Bitcoin Forum

What would it take?

Does the volatility settle if certain amount of merchants accept payments in crypto? Or should there be more people that would get paid in crypto? OR should there be a cryptoeconomy where people and businesses get income in crypto and spent the crypto?

Furthermore, could the volatility be even solved? I mean of more and more people are getting into Bitcoin, when would such demand cycle cool down?

I would like to know the economics behind it.

Volatility could be solved. This will happen itself eventually because the market requires more participants and more depth so that it could generate less volatility. As we have more participants, it won't be that easy to manipulate the prices.

Volatility will cease only when bitcoin becomes a real means of payment. Most users use bitcoin for investment and wait for it to rise in price. This was successfully used by whales. If the bitcoin will be used for purchases, the proportion of whales in the market will be reduced and they will not be able to exert such influence on prices.

I agree that if there would be more holders than speculative trading, it would definitely bring volatility down.

There have been many such threads. But let me answer it again. Practically if we look at marketcap of Bitcoin, it will take many years to reach a state of less volatility.
Bitcoin has a $42B market cap. This is nothing. Until this market cap grows into the trillions I don’t think Bitcoin will be stable enough. There just isn’t enough liquidity. When the Bitcoin is distributed in large population. It will tend to be stable. Market wouldn't be driven excessively by a single investor holding millions of Bitcoin.

I think bitcoin's volatility can't be removed unless all the bitcoin was mined. Even if many merchants and stores are accepting bitcoin the volatility will still be there as I've said unless the bitcoin is not all mined we still don't need to problem the volatility. Why just don't we use this volatility into our advantage.

So, the price of Bitcoin in present control by mentality of most trader on market. They are reason make Bitcoin price increasing or decreasing, example: just by the news BTC-e exchange down in one day can create panic selling drop price from $2800 to $2500 in one hours lol

Essentially the market capitalization of Bitcoin will reach such a high level that volatility will die down. If the US Fed prints a few additional dollars, the purchasing power of your dollar doesn't go down immediately, right? It is just a small drop in the ocean.

First would probably be reaching the cap. In case of bitcoin,  there is a hard cap on the supply and once that is reached, no more bitcoin can be mined. Another would be market reach. It won't do much when all the bitcoins are in circulation but only a few have large amounts of it which they can dump at will.

Volatility can't be solved although it can be minimized. Everything having monetary value is volatile until it is regulated by government. Laws of appreciation and depreciation works on every speculated item and cryptocurrencies are no difference. Requiring no intrinsic value, it is easy that cryptocurrencies' market value rise/fall huge with little change in market.
So to stabilize them more, large adoption should take place as well as trading malpractices should be minimized like pump/dump, etc.

the way for cryptos to be less volatile is that we need more regular people using it OUTSIDE of exchanges.

The reason price goes up and down so much on exchanges is due to early adopters/miners/whales. The more regular people using it to actually buy/sell things the tigther the spread will be.

Say you have 75% of the volume during a dump being done by whales/miners/early adopters, only 25% is real transactions being done in this scenario. You need more people/businesses buying in. So they buy in with BTC to get their raw materials, the raw material vendor uses that BTC to buy more components for what they make, and so on. That is what we need more of. It is slowly happening :)

Volatility is not the problem. that is even good thing.

It will cooldown at least when there is no big hoarders anymore and bitcoin will be used more as a currency.

But because of the limited supply of bitcoin and there is no way to increase that and most people takes this as investment, volatility in bitcoin is bound to lasts forever that's why there are speculations of high price in the future which some are taking to the point to reached the unrealistic price.

Why do we need to make bitcoin and other crypto less volatile? The volatile is what people like in the cryptocurrency so that they can make money from both trading and long term investment. If this feature does not available, people will get sick of the cryptocurrency and start selling everything which will harm the whole crypto market

For the bitcoin to be less volatile in a short term it should first reach a support level at somewhere of a fibbonaci retracement, then it should bounce back.

That should give the serious stabilisation of the market, as not knowing the resistance and support by the speculators is getting them nervous.

If that would be established there should just be needed a lot of a speculation capital. That capital should be driven with a mentality of a buy low, and sell high, up to a point that noone can earn money that way. That would reach a stabilisation in price.

Ofcourse one can say that in the leveraged market there is always a risk of taking advantage of others by short or long squizzes. Maybe thats true. But if enough of speculators stabilise the price, the dannger of that happening is lower

Volatility may be reduced only if people will start using crypto irl as any other currency. We just need something like a breakthrough to make it easier to buy / sell different things. After that the hype is real and BTC can becope stable pretty fast. I might be too optimistic but I'm pretty sure that the whole process may take just a couple of years.

Volatility cant be hold or avoided, the only way to make it less volatile is by let someone controlled it, but that won't happened, the crypto currencies volatility happened because it is decentralized, that means that the price is depend on the market and the market wont stop fluctuate until the supply and demand stop

Marketcap even just give a little CONTRIBUTION to bitcoin volatile, because :
- marketcap = price * amount in circulation.
- imagine someone who has huge amount of bitcoin such as BTC500,000 orBTC1 Million, he could still manipulate the price.
I think it's better if bitcoin amount is spread widely instead of just one man holding huge amount of bitcoin.
Then, it refers to bitcoin usability, when more merchants accept bitcoin payment and it has spread widely, then the volatility of bitcoin could be reduced.

Whatever happens the volatiliy will be always present and it can't be solved , Since bitcoins are starting to wake up the people the more people getting into bitcoins the more it have a much volatility . But who knows in the future when almost all people have bitcoins and the mining of has done . The demand for now is still growing let's accept that and follow tge flow make profit that was the only thing we can do now instead of questioning its volatility.

That is true. As of now, some big whales are controlling the market to make a profit for them by doing these regular pumps and dumps and most of the traders like these volatile markets rather stable markets. But only like us investors want more stable market and it will happen only when more and more people start holding the bitcoins.

Volatility occurs since bitcoin is decentralized.There is no central body to control its price.Its price increases and decreases with increase or decrease in demand.Only if it is centralized and has a central body,volatility could be controlled and its not good for bitcoin progress.

I have very well stated the point of more liquidity and a better distribution of Bitcoin among masses. More the liquidity, more Bitcoin will be in circulation and hence lesser is the chance of someone hoarding millions. Offcourse, marketcap is of little significance. But there is a huge interlink between Bitcoin price (in turn marketcap) and demand. More will be the demand more will be the liquidity and hence more is the price and marketcap of Bitcoin. They all are quite interrelated.

If more and more people start trading cryptocurrencies then it would give the cryptocurrency a good support and I believe that at that time the cryptocurrency would become less volatile.

If bitcoin can go mainstream the volatile well reduce because many professional business men will invest in bitcoin for long term purpose. The reason for volatile is always course by amateurs and unprofessional traders who jumped into a cryptocurrency market for a purpose of take little profit and always sell out of panic.

If central governments take cryptocurrencies in legal view,, then volatility must not remain on it.
But central perspective may affect on cryptocurrencies profits too.
Volatility makes us profits, it has to be always if you want profits in your trades.

If the market's demand is stable, pertaining to bitcoin, it will surely cause bitcoin's volatility to be less volatile since its value relies on market's demand. The best way that it'll be controlled is when it is used by most of the people or if it is legalize. The main reason of its volatility is its sense of being decentralized.

Maybe it will be less volatile if more people will be interested into Bitcoin, in that way , the demand will also increase. Market's demand is where Bitcoin's value relies. If more countries will make it legal as a currency just like what North korea did, it'll encourage more people and countries to use Bitcoin which will lead to Bitcoin's stability.

Be careful with what you arr asking for. If cryptocurrencies have very low volatility then trading them would be very boring and you will also therefore have very low profit margins. But as a general user its almost entirely good for buying and selling using BTC and other cryptocurrencies.

Not everything is about profits you know. Some of us want to make this world a better place where you have a choice to use something else that centralized banks and payment processors.
Cryptocurrency is designed to be an alternative economic system, the money making possibility was never its first objective.
I would rather have low profits and stability in the long run with great merchant adoption that crazy volatility.

Crypto will become more stable the moment there is more money in it, the market cap reached up to 115 billions at some point but I think crypto will not become stable until we reach a few trillions of dollars on market cap, that way any money that comes into crypto is not going to destabilizes the price.

Instead of investing in bitcoin and waiting for it to increase, we should invest in altcoin, altcoin carrying a low value, so with the same amount of money you can buy a lot of altcoins and make a lot of profit.

Stabilization in Bitcoin price may occur when the mindset of the users will be stable and patient. And also acceptance and legalization through out the major parts of the world might really help in achieving stable price. But currently the volatility is only the factor which is holding so many users as they see it as investment, rather fast profit investment.

I believe crypto currencies will remain volatile for ever because no one is going to regulate them. Why real world currencies are less volatile? because they are regulated by the government authority and also these currencies are backed up by some real asset like Gold. So they are less volatile.

On the other hand, crypto currencies are volatile and that's what makes them special. There is no regulatory authority for the crypto currencies. So the volatility creates a lot of trading and hedging opportunities. I believe, crypto currencies will be less attractive if the price is stable. Volatility is what makes it attractive and traders around the world can play around it.

But we are know recently market have a huge investor joined from any where, special from MLM, Ponzi, HYIP project ... and they are speculator not have knowledge about crypto or market. So, when have dip price they panic and helps the volatility on market strongly!

This is true, you must research about a certain coin and do all the things you can do. get all the details and see if it has a potential. but if you are a trader you can just study the charts and have some technical analysis for you to earn.

Volatility can never stop because issues after issues will continue to happen to make sure price swings even fiats with all the support and back ups is still volatile which is why Forex is still booming till tomorrow. However, it could be minimized and in the case of bitcoin, the penetration needs to get to a point where large percentage of the population are already involved couple with high market capitalization on a country basis that will make it difficult for an individual or couple of individuals to swing prices in their favor as the only thing that would cause sharp increase or decrease would be major events alone.

But without traders speculating in these markets there will be no liquidity and volume in the conversion of these cryptocurrencies. I also dont buy the "lets make the world a better place" line anymore because we have seen that 99% of us is here to gain profits from investments. Unless you are a coder who is directly involved in BTC's development or a project that is not an ICO then sorry but I dont believe you.

We need to be stabilize by having a lot of investors who can get the supplies well distributed because the only thing that makes the cryptocurrencies volatile is the supply which is more on the exchanges and not on the investor, if the supply will become less in the exchanges and if the majority will be on the investors then it will become easy for the cryptocurrencies to make it less volatile.

The fact is that the investor will actually be more and more, because today the crypto currency allows many very rich people to avoid paying taxes. Therefore, there are a lot of people who want to invest in the crypto currency.

In my own opinion volatility cant be solved .You said more and more people getting into bitcoin will add only more big fluctuations in the price . We can only some stable price after a ong wait until there's new news about bitcoin or any launches about bitcoins  credibility.

Yeah we could really use the volatility of bitcoin some of us really do take advantage of it,
They are the ones whoa re investing while the price is dropping down and selling them when it goes up again,
So I really think the volatility of the price isn't really a bad thing.

And why would we need stable cryptocurrencies? Cryptocurrencies aren't our national currency. We don't support our needs and family via them then why we need to have conservative behavior towards their volatility. For example - if stock market remains stable, would anyone invest in it. Will Apple, Google be billion dollars baby anymore?
I think there's nothing wrong in speculating cryptocurrencies and make profit over time.

I do not know about that a great deal of those that have bitcoin are bitcoin holders, so I do not think this has to do with how people are using bitcoin but with how much money is in bitcoin, a year ago the cap was 10 Billion and now is above 40 Billion so it s normal that theres instability when 4 times more money enter the market.

to if we want to use bitcoin as currency in our local area and for buying selling everything then its need that bitcoin have a stable price. and i think that bitcoin price can only become stable when majority of the people of the world start using bitcoin and bitcoin become as normal currency and we start it as normal currncy for everyting we want to buy online as well as in local shops.

Bitcoin votality can not be controlled, down or rising bitcoin votalities depending on market demand. If there is much market demand. Then bitcoin votality rises. And it makes bitcoin expensive. I think the number of bitcoin users and the growing popularity of bitcoin make this coin rise. Rival other coins. Bitcoin communities often increase, then bitcoin prices rise. If market demand falls then bitcoin prices will also fall. This only happens for a while.

The answer to this is quite simple. The larger a market is, the less volatile.

Why? Because there is more money invested overall, which reduces the ability of any one individual from affecting it a lot.

For example, even a multimillionaire can have zero effect on the NASDAQ or other stock markets, but a multimillionaire can have a HUGE effect on crypto markets - especially altcoins.

Any of the currency which marketcap will increase all over the world then its price will be more stabilized. Suppose if the supply and demand of a currency will come to a constant regulation then at that time we will see that the price of that coin came to a stable value and will not fluctuate much.

The demand cycle would never cool down since bitcoin supply is only limited to 21 million coins whereas,world population is very high.Crypto currencies are volatile in nature since their prices increases or decreases with variation in demand for them.There is no central authority to control its price.So,there is no chance of their volatility getting reduced.

If you are good at that then bitcoin is the perfect market for you, I know very well that I suck at trading that is why I prefer to stay out of it and I’m just a holder of bitcoin, but if I had the skills I will join all the people that are making fortunes by trading in bitcoin.

Every user cannot be successful in trading. This too is similar to gambling where lucky plays role often with the people who are researching the coin market for a longer time. If volatility is not found then virtual currency won't be popular anymore.

Bitcoin volatility to me will reduce but cannot be absent if the number if users are very much massive and the adoption is now much more on the high level say 70% of the population are now active users then it means no amount of people coming at once can shake the industry also another reason is if bitcoin change status from evolving to evolved coin by not having to sort several issues that could shake the fabrics that holds the coin together like the August 1 event that puts everything that concerns bitcoin on hold.

As far as i Know the main cause of volatility is luck of confidence in a cryptocurrency, if investors or a community dont have it that translates into volatility and the only way to have a stable crypto market is if a project has investors with strong hands and and community isnt receiving fud to make it panic

People logic just keeps on getting amazing and gets more  involved in fantasies . They want to get rich but at the same time they dont want the factor that makes them rich so that very factor won't cause them a loss. Its human nature but still you should know that there cannot be only good always ,so good things always are in the way of the evil.  What i am trying to say is Volatility of crypto especially bitcoin is one of the key feature for why bitcoin ,you,me and everyone else who uses bitcoin is here. So controlling volatility cannot be a question to be asked because the answer is no and if its yes then everyone is in trouble.

There is volatility in bitcoin because the number of users are limited and that is the reason we need scaling so that more people can use bitcoin and with increased number of users in bitcoin,you could really control the level of volatility,with time and the amount of new users coming into bitcoin we will see the level decreasing.

I think it depends on coins, waves and ethereum is very crowded in trading, in bittrex can even reach thousands of btc. A major factor because too many altcoins might confuse users.

Volatility of cryptocurrencies, especialy bitcoin, probably can't be avoided. Numbe of bitcoins is limited and market is under influence of different factors, it's also very sensitive so all that affects the price. It could be stable for a while but not on long terme because sooner or later the balance will be interrupted. But if there wasn't volatility how would traders make their profit and that is one of the most attractive features of cryptocurrencies.

More information and confidence so less people day trade and risk losing their money.

The lack of regulation makes cryptocurrencies susceptible to speculation and manipulation from whales.

Pretty tough for many people keep holding at the moment when price dives.

Crypto is volatile because anyone with a decent amount of money is able to influence the market a lot. Adnd by decent, I am talking about sometimes just $5,000 or less. Altcoin markets are often very low volume which can be influenced greatly.

As for Bitcoin any multimillionaire can still have quite an effect on the global price. Top exchanges see $10,000,000-30,000,000 USD in BTC/USD volume daily. If a huge whale wants to sell his Bitcoin that he bought back in 2010, well, the market will go down 5% from this happening. Likewise, if someone were to buy $1,000,000+ worth of Bitcoin you best believe the price is going up a percent or two on any exchange.

Until there is mass adoption and multiple hundreds of billions of dollars in market cap, Bitcoin will continue to be volatile (let alone other cryptos!).

If there was no FUD and good news, there will be less volatility, but because we are in the internet. Bitcoin is built to volatile against stocks.

I think the more countries like Japan and South Korea legalize Bitcoin as their national currency and would have foreign exchange reserves not only in USD but in Bitcoin also, then we could expect less volatility in Bitcoin currency.

I always think about the Maize farmer story I have been told when I was young. We had a very rich maize farmer in our country and he started with 1 farm. He was very successful and consequently bought more farms in the surrounding area. In the beginning the price of maize was determined by the supply of say 5000 farmers in the district, but as this successful farmer bought other farmers land, the number of farmers in the district decreased.

His 5 sons started to farm and they also started buying land in the district, until they owned almost all farms. Now they were in a position to manipulate the supply of maize to the market. They could plant less maize to hike up the price or hold back the maize in Silos.

This is happening with Bitcoin now, some Bitcoin whales < early adopters > are owning the majority of the coins. So they can manipulate the price, based on the demand and how they supply or hoard coins. < The same thing are being done with other commodities like Oil >

The solution will be to increase adoption to put coins into other people's wallets. The more coins are distributed to more people, the less opportunity there will be for whales to manipulate the exchanges. ^smile^

crypto must be volatile  so we can earn on short term and long term

if we look at long term it will go just up

why?

becouse of worldwide adoption and using crypto in real life

so it's the begining  and we will invest in begining

in 5, 10 years we will be rich  ;D

Wrong, Bitcoin must be distributed to as many people as possible. Bitcoin will benefit more, if there are a huge demand for it and demand will only be stimulated if people want to buy it. Merchants will only support it, if people are using it regularly and if only a few people own/hoard it, there will be no need for them to support it.

Bitcoin is not only about trading and profits and higher prices. Bitcoin also help people to be their own banks and gives them entry to the global financial system. < Previously, poor people were excluded and blocked by centralized financial systems >

Bitcoin also makes global remittance a lot cheaper. < Disrupting services like MoneyGram and Western Union > This puts more money into poor people's pockets. ^smile^

I think yhat an ideal scenario would be if the world continued its trend and almost all retailers can accept the currency and there is a deep and healthy understanding between the market and the consumers then that would make the btc a little bit more stable and be able to provide some comfort to us.

In order to develop trade with bitcoins should not just sit and wait when it will happen but to create the conditions for this. Need to reduce the cost of small transactions and to reduce the time of confirmation of payment. The miners do not want to do this and this is a big problem.

Bitcoins are currently being accepted by many merchants. If you going to ask them, all will say that volatile bitcoin is better than stable one as it allows them to earn much more than market price. Also on other hand they are able to keep bitcoins as reserves which is more effective than keeping hard money as reserves.

bitcoin is famous for being volatile since then and also bitcoin is a decentralized currency that's why bitcoin would never be stable it will change it's price value every second pass because the global market is so huge that's why you can't tell who's buying and selling bitcoins. expect that this year before it ends we can see a $4000 don't be shock if the price of bitcoin dump this coming november.

Short term stability is not everything. If you really wanted stability then you could just use fiat currencies, but they are only stable in the short run. In the long term they are going to crash in value, guaranteed 100%. Bitcoin is volatile in the short term but it is actually predictable in the long term.

Yes, volatility can be solved. Simple solution is exactly what you said in the OP - more merchants accepting it. But they can't accept bitcoin as just a payment processor. Tehy need to actually ACCEPT bitcoin. Like not through Bitpay, but it goes straight to their wallet, and their price doesn't change when bitcoin price fluctuates. When this is achieved then bitcoin will become stable, naturally. You don't need no central bank for this to work.

Plus, a lot of people only trade cryptocurrencies and hold it because it is so volatile. It's become a part of what cryptos are, in my opinion. Without it a lot of people would actually leave the crypto scene because a lot of traders use it as a hedge against safer investments so that they do not miss out on huge profits on a daily basis, if there was to be an opportunity for trade.

If as your opinion, the price of Bitcoin will dump after complete SegWit in November 15th, is right? And Bitcoin will repeat the scenario of Litecoin after SegWit, falldown in short time and comeback with new high price ::)

Bitcoin exceeded the price of $ 3,000 and now not under any circumstances will not fall below. When you compare bitcoin with other crypto currencies do not forget that bitcoin is a currency completely different level and credibility above and is a pledge of stability.

When bitcoin go mainstream the volatility will reduced. For example you can see how bitcoin cash went up as high as. $1000 on second of august 2017 because of the activities of pumping group. Manipulation activities couse the volatility we are seeing now. When capitalization is high and professional investors start to invest in bitcoin the volatility will reduce.

Volatility will decrease when the crypto-currencies are accepted, but this will reduce their price and interest of the majority of users who use them as investments because of a rapid price increase.

Yeah I do not know why this is so difficult to understand also we need to take in consideration that bitcoin is a completely new concept and this makes the early years of a technology a roller coaster so the only thing we can do is to wait for the day bitcoin becomes less volatile.

ALL THE CENTRAL BANKS AROUND THE WORLD STOP ISSUING FIAT AND  KEEP SUPPLY STATIC FOR FIVE YEARS STRAIGHT.

if fiat stabilizes for many years globally, then prices of everything else will stabilize. If not, then the central banks are playing money games and acts of war.

These games have been constantly played by central banks and they never cease to stop - pitfall of humanity.

...atleast (the sound) cryptocurrencies offers an option outside of this evil system.

Crytal votality can be stopped if there is no supply and demand that occurs on the coin. The price will stop at a certain point and wait for a big transaction to move the votality. You might be wondering why the bitcoin is going up ?? Or why it can happen ?? It's all because of the difference of supplay and demand .. if not balanced .. then there is a significant price ups and downs on the coin

It will be less volatile if there'll be more participants or if there will be more people who will use, invest and be more interested to cryptocurrency. I think volatility takes place because the market's demand is not that high. If more people will engage in crytocurrency, the demand will increase that will make the value highly stable or maybe continuously increasing. It will avoid dumps to happen.

Great story but you are correct, the whales are very powerful but even them must have a limit at some point the price of bitcoin is going to be so attractive that they will being to sell a part of their stash and with that more people will be able to adopt bitcoin and as time passes the volatility is going to not be nearly as big.

It is not possible yet because market is growing day by day and the supply and demand are also changing according to it. The price will become less volatile when market will become stable, means that the supply and demand will change in a gradual manner.

That is never going to happen, if they maintain the price of fiat static then that means the fiat will become slightly more valuable over time, how are they going to steal from you without you realizing it, if they raise the taxes you will notice and everyone hates paying higher taxes that is why they like to tax with the inflation tax.

Yes, I agree with you that crypto currencies can never ever become stable. They are known for their volatility. Stability of digital currencies will defame them. Bitcoins will lose its supporter if it stops pumping and dumping. People are investing into this currency just because pumping gives them opportunity of earning profit.

Personally I like the fact that bitcoin moves so abruptly that give to us the possibility to earn big money while trading, also even if you are a holder the opportunities to get cheap bitcoin abound and that is another way to grow your stash and spend less money at the same time.

I agree we cant stop cryptocurrency volatility because its natural in the world of crypto .We may see only a stable currency if it has no volume or not traded frequently that happens in the most shitcoins currency.

This would be depend on the bitcoin users, Because we all know here there are users buying bitcoin to have a source of income and some are for investment assets in a long term then once it reach the peak amount of value they will sell it. And because of that things the volatility has become change it can be in a minutes, an hour, day, or weeks something like that.

You say the only way volatility stops is when a currency is not proceeding through various transactions or, in other words, is not used. I believe there can be another option. The casino owner launches his/her own currency for this casino. The owner has a big stake as well. Other coins are mostly owned by gamblers who play in this casino. Thus the currency is used but stays on approximately the same price level.

Relying on individuals using bitcoin to achieve stability will take forever without even achieving it be ahse humans will always trade for profit to the extent of even trading currencies through the Forex market but those currencies to a large extent enjoys some level of stability but they still trade with it to achieve more profit not to talk of bitcoin whose volatility cannot be predicted. So, stability for now is not achievable.

I feel not only that, Emerging issues will also affect the instability of Bitcoin prices. Like yesterday's incident. When the BTC price segment falls several days due to a problem. All the panic and selling Bitcoin simultaneously then resulted in Bitcoin falling.

In fact it is the opposite, the lower the volume of a coin the biggest the movements on the market, those that think that bitcoin is too volatile probably have never traded altcoins, you can easily see movements of 500% on a single day that is why some people love to trade altcoins.

Not so difficult to answer that question. What these cryptos really need is real usage. At the moment the biggest use case for most of them is pure speculation

Yes and no, when a coin gets real world usage that most of the time only generates even more speculation about its price, it is not rare, that after an announcement from the developers of a coin of a new feature, for the price to go up like crazy in a short amount of time.

ETH and waves are providing different types of things than bitcoin like they are providing multiple exchanges as well where dollars and bitcoin can be also store that's why while bitcoin don't need these option why would bitcoin keep these option as well because bitcoin is already on top 1 which can be in other currency but bitcoin will never allow other currency inside bitcoin.

Volatility is a complex phenomenon, the OP, @hello_good_sir, @Kakmakr and @Zikadis rised valid points already: lacking acceptance as a "currency" and the general speculative nature are the main "drivers" of the boom-bust cycles that make Bitcoin volatile.

I want to focus on one point: Fear. There is a widespread assumption that Bitcoin can either be the "currency of the future" or a total "failure". That's why when the price goes down a bit, panics are common. I think if we (as a community) could guarantee, at least, price stability for one single day (in normal conditions, e.g. not during an attack or after a bug being discovered) that would be a huge step forward. So people can sleep well and aren't incentived to sell in the wrong moment. Because that's what market manipulation is about: generate fear or FOMO.

My preferred solution is a mechanism for merchants to guarantee stable prices (https://bitcointalk.org/index.php?topic=1926913), designed in a way that lets them profit from it with higher sales.

Bitcoin presents a variety of opportunities that did not exist prior to its development. Yet, it has failed as yet to convert investors concerned about its potential rate of adoption as an alternative currency. Recent acknowledgement by the IRS that Bitcoin is an asset for tax purposes has clarified the situation for investors, and the promise of frictionless value transfer suggests innovative use cases in foreign direct investment. In the near term, much of the volatility will be driven by investor perception of the ability of gateways to safeguard individual holdings and provide for a reliable store of value as adoption increases.
Price fluctuations in the Bitcoin spot rate on the Bitcoin exchanges is driven by many factors. Volatility is measured in traditional markets by the Volatility Index, also known as the CBOE Volatility Index (VIX). Volatility in Bitcoin does not yet have a generally accepted index since cryptocurrency as an asset class is still in its nascent stages, but we do know that Bitcoin is capable of volatility in the form of 10x changes in price versus the U.S. dollar, in a relatively short period of time (See the Investopedia Bitcoin Center for current updates on the price of bitcoin).

The volatility / wild price movement of bitcoin will be less frequently happen if bitcoin has high liquidity. There is a relation between volatility reduction and huge mass adoption, most of bitcoin users are trader so if they do panic selling the price will down but if bitcoin get huge mass adoption,  it will be harder to influence the price of bitcoin by panic selling or panic buying.

First for the bitcoin to become stable, support from not just from the people but also from the government will likely happen. nations might start thinking of putting cryptocurrencies as a part of the financial system. banks might also adopt to their system. A stable cryptocurrency can bring a lot of opportunities and convenience to people not just today but also into the future.

I agree with you o this point, if we want to see the less volatile of cryptocurrency then we have to take a measure to ensure that Bitcoin will have a stable price, but the solution is very much difficult because the capital market is totally dependent on the Bitcoin holders. if the government has a backup to this system then Bitcoin would be more safe and credible to the people. because of they only belief on the traditional institution.

You are quite on it and I also think that the volatility the is because the market has not got to its equilibrium and is not saturated yet. For instance, Gold or silver have got to there equilibrium but bitcoin is yet to and this is one explanation I have for it.

First for the bitcoin to become stable, support from not just from the people but also from the government will likely happen. nations might start thinking of putting cryptocurrencies as a part of the financial system. banks might also adopt to their system. A stable cryptocurrency can bring a lot of opportunities and convenience to people not just today but also into the future.

If you want to make the cryptocurrencies less volatile then it needs to be centralized so the government officials will dictate the price and they can control the price of the bitcoin and other cryptocurrencies and that is how i think it will become less volatile but overall, it is not possible to make the market less volatile.

The main source of volatility in Bitcoin is the amount of speculators. As more people adopt it the coins will be more evenly distributed. This will give some stability. Right now there is also a lot of uncertainty to whether it will live for long or if it's just a fad. As time goes the currency will mature, and people will see it as less risky. A more calm view of Bitcoin will cause fewer people to sell every time it's in the red, and thus also limit the volatility.

There's no way people will accept this. It's not a viable solution at all. The problem comes from the fluctuation of demand. Mass adoption fixes this problem by creating more stable and sustained demand across the world. It's impossible to centralize bitcoins, and even if it weren't, it's not the solution.

I think for Bitcoin to be less volatile, the whole world must accept Bitcoin as way of payment and that all Bitcoin should be mined. But as of now, I think we should take advantage of the Volatility of the coins to make profits  :D

Apart from the few users or spectators as have been said here, I also think that the fact that bitcoin is still recent and yet to mature is another factor. It is yet to get to a level of equilibrium just like gold and silver have done. So, when we have more participants and acceptance, there will be lesser opportunity to manipulate the market and then the price will start being stable.

Yes, being Centralized will make it less volatile, due to the government being in control of it.
But by Centralized, it will no more be called Bitcoin and the Bitcoin will seize to exist. If you’re not going to do that, then stop everyone from investing and withdrawing often, and price will be less volatile.

Agree. No sense and no more bitcoin if it becomes centralised.
I think the volatility of bitcoin is wonderful. Not the going down price part though. The increase in users will increase volality where in bitcoin can spike very very high. That is the exciting part in bitcoin.

I think there are a lot of factors on the volatility of the cryptocurrencies and the biggest one is improving of the people's faith in the cryptocurrencies. To catch a better stabilization, cryptocurrencies have to gain more people's trust. And also because of the deflation, I think that it is a big possibility that the cryptocurrencies will catch a non-volatile situation in the future.

I don’t think that it will get stabilise as you are thinking about it. The crypto world is about up and down investment made by millions at different times, so it’s obvious that the coins will get fluctuated a lot in first place. I’m pretty sure that to stabilise it they must regulated which will stabilise then due regulated investment. (Indirectly). This is not as easy as we might think because the regulations might just kill it as well.  The uncertain market and new ICO everyday are making he investment very viable and fluctuating as we speak.

You need to realize that the market cap of Bitcoin is not even more than some individuals' net worth. When you realize that single people are worth more than Bitcoin, it is obvious why there are such big price swings. The more money there is in BTC, the less any individual or corporation will be able to swing the market going forward.

It is a dilemma of us people that we are only trending to the thing that have advantages. We want everything to be limitation free. But that can’t happen we all must know. There are pros and cons of everything related to profit. Bitcoin is one of the stunning creature of technology. We have to accept that volatility made it more important for bitcoin as the fame it has now.

In explaining the volatility of cryptocurrencies , I believe is because it is relatively new and fewer users are on it now.

The more people come and invest, the more difficult it will be to manipulate and the more its volatility is curtailed .

The only reason of its volatility is the risk of being down. Investors are hesitant to be on all out when they know that it is high risked. Maybe many will disagree but bitcoin can only be on stable trend if it is supported by the government. Why? Because if all the government around the world will protect bitcoin investments everyone or all investors will have confidence and it is good to bitcoin whether we denied it or not.

Mass adoption. A very small portion of the population hold bitcoin at the moment, so only a proportionately small part of that is required for movement.

Maybe thru hedge is used to reduce any substantial losses or gains, suffered by an individual or an organization. Hedging solutions are some of the first to tackle a bigger issue,how to hold bitcoin without being exposed to the markets volatility.

it must be accepted by all people living in the world like dollar or what might be your currency in your country any where you go you can spend it... its legal tender if bitcoin becomes like this its volatility will gone, and this proves that bitcoin is still young and a lot can still profit from it..

There is hardly any reason to deny this fact that one of the most important factor which has contributed a major role in helping bitcoin to earn this much of fame is none other than its volatile nature. I consider volatile nature of bitcoin as the biggest advantage of bitcoin and this is the reason why bitcoin is this much successful across the globe and that too in such a short period of time.

I don’t think so that at present we can do anything which can result in less volatility of bitcoin. It is because of the reason that bitcoin is itself made more volatile. Due to this property of bitcoin, the number of investors who are trading in bitcoin is continuously increasing and I believe this is the only thing which is helping so many owners of bitcoin to earn a very good amount of money and that too in such a short span of time.