What would happen to the bitcoin price if adoption increased on a larger scale? - page 3.

alpamar99

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Quote from: XCANA on September 24, 2021, 11:10:56 AM

An increase in demand for Bitcoin is indication that the demand is higher than supply and that will definitely lead to an increase in market value of Bitcoin if that happens. And that is what all traders who bought Bitcoin when it price is low expecting an increase so that they can make huge profit from their trading.

in fact it is one of the strategies and formulas of the economy where when goods are increasingly scarce, the demand is increasing, the price will automatically skyrocket to high.
and things like this happen in every valuable and salable item for sale and not just bitcoin.
For example, masks, personal protective equipment and hand sanitizers and even oxygen cylinders a few years ago maybe the prices were ordinary because they even tended to be cheap, but look now after the pandemic the prices of these items have skyrocketed because there are indeed more and more enthusiasts who need them, even goods. These were in scarcity when the pandemic hit all the countries.
in bitcoin it's the same when most people are aware and need bitcoin, that's where the beginning of the beginning of an era that we can't predict how expensive bitcoin will be in the future

Viscore

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Quote from: Spack17 on September 24, 2021, 03:22:17 PM

I think that the answer is quite simple. If Bitcoin adoption reached a huge level, then the price would be affected by this very positively also. Because when the adoption rate increases very highly, people will start demanding Bitcoin much more than ever before. And this will reflect on the price directly. Because the more the demand, the bigger the price is.

Yes. It's just as simple as that. Once the demand will increase, its supply will be lessen, but its value will definitely go along with how high the demand is. And this is what happening to bitcoin now. There are already several countries now where bitcoin is being used as a reserved currency to fiat. And just like El Salvador, bitcoin is already being used as a legal tender, but still people are free to decide if they want to receive fiat or bitcoin as a payment. Bitcoin will be expecting to grow its value from time to time because there will be new additional countries for sure that will be adopting bitcoin soon.

Spack17

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I think that the answer is quite simple. If Bitcoin adoption reached a huge level, then the price would be affected by this very positively also. Because when the adoption rate increases very highly, people will start demanding Bitcoin much more than ever before. And this will reflect on the price directly. Because the more the demand, the bigger the price is.

SatoPrincess

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Should Bitcoin adoption increase on a larger scale, then the demand for Bitcoin will increase and so will the price of Bitcoin ie law of supply and demand

BITCOIN4X

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There is always an opportunity to adopt bitcoin as a means of payment even though we know that this asset is highly volatile. There is no reason why we should be afraid to accept it as a means of payment because we can sell it as quickly as possible. If you are an adopter, then you should consider pulling the latest price from today's active markets as a reference for labeling the goods and services you offer. One thing to note is, you have to wait for confirmation of at least 1-3 confirmation on the block so that you never fail to pay. Whoever you are then you should be aware that 0conf transaction are not safe at all as proof that you have been paid.

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What would happen to the bitcoin price if adoption increased on a larger scale?

Demand is increasing, meaning you will see price go to month.

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Quote from: xSkylarx on September 24, 2021, 12:25:47 PM

Quote from: XCANA on September 24, 2021, 11:10:56 AM

An increase in demand for Bitcoin is indication that the demand is higher than supply and that will definitely lead to an increase in market value of Bitcoin if that happens. And that is what all traders who bought Bitcoin when it price is low expecting an increase so that they can make huge profit from their trading.

It is the basic economic formula: if demand is high, the price will be high as well. It is similar to how, before the pandemic, the price of surgical masks was too low, but when the pandemic hit, the price of masks skyrocketed, becoming prohibitively expensive, but then gradually decreasing as supply increased and could cater to all. It is similar to bitcoin in that if demand is high, the price may rise.

To say off that we've been hoping for this thing to happen on where we do really need that adoption in the first place so that we would really be seeing on how Bitcoin would really progress into the future.
This isnt only limited on itself but also in other altcoins in the market as well.As you have said that it is just really on simply economics subject about the law of supply and demand which its
understandable that price could really go up high if there are sufficient demand on it which its a normal thing to presume on.

paxmao

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As always, price is about demand and offer. The bitcoin offer is fixed and it is perfectly known to decrement every 4 years. The cost of producing it is as well superhigh and increases continuously. An increase in adoption and circulations means more demand, more fees, thus a higher price is inevitable. The next steps in adoption would mean an extreme jump in value, similar to the ones registered in the past.

Kasabus

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Quote from: xSkylarx on September 24, 2021, 12:25:47 PM

Quote from: XCANA on September 24, 2021, 11:10:56 AM

An increase in demand for Bitcoin is indication that the demand is higher than supply and that will definitely lead to an increase in market value of Bitcoin if that happens. And that is what all traders who bought Bitcoin when it price is low expecting an increase so that they can make huge profit from their trading.

It is the basic economic formula: if demand is high, the price will be high as well. It is similar to how, before the pandemic, the price of surgical masks was too low, but when the pandemic hit, the price of masks skyrocketed, becoming prohibitively expensive, but then gradually decreasing as supply increased and could cater to all. It is similar to bitcoin in that if demand is high, the price may rise.

Yes. Bitcoin is more on its supply and demand. As of now, bitcoin is definitely increasing its adoption rate because they are already big countries who are starting to accept and legalize bitcoin and may even use it as a legal tender soon. Although there are still parts of the world who are still skeptical about how bitcoin works and its over all usefulness, i know in time they will also learn to adopt it. In the end, bitcoin will become a global currency. It's just a matter of time where all of the individuals will be educated about bitcoin and how it will be functional for us.

xSkylarx

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Quote from: XCANA on September 24, 2021, 11:10:56 AM

An increase in demand for Bitcoin is indication that the demand is higher than supply and that will definitely lead to an increase in market value of Bitcoin if that happens. And that is what all traders who bought Bitcoin when it price is low expecting an increase so that they can make huge profit from their trading.

It is the basic economic formula: if demand is high, the price will be high as well. It is similar to how, before the pandemic, the price of surgical masks was too low, but when the pandemic hit, the price of masks skyrocketed, becoming prohibitively expensive, but then gradually decreasing as supply increased and could cater to all. It is similar to bitcoin in that if demand is high, the price may rise.

XCANA

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An increase in demand for Bitcoin is indication that the demand is higher than supply and that will definitely lead to an increase in market value of Bitcoin if that happens. And that is what all traders who bought Bitcoin when it price is low expecting an increase so that they can make huge profit from their trading.

Taskford

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Quote from: _BlackStar on September 23, 2021, 01:48:57 PM

I read a few things about the increase in bitcoin adoption during this time. El Salvador is one of the countries that have decided to adopt bitcoin as a legal currency and several others as legal tender without making it a primary currency. As I already know, the price of bitcoin is very volatile following changes in the interest of traders in the market so its adoption as a means of payment is something that traders doubt its stability because they are afraid that traders will lose due to falling prices.

But after I read this one, then I believe merchants will be more comfortable adopting bitcoin as a means of payment if adoption on a larger scale occurs in bitcoin.

Source: https://en.wikipedia.org/wiki/Nominal_rigidity

Quote

Nominal rigidity, also known as price-stickiness or wage-stickiness, is a situation in which a nominal price is resistant to change. Complete nominal rigidity occurs when a price is fixed in nominal terms for a relevant period of time. For example, the price of a particular good might be fixed at $10 per unit for a year. Partial nominal rigidity occurs when a price may vary in nominal terms, but not as much as it would if perfectly flexible. For example, in a regulated market there might be limits to how much a price can change in a given year.

So is it true that bitcoin price volatility will decrease by itself as bitcoin adoption reaches higher levels?

Actually the one we can experience for that scenario is bitcoin get hype by the time that adoption will happen and we shouldn't think that the hype will last long since even though that there is more demand will be created thru that adoption still we should consider that corrections always happen in crypto. But we shouldn't lose the confidence to corrections or unpredictable market movement eventhough adoption has been happen but atleast bitcoin gather more strong foundation that this became more better currency of future.

Hydrogen

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Quote from: _BlackStar on September 23, 2021, 01:48:57 PM

So is it true that bitcoin price volatility will decrease by itself as bitcoin adoption reaches higher levels?

Market mechanic based principles like nominal rigidity assume a stable world with stable conditions in financial markets and the economy. High inflation, pandemic lockdowns, supply chain disruptions or any of the crazy and chaotic events of the last 2 years are not factored in. Ditto with the insistence of china and central banks around the world to aggressively target inflation protected assets like bitcoin. Or the media neglecting to publicize positive aspects of cryptocurrencies as a normal trend.

Alternate terms to describe "nominal rigidity" could be principles like momentum, inertia and terminal velocity. High volatility assets which fluctuate wildly could gradually lose momentum over time due to their own inertia (the mass of which could increase through mass adoption, no pun intended). Two separate principles which over time deplete an assets terminal velocity, producing lower average volatility. There's an attempt to define the principles involved anyway. Hope it makes sense.

alpamar99

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Even so I think bitcoin will still be bitcoin with decentralization and its indeed volatile nature that will be difficult to predict and control even with global adoption.
and actually if global adoption really happens I think all investors who hold bitcoin assets will be happy because it is getting bigger and higher the demand automatically the price will be bigger and of course this is what investors both small and large investors expect

semobo

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Quote from: _BlackStar on September 23, 2021, 01:48:57 PM

I read a few things about the increase in bitcoin adoption during this time. El Salvador is one of the countries that have decided to adopt bitcoin as a legal currency and several others as legal tender without making it a primary currency. As I already know, the price of bitcoin is very volatile following changes in the interest of traders in the market so its adoption as a means of payment is something that traders doubt its stability because they are afraid that traders will lose due to falling prices.

But after I read this one, then I believe merchants will be more comfortable adopting bitcoin as a means of payment if adoption on a larger scale occurs in bitcoin.

Source: https://en.wikipedia.org/wiki/Nominal_rigidity

Quote

Nominal rigidity, also known as price-stickiness or wage-stickiness, is a situation in which a nominal price is resistant to change. Complete nominal rigidity occurs when a price is fixed in nominal terms for a relevant period of time. For example, the price of a particular good might be fixed at $10 per unit for a year. Partial nominal rigidity occurs when a price may vary in nominal terms, but not as much as it would if perfectly flexible. For example, in a regulated market there might be limits to how much a price can change in a given year.

So is it true that bitcoin price volatility will decrease by itself as bitcoin adoption reaches higher levels?

The volatility will still look huge because with the adoption the price increase comes followed by the volatility which is still will be higher in terms of fiat but considerably low volatility when we compare the previous time period with the current one in the percentage.

michellee

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To be honest, I do not know and all of us could just speculate. We might see the use of bitcoin in many places grow, including buying something at a local place. Maybe the price is still volatile as usual and very expensive, well, we do not know. I prefer to enjoy the bitcoin journey and not imagine too high because that will be out of my expectations. If we have a magic crystal, we can know but we do not have it Grin

What I am concern about is the fee and time consuming when someone makes a transaction using bitcoin. Maybe they still need to wait for a while before they see the transaction finish. It is better to wait and see Grin

Leviathan.007

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There can be many theories about the question you asked, In my own idea, time after time after we see more countries and organizations legalize bitcoin and cryptocurrencies there will be more people using these assets and the result will be more demand in the market which makes the prices increase. But, in another there, bitcoin was not created to be centralized and be accepted by the governments, bitcoin is created to be borderless and available for all the people all over the world, so, the second theory can be not affecting the price, however, due to the change of the atmosphere in the market and some emotional decisions from the investors we may see some sharp price movements.

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Quote from: _BlackStar on September 23, 2021, 01:48:57 PM

I read a few things about the increase in bitcoin adoption during this time. El Salvador is one of the countries that have decided to adopt bitcoin as a legal currency and several others as legal tender without making it a primary currency. As I already know, the price of bitcoin is very volatile following changes in the interest of traders in the market so its adoption as a means of payment is something that traders doubt its stability because they are afraid that traders will lose due to falling prices.

But after I read this one, then I believe merchants will be more comfortable adopting bitcoin as a means of payment if adoption on a larger scale occurs in bitcoin.

Source: https://en.wikipedia.org/wiki/Nominal_rigidity

Quote

Nominal rigidity, also known as price-stickiness or wage-stickiness, is a situation in which a nominal price is resistant to change. Complete nominal rigidity occurs when a price is fixed in nominal terms for a relevant period of time. For example, the price of a particular good might be fixed at $10 per unit for a year. Partial nominal rigidity occurs when a price may vary in nominal terms, but not as much as it would if perfectly flexible. For example, in a regulated market there might be limits to how much a price can change in a given year.

So is it true that bitcoin price volatility will decrease by itself as bitcoin adoption reaches higher levels?

My view is that if Bitcoin is adopted on a large scale, volatility will still exist, but it will be higher or lower.
Bitcoin is now accepted and understood by most people in the world. It is a good thing that more and more people can accept Bitcoin, but the price of Bitcoin will not be easily affected. Bitcoin will not be arbitrarily manipulated.

EewardDean

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The volatility of Bitcoin will not be manipulated. The reason why I am attracted to Bitcoin is also because of the characteristics of Bitcoin and the reason why most crypto enthusiasts who invest in Bitcoin follow Bitcoin.
Under the large-scale adoption, I think it will only make the price of Bitcoin continue to grow, and the value of Bitcoin depends on people's demand for it.

amishmanish

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Quote from: Darker45 on September 23, 2021, 08:29:17 PM

Quote from: _BlackStar on September 23, 2021, 01:48:57 PM

El Salvador is one of the countries that have decided to adopt bitcoin as a legal currency and several others as legal tender without making it a primary currency.

I'm afraid you are wrong on this one. Not a single country has adopted Bitcoin as a legal tender except El Salvador.

What he probably means is that El Salvador accepted several others apart from Bitcoin as legal tender too. I am not sure if they have done so with Any Alt-coins. Its only Bitcoin.

OP, I am not sure how you have made the connection between Nominal Rigidity mentioned in your post and Bitcoin adoption. All these existing theories are applicable for traditional markets and traditional money. Bitcoin is nothing of that sort. It is evolving its own use-cases and its own economy with time. So it cannot be judged on the basis of traditional economics except for the rule of Demand and Supply.

Merchant adoption is a personal choice for people and businesses wanting to support a decentralized economy which is not limited by borders. This is a new social value that many people have begun to subscribe to and is the biggest reason behind adoption and growth of bitcoin. Whether that leads to volatility decline is hard to predict. Volatility will continue to depend on overall sentiment of the people who are involved with Bitcoin, not on adoption.

Gyfts

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You won't have to worry about volatility as much with mass adoption. The fluctuations in price right now are due to China and US trying to control the crypto growth in order to prop up their respective currencies. Hypothetically if the entire world were to switch to BTC (which obviously will never happen any time soon), no one country would be able to cause extreme price fluctuation without some sort of collusion.

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