Bitcoin Forum

Hi I am Ali and this is my first post on Bitcoin Talk.
Because the bitcoin economy is new, its new nature, and sometimes illiquid markets, the price of Bitcoin can increase or fall unforeseenly in a short period of time. But with the increase in liquidity, this market can gain public trust, as can Fiat currencies, even though it is not of a physical nature.

It is a new currency think that fiat has been around for a long time Bitcoin has been around for a little over 10 years. Bitcoin also has a way of injecting new Bitcoin by mining which causes a little unpredictability in the short term because of the amount that is rewarded each block reward but this will reduce in the future helping stabilize Bitcoin. There are also different types of investors atm some are looking to buy into Bitcoin but sell at the price that they define as their target and that causes instability in the market. This should reduce in the future when more people are using Bitcoin as a currency instead of investing to make a profit in fiat.

As a 1st post, you need to remember to actually ask a question in your posts and postulate a reason you think things might be as they seem to be. That will open the door for discussion of your reasoning. Just because the title is a question does not make it clear to folks who do not use English as their primary language...

That said, BTC is the same as any traded item. Do stocks, bonds, metals, FOREX, etc have stable prices? No. Prices for them all goes up and down all the time based on a myriad of factors.

ways to stabalise the price

1. add circuit breakers
if the price moves more than 1%. freeze the market. stop processing orders
fiat markets do this

2. add more decimals/significant figures
instead of only allowing orders at say $45,704.52 and next possible orderline $45704.53
have it where it allows orders at say $45,704.520 and next possible orderline $45704.521
allowing for 10x more orderlines per cent. meaning takes more orders to get to higher prices

3. ban bots

Just like other currencies.

Not even USD has a stable price. Just look at USDEUR charts, for example:

https://i.imgur.com/RlWvyG5.png

Ofc bitcoin has a much higher volatility because it is a really new type of asset.

On the other hand, fiat currencies have a very high volatility as well. If you take a look at USD BRL (Brazilian Real) the volatility is very high. In 2020 alone, BRL lost about 38% of its value against USD

First reason is obviously it's an unregulated asset which can't be controlled in the same way as we see with fiat.

The other reason which needs no introduction is market manipulation,  this is one of the reasons price of Bitcoin moves in an undecided manner as a result of this market play.

I should also say bitcoin is speculative hence price responds to what people are saying about it, we have see how Elon tweets about crypto once these stories catch the wind it's up or down for crypto.

One reason a lot of people talk about is adoption. Because the adoption of cryptocurrencies has been relatively low until now, therefore, with new adoption the price starts to shoot up thereby creating huge volatility, but the actual truth due to which volumes remain uncertain in the market due the concentration of the market, Here the big money is controlled by just a handful of people and retail investors aren't that strong which means the market can be easily moved a lot by one person if he decides to sell, these whales work in combined groups, therefore, making the market even more volatile, recently FIIs have also entered the market which means they also can single-handedly dictate huge stakes in this market.

Different to regular currency, bitcoin is not controlled by a government or an economy that influence its price, bitcoin's price is controlled by the people who are buying and selling it and also there constantly new bitcoin being mined and all of these affect the price plus since it is still a fairly new concept we are constantly seeing some good news and some others that are bad from government banning its use to big companies accepting it as a payment method.

Nobody can say for sure what causes particular move day to day, in general however there is a huge amount of extremely "cheap" money floating around right now. If you have millions in the bank in certain countries around the world - the interest rate has gone negative. Which means the bank charges you money to store it (because the central bank wants to force people to spend money) instead of normal where the bank would pay you small amounts for keeping your money there. If you force the super rich to take their money out of bank accounts, it goes into all sorts of other assets and investment funds which try to earn a positive return. However this runaway train of money has happened many times before and eventually it will drive into a recession - they tend to get more powerful as we move along in history and lots of governments have abandoned any fiscal responsibility.

Hi, welcome to bitcointalk, Ali. There might be some illiquid markets for altcoins but if you're talking about bitcoin, it's very well liquid and the rise and fall that you usually see is just all about its main nature, volatility. As for the public trust that you've said, there's already public trust in bitcoin because if there's none then El Salvador won't declare it as their legal tender. As of now, it's the only country that deals with it as a legal tender but there are also many countries that do support bitcoin as they are not stopping their citizens to engage with it.

Well I think you should need to read more here before posting, that has been asked so many times here.
It can't be stabilized just because with this basic reason, it has a fixed supply that makes the price fluctuate every now and then, there are too many transactions in trading that always involve bitcoin on an exchange, there are too many people transferring their bitcoin into another wallet, many of us a cutting profit when there is a bull trend in the market and those are can create a wave on the price. Plus, bitcoin did not back any currency not like like USDT backed by USDT coins which are purely stable ones.

It's your first post for sure and you've not done anything wrong by making a first post, especially one that is valuable and I'm not sure this one is entirely. When you come to a forum @OP, it's always best you first look out for the rules that binds the forum and also, you seek to understand the environment before in order not to make much of a mistake.

Perhaps this post is best suited here but, you don't seem to have familiarised yourself with the forum before you started posting. Your topic of discussion as at is now is one that has been talked about one roo many times and all you could have done is just to search it out. You've got ideas alright but, you've got to acquint yourself with the bitcointalk environment.

Prices fluctuate because someone is constantly buying and selling.
There are more and more people who trust Bitcoin, which will lead to more and more Bitcoin prices and higher values.
At present, it cannot be stabilized. In any case, there will be fluctuations.

I agree with you bitcoin can't be stabilize because at first bitcoin is made volatility to be more valuable and have a higher value compare to a fiat currency. The reason why It can never be stabilize is the supply for example , one country have a population of 2 billion people and the supply of bitcoin is 21million and have a stable value of 1 bitcoin is equal to $1000 for example, do you think it will last ? obviously not.

Novices can learn more about the rules after entering the forum, because some issues may affect your posting.
But this is impossible. Currency was originally a set of contracts. Cryptocurrency is more non-national and is issued in a decentralized manner. In other words, it does not have an institution like the central bank to maintain currency stability.
Bitcoin itself is a closed issuance mechanism and cannot maintain the stability of the currency price.

Because of these reasons, the price of Bitcoin is erratic：

1. Cryptocurrency is priced entirely by supply and demand.

2. Price fluctuations are entirely market behaviors.

3. There are no restrictions on the ups and downs of the cryptocurrency market, which is different from the traditional stock market.

4. Relative to the mature financial market, it is still at a very early stage and will be in the early stage for a long time.

Even though bitcoin gains public trust it cannot stabilize because the price is driven by demand usually generated by mainstream news at a particular time. People are also investing in bitcoin because the investors know the price is not stable hoping to make profit with long term or short term holding.

In short, the price of bitcoin is volatile because the price is being continuously discovered on a free market. The market as bitcoin itself is open for everyone, you can trade it 24/7/365 without any permission, license, passport, etc. The only thing you need is a device, with which to access the Internet. No one knows what the "real" price of bitcoin should be. Given that more and more people are entering the field, demand for bitcoin fluctuates considerably and unpredictably. Will the price ever be stabilized? I don't think so. Bitcoin is by design deflationary currency, its price can grow infinitely as more and more people start using it, more and more products are produced, more and more lost private keys with coins there are due to errors and poor custody.

the currency is never stable. what distinguishes crypto from other assets is the fluctuating price. then it is more appropriate to call it a commodity asset. because supply and demand also affect the price of bitcoin. and in my opinion this actually gives a unique thing to the characteristics of bitcoin.

indeed, basically the price of bitcoin or altcoin is not stable, the price can change at any time according to market demand, if there are many who buy, the price is likely to go up and if many sell, the price will fall, usually many people will buy the coin if there is good news, for example, a coin notification will in listings in large markets, for example on the Binance market or other positive issues, the coin price will be expensive.

In my opinion, nothing is 100% stable, maybe the closest to 100% stable is gold, this is because everyone likes and accepts gold, while fiat and crypto will always be unstable due to demand and stock factors.

It's no secret that the price of bitcoin often goes up and down like a rollercoaster. Despite being invented since 2008, Bitcoin only really started to take off in 2013. The digital currency started trading that year at around $13.50 per bitcoin. Prices rose in early April 2013. and the ups and downs continue to happen, this is what attracts bitcoin to its fans. If bitcoin became stable maybe bitcoin wouldn't be like it is now

The market movement is basically driven by supply and demand. So even after more than a decade in the market, still we are experiencing the volatility of its price. Stabilizing its value is I believe, still far from horizon. Even crypto experts can just speculate its value, and very rare that they can get it precise market price.

All prices are variable, the only difference is in the extent of variability itself. Metals, realty, stocks, altcoins, all of them are volatile, especially when something is just entering the market.

The volatility of the price is determined by demand and accessibility. It can be said, that cryptocurrencies have just entered the market (as compared to many other assets), the demand is still unstable and is affected largely by such things as news, hype, political issues, etc.

Way to stabilize? There’s no such way. However, when Bitcoin is more widely spread, many large investors hold on to it and the market cap is larger - it will become less volatile over time.

Actually, Bitcoin is not a new thing, this has been existing more than 10 years. But yeah, it may be new to some people.
Can Bitcoin stabilize?
Bitcoin is not a stable coin.
Moreover, this is decentralized, the price will really depend on the market at that time, sometimes influenced by issues surrounding both FUD that can make Bitcoin price falls or even good issues that can make the price increase.
And no one can rule Bitcoin 9although sometimes the whale manipulation is really real), but it doesn't mean that they can control Bitcoin to be stable.
The market can go up and down very easily in the market.
And yeah, as you said, even this doesn't have any physical form, this has big value. Because this has been trusted for years and many people have been proving how worthy this Bitcoin is. And of course, this is because it is trusted

Compared to other assets, Bitcoin has just entered the market and can be used for trading, which ultimately makes Bitcoin unstable and its price
movement very volatile. Indeed, there is no way to stabilize assets, all assets will move according to demand. Even Gold's movement is unstable,
likewise, Bitcoin will never be stable. But Bitcoin price movements will not be so volatile if many large investors enter the Bitcoin market.
Since large investors usually prefer to hold Bitcoin in the long term, this can reduce the high volatility in Bitcoin. In the future it is likely that Bitcoin
will be slightly volatile, unlike now it is very highly volatile.

Talking about stability or trying to make it similar to fiat then its really totally different story and volatility is one of the most common characteristics on why bitcoin had been loved soo much specially by those investors.

If you dont like volatility then this investment or market wont really be just for you and better stick with fiat or other stabilized currencies out there. If you do like to dive in into this market then deal with the volatility.

Take advantage of it and you would really be making off your profits but of course there would always be some accompanied risk behind.

The increase of liquidity made it more attractive towards investors who became more fascinated with what's currently happening with Bitcoin price. Nowadays many of us waited for an opportunity before the market will absolutely pump same with the previous history we've experienced. Let's take our best step before everything will settle down for good.

The price is Bitcoin is entirely controlled by supply and demand. However, since it's such a new asset, it's still moving towards a fair market capitalization.

People disagree on what its fair value should be, hence why some people want to sell it at a certain price, while others want to buy it.

This causes a fluctation in the chart, as the bulls and the bears battle it out for all eternity. I imagine Bitcoin's volatility will start to decrease as it becomes used by the vast majority of people.

Stabilization would probably make a lot of people lose interest. Bitcoin being traded 24 hours a day was initially my selling point to others on it. I knew it would become a traders paradise and it turned out to be so successful that thousands of others popped up to appease the appetite of traders looking for a new widget to trade. I think this still exists to a large degree today and if Bitcoiners were polled, most would prefer volatility.

Hi, welcome, I think you have volatility from Topics 14 out of 15. I don't know if it's a record for an account opening, most likely not, but 14 topics in 24 hours and 13 in 7 hours, are they enough or not? . There are things that are in judgment depending on the eyes of the one who looks at it, and there is a trend or a matrix to believe that the volatility of bitcoin is harmful.

So the volatility for bitcoin is bad (!?) If bitcoin has had something, it is that its price climbs to the highest (sometimes ATH) but it also has wonderful downzing, in terms of being stable today it has had a quiet day it started at $ 44k and is at $ 47k a (+/-) 6%, a percentage unit is not that much, is it?

the fixed value of money is only the money each has country,
If there is an international currency, such as USD, the price will not be stable, it will always go up and down
Likewise with bitcoin that plays on the exchange, the price value will definitely change, the more people need it, the price will definitely go up

honestly I'm confused what if bitcoin has a fixed value