I should point out that in markets like ours volatility will always happen, while things will settle down you're still going to have price spikes and so on but that's just because that's what a real free market is like, people will always buy low and sell high because it benefits them, if you always bought and sold high you'd be constantly making a loss. That said as the currency spreads out and people use it more and more for buying stuff which is getting easier now things should settle down.
A prime example of something extremely manipulated are paper currencies and the long term/short term government bonds, the only reason they are at the prices they are is because someone in a central bank is pressing a button and buying them up when they think the price is too low or selling when they think it's too high.
A prime example of something extremely manipulated are paper currencies and the long term/short term government bonds, the only reason they are at the prices they are is because someone in a central bank is pressing a button and buying them up when they think the price is too low or selling when they think it's too high.
Regular paper currency doesn't have much volatility. But while some of it may be due to a central bank buying and selling, they don't do enough to control the daily prices. The main reason is market cap. Look at the market cap of the USD, Euro, etc vs. XBT? Look at a large cap stock like GE, JNJ, versus something "new" like Telsa? Shares outstanding and market cap.
Tell that to Zimbabwe.
I don't consider that a real currency.
Look at my examples. USD, Euro, Yen, Yuan, and several others with huge market caps have the low volatility. Other fringe currencies, and ones like Zimbabwe which is basically not even a currency, will have volatility just like XBT will. lol what exactly is a "real currency"?
Kinda getting off the real topic originally, but still somewhat related. That's the real subjective question, isn't it?!
I can name many that are real. The questions remains to the ones with little or no value. Obviously you can't buy, trade or barter with "currency" from Zimbabwe. So how is it a currency? Currency is defined as a medium of exchange. You can't exchange anything for Zimbabwe "currency" because basically no one will accept it!Your example brings up an interesting point that I have tried to bring up before on these forums.
The value of a currency is simply a confidence game...nothing more...nothing less.
If a seller is confident that handing over the keys to his 2011 Ford Super Duty for some paper bits or digital bits then that is all that matters.
The seller is not thinking about all the implications of legal tender or intrinsic value.
Also the U.S is even worse than China when it comes messing with things which makes it very ironic when they lecture others about 'running' a free market. 
