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Topic: What must happen so that cryptocurrencies are less volatile? - page 5. (Read 2679 times)

sr. member
Activity: 882
Merit: 303
Volatility will cease only when bitcoin becomes a real means of payment. Most users use bitcoin for investment and wait for it to rise in price. This was successfully used by whales. If the bitcoin will be used for purchases, the proportion of whales in the market will be reduced and they will not be able to exert such influence on prices.

Instead of investing in bitcoin and waiting for it to increase, we should invest in altcoin, altcoin carrying a low value, so with the same amount of money you can buy a lot of altcoins and make a lot of profit.

This is true, you must research about a certain coin and do all the things you can do. get all the details and see if it has a potential. but if you are a trader you can just study the charts and have some technical analysis for you to earn.
legendary
Activity: 1008
Merit: 1000
What would it take?

Does the volatility settle if certain amount of merchants accept payments in crypto? Or should there be more people that would get paid in crypto? OR should there be a cryptoeconomy where people and businesses get income in crypto and spent the crypto?

Furthermore, could the volatility be even solved? I mean of more and more people are getting into Bitcoin, when would such demand cycle cool down?

I would like to know the economics behind it.
Crypto will become more stable the moment there is more money in it, the market cap reached up to 115 billions at some point but I think crypto will not become stable until we reach a few trillions of dollars on market cap, that way any money that comes into crypto is not going to destabilizes the price.

Stabilization in Bitcoin price may occur when the mindset of the users will be stable and patient. And also acceptance and legalization through out the major parts of the world might really help in achieving stable price. But currently the volatility is only the factor which is holding so many users as they see it as investment, rather fast profit investment.
But we are know recently market have a huge investor joined from any where, special from MLM, Ponzi, HYIP project ... and they are speculator not have knowledge about crypto or market. So, when have dip price they panic and helps the volatility on market strongly!
legendary
Activity: 3080
Merit: 1500
What would it take?

Does the volatility settle if certain amount of merchants accept payments in crypto? Or should there be more people that would get paid in crypto? OR should there be a cryptoeconomy where people and businesses get income in crypto and spent the crypto?

Furthermore, could the volatility be even solved? I mean of more and more people are getting into Bitcoin, when would such demand cycle cool down?

I would like to know the economics behind it.

I believe crypto currencies will remain volatile for ever because no one is going to regulate them. Why real world currencies are less volatile? because they are regulated by the government authority and also these currencies are backed up by some real asset like Gold. So they are less volatile.

On the other hand, crypto currencies are volatile and that's what makes them special. There is no regulatory authority for the crypto currencies. So the volatility creates a lot of trading and hedging opportunities. I believe, crypto currencies will be less attractive if the price is stable. Volatility is what makes it attractive and traders around the world can play around it.
sr. member
Activity: 1232
Merit: 250
What would it take?

Does the volatility settle if certain amount of merchants accept payments in crypto? Or should there be more people that would get paid in crypto? OR should there be a cryptoeconomy where people and businesses get income in crypto and spent the crypto?

Furthermore, could the volatility be even solved? I mean of more and more people are getting into Bitcoin, when would such demand cycle cool down?

I would like to know the economics behind it.
Crypto will become more stable the moment there is more money in it, the market cap reached up to 115 billions at some point but I think crypto will not become stable until we reach a few trillions of dollars on market cap, that way any money that comes into crypto is not going to destabilizes the price.

Stabilization in Bitcoin price may occur when the mindset of the users will be stable and patient. And also acceptance and legalization through out the major parts of the world might really help in achieving stable price. But currently the volatility is only the factor which is holding so many users as they see it as investment, rather fast profit investment.
sr. member
Activity: 484
Merit: 250
Volatility will cease only when bitcoin becomes a real means of payment. Most users use bitcoin for investment and wait for it to rise in price. This was successfully used by whales. If the bitcoin will be used for purchases, the proportion of whales in the market will be reduced and they will not be able to exert such influence on prices.

Instead of investing in bitcoin and waiting for it to increase, we should invest in altcoin, altcoin carrying a low value, so with the same amount of money you can buy a lot of altcoins and make a lot of profit.
hero member
Activity: 2884
Merit: 794
I am terrible at Fantasy Football!!!
What would it take?

Does the volatility settle if certain amount of merchants accept payments in crypto? Or should there be more people that would get paid in crypto? OR should there be a cryptoeconomy where people and businesses get income in crypto and spent the crypto?

Furthermore, could the volatility be even solved? I mean of more and more people are getting into Bitcoin, when would such demand cycle cool down?

I would like to know the economics behind it.
Crypto will become more stable the moment there is more money in it, the market cap reached up to 115 billions at some point but I think crypto will not become stable until we reach a few trillions of dollars on market cap, that way any money that comes into crypto is not going to destabilizes the price.
legendary
Activity: 1862
Merit: 1004
Be careful with what you arr asking for. If cryptocurrencies have very low volatility then trading them would be very boring and you will also therefore have very low profit margins. But as a general user its almost entirely good for buying and selling using BTC and other cryptocurrencies.
Not everything is about profits you know. Some of us want to make this world a better place where you have a choice to use something else that centralized banks and payment processors.
Cryptocurrency is designed to be an alternative economic system, the money making possibility was never its first objective.
I would rather have low profits and stability in the long run with great merchant adoption that crazy volatility.
sr. member
Activity: 868
Merit: 259
Be careful with what you arr asking for. If cryptocurrencies have very low volatility then trading them would be very boring and you will also therefore have very low profit margins. But as a general user its almost entirely good for buying and selling using BTC and other cryptocurrencies.
full member
Activity: 405
Merit: 105
What would it take?

Does the volatility settle if certain amount of merchants accept payments in crypto? Or should there be more people that would get paid in crypto? OR should there be a cryptoeconomy where people and businesses get income in crypto and spent the crypto?

Furthermore, could the volatility be even solved? I mean of more and more people are getting into Bitcoin, when would such demand cycle cool down?

I would like to know the economics behind it.
Maybe it will be less volatile if more people will be interested into Bitcoin, in that way , the demand will also increase. Market's demand is where Bitcoin's value relies. If more countries will make it legal as a currency just like what North korea did, it'll encourage more people and countries to use Bitcoin which will lead to Bitcoin's stability.
full member
Activity: 212
Merit: 100
What would it take?

Does the volatility settle if certain amount of merchants accept payments in crypto? Or should there be more people that would get paid in crypto? OR should there be a cryptoeconomy where people and businesses get income in crypto and spent the crypto?

Furthermore, could the volatility be even solved? I mean of more and more people are getting into Bitcoin, when would such demand cycle cool down?

I would like to know the economics behind it.
If the market's demand is stable, pertaining to bitcoin, it will surely cause bitcoin's volatility to be less volatile since its value relies on market's demand. The best way that it'll be controlled is when it is used by most of the people or if it is legalize. The main reason of its volatility is its sense of being decentralized.
legendary
Activity: 938
Merit: 1001
If central governments take cryptocurrencies in legal view,, then volatility must not remain on it.
But central perspective may affect on cryptocurrencies profits too.
Volatility makes us profits, it has to be always if you want profits in your trades.
sr. member
Activity: 924
Merit: 260
If bitcoin can go mainstream the volatile well reduce because many professional business men will invest in bitcoin for long term purpose. The reason for volatile is always course by amateurs and unprofessional traders who jumped into a cryptocurrency market for a purpose of take little profit and always sell out of panic.
hero member
Activity: 994
Merit: 1000
PUGG.io
If more and more people start trading cryptocurrencies then it would give the cryptocurrency a good support and I believe that at that time the cryptocurrency would become less volatile.
hero member
Activity: 896
Merit: 521
What would it take?

Does the volatility settle if certain amount of merchants accept payments in crypto? Or should there be more people that would get paid in crypto? OR should there be a cryptoeconomy where people and businesses get income in crypto and spent the crypto?

Furthermore, could the volatility be even solved? I mean of more and more people are getting into Bitcoin, when would such demand cycle cool down?

I would like to know the economics behind it.
There have been many such threads. But let me answer it again. Practically if we look at marketcap of Bitcoin, it will take many years to reach a state of less volatility.
Bitcoin has a $42B market cap. This is nothing. Until this market cap grows into the trillions I don’t think Bitcoin will be stable enough. There just isn’t enough liquidity. When the Bitcoin is distributed in large population. It will tend to be stable. Market wouldn't be driven excessively by a single investor holding millions of Bitcoin.

Marketcap even just give a little CONTRIBUTION to bitcoin volatile, because :
- marketcap = price * amount in circulation.
- imagine someone who has huge amount of bitcoin such as BTC500,000 orBTC1 Million, he could still manipulate the price.
I think it's better if bitcoin amount is spread widely instead of just one man holding huge amount of bitcoin.
Then, it refers to bitcoin usability, when more merchants accept bitcoin payment and it has spread widely, then the volatility of bitcoin could be reduced.
I have very well stated the point of more liquidity and a better distribution of Bitcoin among masses. More the liquidity, more Bitcoin will be in circulation and hence lesser is the chance of someone hoarding millions. Offcourse, marketcap is of little significance. But there is a huge interlink between Bitcoin price (in turn marketcap) and demand. More will be the demand more will be the liquidity and hence more is the price and marketcap of Bitcoin. They all are quite interrelated.
hero member
Activity: 952
Merit: 500
What would it take?

Does the volatility settle if certain amount of merchants accept payments in crypto? Or should there be more people that would get paid in crypto? OR should there be a cryptoeconomy where people and businesses get income in crypto and spent the crypto?

Furthermore, could the volatility be even solved? I mean of more and more people are getting into Bitcoin, when would such demand cycle cool down?

I would like to know the economics behind it.
Volatility occurs since bitcoin is decentralized.There is no central body to control its price.Its price increases and decreases with increase or decrease in demand.Only if it is centralized and has a central body,volatility could be controlled and its not good for bitcoin progress.
klf
legendary
Activity: 1344
Merit: 1000
Volatility will cease only when bitcoin becomes a real means of payment. Most users use bitcoin for investment and wait for it to rise in price. This was successfully used by whales. If the bitcoin will be used for purchases, the proportion of whales in the market will be reduced and they will not be able to exert such influence on prices.

That is true. As of now, some big whales are controlling the market to make a profit for them by doing these regular pumps and dumps and most of the traders like these volatile markets rather stable markets. But only like us investors want more stable market and it will happen only when more and more people start holding the bitcoins.
sr. member
Activity: 686
Merit: 260
What would it take?

Does the volatility settle if certain amount of merchants accept payments in crypto? Or should there be more people that would get paid in crypto? OR should there be a cryptoeconomy where people and businesses get income in crypto and spent the crypto?

Furthermore, could the volatility be even solved? I mean of more and more people are getting into Bitcoin, when would such demand cycle cool down?

I would like to know the economics behind it.
Whatever happens the volatiliy will be always present and it can't be solved , Since bitcoins are starting to wake up the people the more people getting into bitcoins the more it have a much volatility . But who knows in the future when almost all people have bitcoins and the mining of has done . The demand for now is still growing let's accept that and follow tge flow make profit that was the only thing we can do now instead of questioning its volatility.
hero member
Activity: 910
Merit: 523
What would it take?

Does the volatility settle if certain amount of merchants accept payments in crypto? Or should there be more people that would get paid in crypto? OR should there be a cryptoeconomy where people and businesses get income in crypto and spent the crypto?

Furthermore, could the volatility be even solved? I mean of more and more people are getting into Bitcoin, when would such demand cycle cool down?

I would like to know the economics behind it.
There have been many such threads. But let me answer it again. Practically if we look at marketcap of Bitcoin, it will take many years to reach a state of less volatility.
Bitcoin has a $42B market cap. This is nothing. Until this market cap grows into the trillions I don’t think Bitcoin will be stable enough. There just isn’t enough liquidity. When the Bitcoin is distributed in large population. It will tend to be stable. Market wouldn't be driven excessively by a single investor holding millions of Bitcoin.

Marketcap even just give a little CONTRIBUTION to bitcoin volatile, because :
- marketcap = price * amount in circulation.
- imagine someone who has huge amount of bitcoin such as BTC500,000 orBTC1 Million, he could still manipulate the price.
I think it's better if bitcoin amount is spread widely instead of just one man holding huge amount of bitcoin.
Then, it refers to bitcoin usability, when more merchants accept bitcoin payment and it has spread widely, then the volatility of bitcoin could be reduced.
hero member
Activity: 840
Merit: 501
Volatility cant be hold or avoided, the only way to make it less volatile is by let someone controlled it, but that won't happened, the crypto currencies volatility happened because it is decentralized, that means that the price is depend on the market and the market wont stop fluctuate until the supply and demand stop
full member
Activity: 924
Merit: 148

There have been many such threads. But let me answer it again. Practically if we look at marketcap of Bitcoin, it will take many years to reach a state of less volatility.

Volatility may be reduced only if people will start using crypto irl as any other currency. We just need something like a breakthrough to make it easier to buy / sell different things. After that the hype is real and BTC can becope stable pretty fast. I might be too optimistic but I'm pretty sure that the whole process may take just a couple of years.
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