Controlling % daily growth

[Coin.Karma]

This is something that went through my mind. I used to do stock trading in the markets. This info is primarily from my little or no experience from the markets.

Some companies on the stock market have a limit on the allowed daily movement of the stock. This is mostly done to keep a check on highly volatile stocks, also to keep check on speculators not playing with the market.

I feel that probably putting a daily limit on allowed movement on Bitcoin value might help weed out such movement as today, and also movement created by speculators in the market. Speculators are scavengers primarily

Basically allowing Bitcoin only to move to a maximum stipulated up or down percentage. This would help for the long term stability of Bitcoin. We could create a consensus by discussing as to what this % value should be.

I might be completely wrong in my assumptions, but I feel that this might be the right way to proceed. I think this is something we should discuss.

cheers to bitcoin

[LokeRundt]

And how do you propose going about doing this?

[Mashuri]

Isn't that regulated by the exchange......so caps can be put in right. Bitcoin is still a tiny fraction of the amount of trade done on all the exchanges on the planet. I am sure some economists and brilliant minds can do that......

And what's to stop another exchange from taking up the slack?  Any exchange that chose to enact such a cap would be handing business over to their competitors.

[tsvekric]

Question: Why?
Also, even if you tried to implement something like it, it will not work.
There is no governing body, so unless you can get everyone who owns bitcoins to promise not to sell bitcoins at a certain price on a certain day.... this is a free market.
If a website placed a limit - say prevented btc to sell above $20 that day - if the price demanded went above $20 that day, then there would simply be no trades made any more.  Those selling would wait until that cap is lifted so that they could sell at a higher price later.

I don't understand all this knee-jerk reactionaries on this forum that feel they need some sort of control in their life to make everything safe and OK.  The only way to truly raise the price of bitcoin is to make people want to use it - the price will rise as it becomes more useful as a currency.  There is a limited supply of BTC so this makes sense.  If 7 million people suddenly felt the need to convert their savings to BTC then 1 BTC would be worth the average person's savings!  Why try and stop it?

[tsvekric]

the only way to make bitcoin continue growing in value but also be less volatile is to have a market, goods with prices in btc, etc.  The more uses for btc the better.