Can Bitcoin Volatility Be Controlled?

[jonatuzc]

I have read some posts and some concerns that it is the volatility of Bitcoin that is preventing many people and many businesses to fully adopt Bitcoin. This can be the main factor why big online shopping stores are not yet adding Bitcoin into their payment facilities (though there is now a circulated petition for this but I doubt if it can make a dent).

Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?

If you are going to think of it. Bitcoin's volatility is one of the main reason why more and more people are getting attracted with bitcoin nowadays. The importance of volatility of bitcoin is very essential for its nature on being one of the most effective ways to earn money. Investors are really attracted to this knowing that they have a higher percentage on earning higher money due to the changing of bitcoin's value over time.

Volatility is the main source of attraction of investor toward the bitcoin, people know due to the volatility they can earn faster that’s why they are getting into bitcoin, as far as controlling volatility is concerned it is impossible the prices varies just because of user demands as user demand increase profit come so there is no need to control this advantage of bitcoin.

Yes it is the main thing that a lot of the people do like about the bitcoin. The price of the bitcoin keep on changing so a lot of the people are aware of it that someday the price of the bitcoin will be more than double. The users who are having the bitcoin know the importance of the volatility of the bitcoin and the advantage of this ability of the bitcoin.

[jpoker272727]

I have read some posts and some concerns that it is the volatility of Bitcoin that is preventing many people and many businesses to fully adopt Bitcoin. This can be the main factor why big online shopping stores are not yet adding Bitcoin into their payment facilities (though there is now a circulated petition for this but I doubt if it can make a dent).

Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?

If you are going to think of it. Bitcoin's volatility is one of the main reason why more and more people are getting attracted with bitcoin nowadays. The importance of volatility of bitcoin is very essential for its nature on being one of the most effective ways to earn money. Investors are really attracted to this knowing that they have a higher percentage on earning higher money due to the changing of bitcoin's value over time.

Volatility is the main source of attraction of investor toward the bitcoin, people know due to the volatility they can earn faster that’s why they are getting into bitcoin, as far as controlling volatility is concerned it is impossible the prices varies just because of user demands as user demand increase profit come so there is no need to control this advantage of bitcoin.

Yes volatility and decentralization are advantage to the bitcoin and those who are talking about controlling these two will regret about it if it will be in control because it generates the profit and if there is no volatility there will be no room for achieving so much profit in shorter time span so accept things as they were before to get the maximum benefits.

[futile-resistance]

I have read some posts and some concerns that it is the volatility of Bitcoin that is preventing many people and many businesses to fully adopt Bitcoin. This can be the main factor why big online shopping stores are not yet adding Bitcoin into their payment facilities (though there is now a circulated petition for this but I doubt if it can make a dent).

Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?

If you are going to think of it. Bitcoin's volatility is one of the main reason why more and more people are getting attracted with bitcoin nowadays. The importance of volatility of bitcoin is very essential for its nature on being one of the most effective ways to earn money. Investors are really attracted to this knowing that they have a higher percentage on earning higher money due to the changing of bitcoin's value over time.

Volatility is the main source of attraction of investor toward the bitcoin, people know due to the volatility they can earn faster that’s why they are getting into bitcoin, as far as controlling volatility is concerned it is impossible the prices varies just because of user demands as user demand increase profit come so there is no need to control this advantage of bitcoin.

Yes it is the main thing that a lot of the people do like about the bitcoin. The price of the bitcoin keep on changing so a lot of the people are aware of it that someday the price of the bitcoin will be more than double. The users who are having the bitcoin know the importance of the volatility of the bitcoin and the advantage of this ability of the bitcoin.

If there is no volatility there is no difference in bitcoin ad flat currency and all the investors will take out their money from it price volatility leads toward the high profit achievement and if all this is gone there will be no profit anymore and it will move downward so keep it moving in its way volatility is blessing to make high profit in short time so enjoy it.

[treather]

I don't think so - regular FIAT currencies aren't stable too, nothing like bitcoin though, but not too different. At some point, bitcoin will find its true value and plateau around the price.

[jaysabi]

Bitcoin's volatility will never be controlled, just look at other commodities like gold and see the big swings that happen there. Even fiat currencies often have large swings in their valuation.

"Big swings" is relative. Neither gold, silver, or other mainstream commodities, and especially not fiat, see volatility on the order that crypto has experienced in its short lifetime. Gold on rare occasions can swing 10% in a day, and that's a big move. Crypto routinely swings 20% or more in a day. Fiat is generally more stable than gold, and a few percent in a single day is a dramatic move. (Fiat during hyperinflation is another matter, it's not common and not normal, and is generally a one-way track.)

You forget to mention another commodity

Which perfectly cuts it as a mainstream one and which has volatility quite on par with that of Bitcoin. I obviously refer to crude oil which you kinda forget to mention. I guess it is as mainstream as mainstream itself is concerned, and it is not uncommon to see huge swings in the price of this commodity within a couple of days (up to a few dozen percentages). And it is not just about short-term volatility either. Long-term volatility of crude oil is also quite remarkable. But you certainly know that even better than myself

Yes, a perfectly fine addition to the list of mainstream commodities, but I wouldn't go so far as to say oil has volatility like bitcoin. How often does oil trade on swings as large as bitcoin in as short a time? Oil is comparative to gold and silver, but not bitcoin. In addition to oil, gold and silver have the ability to trade "a few dozen" percent in a few days time, but not nearly as frequently as bitcoin. Bitcoin's volatility I would put a whole magnitude higher, both in terms of the percentage swings, the time frame those swings occur (which are shorter), and especially in the frequency with which those swings occur in those time frames

I tend to disagree with this view

It could be claimed that Bitcoin is more volatile than oil overall, but certainly not at the scale of "a whole magnitude". We have seen Bitcoin crash like 6 times within a little over a year, from above 1,100 dollars down to below 200 dollars per coin in 2014-early 2015. But we have seen oil going absolutely the same path and basically within the same time span. Oil went down from over 120 dollars to 25 dollars per barrel in 2014. And this was not a one-off event by any means. In 2008 it fell from over 140 dollars to below 40 dollars per barrel, and before that we had seen huge price swings as well. How is Bitcoin's volatility time span shorter than that of crude oil if we consider the periods of maximum price swings? Regarding more short term swings, then again it is nowhere near being orders of magnitude difference (or just one magnitude). Right now oil seems to be more stable than Bitcoin, but let's not forget its wild swings just a year ago when its price jumped like mad pretty much Bitcoin style

I don't know how deeply you want to parse "a whole magnitude," but it's certainly not close. You've identified two very broad data points over a long period of time (which smooths out volatility and just becomes a trend) and that tend to support your claim, but if you drill down with any specificity you will see that it doesn't hold up. Bitcoin volatility crushes oil volatility as a rule in any specific period (monthly, weekly, daily), and in number of overall periods with significant swings. I've drilled down on monthly data below, but the disparity only grows larger the shorter you make the time frame (and since time is a component of volatility, shorter time frames equal higher volatility).

Average monthly price change Nov 2012 - June 2017

• Oil 6.23%
• Btc 29.33%

Number of 10% monthly changes:

• Oil 12
• Btc 36

Number of 20% monthly changes:

• Oil 3
• Btc 20

Number of 50% monthly changes:

• Oil 0
• Btc 6

There's no denying oil experiences volatility. But it's not in the same league as btc. Shorten the time frame and the volatility disparity is even more pronounced.

[Hamstead]

Bitcoin volatility can not be controlled and is not affected by the direction of change, bitcoin volatility only measures the quantity of change regardless of whether the price of bitcoin can rise or fall. From its fluctuating nature depending on the supply and demand of market prices, many traders take advantage of price movements always changing.

Traders and investors are very passionate when it comes to that situation. Taking advantage of its fluctuating trend is there chance to make profit, that's why they are very focus and always on the screen to have a look out in any price changes. Anyway, price stability isn't a problem because we already know that is a characteristic of bitcoin and it is for us on how to adopt that kind of character.

[jaysabi]

I don't think so - regular FIAT currencies aren't stable too, nothing like bitcoin though, but not too different. At some point, bitcoin will find its true value and plateau around the price.

Mate, it's a world of difference. The USD depreciates slowly over time. Bitcoin routinely experiences price swings in a single day that the USD has never seen in a month. There's absolutely no way to look at the data and conclude that it experiences volatility that is "not too different" than bitcoin. Going back to 1914, the highest monthly inflation rate on record for the USD is 23.7% in June of 1920, and the last time it's been above 10% in a month was 1981. For the last 30 years, it was been remarkably stable (compared to the inflation it experienced in the early part of the 20th century).

http://www.usinflationcalculator.com/inflation/historical-inflation-rates/

[ramsdaj28]

I have read some posts and some concerns that it is the volatility of Bitcoin that is preventing many people and many businesses to fully adopt Bitcoin. This can be the main factor why big online shopping stores are not yet adding Bitcoin into their payment facilities (though there is now a circulated petition for this but I doubt if it can make a dent).

Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?

Volatility, according to google dictionary, is defined as the liability to CHANGE RAPIDLY and UNPREDICTABLY, especially for the worse. So there's no way for us to control the VOLATILITY of bitcoin. Bitcoin is a DECENTRALIZED cryptocurrency, which means that no one can completely take control of it. We, the people who uses bitcoin, are the one who give a part of how bitcoin value moves, but we can't completely control its value.

Also, I don't think that bitcoin's volatility is a bane. For me, it is a boon. It's up to users on how to manage their investment on it.

[speedy963]

I have read some posts and some concerns that it is the volatility of Bitcoin that is preventing many people and many businesses to fully adopt Bitcoin. This can be the main factor why big online shopping stores are not yet adding Bitcoin into their payment facilities (though there is now a circulated petition for this but I doubt if it can make a dent).

Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?

If you are going to think of it. Bitcoin's volatility is one of the main reason why more and more people are getting attracted with bitcoin nowadays. The importance of volatility of bitcoin is very essential for its nature on being one of the most effective ways to earn money. Investors are really attracted to this knowing that they have a higher percentage on earning higher money due to the changing of bitcoin's value over time.

Volatility is the main source of attraction of investor toward the bitcoin, people know due to the volatility they can earn faster that’s why they are getting into bitcoin, as far as controlling volatility is concerned it is impossible the prices varies just because of user demands as user demand increase profit come so there is no need to control this advantage of bitcoin.

Yes it is the main thing that a lot of the people do like about the bitcoin. The price of the bitcoin keep on changing so a lot of the people are aware of it that someday the price of the bitcoin will be more than double. The users who are having the bitcoin know the importance of the volatility of the bitcoin and the advantage of this ability of the bitcoin.

If there is no volatility there is no difference in bitcoin ad flat currency and all the investors will take out their money from it price volatility leads toward the high profit achievement and if all this is gone there will be no profit anymore and it will move downward so keep it moving in its way volatility is blessing to make high profit in short time so enjoy it.

I partly agree with your opinion guys, that is also one of the reasons why investors are attracted to bitcoin, because of its volatiliity and for being a decentralized. The thing we are talking was about controlling bitcoins volatility, and the reality is that it cannot be controlled, even those big whales and big marketers cannot control it as what they wants.

[jamids]

I do think it can be controlled when there will be many holders of the currency and volume goes up. It is still new so it is still very volatile because there are so many speculations yet of what would be the true value of bitcoin. There are so many who are still positive that it is worth more than its value today and there are others who are still doubtful about it. There's a lot of people who are still new to the market and vulnerable to the movement of prices so when they see that its price dips, they panic sell. It may take years or decades for it to be stable but then the beauty of bitcoin now is its volatility because there zre so many trading opportunities.

[deisik]

I don't think so - regular FIAT currencies aren't stable too, nothing like bitcoin though, but not too different. At some point, bitcoin will find its true value and plateau around the price.

Mate, it's a world of difference. The USD depreciates slowly over time. Bitcoin routinely experiences price swings in a single day that the USD has never seen in a month. There's absolutely no way to look at the data and conclude that it experiences volatility that is "not too different" than bitcoin. Going back to 1914, the highest monthly inflation rate on record for the USD is 23.7% in June of 1920, and the last time it's been above 10% in a month was 1981. For the last 30 years, it was been remarkably stable (compared to the inflation it experienced in the early part of the 20th century).

http://www.usinflationcalculator.com/inflation/historical-inflation-rates/

Yeah, but the American dollar is not the only pebble on the beach

What about the German mark of the Weimar Republic depreciating thousands percentages per month in the early 1920's or the Zimbabwean dollar following its lead pretty close not so long ago in 2000's? And there are quite a few currencies in between these extreme examples of stability and volatility. It is only a dozen (or even half a dozen) major fiat currencies that are stable enough on the timeframes of decades. The total majority of other fiat currencies are outright trash if we look at their performance beyond just a few years

[mothergodness]

I have read some posts and some concerns that it is the volatility of Bitcoin that is preventing many people and many businesses to fully adopt Bitcoin. This can be the main factor why big online shopping stores are not yet adding Bitcoin into their payment facilities (though there is now a circulated petition for this but I doubt if it can make a dent).

Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?

While this is impossible, I do not see the prerequisites for managing volatility, or rather, small price changes, only when people stabilize it. How yes, all just keep it afloat and not sell at the first opportunity.

[rhodelmabanal]

It dependd on how they control the price people speaks on higher as on their sides. We could simply put on mind that bitcoin prices are controlled but not on all occassions. I think they just put away this topic because no one knows how to control bitcoin's volatile.

[jaysabi]

I have read some posts and some concerns that it is the volatility of Bitcoin that is preventing many people and many businesses to fully adopt Bitcoin. This can be the main factor why big online shopping stores are not yet adding Bitcoin into their payment facilities (though there is now a circulated petition for this but I doubt if it can make a dent).

Some are really saying that if volatility can be managed then we can see Bitcoin going mainstream. I am wondering then: Is volatility something that we should find a way to control and how do you think it can be done?

Volatility, according to google dictionary, is defined as the liability to CHANGE RAPIDLY and UNPREDICTABLY, especially for the worse. So there's no way for us to control the VOLATILITY of bitcoin. Bitcoin is a DECENTRALIZED cryptocurrency, which means that no one can completely take control of it. We, the people who uses bitcoin, are the one who give a part of how bitcoin value moves, but we can't completely control its value.

Also, I don't think that bitcoin's volatility is a bane. For me, it is a boon. It's up to users on how to manage their investment on it.

Volatility from an investment perspective is any change over time, not just downward movement. Volatility is usually associated with a negative connotation because people want their investments to maintain a stable value. Wild swings are associated with risk. While it's true that this creates opportunities for traders, it doesn't create stability, which is an important component of a currency. I suppose it comes down to what you want out of bitcoin. Do you want a wild vehicle so you can trade it, or do you want a stable currency so you can use it to transact business? I would consider these two things to be mutually exclusive.

[Awnar]

Bitcoin volatility can be controlled, once all the government and banks takes action into controlling bitcoins prices then the price of all cryptocurrencies will become stable. Governments have the power to stabilized a market and monitor every movement and transactions that will be made. The banks on the other hand can provide financial support and structure so that the use of cryptocurrencies will be more stable.

[deisik]

Bitcoin volatility can be controlled, once all the government and banks takes action into controlling bitcoins prices then the price of all cryptocurrencies will become stable. Governments have the power to stabilized a market and monitor every movement and transactions that will be made. The banks on the other hand can provide financial support and structure so that the use of cryptocurrencies will be more stable

But why would they want that?

That would mean direct intervention (read market manipulation) and putting a currency (in this case Bitcoin) into the so-called fixed (pegged) exchange rate mode (or a variety of it known as a currency band or range). Most countries try to move to a system based on floating exchange rates and support the exchange rate of their currencies via economic growth, which is a sort of natural (organic) exchange rate stabilizer or equalizer, in contrast with monetary policies and direct market intervention, which may cost dear in the long run

[homculus]

Well, I actually understand that there is some need to go with context and whatever is the practice of the day, and these days the upcoming trend is to attempt to get airdrops through hardforks.  So, yeah, it is likely that we will see a variety of alts created or attempted through such new and "acceptable" methodologies.  Does not mean that I need to praise such new methodologies... so we are going to have DooBitcointmMAD coming out soon, too?

[BillCoin]

It is really hard to control , and I believe it will only be possible when bitcoin's market cap will be few trillions of dollars, but it is possible.

If a very large group decides that they want the btc price to stay capped at 1M$, all they need to do is to make a very large buy order at 999,999$, and a very large sell order at 1M$, it will make the price capped at about 1m$, cause everyone who wants to buy/sell will have to do it at that price.
It is not possible with the current bitcoin market cap though.

[Netnox]

The volatility of any currency can be controlled through artificial means, just like the fiat currencies. If you want to prevent the exchange rates from falling beyond a certain point, then you can hoard more of the currency and if you want to do just the opposite, then you can dump it. But what makes doing similar stuff to Bitcoin more complex is the lack of existence of a centralized exchange.

[real eyes realize]

Just like all kind of currencies, bitcoin need something to live as well: Faith. I think bitcoin need more years to have a stable price, because human race's accepting of big things sometimes have been took many years maybe the centuries in the history. I think it is a really low possibility to see the bitcoin's prices non-volatile in the near future. All its need is more supporter and more time.