Topic: What would happen to the bitcoin price if adoption increased on a larger scale? - page 2. (Read 521 times)

That's the law of the market and I've learned about it, but I don't think it's as simple as it says. FUD and negative news always affect the market.

Natural price increases due to increased demand through adoption can make the percentage fluctuations smaller. So is it possible to think when adoption increases volatility to low so that the risk of fluctuations or deep price corrections can be minimized?

It seems that everyone seems to agree that it's definitely going to go up because of the law of supply and demand, which is true because it's the most basic principle in economics, when there's more demand, the price goes up but it has to be that the supply doesn't go up either because there won't any competition for demands because there's a lot for everyone.

However, I think bitcoin has the ability to adapt to legally accepted situations allowing for a lower volatility e.g. an ETF being accepted, it may affect low volatility or  high.  It still has breakouts for any effect other than a change in bitcoin value, where bitcoin can be volatile based on user value rather than speculation.  El Salvado has more than 2M Chivo wallets in use, proving that when bitcoin is legal the demand for bitcoin will be infinity

It's basic, just supply and demand. If there's more people meaning more demand and couple that with the fact that there's a limited supply of bitcoin, it's bound to go up in prices given that there's a probability of scarcity when the demand increases exponentially.

Yeah, it is true that it is possible that the volatility of bitcoin will decrease when the adoption increases.
But, for the adoption of bitcoin to reach a level where the volatility will be decreased to a low level, don’t you think it is going to take so many years before that will happen? I have always had the thought when the time comes that there will be higher adoption rate, the price won’t be fluctuating like it is doing right now.

Another thing I would like to point out is about making bitcoin a legal tender, I don’t think there will be much countries that would be interested in doing that. But, we will wait till that time comes to know what happens.

OP's question is simply answered in the basic principle and interchange of Demand and Supply. The more the demand; the higher price goes. It's as simple as that. It's high demand and shortage in supply that confers value on products and services. That's why crypto enthusiasts crave adoption for Bitcoin so that more interest will begin to chase its use with the limited supply of 21 million. Once this begins to happen we can say it will expectedly cut across the entire crypto industry with alts soaring too. Come to think of it, that Bitcoin was able to come out of the woods now is because of the halving that was done in 2020 and reward per block was reduced in half, making supply a bit scarce. Now, think of what happens when adoption is fully achieved and more countries make Bitcoin their legal tender.

And this is even more extreme in the case of bitcoin, for example in the case of almost any asset when the demand for it increases and the price goes up as a result what we see is that companies begin to create more of that product, this increases the supply, it meets the demand and then the price begins to slowly go down, but this is not possible for bitcoin, bitcoin is mined roughly at a constant rate which means that when the increase in the demand happens there is now way to increase the supply which makes its price to go up in a more sharply manner.

I really don't think that this is going to be affecting the nature of the market in any bad way, the more people that use bitcoin the more decentralized it get the more volatile it gets, a large adoption of bitcoin will only create more supply and that will eventually lead to the increase of the price, so if anything it will affect the transactions, meaning that the fees will get higher and longer time to confirm, which make microtransactions non usable with bitcoin.

Yes. Bitcoin is definitely based on its supply and demand. And if its demand continue to to increase, then its supply will be lessen too, seeing it's just only limited. So eventually, as there will be more demand, its adoption will most likely to increase in a larger scale too. Bitcoin will be recognized and utilize all over the world until it became a global currency in the near future. But when we talk about its volatility, i think it will always stay, it might be reduced i think, but never it will be fully gone. Its volatility will always have its own way to attract more people to invest into bitcoin while also making it as a currency.

Bitcoin volatility will definitely reduce when large scale begins to adopt bitcoin because the price will be stable bitcoin won't really be pumping and dumping anyhow again the price will be stable and if the price is stable the volatility will definitely reduce. Just the way China is banning bitcoin and bitcoin is dumping it lots of countries adopt and large scale adopt bitcoin the volatility will reduce.

Its a simple law of supply and demand and of course we would really see increase in price if that happens but we shouldnt really that anticipate much because adoption cant really go full scale or 100%

knowing that there are places on the world which governments do prohibit out bitcoin or crypto to have some part in the economy or making use it as a digital currently at least.

Should really we need to worry about adoption in full scale?Is this it the thing we've been hoping for in the first place? Lets just wait for the right time but dont expect that much.

The original thought was "if there are enough people who accept bitcoin, then there will be more people who will not sell as well", because there are already limited amount of bitcoins, so there are less people who own it, and we trade it amongst ourselves and there are buyers and sellers and holders.

Since, it is a limited amount, the more people join the more holders there will be and that means sellers will not have as much bitcoin to hold, if all 7+ billion joined then price would be super high because there will be hundreds of millions maybe even over a billion holders, which would either own all of bitcoins in the world which is unlikely or would make the price skyrocket to get some to hold. This is why people want more and more adoption, the more people there are, the less bitcoin will be available in the market due to people holding.

When there is increase in the demand, automatically we'll experience rise in the price of bitcoin. This is the basic with bitcoin and anything that has got the limited supply. We saw the rise in the price of bitcoin and the same is followed by the altcoins. This started when large scale investment on bitcoin happened from big corporate companies, which is also a form of adoption.

If the mass adoption would happen sooner, surely it will have an effect on the price of bitcoin on the market. If there are more people that will become aware of bitcoin and what it has to offer, there is a high possibility that there will be many investors because they will see its potential. More investors, the better for our community. By the time the big and small businesses, enterprises, and establishments notice that there are many users of bitcoin around the globe, there is a probability they will adopt it as a mode of payment. And if the government sees that there are many people patronizing bitcoin and other cryptocurrency coins, as well as there, are merchants trusting onto it, there is a tendency that they will adopt it as well to become a legal tender like what El Salvador did. Then the cycle will go on. Being an example to other countries, leading the adoption that could totally change the status of bitcoin in one's country and its price value in the market.

Mass adoption is one of the ways to fulfill the original purpose of bitcoin which is being a currency, aside from it being an investment vehicle. If mass adoption would happen, bitcoin will be used around the different parts of the world as a medium of exchange and will not be limited to being an investment like how it is commonly used now. The demand will be higher resulting in the higher value of bitcoin if ever it happens. Hopefully, the concerns and issues about bitcoin processes and transaction will be fixed before this happen to avoid confusion and inconvenience.

You are right the influence of whales will never disappear, after all some thought that this could diminish as the price of bitcoin increased and the usage of bitcoin as a currency increased but the issue is that we are not dealing with fiat whales but with bitcoin whales, so this means that even if the value of bitcoin increases against fiat they are still holding bitcoin and they can manipulate the market if they want, but it is also known that the bigger the volume of an asset grows the more resistant becomes against manipulation, so if bitcoin begins to exchange hands and the volume of bitcoin being transacted increases then this could still diminish the influence of whales.

I believe that to be a safe assumption. The volatility can't last forever, it would either devour itself or transcend into more or less stability. And so far, widespread adoption, especially by governments is the only way that we can get to that point. But that will also require balancing on a thin line between total control over crypto and total unregulated chaos.

It doesn't even require to be a good thing or a bad thing neither. For example if Apple creates very little of iPhone 13, then there will be demand while it is still an expensive thing meaning there are rich people in the world that would line up to get it, which is a financially good thing to see that many people willing to buy something so expensive.

However, it also means that in Venezuela people were trying to get food, and the price of food increased a lot because there was very little amount of food and I have seen a video people just boiling water from rivers to drink it and try to stay alive, so people lining up to buy food there and increasing the food prices is not a good thing, it is a horrible thing. So, demand/supply doesn't always mean a good thing, doesn't always mean a bad thing, it requires context. I am not entirely sure where we are now in that scale.

Thanks to everyone who has provided some of your thoughts in this thread. I think it would be correct to expect that volatility will decrease as greater-scale adoption occurs in bitcoin. If bitcoin's function as a currency took precedence, then its fluctuations would probably be much smaller. But I have my doubts about that because bitcoin whales are always trying to manipulate with their money power. Bitcoin traders or adopters really need to be careful and sell them as fast as possible.

I really think that a volatility higher than what you can see in fiat currencies will always be part of bitcoin, however larger adoption and an increase in the use of bitcoin as a form of money should decrease that volatility, right now I think the most important use of bitcoin is as an investment asset, and this is why we see such extreme movements, but if this changes and the more important use of bitcoin goes from an investment asset to money then the volatility should go down somewhat, but it will never completely disappear as its supply is inelastic and this means that any change in the demand will always affect its price in a significant manner.

Here, there are two issues that need to be answered and analyzed, increasing the scale of adoption does not define the volume of bitcoin in the market will need more, sometimes with such a large scale model it is also possible to only need a low amount of bitcoin, it is similar to a large trader investing in accumulating bitcoin, the market cannot fluctuate so much through such a small accumulation point. Plus, what will this scale mean for that region, investment will mean something different than using it as currency.