higher, so maybe this could be an ideal "playground" for experiments with bitcoin-based pricing). In other countries it could be advantageous for private companies to price services in Bitcoin, particularly in slight bear markets when this would be perceived as a "discount" (remember we're talking here speculatively about a future situation with much less sharp BTC price movements, so this could apply to times when Bitcoin loses ~1% per week or so in a "harsh bear market").

*I use "standard" here as a sort of "value anchor", but not something as static as the gold standard was.

I think if bitcoin can be more stable, i.e. price fluctuations will not be more than 3% then this will make a lot of investors optimistic and don't hesitate to store bitcoins in cold wallets, the thing that makes us always worried is bitcoin price fluctuations that can reach more than 10 % per day and often make me panic.

Yes, the price of Bitcoin has moved from $19 to $23 in the market which any moment from next month people will begin to experience massive pumping in the market. The crypto price situation is coming to an end soon, because many coins in the market are showing green light to make people mind feel good for the bull season they are about to enter which is the best season for long term investors to earn well from the market.

For profitability reason yes we can say that bitcoin is better than gold but before we can earn with it we must have been more experience dealing with volatility since if we are newbie and been hype up with results shown on internet then maybe we will not like bitcoin at first try. This is why we need to think more and learn more before we enter because bitcoin is volatile and that add the risk upon trying to select this as investment.

I congratulate you on making profits with investing in USDT, but how it's different from simply investing in USD then?


It may be hard to understand for most people in the world at the moment, but these days Bitcoin indeed is better than gold. There's nothing wrong with gold itself, it will always be worth something, but today it's overpriced big time, same as it was 10 years ago. Bitcoin, on the other hand, is now fluctuating around its new bottom.

That's crypto because without fluctuations it wouldn't be profitable,
for now we are indeed waiting for the Bitcoin price to rise again and it takes time,
Bitcoin investment will always be profitable but it takes patience

If Bitcoin is stable, of course it will not make people want to buy bitcoin, the biggest hope of investment bitcoin is the price opportunity that rises, and in my opinion that has happened for around 12 years which is very volatile is a better thing and makes anyone hope to get profit.

For the "Bitcoin Standard" to become a reality, all of the world needs to adopt Bitcoin as legal tender. This would mean "ditching" Fiat in favor of Bitcoin. I don't see Fiat collapsing unless inflation grows to a point where it's uncontrollable by world countries. Once "hyperinflation" kicks in, then we'll be forced to look for other alternatives. We were used to the "Gold Standard" in the past, and it worked out pretty well. But Bitcoin is even better than Gold, so it's likely the world will switch to the "Bitcoin Standard" with decaying Fiat currencies. Nothing is set in stone, so we can only hope for the best. Just my thoughts

People who do not know what else to do, pick stablecoins because they believe that they could end up making a bit of profit with it. First of all, even if you are from the USA, you could use stuff like USDT to make sure you are in liquidity providing, interests, staking and whatever else you want to find and that's how you make a big profit.

However, if you are not from the US, then you could be doing even better because not only you will profit that way, but you will profit because USD would go up against your own nation currency as well. I have been doing it, and I know the returns are little, but it is certainly a way to make profit and I am quite happy about it.

Even though now Bitcoin no longer requires promotion, but at the beginning of its appearance, they used it to make bitcoin like now. It is true what you say, that votality and popularity are the result of their own performance, but to control it, bitcoin requires a balance between demand and sales, and I think depending on how people use market conditions

When we come and start trying to enter the market, so that that must be connected are bear, bull, and rangeways/sideways, althouls three points can not do done simultaneously, but as far as we believe and based on research, there is no harm, there is no harm In trying, especially those related to bitcoin, the most important characteristics and developments must be known, so we know when to get out of the market

This volatility factor is indeed the driving force for most crypto users to continue to hold bitcoin. This is why stability is not really the aim of most. People are banking on the possibility that the btc price will increase a lot someday, hence, holding their satoshis as long as they can. But in the long run, we are aiming for stability so we can use this for everyday, and we have no qualms of using it as payment method. But unfortunately, we are not yet in this stage.

Topic is important enough to not let it go entirely to the dumpster

I mostly agree, but the Bitcoin community can of course help to achieve this goal. A possible way to do that is increase liquidity massively.

How to do that? Well, you can't of course force more people to put more orders on exchanges. But there is another way: If Bitcoin is used more as a currency, then liquidity comes automatically.

An example: If 10% of all Bitcoin users (according to crypto.com, 176 million, I think it's relatively safe to say that there are at least 50 million, so I'll take 100 million as a guess) buy one thing per week worth $50, then we have around 500 million USD worth of Bitcoin "sales" per week. Each trade (Bitcoin to a good/service) can be seen as a buy/sell order. In some cases, if the merchant uses a payment processor, this means directly a buy/sell order on an exchange.

In the cases Bitcoin is accepted directly, it's a bit more complicated, but actually each offer on a merchant shop or website expressed in Bitcoins, even if it's only valid 10 minutes, can be seen as an additional (limit) buy order, only that not the USD, but the good/service is exchanged against BTC.

The 500 million USD may not look much if we take into account that the trade volume per day is of several billions, but these are real orders expressing real interest, and not orders of traders. This would also leverage the volume added by traders.

The more liquidity/order volume there is close to the reference price, the more difficult it becomes also for whales to move the price and create FOMO or panic to profit from it.


This "Bitcoin standard" is exactly the effect I'm hoping for. If Bitcoin is more used as a currency, even with floating prices, you'll get at least for short timeframes when Bitcoin is rather stable, a "feeling" what a certain Bitcoin fraction is worth (i.e. if Bitcoin is between $20K and $25K, then you can say "1 BTC is worth as much as a small car"). If this effect becomes more common, it could slowly make pricing in Bitcoin more popular (what is currently a very small niche, but is occasionally used, e.g. in the forum marketplace and signature campaigns).

I think once merchants start significantly to give price guarantees for goods and services (this is easier for digital goods with low marginal cost, see this thread), then the way to the "Bitcoin standard" is paved. They can start with a fixed price for some hours, then 24 hours, then 48 and then even longer timeframes once they feel secure.

back to the reality of bitcoin now those who hold it because the real reason is its volatility which gives them hope to get rich and we are not hypocrites for this. and naturally also bitcoin can not grow into something that might be said to be stable
Of course this takes time and market capitalization is of course unavoidable from volatility and inflation so worry about value and supply will always be there.

When you do step your foot into crypto market then you should be aware on market price conditions.

1. Bear
2. Bull
3. Ranging/Sideways

We know that #3 would be the most hardest part on making up a decision whether you do buy or sell specially if this condition or situation had lasted
for a couple of months which it is really hard to determine on what step you would really be doing in order to maximize possible profitability.
It doesnt really need to  stabilize and it doesnt really need to be promoted because everything would come normally just like on what you said which is definitely true.

Bitcoin does not need any promotion, it get promoted on its own.

The popularity of one coin does not lead to a bad outcome even when its price fluctuates, like I said the yearly volatility remains within controlled limits.

Though altcoins also see pump and dump they too remain close to this when seen on a long term scale like a year or a half. Specific altcoins might be doing better on their creators promotions, still bitcoin remains the big one.

Price remains stable in the long run, if you know how to take advantage of it. Besides without the price changes we would not have any trading happening.

Having stable coins is not stability, imo. Their value is pegged to the value of a fiat currency and, especially in times like these, one can't certainly expect a sustainable purchasing power of fiat currencies. And, in fact, unlike Bitcoin, stable coins can only lose their real value with time. So, if by "stability" we mean constant losing of real value, then stable coins are stable in that sense. But who wants that stability?

I think that volatility would even become more active if people are actively using bitcoin but volatility is also the reason on why many people won't use their coin actively, i.e for payment purposes. Volatility is also the reason on why many people are here (traders and investors) because they figured out that they can buy low and sell high. It's only about willingness anyway and not about governments or there are still a fiat around.

I am into btc but I have worries if what will the world will be if it's fully decentralized or like you said, the global unit of account will only be btc. I couldn't ask for more but btc having a volatile nature is already fine for me and we still have a stable coins anyway if we want some stability.

Really? How so? We can love and admire Bitcoin but we shouldn't be blinded to its faults too. I'm sure, if Bitcoin weren't the first it wouldn't even be having half the goodwill it's having as an edge on others. After all, it's not the only payment crypto. Come to think of it, Bitcoin doesn't even have a smart contract; does it?

Isn't it the same way Bitcoin is? Those who hodl thousands of Bitcoin are in the minority compared to those who hodl a few sats here and there.