What would happen to the bitcoin price if adoption increased on a larger scale? - page 4.

Darker45

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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.

If I am not mistaken, no single country even consider Bitcoin as a legal currency. Bitcoin may be accepted in other countries as a means of payment, but it is not a legally accepted money.

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

Possibly. If Bitcoin would grow into hundreds of trillions and the distribution becomes very wide, a decision of a single whale or a handful of large players in the market would not anymore cause a significant change in the price.

GubiMixa1292

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Now we all know that the bitcoin transaction size is not as small as it used to be because many countries have created business opportunities for market participants to set up exchange businesses with the license of that country. . So it would be simple enough to think that bitcoin trading has grown faster and that the value of Bitcoin in the market is increasing every year. I speculate that the bitcoin price in the future will reach a whopping 100k$ and it will not stop growing.

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The bitcoin price will increase. I am sure you are aware of the supply and demand and what makes the demand increase is because of large scale adoption of bitcoin. Like El Salvador making bitcoin as legal tender then all of the people there can use bitcoin. If this happen to another place then what do you think will happen?.

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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?

Why it's the opposite if the demand is larger? it is true by its nature bitcoin is volatile but when there's a bigger demand as you say with a larger scale.
Then, that all means that there's a bigger adoption and can result in larger demand and will reflect the price of bitcoin to increase. That's it, the supply and demand connection will always be applied.

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Quote from: jakdanyel on September 23, 2021, 03:48:18 PM

It is of course good to witness that Bitcoin adoption rate is increasing as time goes on. But it may not affect Bitcoin price directly every time the adoption increases a little. The market is not manipulated easily by these news as far as I see. This is actually good news because we need to be sure that the market is getting stronger also. Manipulations shouldn't be too much affective on the prices of cryptocurrencies from now on. They will continue to be volatile but they shouldn't be manipulated by anything easily at least.

As crypto adoption increases, its volatility will remain, and as expected they will be more valuable once there are more users who will start to utilize bitcoin as a reserve currency or a legal tender. And maybe less manipulation of the market by then because there will be more users than just purely investors. The market will be more positive since we all know that bitcoin is the driving force for all the crypto coins in the market. But apart from it, volatility still continues because its what make the investors more attracted into crypto.

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It is of course good to witness that Bitcoin adoption rate is increasing as time goes on. But it may not affect Bitcoin price directly every time the adoption increases a little. The market is not manipulated easily by these news as far as I see. This is actually good news because we need to be sure that the market is getting stronger also. Manipulations shouldn't be too much affective on the prices of cryptocurrencies from now on. They will continue to be volatile but they shouldn't be manipulated by anything easily at least.

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

~~~ 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.

No, trader (adopters) need not be afraid of price fluctuation because they can sell them as soon as possible and they don't have to hold them in their wallet for too long. Usually the merchants will adjust the price of the product they sell based on the current price, so it won't have much effect on the price.

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?

Although bitcoin has a large market capitalization but I believe the scale of trading is still in the developing stage. Now we know that the scale of bitcoin trading is no longer as small as it used to be because many countries have provided business opportunities for market participants to set up exchange businesses with that country's license. So it would be simple enough to think that bitcoin trading has grown faster and the market size has been increasing every year. I assume that volatility will decrease in the future over time but I dare not say that fluctuations will completely disappear because price will always be determined by supply and demand.

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Quote from: electronicash on September 23, 2021, 02:56:25 PM

where else will it go but up. the price today is due to adoption that BTC is becoming mainstream, its now often in the news. the more it becomes popular the more people see it as legitimate investment unlike before when all the news about BTC are all about scam. cryptocurrency is votatile so prices can extreme swing high to low.

And if there will be more countries other than El Salvador accepting btc as legal tender, then, people will really increase their trust to btc. It means, the government is trusting this crypto and so the hesitations of many others that it is a scam will slowly disappear. With increased adoption, definitely, there will be good effect on its price.

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where else will it go but up. the price today is due to adoption that BTC is becoming mainstream, its now often in the news. the more it becomes popular the more people see it as legitimate investment unlike before when all the news about BTC are all about scam. cryptocurrency is votatile so prices can extreme swing high to low.

cryptomaniac_xxx

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I speculate that the price will still be volatile if global adoption reaches like 10%-20% in the following year. It is bitcoin inherit or from the design it. What's given it's value is how it is globally traded, so for sure everyday will be very different from the previous one, so everything is undefined, and undetermined and we really don't know what will be the next price.

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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?

Personally I think because bitcoin is not regulated and it is decentralized, it volatility will keep being its beauty. You can't control the number of bitcoin someone can buy or sell at least from P2P , this as not regulated will not stabilize the volatility.

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

You already know this Grin

The higher the demand, the higher the price

_BlackStar

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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

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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?

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