Can Bitcoin Volatility Be Controlled?

[dinalo]

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.

[xvids]

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?

I don't really think that it could ever be controlled.
There is no one that could ever control it even the government it is made for everyone .

[drlukacs]

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.

Although not anyone can't control Bitcoin's volatility, but they still can make the mentality of trader panic, fearing, happy, interesting ...  as their want anytime. Just by some breaking news, they can "control" all crypto on market with support from trader on market

[ahmia39]

Every traded sure have volatility. As well bitcoin, even bitcoin which is clearly not regulated by any institution or country makes price occurs is purely on demand and supply.

[ene1980]

I don't think bitcoin's volatility in current situation can be controlled as its adoption among the people is very much up. Only due to its readily acceptance and its popularity all over the globe, its demand is always in an increase. These combined contributing factors make it difficult to control its volatility.

There is a small contradiction with your point of view,if the adoption of bitcoin among people is increasing on a daily basis then the so called volatility in the price of bitcoin will drop considerably and that is the only possible solution to control the big movements.

[Emitdama]

I don't think there is any way to control the volatility of Bitcoin as it is a free market of trading without any government control, but this is also one of the reason why bitcoin is attractive to many investors, as there is no limits on how high the values of bitcoin could rise, there is always a potential to get a huge profit from trading bitcoins.

we all can see the users of the bitcoin is increasing with the time so how can we say bitcoin volatility can go down when it is increasing its circle very rapidly, and the price of the bitcoin is getting bigger as the time passes and the supply and the demand of the bitcoin in the market is very high now the people who are interested in bitcoin are ready to pay the high market price just to own bitcoin  so I think the volatility of the bitcoin cannot be controlled that easily .

[lovesybitz]

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?

Of course, it can't be control. Because example, you cannot control the buyers if they want to buy something whether the value price is cheap or high also we cannot control the sellers too if they want to sell something because they want to earn. Same thing with bitcoin volatility, I think is the hearth of the traders in any exchange site platform.

[jaysabi]

"Can bitcoin volatility be controlled" is just a subquestion of the larger "Can any volatility be controlled?" Short of fixed prices, the answer is no. The free market moves based on supply, demand, forward-looking expectations and many other facts. Further, whereas the government can "fix" prices through the use of force for some items in the real world (although, to limited effect), I don't see a technical way to enforce a set price on bitcoin. All the shortcomings of real world price fixing is amplified by the technical setup of a decentralized ecosystem. 

[Gotottack]

"Can bitcoin volatility be controlled" is just a subquestion of the larger "Can any volatility be controlled?" Short of fixed prices, the answer is no. The free market moves based on supply, demand, forward-looking expectations and many other facts. Further, whereas the government can "fix" prices through the use of force for some items in the real world (although, to limited effect), I don't see a technical way to enforce a set price on bitcoin. All the shortcomings of real world price fixing is amplified by the technical setup of a decentralized ecosystem. 

That is definitely a problem the governments cannot even directly influence. To combat volatility of fiat currencies, government can only do indirect actions such as increasing the rates for bonds to lower the supply of money in circulation. Generally that volatility in fiat is in terms of inflation.

In bitcoins though, we can't really control this because indeed it is a freemarket and supply and demands does dictate the price. However, the problem is that since the market value of the whole bitcoin economy can easily be influenced by some whales we have that problem of possible manipulation.

[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.)

[SirLancelot]

I don't think there is any way to control the volatility of Bitcoin as it is a free market of trading without any government control, but this is also one of the reason why bitcoin is attractive to many investors, as there is no limits on how high the values of bitcoin could rise, there is always a potential to get a huge profit from trading bitcoins.

we all can see the users of the bitcoin is increasing with the time so how can we say bitcoin volatility can go down when it is increasing its circle very rapidly, and the price of the bitcoin is getting bigger as the time passes and the supply and the demand of the bitcoin in the market is very high now the people who are interested in bitcoin are ready to pay the high market price just to own bitcoin  so I think the volatility of the bitcoin cannot be controlled that easily .

Volatility of digital currencies whether they are bitcoins or any other coins is tough to control. The volatile nature is main thing that attracts people towards digital coins. Bitcoins, no doubt are increasing in demand and gaining too much popularity worldwide. All this will directly increase its value.

[bitcoinvestor]

Bitcoin are real marketplace. No one can control the volatility of this currency. It is based on the market demand and supply. One thing that tru to control bitcoin is bitmain. The fact bitcoin split to BCH and BTC. BTC is legacy bitcoin that can't be control. The users have voice on the vote. MOst voters prefer to use BTC than BCH. Now bitcoin is getting strongger, I think many parties will offend with the growth of this community. Bitcoin not only currency but also community. When an institution want to control decentralized community, they will fail. They can control the money but they can;t control decentralized power, bitcoin community has its own power.

[BartS]

Volatility can't be controled but it will get more and more reduced as market cap and daily volume increases over time. Bitcoins volatility is proportional to its value, at higher valuations it takes more fiat to move the price in either direction.

This, we must not forget that bitcoin is still a new and untested technology, so it makes sense there is a lot of volatility as time goes on and more money is moving in bitcoin then the volatility is going to get lower and lower until it is just a memory in the distant past.

The bitcoin can be in the test phase, but if the volatility is variable it turns out that there are many parts, so it does not make much sense for me that the volatility will become stagnant after the test is over.

Look at the market cap as you look at weight, a light object can be moved very easily, a piece of paper can go flying with just the smallest amount of wind, but if an object becomes very heavy then it becomes very difficult to move, so if the market cap goes very high then the price of bitcoin will be a lot more difficult to  move.

[nizamcc]

Its volatility is its only important weapon actually, based on which businesses are adopting Bitcoin as a new way of financing themselves to nurture the beauty of something that is money itself and provides interest to you to keep it. Controlling it would rather remove interest of many who are in it just for the sake of trading.

[BartS]

Its volatility is its only important weapon actually, based on which businesses are adopting Bitcoin as a new way of financing themselves to nurture the beauty of something that is money itself and provides interest to you to keep it. Controlling it would rather remove interest of many who are in it just for the sake of trading.

Not only that but the only way to control the volatility of bitcoin will be to control the bitcoin supply, so if the price of bitcoin goes up then new coins will have to be mined in order for the supply to go up and the price to be stabilized and that goes against everything that bitcoin represents.

[OracionSeis]

I don't think there is any way to control the volatility of Bitcoin as it is a free market of trading without any government control, but this is also one of the reason why bitcoin is attractive to many investors, as there is no limits on how high the values of bitcoin could rise, there is always a potential to get a huge profit from trading bitcoins.

we all can see the users of the bitcoin is increasing with the time so how can we say bitcoin volatility can go down when it is increasing its circle very rapidly, and the price of the bitcoin is getting bigger as the time passes and the supply and the demand of the bitcoin in the market is very high now the people who are interested in bitcoin are ready to pay the high market price just to own bitcoin  so I think the volatility of the bitcoin cannot be controlled that easily .

Volatility of digital currencies whether they are bitcoins or any other coins is tough to control. The volatile nature is main thing that attracts people towards digital coins. Bitcoins, no doubt are increasing in demand and gaining too much popularity worldwide. All this will directly increase its value.

Very difficult but not meaningful can't control the price the volatility on market. Example Bitcoin Cash, why an altcoin most trader say is shitcoin can recovery after flash crash in first time and rising up to high price ~0.5 BTC/BCC on Bittrex exchange. Just by some wall, order trap on market create by whales, most trader change their think and buying Bitcoin Cash for earning profit.

[deisik]

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

[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.

[deisik]

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

[BartS]

I don't think there is any way to control the volatility of Bitcoin as it is a free market of trading without any government control, but this is also one of the reason why bitcoin is attractive to many investors, as there is no limits on how high the values of bitcoin could rise, there is always a potential to get a huge profit from trading bitcoins.

we all can see the users of the bitcoin is increasing with the time so how can we say bitcoin volatility can go down when it is increasing its circle very rapidly, and the price of the bitcoin is getting bigger as the time passes and the supply and the demand of the bitcoin in the market is very high now the people who are interested in bitcoin are ready to pay the high market price just to own bitcoin  so I think the volatility of the bitcoin cannot be controlled that easily .

Volatility of digital currencies whether they are bitcoins or any other coins is tough to control. The volatile nature is main thing that attracts people towards digital coins. Bitcoins, no doubt are increasing in demand and gaining too much popularity worldwide. All this will directly increase its value.

Very difficult but not meaningful can't control the price the volatility on market. Example Bitcoin Cash, why an altcoin most trader say is shitcoin can recovery after flash crash in first time and rising up to high price ~0.5 BTC/BCC on Bittrex exchange. Just by some wall, order trap on market create by whales, most trader change their think and buying Bitcoin Cash for earning profit.

It is very obvious that bitcoin cash is being manipulated, when you have some miners and some exchanges colluded then they can make the price of any coin move as they want, especially a market like bitcoin cash that is nothing but speculation at the moment since there is nothing else you can do with it except to buy it and to dump it.