Bitcoin Forum

If any of you had control of bitcoin, how would you fix the volatility problem?

volatility is nothing to do with bitcoin

bitcoins code has nothing to do with price/markets.
i think you mean if you ran a fiat money service business that is also a bitcoin custodial service. how would you fix the fiat market

options:
1. dont affix the market to be dollar pegged. instead use something more universal like the cost of living unit. or a minimum wage limit.
after all a bitcoin for americans is only 533 minimum wage hours. but for other countries a bitcoin is 80,000 hours ($0.05c an hour)
so imagine bitcoin was measured as just. say 533 minimum wage hours WORLD WIDE. and increments up and down in minutes and seconds on orderlines. then the world is more fair in regards to sweat equity(labour needed to earn bitcoin)


2. make it so that the orderlines dont increment in 100cent slots. make it so each order line is 1cent difference
eg buys:                                                eg buys:
0.1btc  $4000 =$400.00                         0.1btc  $4000.00 =$400.000
0.1btc  $3999 =$399.90         vs             0.1btc  $3999.99 =$399.999
0.1btc  $3998 =$399.80                         0.1btc  $3999.98 =$399.998

2. if you really want to try influencing the market..
have buys do orderlines of micropenny movements
and sells move in dollar amounts

that way moving the price just a fraction doesnt move it down much. but does move it up alot. thus if orderlines are full there is more support to prvent downward movements. but easier to move price up.
eg buys:                                     sell:
0.1btc  $4000.00 =$400.000       0.1btc  $4000 =$400.00
0.1btc  $3999.99 =$399.999       0.1btc  $4001 =$400.01
0.1btc  $3999.98 =$399.998       0.1btc  $4002 =$400.02


edit
this guy below. is funny guy
he doesnt want things to change as he is deep in the pockets of certain group who want control. he defends centralists. and doesnt want people thinking outside the box..

funny part people should be allowed to open their own exchange. and decide to not be reliant on the dollar

My answer hasn't changed since last month (https://bitcointalk.org/index.php?topic=5058219.msg47550887#msg47550887).  You don't "fix" things that shouldn't be controlled.

Also, how many more threads on volatility?  There's a search function, please use it.

Volatility cant be fix because tradings and investments are not stable. It depends on what is the exchage rate of real currency to digital currency.

this is already the "option" you can place orders with $0.01 increments in most exchanges and at least on one of them they use the 8 decimal points like bitcoin has LOL. but that doesn't fix the volatility problem because it is the "option" to open orders like that, in a market you can not force people to set their orders at the price you decide. they can choose to place an order $0.01 above the previous one or $100 above the previous one. not to mention that this doesn't make sense the higher the price goes. for example you can't expect people to place a buy order at $50,000.01 then at $50,000.02

the way to fix it is to find a way to get more people to trust exchanges enough to open orders in first place instead of going elsewhere to trade bitcoin or pull their money out every time they make a trade. so that we can have a more crowded orderbook so one small dump can not crash the price big time.

Volatility is indeed something that is a character of the price of crypto currencies including bitcoin, you cannot fix it.
traders make Volatility an attraction for trading crypto currencies and profit from these trades

Volatility is an inherent part of every market as the value of products is always changing, and in a decentralized system with no stipulated regulatory body the value is more volatile.
To reduce the volatility, butcoun would have to have a form of regulation and be controlled by a system and hence proposals and options can be initiated to give the community a model of what a bitcoin is worth.

Mass adoption and daily usage could also reduce volatility.

We see high volatility even in traditional markets. If something goes wrong in a  market which might be a stock market speculators and manipulators jump into and try to gain easy money like wolves did. Some balance instruments are developed by regulators in order to decrease the effect of these speculators and even though they can be punished what they did. In crypto market, we may adapt these balance instruments which are used in traditional markets. For example, we can set up a assurance system for people who are victims of hackers.

Bitcoin and altcoin prices fluctuates from time to time, so volatility is present in a sense that we dont know if it increases or decrease. I think that to fix volatility we should not panic sell, and besides buy more coins in the market to make the market green again.

No one could ever control on bitcoin mate,this tool is decentralized.Votality is based on the adoptors of bitcoin that is why no one could ever fix it because we cannot control who are those people who want to sell and buy bitcoins.

trading here can change volatility and become a lure for crypto. currency where we can monitor price changes that show market fluctuations in a certain period.

Volatility is constant in market it can be slight or major and there alot of factors that influences it the price system can only be maintained and not completely eradicating market volatility

Volatility does not need to be fixed, it will be resolved in time as adoption occurs and demand becomes more stable. So therefore to answer your question I would just push for mass adoption and seeing bitcoin used for its utility instead of as an investment.

We can't fixed it if it is really decentralized. Its value will really changed anytime unless the authorities will regulate it like what is occurring today. Volatility is also good and it makes profit for people who take advantage on its changing price for profit. So fixing its volatility is not a good idea.

Volatility is a limitation to bitcoin's use for daily payments and purchases. Bitcoin was not meant to be a speculative asset, but create a community of enthusiasts connected by this technology and a peer to peer network.

Merchants can not accept bitcoin payments without processors cause of it's volatility.

exactly
optional,
no force
open order book $0-50k+

im not saying forcing should be allowed/compulsary im just saying it is possible

EG closed range orderbook only allowing a 5% variant a day where if a price is currently say $4k then buys set orderlines can only be presented down to say 3960(-1%) and sell orderlines can only go up as far as 4160(+4%)
thus also helping the pressure on the buys/sell by favouring a upward movement.

or being fair with a 3900(-2.5%)-4100(+2.5%) orderbook

again im not saying it should be done. just that it could be done

Volatility is not a BTC problem, it's a modern day business and finance reality. We live in VUCA world (volatile, uncertain, complex and ambiguous). Cryptos are a great representation of this. All the trends and technical analysis can not predict for sure. But neither can you do so in most business fields. Embrace the change and develop your own strategy taking it into account, it won't change. So, I wouldn't like to fix it)

Bitcoin is a cryptocurrency which is different from fiat currency. Because it is decentralised, it is not regulated or controlled by government as obtainable in fiat currencies. This means buying and selling of bitcoin is free for any one who understands how to use bitcoin. This freedom of usage makes bitcoin highly volatile and quite difficult to have a stable value. It is even difficult to have a range of value.

Bitcoin volatility is caused by the fact that 90% of the coins are in the hands of 10 people.

I think that when a cryptocurrency community grows, then volatility decreases significantly

this is more like saying the current situation of the market being volatile is someone orchestrated by someone or some group of people, i think it is not ideal for one to be considered as having the potential of fixing volatility of any coin in the market whether it be a coin or a token, but if i had the power to i will simple bury it. thanks

You must know, that BTC volatility cannot be controlled by 1 person, BTC must be controlled by several people who can control the market.

if I am a whale, and I choose to hold my assets, but as other whales choose to sell BTC assets, then I will lose. and cannot control the market.

but, it doesn't matter, and I will always hold my BTC assets.

Unlike everyone else I think reducing volatility may be possible. If BTC is accepted and the governments use limits in this regard why not? So if there are daily or monthly limits for each person by law this means a decrease in buying and selling ie volatility. Even if it is not possible to influence from the inside it is possible to influence from the edge.

I agree.There's no way that we can fix its volatility because it's already one of the nature of bitcoin.I think having its volatility is something that most traders are getting thrilled of because they can be millionaires in an instant if they chose to hold and then trade when the price reaches its peak.

in my opinion, it is very difficult to control the BTC market, BTC volatility is controlled by many aspects.

BTC market manipulation always makes us surprised, if you are part of the whales, then you will get the same effect as beginners.

In this decentralized and unregulated market where almost every detail is anomymous, volatility will always be a huge factor in investment. Price manipulation is always associated with huge coin holders called whales. These whales can do whatever they want because there is mo rules and regulations to follow. They move their coins in and out at huge amounts. Now, reguations might be the key to this manipulations.

Volatility is actually a blessing in disguise to day traders in crypto. Imagine a scenario where let's say BTC's price is just stable $4000, No upward or downward movements

It would be so boring and frustrating for a day trader... If you still remember what went on in October, You don't want that kind of situation to return, do you?

Volatility is one of the bitcoin attraction, volatility could attract more traders to invest in crypto, if we want to fix volatility by surrender its decentralised feature then its mean we are turning bitcoin into fiat, volatility could be decrease by mass adoption, if the supply and demand are balance then the volatility wont be too big

In my opinion, i think we cannot fix it nor control it because it is part of decentralization. Nobody can control it.

You know that there many traders who trade bitcoin everyday, so theoretically you should reduce the numbers of transactions in trading site or you should increase the number of transactions in online shop. When many online shop which use bitcoin as payment methode then it will automatically increase the demand for bitcoin because when people know about bitcoin then they will amazed to bitcoin because bitcoin provide easiest, safest, and lowest cost for online transaction. Volatility will be reduced and the price will tend to rise when the adoption going well. I personally still love bitcoin volatility ;) because the price swing is the fastest way to make me rich.

No one can basically control the volatility since no one has total control of it, with BTC being decentralized which is extremely fair is a thing that people love here, though I LOVE and HATE volatility at the same time, but it's a thing that we heavily rely on, no stability, but the price can either go ridiculously high or go dramatically low.

I won't do anything. If it's not broken why fix it? If one wants to keep his money as is, he can choose stable coins.

The volatility is not that able to control in any way and can't be control , you can only make your trade with your option of price and many other who are willing to buy or sell bid and ask too what price they think is OK for them and once there is someone with that price then the market takes record of that and wait for next deal, eg if I bid 1btc @$5000 and the current price is $5100 and someone just think that market is not moving up or down and think it might go down base on his assumption, he might consider selling at $5000 and once the price hit then I may sell higher in some seconds and that price fluctuations is volatility of the market which can't be control.

volatility is not a Bitcoin Core Issue, it's a issue with the users.

I personally, if I am able to control volatility, I will not use that ability, because volatility is very profitable in my opinion, where traders can take advantage of that moment to be a very good profit.

Volatility in BTC is appreciated by short-term investors in taking profits, volatility cannot be easily corrected and I don't think it will happen, volatility has become part of the BTC game so far

we have to think very well so that no one judges us very badly with eth prices decreasing so many people are investing in it so that the profits taken are very high.

it is not "nature of bitcoin" to be volatile! it is instead the way that world is treating bitcoin which is making it volatile. so in other words it is people, as you said in the second part of your comment it is the attraction of being volatile and the potential profit that this volatility can bring to certain people which we can call "market makers".
as a result it can not last like this forever. as the market grows this irrational volatility will also disappear. we just need to find a way to make the market big enough so that it can not be manipulated that easily.

Can the volatile nature of Cryptocurrency be fixed? Honestly, I do not think that it's a possibility consisdering the decentralized structure of Cryptocurrency.
Volatility is the core feature of Cryptocurrency and so fixing it would mean defeating the very purpose of it's creation.

I think there are some aspects to Bitcoin's design and its economic distribution that make it prone to volatility. For example, its scarce supply, where much of the total supply is owned by a relatively small number of actors. It also had to bootstrap its network from scratch as an experimental and nascent platform, so it's a highly speculative asset. Both these aspects make for very illiquid order books in both directions, which therefore results in volatility.