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Title: Currency-like Volatility? Post by: wilth1 on January 27, 2015, 09:01:15 PM Stable national currenices maintain monthly volatility against the US dollar of less than 12%; most far lower. Central banks can smooth this to some degree as is politically or economically useful.
With Bitcon's supply predetermined, what type of price discovery/market cap would be necessary to find comparable stability in the 3-5 year near term? We currently observe month-to-month exchange rate swings of 40% or more. Title: Re: Currency-like Volatility? Post by: waaat? on January 27, 2015, 09:18:27 PM Stable national currenices maintain monthly volatility against the US dollar of less than 12%; most far lower. Central banks can smooth this to some degree as is politically or economically useful. With Bitcon's supply predetermined, what type of price discovery/market cap would be necessary to find comparable stability in the 3-5 year near term? We currently observe month-to-month exchange rate swings of 40% or more. right now it inflates by 8% this year. That means it will remain extremely volatile for now. Try again in 2020 after two more halvings. Maybe better then (in case it's still relevant then). Title: Re: Currency-like Volatility? Post by: rosh on January 29, 2015, 12:45:37 AM Stable national currenices maintain monthly volatility against the US dollar of less than 12%; most far lower. Central banks can smooth this to some degree as is politically or economically useful. With Bitcon's supply predetermined, what type of price discovery/market cap would be necessary to find comparable stability in the 3-5 year near term? We currently observe month-to-month exchange rate swings of 40% or more. right now it inflates by 8% this year. That means it will remain extremely volatile for now. Try again in 2020 after two more halvings. Maybe better then (in case it's still relevant then). The problem is that money coming into Bitcoin is not sufficient to meet this inflation. If this increases, the relatively high inflation Iin terms of money supply) wouldn't really matter. Title: Re: Currency-like Volatility? Post by: gustav on January 29, 2015, 01:05:00 AM Stable national currenices maintain monthly volatility against the US dollar of less than 12%; most far lower. Central banks can smooth this to some degree as is politically or economically useful. With Bitcon's supply predetermined, what type of price discovery/market cap would be necessary to find comparable stability in the 3-5 year near term? We currently observe month-to-month exchange rate swings of 40% or more. right now it inflates by 8% this year. That means it will remain extremely volatile for now. Try again in 2020 after two more halvings. Maybe better then (in case it's still relevant then). The problem is that money coming into Bitcoin is not sufficient to meet this inflation. If this increases, the relatively high inflation Iin terms of money supply) wouldn't really matter. 220$ (price) times 3600 coins per day is 792k$ needed every day to hold said price. It's going doooown. Inflation is unaffordable for anyone. Title: Re: Currency-like Volatility? Post by: GÜNther.Danish on January 29, 2015, 08:08:18 AM below $200 soon, if it continues,,,
Title: Re: Currency-like Volatility? Post by: spiderbrain on January 29, 2015, 08:27:46 AM 792k$ needed every day to hold said price. It's going doooown. You make it sound like $792k is a lot of money. The European Central Bank just announced it's going to print an extra €2 billion a day to pump into an abstract bond market to stop it imploding. It's just that no one cares about bitcoin, is all. Title: Re: Currency-like Volatility? Post by: TrueCryptonaire on January 29, 2015, 01:06:21 PM Stable national currenices maintain monthly volatility against the US dollar of less than 12%; most far lower. Central banks can smooth this to some degree as is politically or economically useful. With Bitcon's supply predetermined, what type of price discovery/market cap would be necessary to find comparable stability in the 3-5 year near term? We currently observe month-to-month exchange rate swings of 40% or more. right now it inflates by 8% this year. That means it will remain extremely volatile for now. Try again in 2020 after two more halvings. Maybe better then (in case it's still relevant then). The problem is that money coming into Bitcoin is not sufficient to meet this inflation. If this increases, the relatively high inflation Iin terms of money supply) wouldn't really matter. 220$ (price) times 3600 coins per day is 792k$ needed every day to hold said price. It's going doooown. Inflation is unaffordable for anyone. Meanwhile Unobtanium with low inflation looksvery appealing when we look at it from the point of view of charts. Title: Re: Currency-like Volatility? Post by: minerpumpkin on January 29, 2015, 01:33:43 PM Stable national currenices maintain monthly volatility against the US dollar of less than 12%; most far lower. Central banks can smooth this to some degree as is politically or economically useful. With Bitcon's supply predetermined, what type of price discovery/market cap would be necessary to find comparable stability in the 3-5 year near term? We currently observe month-to-month exchange rate swings of 40% or more. right now it inflates by 8% this year. That means it will remain extremely volatile for now. Try again in 2020 after two more halvings. Maybe better then (in case it's still relevant then). There's also a great influx of new FIAT money coming into Bitcoin every day. It's the mere inequality of those two factors that create the high volatility - plus the very speculative nature of Bitcoin itself. Finding a market cap so there's an equilibrium is difficult... Don't know... maybe $1'000b? Title: Re: Currency-like Volatility? Post by: cbeast on January 29, 2015, 02:29:28 PM I see a lot of if statements in this thread. I guess that's why it's in a speculation forum and not in a "How I Made Millions" article in Fortune magazine.
Title: Re: Currency-like Volatility? Post by: Kipsy89 on January 29, 2015, 02:32:02 PM I guess we will have to go up to $50'000 to be quite stable. At that level we will have some decent saturation, man. The market can't be manipulated as easily at those levels, it'll reassure people willing to invest into Bitcoin, I guess.
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