Will Bitcoin volatility prevent adoption? - page 3.

zanezane

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Quote from: Bellator on April 30, 2018, 05:02:29 AM

Quote from: shahani on February 11, 2018, 09:12:55 PM

Many people do not want volatility and deflation system, but how can bitcoin operate smoothly if these system will not apply? Bitcoin cannot move a long life operation if volatility and deflation will not apply. It is the way on how the management provide a good balance system between users and operators.

Thats right votality is a part of bitcoins platforms,if there will be no votality there will never be inflation and cryptocurrency will as good as fiat currencies..Votality might cause fears when bitcoins price falls but the near fact that we can profit when value fluctuates this would be the good effect of cryptocurrency in its investor and holders.

But the fact that this high volatility is what hinders the adoption. Government doesn't want to have a mass adoption because they don't want people to invest in a risky thing because in the end they might be the one to blame if they'll acknowledge it.

Though for me even our government won't accept this it's still fine with me as long as we can trade freely there's no issue needed to consider.

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Quote from: chris200x9 on April 30, 2018, 05:36:22 AM

Quote from: keycellko on April 27, 2018, 11:09:49 AM

I think yes. People are not able to use bitcoin because of the fear that their coin might cost something more than it costs now. For people to use bitcoin as a currency, it pays to know that when you buy a $10 pizza, your pizza will still be worth $10 in the next few hours, days, weeks or even month. If fluctuations becomes rampant then adoption would be very difficult.

Then you should keep fiat currency because it will not change so easily and you're on the wrong side of the investment. Because people are investing money in cryptos because it can move in either direction fast so they have a chance of making profit more here compared to stable fiat currency. Bitcoin is not just a currency but it is an investment and we all want that investment to grow bigger as soon as possible and if bitcoin is stable than you can't expect prices to go high quickly.

The problem is, as I never forget to repeat, a good currency doesn't make a good investment. These states are mutually exclusive to a great extent, at least as long as we speak of good currencies and good investments. A good currency should be stable (give or take a few percentages of usual volatility) while a good investment should be rising in the long run or, if we talk about purely speculative assets like Bitcoin, it should be volatile enough to be interesting to speculators and their likes

Neither of the latter is good for a currency, but the lack of either makes it a poor investment (speculative) vehicle

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Quote from: keycellko on April 27, 2018, 11:09:49 AM

I think yes. People are not able to use bitcoin because of the fear that their coin might cost something more than it costs now. For people to use bitcoin as a currency, it pays to know that when you buy a $10 pizza, your pizza will still be worth $10 in the next few hours, days, weeks or even month. If fluctuations becomes rampant then adoption would be very difficult.

Then you should keep fiat currency because it will not change so easily and you're on the wrong side of the investment. Because people are investing money in cryptos because it can move in either direction fast so they have a chance of making profit more here compared to stable fiat currency. Bitcoin is not just a currency but it is an investment and we all want that investment to grow bigger as soon as possible and if bitcoin is stable than you can't expect prices to go high quickly.

Bellator

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Quote from: shahani on February 11, 2018, 09:12:55 PM

Many people do not want volatility and deflation system, but how can bitcoin operate smoothly if these system will not apply? Bitcoin cannot move a long life operation if volatility and deflation will not apply. It is the way on how the management provide a good balance system between users and operators.

Thats right votality is a part of bitcoins platforms,if there will be no votality there will never be inflation and cryptocurrency will as good as fiat currencies..Votality might cause fears when bitcoins price falls but the near fact that we can profit when value fluctuates this would be the good effect of cryptocurrency in its investor and holders.

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Quote from: flaviojr123 on February 11, 2018, 05:32:54 PM

A big argument against inflation is that it raises the cost of business. The same argument can be used to criticize BTC. BTC volatility raises the cost of doing business if BTC is your only capital. If we desire BTC adoption to rise we must take care of BTC price fluctuation. BTC demand is highly unpredictable while supply is predictable, resulting in unpredictable prices. That means volatility can't change unless demand stabilizes

The truth is that a relatively small and stable inflation rate is pro-business really. The consequences of deflation, however small it might be, are by far more dangerous and detrimental to an economy. That's the primary reason why governments adhere to controlled-inflation economic policies. Other than that, the volatility of Bitcoin can be effectively hedged via market means, so it is not the culprit here (one of). Lack of demand for crypto as a means of payment is the first and foremost one

Quote from: flaviojr123 on February 11, 2018, 05:32:54 PM

What are your thoughts?

If there were such demand, prices would enter a self-sustaining stabilization loop. Otherwise, it is a vicious circle, and it could be said that the lack of adoption leads to high volatility, though the opposite is also true (that's why it is a vicious circle)

Argoo

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This is already happening. We saw that exactly from the moment when bitcoin in December last year grew in price to twenty thousand dollars and clearly showed itself as a financial bubble, the Indian government began to warn its citizens about the danger of investing in bitcoin and the risks associated with crypto currency. After that, the Reserve Bank of India recommended that other banks stop providing services in the Crypto-currency. I think that this would not have been, had it not been for the sharp increase in the cost of bitcoin in December of last year. This will greatly complicate the process of legalization of the crypto currency by other states this year.

eroejoe

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I think not, Bitcoin is very small currency right now with market cap around 160 mld $, so Bitcoin have large volatility because of that. But more and more people like this nature of Bitcoin and love positive trend that Bitcoin have, so they joining in this market because of large volatility and hope for selling with higher price in future. Cryptocurrency markets are like boats: the bigger the boat, the bigger the wave you need to move it. So when people buys Bitcoin they make it less volatile.

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I think this is actually what attracts new people to crypto, they come for this volatility, with a goal of making money using this volatility. I understand your point but I can't say something about that as I think bitcoin is much different than other examples of store of values

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If bitcoin is to be adopted in any establishment as a form of currency or payment system, it has to be stable. Surely nobody wants to send money or earn money where the value increases or decreases in just a matter of hours. If it is increased upon receiving then it is good but what if it is decreased? Would you be happy to receive your money with only half of its value remaining? Certainly not. This makes volatility a problem.

Dudeperfect

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Yes! This issue is mostly in the case of large corporations as even a 1% fall during the transaction might cause them the loss of millions of dollars if they are adopting Bitcoin for their regular transactions. However, volatility must diminish over the time to expand the user base and attracting the institutions who are willing to try crypto for their financial transactions. However, I am optimistic that we will soon see a reduction in the price volatility and it will attract new potential users.

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The volatility of bitcoin, of course, greatly affects its legalization by various states. States do not want to have a means of payment of high cost, the price of which will be constantly and significantly changed. It also discourages organizations that are going to use bitcoin as a means of payment, and even citizens. I think that bitcoin will have high volatility always. Decentralized nature and lack of security will always make bitcoin not stable.

Omega Weapon

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But I think the is only going to prevent the adoption of bitcoin as a currency, but it's not going to stop the adoption of bitcoin itself, after all there will be many traders that will like to invest in bitcoin so they can benefit from the big movements in the market, so I expect that the volatility will change, sometimes it will be high, sometimes will be lower but at some point after enough money has been invested in bitcoin the volatility is going to subside a little bit and it will allow to us to use it as a currency again.

Melvin Narag

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This attribute of bitcoin make it different from any other product and payment method I've ever encounter its like mode of a girl that changes everytime depending on how you threat them.
This make Bitcoin unique as well.

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Quote from: Weawant on April 27, 2018, 09:41:46 AM

Quote from: Falmera on April 27, 2018, 09:02:53 AM

Quote from: LogitechMouse on February 11, 2018, 10:14:38 PM

Yes bitcoin's volatility prevents mass adoptions woldwide. Lets take this situation, a company X gives salary to the employees in bitcoin and suddenly the price of bitcoin increases and after few days it decreases again. It will be a huge loss for the company and what is the reason? Volatility.

In my opinion, bitcoin can be adopted but not a mass adoption because volatility is preventing it.

What you said is so true. Bitcoin can not be usable in other transactions like for instance as you stated. Therefore its volatility prevents mass adoption. There are some advantages and disadvantages as to bitcoin's characteristics.

The volatility made people think that bitcoin is not worthy to invest with since it can cause a massive loss to them. But if people try to reach some knowledge and let theirselves learn on how to defy and earn with volatility then maybe a great adoption will came but for now massive adoption will just a myth since for new guys hard to find bitcoins are legit one for their investment.

Bitcoin as a currency , Bitcoin as a digital asset , Bitcoin as a financial breakthrough etc , it's never enough for those people who looking for something simple , not a complex one like Bitcoin. We need a lot of time indeed to eliminate traditional thinker like that and start the real Bitcoin adoption for the better future. I still optimistic that time would come. Where volatile won't be a big deal anymore.

keycellko

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I think yes. People are not able to use bitcoin because of the fear that their coin might cost something more than it costs now. For people to use bitcoin as a currency, it pays to know that when you buy a $10 pizza, your pizza will still be worth $10 in the next few hours, days, weeks or even month. If fluctuations becomes rampant then adoption would be very difficult.

Kim Ji Won

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Quote from: shahani on February 11, 2018, 09:12:55 PM

Many people do not want volatility and deflation system, but how can bitcoin operate smoothly if these system will not apply? Bitcoin cannot move a long life operation if volatility and deflation will not apply. It is the way on how the management provide a good balance system between users and operators.

Bitcoin can move along despite the volatility and deflation being solved by stability. Only traders and investors are taking advantage of bitcoin's volatility and market manipulation is the norm in the crypto community. If bitcoin will be stabilized, it will have a high chance of getting used as a trusted medium of exchange and in a result, the demand will increase so the deflation will be solved along the way.

H0USE

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To some extent volatility of bitcoin is preventing its adoption on mass scale as people fear of losing thier money when market is bearish and huge crash take place and they suffer losses.But if more people will adopt it then volatility will reduce to some point as supply will run short or when supply is over the demand will be less and prices will fluctuate less.But at current many investors want to invest in it but fear only its volatile nature.

fanbeila

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Yes volatile nature of bitcoin has prevented it from being adopted in mainstream.It is due to its volatile nature that many companies have not adopted it as a payment option.Also some countries which are bitcoin friendly too are restricted from adopting bitcoin because of its high volatile nature.

Weawant

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Quote from: Falmera on April 27, 2018, 09:02:53 AM

Quote from: LogitechMouse on February 11, 2018, 10:14:38 PM

Yes bitcoin's volatility prevents mass adoptions woldwide. Lets take this situation, a company X gives salary to the employees in bitcoin and suddenly the price of bitcoin increases and after few days it decreases again. It will be a huge loss for the company and what is the reason? Volatility.

In my opinion, bitcoin can be adopted but not a mass adoption because volatility is preventing it.

What you said is so true. Bitcoin can not be usable in other transactions like for instance as you stated. Therefore its volatility prevents mass adoption. There are some advantages and disadvantages as to bitcoin's characteristics.

The volatility made people think that bitcoin is not worthy to invest with since it can cause a massive loss to them. But if people try to reach some knowledge and let theirselves learn on how to defy and earn with volatility then maybe a great adoption will came but for now massive adoption will just a myth since for new guys hard to find bitcoins are legit one for their investment.

Falmera

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Quote from: LogitechMouse on February 11, 2018, 10:14:38 PM

Yes bitcoin's volatility prevents mass adoptions woldwide. Lets take this situation, a company X gives salary to the employees in bitcoin and suddenly the price of bitcoin increases and after few days it decreases again. It will be a huge loss for the company and what is the reason? Volatility.

In my opinion, bitcoin can be adopted but not a mass adoption because volatility is preventing it.

What you said is so true. Bitcoin can not be usable in other transactions like for instance as you stated. Therefore its volatility prevents mass adoption. There are some advantages and disadvantages as to bitcoin's characteristics.

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