Bitcoin Forum

Hello EveryBody !

I am student in a French Business School, and I am currently conducting a study on Bitcoin.

I am looking for anybody / anything who /which can help me on this Topic:

I would like to know what means did a company / a state have of reducing (at maximum) The BitCoin Volatility, on any scale (economic, finance, politic, or legal one)

And / or if you have the adress / an email of somebody who can help me do some progress on this subject, it would be perfect !

Thanks for your answer !
Quentin CLUZEL

you ask, how can they stop volatility.

https://en.wikipedia.org/wiki/Trading_curb

if price drops X% a trading curb can be used.
though there is no official guidelines for bitcoin exchanges to use this. it is a well known tool in the fiat markets.

we have seen some exchanges halt trading during huge dumps. but no official policy requested it, it was more of a moral decision by the exchanges

A state or company could reduce volatility by encouraging adoption of Bitcoin as a medium of exchange, or at least removing their impediments to adoption. Volatility is primarily due to speculation, and increased adoption as a medium of exchange would reduce the effect of speculation, and thus reduce the volatility.

Increased adoption, market cap and genuine usage would reduce volatility. I really don't see how it can ever be tamed enough though.  Gold is many many times larger and still shits the bed on occasion and it's probably manipulated to hell to suppress it as well.

The volatility refers to the unstable or unfixed price in the market. The value is dictated by the buy and sell orders of the traders in the exchangers. One of the factor affecting the price of bitcoin is the growth of the number or population of users. These users were coming from group of investors and others were ordinary individuals who wanted to escape the financial crisis in their country. The more user's the more demand, and that means the price inflation.

Bitcoin volatility are closely linked to hype and fud that are spread in the media. A small group of people trade on exchanges and they have a bunch of coins. If something happens and the hype train gets going, this small group of people panic and they over react in most cases.

Once a bunch of them starts to dump, the bots kicks in and you get a huge drop in the price. The solution would be, to get more people to trade and distribution of all coins to be spread more evenly, so when something like this happens, you would see a smaller impact.

it depend on what you mean with volatility, a 10%(arbitrary just to give an idea) or less volatitlity will always be there even with great adoption and big value

and volatility isn't something you can control it will fix itself slowly the more people will buy bitcoin, as long as you have always the same whale playing with the market this is not possible

Bitcoin volatility has reduced significantly recently unless there is a major news in the space, also you need to be more specific about the spread or percentage you are looking to work with. 

Yes the volatility has decreased a lot. This has given hope to more of the industries and other sectors to accept bitcoin similar to the fiat. So the increasing acceptance helps people use their bitcoin directly for their needs which increases the circulation.

Volatility reducing is a good signal for wider adoption of bitcoin, if we all want to make more money from bitcoin as investment, we need great news like some countries admit and help bitcoin promotion. If some countries can adopt bitcoin as fiat, or legalize bitcoin as legal currency, the volatility will go down.

Volatility in what exactly? network activity, mining power, mining difficulty, transactions fees, exchange price, which one?
Bitcoin without these fluctuations is not bitcoin at all, in fact all we know well about are the same behaviors that identifies the bitcoin as a true decentralized currency.
If you ever see stability in the entire system know for sure something is wrong.

Didn't really understand the question. I think you should take out the "/" and complete the sentences for a good question.
But if it is all about bitcoin that you are looking for you can find the answers here. Although it is kind of a messed up forums because of too many threads you could still find it. The search bar is at the top right side of your window.

Bitcoin is now owned by a company or a state, so its volatility cannot be regulated. Bitcoin is a deflationary unregulated asset / coin.
I think that companies (big traders) try to actually increase the volatility of Bitcoin because that's how they earn money.
But normally, like anything that can be traded, Bitcoin volatility depends on request, demand, news, FUD and (this is the only thing special for cryptocurrencies) maybe the release of newer generations of mining machines (ASICs, for Bitcoin).

I think he mentioned the Bitcoin prices. As you can see, the prices are very fluctuating and we can not predict what will happen to Bitcoin on the next month or even on tomorrow. I have to accept to what you say, if Bitcoin is too stable, Bitcoin will never be Bitcoin and the people will not use it as much as we see nowadays.

I believe that Bitcoin volatility is tightly tied to the speculative nature of the traders.  It is also dependent on the news that occurs.  We can see in the bitcoin volatily trends that whenever there is a good news for Bitcoin traders speculate that it will rise in price and so the demand to buy it also rises. And whenever there is Bad Press of Fud, we can observe a dump and so a decline in price appears.  So basically at this current moment Government or any company don't have control on the volatility of BTC.  It is all the speculation of traders that drives the volatility of Bitcoin.

Exactly, it has been stable for quite a long time now after a the dip early last January but that was understandable but afterwards it's steadily appreciated and the volatility has been minimal compared to last month.

Bitcoin Volatility is measures in traditional market, fluctuates its price in the market. And, perceived store of value versus the fiat currency thats why its become volatility. Thus, bitcoin has properties that make it similar to gold.

Generally, I don't think there is any way to remove volatility. Unless there would be an equilibrium in the demand and supply of bitcoin also include the removal of whales and their manipulation of the market. There are too many factors that make bitcoins volatile and no single company or even a joint effort from them could really remedy this problem.

If you mean how can some organization, like a state or a company could hedge against Bitcoin volatility, then just use a service that will charge whatever Bitcoin is needed from the customer and will take the risks of price volatility, like Bitpay

For a government or company control the volatility of the market, this is heavy market manipulation and I don't think Bitcoin would need this

Okay thanks for the answer !

And I am precisely talking about the PRICE volatility of BitCoin.

Now, another question: even if it is not easy to monitor this volatility, is there a way to protect us against / or to minimize risks when  a sudden fall in price happens ?

(like baskets of stocks or anything else) ?

Thanks !

Not really. If you want to buy into bitcoins then you have to accept the volatility of it. You can't have the best of both worlds here. Volatility means that you have a chance of earning big and you also have a chance of losing money due to it. Minimizing risk in bitcoins purely is impossible, unless what you want is cryptocurrency itself. So you have to diversify in the crypto market, meaning holding crypto other than bitcoin.

Bitcoin price can be affected by many factors (Panic buying , False News and etc.) ! It is difficult to identify its price because of of its volatile nature ! from the beginning bitcoin has been volatile  and also  decentralized that  been hard to many to control its price and if anyone has the capacity to do so maybe he has been rich by now ! And the best way to study bitcoin is to use it , if you don't use bitcoin now please do so so you can understand more about the market.

There is no way to prevent it. It is all a risk here.  Just like how stocks break down in USA. You invest and it is like you are betting on it. That is all the game now in this world, no one will make something where everything is a win win. They will create something where you will think it is safe but at the back of it when everything falls you cant do anything.

Yeah, I think the price of bitcoin bitcoin often up and down due to the decentralization and nothing is set. Thus the price of bitcoin will be affected by the users themselves. And usually also affected by the news, and you mentioned above. This will continue if bitcoin decentralized, these properties could be lost if bitcoin in the adoption by the government. Thank you

Look,as any stock,BTC will also be affected by news,politics,etc .It isn' really a stock but it can be traded so the same principles apply,we can't escape violatility but we can profit from it

there is no people here can say to you the exact time when will the price will go up or will go down !but if you do some little research one of the main reason why bitcoin price drops is because there is a huge dump in the market of bitcoin ! so If you are holding your bitcoin better sell it as early as possible and when the price rich its bottom buy some of it because surely its price will start to rise again anytime soon ! that is how traders earn their profit because of its volatile nature.

obviously when there is variable number of user and and less almost no supply of bitcoin its quite hard to maintain the price of bitcoin stable. and its the law of market the tell us that whenevr ther is low supply and high demand then price of that particular item will rise up. and the same happens with bitcoin also.

Bitcoin cant be controlled by a company or a state , it price varies depending on the market value , market value will be affected if large sum of bitcoin  holder has dropped or sell their bitcoin for a very low price which is unhealty because this will lead to make bitcoin value decrease , If many people are holding their bitcoin most likely the price will increase , based on my experience this are the factors that affect bitcoin votality