Bitcoin Forum

Will a calculation on the underlying for Cryptos help the prices be more stable?

I dont understand what you are asking. Maybe explain?

Thanks for your interest. The underlying could be taken up as a current traded price. Underlying and Open Interests would help create futures and options going forward. Various methods like Black-Scholes Input methodology with the gamma and delta can then be used for the option price movement. These instruments will be available in the Crypto space sooner than later as the market matures.

Most of the alts are pure specuation, even if some better instruments are out there the price is not going to be more stable until the whole market matures and grows.

From my point of view it is not so necessary here because the market know how it could be developed or fixed so any corrections from outside will have consequences.

The question is not clear for me but I will try to get it. I think that it will be very preferable doing with cryptomarket because there will be more changes.

The cryptos are currently stable. But usually no investors want crypto to be that stable, everyone wants its price to rise skyhigh and for benefitted. But there shouldn't be any underlying rules to keep it stable cause its totally decentralised, no other options would affect it. So it would just naturally stay on its chores.

I didn't quiet understand the question. Are you talking about some method to move the price up? If yes, I would be interested to know the answer as well.

The underlying could be taken up as a current traded price. Various methods like Black-Scholes Input methodology with the gamma and delta can then be used for the option price movement. It'll be very preferable doing with cryptomarket because there'll be more changes.

No Luke! I am not looking at any method to spike the prices. On the contrary, the idea is to develop indicators that are going to help the Community to get a better hang of the future prices.

In my opinion any nudge or correction from outside can have serious consequence on the market. So nothing can help unless the market grows and gains full growth overtime because it is still new.

You need to explain a little more. What I understand is the market is completely responsible here. Unless it finds a way to mature itself anything done may result in complete disaster.

The market itself holds the key here. Until the market finds the growth and matures itself any correction from outside can be a huge deal.

I think what you are asking is for the underlying algorithm of the blockchains/crypto. Yes, a better algorithm might improve prices to some extent. Blockchain is an evolving technology and it is being improved over time and this might affect the pricing of crytos positivel.

Precisely the point.

All altcoins you will see in the market is finally true and not a liar prices maybe the price of bitcoin now goes down and same for other coins also.

Absolutely. That is how all markets will mature and sentiments will not be the deciding factor.

There is a vision to identify and understand Open Interest in the sphere as we go along and such scientific tools will bolster the Crypto market and put Cryptos as an alternate investment class.

I came across several ICOs, which were aimed at creation and development of project to stabilize the prices, so I hope tha they will be able to make market more stable.

Let me have the names of a few. This is a particular area of interest.

the calculation is basic but needs to be taken into account because crypto belongs to all of the holders who can't control it but sometimes can play the price if they have a big balance

Most of people are on market just to get fast profits. Stable prices and fast profits have nothing in common, so we need current market situation to get attraction.

Most of projects have no demand from real users, so their tokens are held and traded by investors only. In such terms, investors define the price.

Technology will never stabilize the price of cryptocurrency. The price of the cryptocurrency depends on the purchasing power of the investor! please remember!

Indeed, the basis of crypto is the purchasing power of enthusiasts, so it cannot be predicted correctly and quickly. We know the economic law and the crypto market can work like that.

In my opinion, no new technology or speculation that could improve the crypto market price value wherein price only depends on how the market was doing. If people are investing further in cryptocurrency starting with btc and in effect the btc market will make a pump, definitely this will also impact the altcoin price that could trigger to an up trend market.

Completely agree that the prices are a factor of Demand/Supply. The point that I intend to make is that each asset has something of an underlying value and more they are defined, better 'Technical Research' can be made on them. That way, 'speculation' will go down and the prices would be less defined by 'sentiments' and the Industry will get more mature. This is purely from the perspective of the Exchange perspective. Derivative instruments will be the way forward to help people to protect their Crypto investments.

to help crypto to increase in terms of price is to make a lot of purchases and make a lot of good news for crypto so that many companies and investors trust crypto again.

I think that price stability will come when the cryptocurrency will be used by a large number of people and will be more regulated. then there will be no volatility

I don't think technology is the only one. Encrypted markets, communities and marketing are the key to determining prices. A good product needs to be hyped. Getting more people to buy is the key.

Community development and demand increase through the useful utility of the token will surely help the cause. Marketing will be critical too and the hype needs to be backed with a robust technology and breakthrough business model.

I don't like the financial instruments, futures, derivatives etc I think they skew the real underlying market with fake paper options. I don't think that any ETF will benefit crypto at all just be used as another tool by Financial Sector to gamble on price movements.

Thank you for your thoughts though they are contrarian. Derivatives were termed as 'tools for mass destruction' by none other than Warren Buffet. However, it is the indiscipline amongst Traders that brings forth this 'destruction'. The best proof is Mr. Buffet's portfolio where a significant chunk is on these instruments. Derivatives are great instruments if used for hedge and disastrous if identified as a tool to 'windfall gains'. A solid Exchange where the calculations are in place ensures that Options never skew the underlying. Crypto is all for technology and the real value is attributed through the usage and use cases but over a period of time, a mature exchange that assures the correct 'Open Interest' driven liquidity in the market will increase participation and increase the Community.

Price is formed by market, so there is no way for stabilizing the rate artificially. If this was possible, there were no traders on the market at all.

Absolutely. The price is always driven by the market and the Demand: Supply ratios. The point is not to come up with something that regulates the prices artificially but to give more tools to the Community to be more assured of the stability and not merely go by sentiments. That will reduce the vulnerability of prices through 'Pumps and Dumps'.

underlying the stable price is the investor itself, you can see the velocity of money in each market, if in one market many buy one altcoin, it will make the coin more expensive, if between sellers and buyers are stable, then the price stable

between selling and buying stable. each order is carried out alternately,
but because buying and selling is a decision of many people it is very difficult to make decisions together, unless there is good news, usually this will make the market move,
and if that happens, I'm sure the stability of the cryptocurrency price in the market will occur.

Thanx. Would you recommend Future Contracts in this domain? I suppose it's a need.

Now crypto is very difficult, can show us that the market is falling, may fall completely in the future, so do not try to pursue this market.

What about getting a Tool through which you earn as the prices drop? Would you (in case you feel that the prices are going Southwards steadily) like a tool of that sort that earns you money as and when the price of a Coin goes down?

The main purpose of cryptocurrencies right now is speculation. In today's market it is very difficult to keep the price - it is not stable. Today, cryptocurrency can not be made more stable because there are no major market players.

Sorry for a delayed reply. Consolidation and having major market players will definitely stabilize prices. And to do that, large players will have to come in. To mitigate that risk (volatility), underlying will be crucial. I am in complete agreement with you Sir.

It seems to me that the price will go there, until there is more liquidity in the Crypto market. Now it is easy to do manipulations due to small volumes.

Yes. Broader adoption and participation is the key. Technology and how the larger players are benefitted will be the key.

In General, stability is what the cryptocurrency market has been lacking for a long time. And I think that it is worth considering that in the end everything will be different. And that it is not always good, because the cost can be consistently low

It is currently impossible to stabilize the price of the cryptocurrency because the price of the cryptocurrency comes from the transaction!

Stabilization is not something that can be done artificially. However, greater adoption will make it less volatile as the spread will increase. This is precisely when 'underlying' will be needed with a trustworthy and independent player coming in. That will give the Industry the 'real decentralization'.

Underlying of crypto's?

I'll guess this is about the market cap of crypto's. It's hard to think what OP really wanted to ask so we are just assuming what he really wanted to ask and I think that's all about it. Calculating supply, limit and market cap.

for this reason, crypto must be a payment tool for a product and has the same estimated value for each country with their respective fiat currencies for bitcoin and for those products. crypto can be stable.

Benchmarking across other products will be important.

To be honest, I, like everyone, expect stable growth and I think it is close. Here is what you need for all the participants of the cryptocurrency market. This is what you need to count on

Stability and Sustainability will be the future.

The price of cryptocurrency is unlikely to be stable, including stable currencies, as their prices are always changed by buyers and sellers.

I think that cryptocurrency will become less attractive for investors if it becomes stable!

The point you mentioned really confuses me. How about a specific currency and how stable it is? I think this can only happen to Bitcoin and Altcoins. You should learn about it and price rules affect the crypto market and Altcoins.

I believe that the cost of crypts is unlikely to be sustainable, because buyers, sellers, and transactional dependencies will affect stability.

what is the purpose of your question, is it a coin with a falling price then we start buying it to help prices rise? or a coin that falls to the bottom makes the coin look stable?