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Author Topic: Is mass adoption or/and regulation more likely to reduce volatility?  (Read 439 times)
MIner1448
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May 30, 2023, 08:19:13 PM
 #61

If more people start using bitcoin and governments begin to control it, this could help reduce its price volatility. When more people own bitcoins, the market becomes more stable. Also, the involvement of large financial companies can lead to sustainability. If governments impose rules and restrictions on bitcoin, this could create more clarity and protection for people, which could reduce anxiety and price fluctuations. However, it is important to remember that bitcoin will still have some degree of volatility and investing in it still carries risks.
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May 30, 2023, 08:31:44 PM
 #62

There is  difference between unique addresses and the number of individuals to have adopted bitcoin. Whole one can be determined and that is the vase of unique addresses the number of individuals to have taken up bitcoin investments, either having it stored somewhere or trading can't be accurately determined. Perhaps the once on centralised exchanges could be determined as accounts are verified, even as simple as cell phone number verification, there still presents some challenges as, most individuals have got several cell phone numbers and the closest to proper documentation is running kyc which is avoided in the crypto space.
Now, unique addresses can't be tied to a each user as well. As crypto investors, your allowed the luxury or owning more than one address and even switching in between addresses.

When we talk about regulation and volatility, the main issue with volatility as we have it is in the demand of the currency. Will the regulation be able to check demand? If no, then its okay to understand that it solves no problem.

R


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Nwada001
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June 04, 2023, 10:13:22 PM
 #63

Reduction in volatility? I am not so sure because people will always need to take profit and only very few will decide to keep their Bitcoin and never sell, the poverty rate in the world is extremely higher and assuming all people in the world now buy Bitcoin they will always need to sell and also bear market can't be erased of crypto market because higher price always follow by correction.

The higher the adoption of Bitcoin the more value it will has but also there will be massive dump too because too many numbers of people need money, so when they are able to turn 200$ into 400$ through Bitcoin they will need to take profits.

Your comment or discussion is a little off topic from the OP, but regardless, I will still have to correct you on something.

There is a higher possibility that the higher the adoption of Bitcoin, the more profitable the price will be. That's what the law of demand says. But the higher the number of people who are holding and owning Bitcoin, the more likely it is that a mass dump will also happen. I seriously disagreed with that. This is because when five people share a particular good within themselves and three of these five people want to sell off their goods because they actually need the money for something else, the price of the goods they want to sell will reduce but not the value. This is because the number of people selling might be greater than the number of available buyers.

But when we have higher numbers of holders, we will not have to worry much about price dumps. Bitcoin is not an altcoin where the liquidity can be pulled by a few individual holders; the price will always drop and go up; that's the nature of Bitcoin. We will always have bullish and bearish markets and price corrections.

R


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▄▄▄▄█████▄▄▄█████
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▄▄▄▄▄▄▄██████▀▀
LLBIT
  CRYPTO   
FUTURES
 1,000x 
LEVERAGE
COMPETITIVE
    FEES    
 INSTANT 
EXECUTION
.
   TRADE NOW   
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