Topic: Why is bitcoin stability important? - page 3. (Read 606 times)

Bitcoin is most popular due to its volatility; we can't expect Bitcoin without volatility. To grow solid altcoins, it's not necessary to stabilise Bitcoin. They would grow with Bitcoin at the same time. What makes you think Bitcoin needs to be stable to grow as an altcoin? On the market, even Bitcoin dumped today, and a few altcoins are pumping hard. So altcoins haven't waited for stable Bitcoin. If there is no volatility on Bitcoin, then traders won't make money, and we may lose the big volume.

This was in the past, when altcoins crash of failed, you will see that bitcoin is one way affect and dragged down by it but it doesn't happen like that again unless there some relationships like when BTC was used to pegged Terra classic protocol stablecoin, when it failed it dragged down bitcoin because the team sold the large junk of bitcoin under their reserve to buy the ust but the damage was beyond what they expected and that was how bitcoin was dragged down the last time and also FTX exchange but recently, I have seen multiple announcements of altcoin hack and theft and it doesn't seem to move bitcoin.

Bitcoin inflation is low, and the halving is making it more deflationary so I don't understand what you mean by high inflation and as for the excessive volatility, you can't change that because it's what make people make money from bitcoin, that's the only language investors understand and they will continue to play over it to make more profits and also losses.

The idea of BTC as a crypto currency on a decentralized network makes it unique, hence why one of the main features of it is its unstable nature and volatility.

Just like gold or the dollar which has its value from being dominant, BTC is a dominant coin of which its value is determined by the rise in its price and an ability to make a holder or investor much more profit after much has been accumulated overtime.

The bottom line is that, a major factor like making it a legal tender will more than make it stable enough with much regulated activities and government involvement.

The stability in BTC is not going to make traders  earn as big as on the merchant level, because it is its price flunctuations that make big holders and investors more money.

In fact, Bitcoin's volatility is something special that many people like.  If Bitcoin becomes stable, of course there must be a country that can regulate it, but the investment value will not be as valuable, and many people will even abandon it.

Bitcoin stability isn't that important, the instability is the strength of Bitcoin. We all knew about the instability before we decided to buy Bitcoin. The instability didn't stop us from investing in Bitcoin so it isn't a problem. It's the instability that make Bitcoin attractive to investors. Some set of people see the instability as an opportunity to trade Bitcoin to make profits. It's the instability that make the currency won't investing into for now because the other features isn't yet an important part of the currency (speaking about the means of payment part of Bitcoin).

Bitcoin doesn't need to be stable for it to be accepted asa means of payments, if Bitcoin was to lose it's characteristics of instability then it'll lose it's identity and would just be like other fiats. The high interest in Bitcoin has a lot to do with the fact that many people see Bitcoin as an asset to increase and stop their wealth.

There are more important things Bitcoin needs to tackle like the high fees, amount of transaction it can handle per block and the delay in confirmation. Bitcoin needs to be accepted as a global currency by more companies and merchants to establish its stand as a currency. Stability isn't the least problem of Bitcoin as we have to accept it the way it is and see it's instability as its strength instead of a weakness for Bitcoin.

What is an "alcoin crisis"?

Bitcoin stability is important, because it is an attractive property for merchants and customers. People will not trust holding a currency that is as volatile as +20% / -20% per month, unless their foreign currencies are either worthless or volatile in the same degree. That being said, bitcoin is pretty stable in the last couple of months, comparably to prior 2020.

I don't think volatility hinders growth and investment, on the contrary it helps growth because without volatility there will literally be little to no growth in the market but your approach to volatility determine how well volatility works in your advantage, at times the whales actually induce volatility so to maximize their profitability , hence the essentiality of volatility can't be undermined because it's a great and very much needed factor for market dynamics understanding it becomes your edge in the market.

Volatility is actually the cause of the various movements in the market so I can say for sure without volatility there's almost not market dynamics and profits or losses wouldn't be a thing experienced in the market.

The thing with Bitcoin is, as long as people can take advantage of it for their own good, they will keep on using it. Volatile nature of bitcoin market does attract more users and traders but on the other hand, many people don't use it for investment purposes and only use for decentralized transactions. The sudden change will of course change the dynamic of what Bitcoin is right now, but when it changes, it will also make more people accept it for what it will become.

It wouldn't necessarily become a flop if Bitcoin was a stable currency from the beginning. Despite the profit you're going to get from Bitcoin investment, there are other use cases in which Bitcoin thrives. But that's on the past and we cannot know for sure what could have been the outcome. So we'll see what happens when Bitcoin becomes stable. It will happen one day for sure and if we are lucky maybe we will be alive too see that happen one day.

Despite of the things that you've said OP, bitcoin still love being volatile and uncertain. We can't change bitcoin not to be volatile and expect it to be stable because bitcoin has a high volatility nature so definitely, being stable is not its utmost concern. And most probably, if we find bitcoin having a stable price, we will never be this interested into bitcoin. Even myself, if volatility is not its thing, then I should say jumping into altcoins would create a better choice.

But just thankful that bitcoin follows an unstable pattern, with that we have all the changes to surge high akong with bitcoin price.

Bitcoin stability is important for several reasons, and it has implications for its role as a store of value, medium of exchange, and unit of account. Here are some key reasons why stability is considered important for Bitcoin:

Store of Value:

Stability is crucial for Bitcoin to serve as a reliable store of value. If the value of Bitcoin is highly volatile, users may be hesitant to hold it for long-term savings or as a hedge against inflation. Stability can enhance its attractiveness as a store of value similar to traditional assets like gold.
Medium of Exchange:

For Bitcoin to be effective as a medium of exchange, its value needs to be relatively stable. Merchants and consumers are more likely to use a currency that maintains a consistent value over time. Stability reduces the risk of price fluctuations affecting transactions and business operations.
Unit of Account:

A stable unit of account is essential for businesses and individuals to price goods and services in Bitcoin. If the value is highly volatile, it becomes challenging for parties to accurately assess the economic value of transactions, hindering the adoption of Bitcoin as a unit of account.
Reduced Speculative Behavior:

High volatility often attracts speculative trading behavior, which can lead to market inefficiencies and increased risks for investors. A more stable Bitcoin could discourage excessive speculation and promote a healthier, more sustainable market.
Broader Adoption:

Stability is a key factor in encouraging broader adoption of Bitcoin by both individuals and institutional investors. Institutions, in particular, may be hesitant to enter the market if the value of Bitcoin is subject to extreme and unpredictable fluctuations.
Financial Planning and Risk Management:

Stability is crucial for financial planning and risk management. Businesses and investors need predictability in the value of their assets to make informed decisions and manage their financial risks effectively.
It's important to note that Bitcoin's stability is relative, and compared to traditional fiat currencies, it has historically exhibited higher volatility. As the cryptocurrency ecosystem evolves, ongoing efforts may be made to address this volatility through various mechanisms and financial instruments. However, the inherent nature of emerging markets can still contribute to fluctuations.

Stability is not an issue about bitcoin since we all know volatility makes it highly unstable. But despite of that, volatility is what makes bitcoin where it is now so definitely, without volatility, bitcoin will not achieved its top position right now. And with volatility, bitcoin price has all the potentials to rise without limits, that's the utmost advantage of being volatile, seeing its price sky is the limit. Unlike fiat, where there is less volatility, it's value goes straight depreciating without seeing it at its all time high price.

Just imagine if bitcoin is stable, would anyone will be interested to it? just take Gold for example, being expensive and the price may go up or down, people would be buying it so it will become more expensive thus being a good investment for humanity.

Although bitcoin is made to become a currency, which I think if the price were steady, it will be a total flop being a cryptocurrency and banks will counter it easily having more secured and fiat backed up online currency. It wasn't made to become stable, decentralization offers volatility and is a door to endless opportunities, just see how the market evolved from the past few years because bitcoin grew and behave like an online gold.

Bitcoin will be a bit more stable when there is more adoption and real use cases. So far it's hard to expect bitcoin to become more stable - but perhaps it can be expected in the coming years when more governments support bitcoin as a means of payment. I agree with some of the other users that bitcoin is not designed to be stable - but stability would make it easier to adopt as a currency.

Of course - I don't expect bitcoin to be like other stable currencies right now, but it's probably worth hoping it doesn't fluctuate so much that it looks easy to manipulate. Low volatility is expected as adoption and government support increase - so there is certainly hope.

Seems like an AI generated post but I will answer this. Bitcoin will lose many users if Bitcoin gets stable. People come to Bitcoin investment thinking that they can make a profit out of it by taking the advantage of its volatile nature. Whether it is trading or investing, profit comes from volatility. When that thing is out of the question, many people will show less interest in Bitcoin if it becomes stable.
Bitcoin becomes stable is not a bad thing but it is also not a good thing for sure. Maybe if Bitcoin becomes stable, it will become what it was meant to be in times of its creation. It's a peer to peer decentralized transaction currency that completely wipes out the middleman. Maybe when Bitcoin becomes stable people will actually use it for a payment method and not think of it as an asset like they do right now.
This could either take a good turn or a bad turn depending on how people will react to this change. Only time will tell because we have not faced it yet and we cannot predict what could be the outcome.

No one will promote bitcoin stability because it will never be stable as long as volatility exists. Unless if what you mean is stable bitcoin investment, then a lot would aim and promote that. But to be honest, bitcoin’s volatility is what thrills bitcoin investors because without it, bitcoin will be boring and just like fiat, we will only see a fixed depreciating price. In short, bitcoin’s volatility is its asset, and the main reason why bitcoin has reached its position right now.

Volatility may increase uncertainty, but with bitcoin, it brings bitcoin at its best. There can be no bitcoin without volatility, as there can be no altcoins without its pump and dump scheme.

Exactly, if we set the prices in Bitcoin today, tomorrow Bitcoin will be completely stable and the one going up and down is going to be the dollar.

The currency we use as anchor always look "Stable", as it is our reference, like in Physics: the car/train/spaceship you are travelling on is always "static", and the objects around are moving. But be sure, dollar is not stable at all: it worth less every second.

Bitcoin is more important and valuable because of it technology and you can not compare with altcoins

actually that is the major reason - volatility, why this market is very attractive to traders. so it seems, such feature won't be going away anytime soon. up until now, a lot are going into this market because of the expectations that their holdings will become a huge hit gaining a lot of profits.

stability may be good in the future, but for now, i believe it is still far from reality. but of course, we are grateful for what this market has achieved so far. the stability is good when you talk about payment purposes. because that's one factor why a lot of consumers as well as merchants are still hesitant employing btc in their payment options aside from the fees and duration that it will take to confirm a transaction.

for now, let us be grateful for what btc has achieved in only more than a decade of existence in the market. compared on its early days, this market has already been like going already in the mainstream. the scope is continuously increasing and more stakeholders even countries are getting a hold in this market. so we can't ask for more for what we have today in this market.

That is what is unique about bitcoin: its volatility. Yeah, it may sound like a disadvantage, but over the years, many traders or holders have taken advantage of these characteristics of bitcoin, as it will create many different opportunities, and it's up to the people on board to utilise their earnings through bitcoin. I don't think that bitcoin being stable in a specific price range would be good because it only means that bitcoin movements are not happening or that the circulation of bitcoin is getting low, and not many people are transacting bitcoin. So I would prefer that bitcoin is not stable; I mean, I prefer it to be volatile; more market movement means no opportunity to earn; it's up to us how we will grab that opportunity. Altcoins may be a good alternative to bitcoin, but still, nothing beats the mother coin, as we know some altcoins are dangerous to use or invest in.

you don't need stability in the bitcoin industry. Matter of fact the very reason why bitcoin is this fucking profitable is because of the fact that it is volatile in value. Sure it works as a double-edge sword but in the span of its history bitcoin's volatility only helped it become even more valuable in the future than it did any harm, so I don't understand why we would strip bitcoin of its defining characteristic just so we can indulge and be safe in the altcoin crisis, which I don't think is even a bigger deal than most of you make it out to be.

Altcoins are dependent upon bitcoin's performance, not the other way around. Bitcoin can do its own thing and altcoins can become whatever they want to be but as soon as bitcoin itches, altcoins will itch too. You catching my drift round here? You don't need to change a working system just cause the system dependent upon it has its own sets of problems that it could solve on its own if time and effort was provided. The bitcoin network does not need to be stabilized at this point, nor is it as important as you think it is. If you want stability use USDT or any other stablecoin. Problem solved.