Can Bitcoin Volatility Be Controlled?

[SummerBliss]

Volatility of bitcoin is indeed hindering its utility. Many merchants and vendors are skeptical of accepting bitcoin as a payment medium just because of high volatility. Nobody can definitely control the volatility. But with time when more users will start investing in Bitcoin and distribution becomes more uniform, volatility will decrease. But it always be there.

[deisik]

Why control it? Crypto currencies are so attractive right now because of volatility and speculation, there are non volatile coins and don't generate much interest

I think I do agree with it, most investors see potentials on things they can't control it's like a new thrill. In bitcoin you can't get bored to it, for other stocks they have the tendency for a repetitive trend everyday. And most users are used in gamble and uncertainty. It is like, a game play to them in some cases but eventually profiting the end. Cant argue much on what should be good for bitcoin, is good to be volatile or stable?. I think I will accept bitcoin as it is.

If you want Bitcoin as a speculative currency used to grow your money, it's true, there is no reason to control the volatility, but if you want to use it as currency on your daily life there should be some stability... People won't like to use 1 Bitcoin today to buy a computer as tomorrow this person can use the same 1 Bitcoin to buy a car... People will tend to hold and only hold, without making the BTCs circulate on the market

Bitcoin is no exception here

Any appreciating currency (i.e. a currency rising in value) leads to this effect, that is, to people hoarding money instead of spending it. This is called price deflation (since one unit of a currency can buy more over time), and this is dangerous to the economy overall, by far more dangerous than small or moderate inflation (small and stable inflation is considered good and beneficial to the economy). In such conditions producers are disincentivized to produce, thus people are laid off, and the whole economy is set to spiral down. In other words, Bitcoin, with its number of coins hard capped, would be one such currency if it were used universally and instead of inflating fiat

Something like this happened on my country on the 80's. Saving account was too good and generated too much interest %, then many people just sold everything they had and put all their money on these accounts. Lots of people living from interest and stopped working, all day long doing nothing.

Then someday it crashed and people's money was confiscated, the interest % generated by these accounts dropped near to zero and it's like this until nowadays, worthless. With Bitcoin it's harder to happen because there are a global community involved and different interests, but there are many people dreaming to live without working, just with Bitcoins income and that isn't sustainable if everyone start thinking this way.

Who will produce the food, technology, science, education... ?

I certainly understand your question and your concern

But if we are to be honest and bravely face the truth, Bitcoin is not the first asset which allows some people to live idly most of the time. In fact, there are quite a few people who live exactly that way their entire lives (though not via Bitcoin en masse), and that has been so for ages. In this way, there's nothing new under the Moon. Nevertheless, if we take Bitcoin, only early adopters (I guess we could still count ourselves as being the ones) can hope for that, the rest of the population should continue to work up a sweat to make a living. And if former rentiers should go to work too, as to me, that would be just fine

[Mobshady24]

it cant be controlled but at some point where everyone wants to hold it rather than selling or spending, it will reach a point where changes in value will be immaterial. One thing i can think of controlling it if whales will construed and control btc price.

[mrcash02]

Are you sure?

What do you think? Is there any other possibility to use non-speculative currency without using fiat?

just 3 examples https://themerkle.com/top-3-stable-cryptocurrencies-based-on-usd-value/

https://bitshares.org/technology/price-stable-cryptocurrencies/

I didn't know about this kind of AltCoin, I must check it.

Thanks.

Something like this happened on my country on the 80's. Saving account was too good and generated too much interest %, then many people just sold everything they had and put all their money on these accounts. Lots of people living from interest and stopped working, all day long doing nothing.

Then someday it crashed and people's money was confiscated, the interest % generated by these accounts dropped near to zero and it's like this until nowadays, worthless. With Bitcoin it's harder to happen because there are a global community involved and different interests, but there are many people dreaming to live without working, just with Bitcoins income and that isn't sustainable if everyone start thinking this way.

Who will produce the food, technology, science, education... ?

I certainly understand your question and concern

But if we are to be honest and bravely face the truth, Bitcoin is not the first asset which allows some people to live idly. In fact, there are quite a few people who live exactly that way 9though not via Bitcoin), and that has been for ages, so there's nothing new under the Moon. Nevertheless, if we take Bitcoin, only early adopters (I guess we could still count ourselves as being the ones) can hope for that, the rest of the population should continue working hard

Yes, I agree. The Bitcoin adopters pioneers have great chances to be the millionaires of the future and when the time comes I just hope they have a different behavior over the rest of population, not trying to enslave them with poor culture, destruction of values and depravity, but trying to bring these people to the light and evolution as well. The volatility of Bitcoin for now is an important feature to give some chance to everyone to have success on their lifes.

[deisik]

Something like this happened on my country on the 80's. Saving account was too good and generated too much interest %, then many people just sold everything they had and put all their money on these accounts. Lots of people living from interest and stopped working, all day long doing nothing.

Then someday it crashed and people's money was confiscated, the interest % generated by these accounts dropped near to zero and it's like this until nowadays, worthless. With Bitcoin it's harder to happen because there are a global community involved and different interests, but there are many people dreaming to live without working, just with Bitcoins income and that isn't sustainable if everyone start thinking this way.

Who will produce the food, technology, science, education... ?

I certainly understand your question and concern

But if we are to be honest and bravely face the truth, Bitcoin is not the first asset which allows some people to live idly. In fact, there are quite a few people who live exactly that way 9though not via Bitcoin), and that has been for ages, so there's nothing new under the Moon. Nevertheless, if we take Bitcoin, only early adopters (I guess we could still count ourselves as being the ones) can hope for that, the rest of the population should continue working hard

Yes, I agree. The Bitcoin adopters pioneers have great chances to be the millionaires of the future and when the time comes I just hope they have a different behavior over the rest of population, not trying to enslave them with poor culture, destruction of values and depravity, but trying to bring these people to the light and evolution as well

I tend to disagree with this view

You seem to be too idealistic in respect to the new riches (the new rich thanks to Bitcoin) having different attitude toward the rest of population. Indeed, some of these nouveaux riches may be different but ultimately, as to me, it all comes down to the rest of population themselves, i.e. not the rich as such. In other words, I don't see a lot of sense in trying to "bring these people to the light and evolution". As the saying goes, you can lead a horse to water but you can't make him drink. Though I strongly agree that volatility is an important feature or factor which gives us a chance to change our lives and grab some nice profits

[KEPLER99]

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 of bitcoin will  only reduce if too many people are using it. Imagine if the supply of bitcoin are already scattered in every single person, it would be hard to dump it because there is always someone who will catch those dumps.
 

Yes volatility sis directly depending to the demand as demand will increase in these days due to dump the stability will be achieved and if its volatility is controlled what will be the difference between the cash and bitcoin so keep it on and its volatility gives a lot of profit also so if it will be controlled the profit will be fixed and not so huge.

[ask]

Young markets are always volatile. few years later bitcoin chart will be stable and less valotile probably after 2019 (Halving)
Check out commodities markets they are similar to bitcoin market and bitcoin market will be same volotile as gold soon.

[extrimals]

I think that you can control the volatility of bitcoin by launching a bad or good condition. Good news will increase the price, and the bad will be lowered on the contrary.

[olubams]

I think that you can control the volatility of bitcoin by launching a bad or good condition. Good news will increase the price, and the bad will be lowered on the contrary.

Controlling volatility being referred to here is not about what you are saying but about ensuring that its minimised to the barest minimum in that rate of differentials in a space of one month is not as large as we have it now. In controlling the volatility at this time will amount to waste of time and effort which is something that is causing some challenges because it makes planning difficult, merchants can say for sure their 0.01btc will remain the same $44.06 at this time in the next one month. Until the acceptance of bitcoin has reached a high level, we might not be over with volatility.

[samputin]

Volatility of bitcoin and cryptocurrency cannot be controlled. In my view very few altcoins volatility were controlled just because of the team that's behind it. Some provide fake price moves to profit out of it, if the system functions in a decentralized state the volatility can't be kept under control. At times manipulation happens with the big Volume holders.

Yes i agree with you..i thought no one can control the volatility of bitcoin because it occurs at a natural phenomenon.. and like what you said if the volatility of bitcoin controlled there is a manipulation of the system or in the bitcoin process and the worst result can lead to be scammed and corrupted.

[Senja Kemuning]

If you have dominant bitcoin then anything you can do including controlling the price and volatility , but the fact that until now no person or group can control the bitcoin so it looks bitcoin can continue to attract.

[nl247]

It cannot be controlled. Highest that can ever happen is the volatility reducing a little bit and that doesn't mean it cannot still experience some dips or a little bit bullish trend just like any other currency. This is normal as even other foreign currency are not stable, otherwise forex trading will not even exist in the first place. Over time, when we have huge adoption, we might get to a stage when the value will keep hovering within a particular range.

[pginvest]

I think the volatility will work itself out over time. If Bitcoins market cap right now is about $75 Billion - while its a lot of money, it is still small compared to other markets like fiat currencies, gold etc.

Once the overall cap grows, it will gain a certain inertia that will make it harder to swing with such pace.

Additionally, many people are not fully familiar or comfortable with crypto currencies yet, and the news, good and bad has a very skittish effect on the market.

I think these things are growing pains that will work out over a couple of years.

Patience.

[Capt00]

Volatility in the prices of bitcoin will always be until the speculators will control the bitcoin market. Exchanges of shares are the mechanisms which oppose the actions of speculators. Maybe someday we will have the same mechanisms at bitcoin exchanges and then jump stop.

Bitcoin price is just like our life, sometimes we've got strong and sometimes we are weak. Everything that are dependent by the numbers of user are totally subject for volatility. Because it varies automatically with the users, as users increase definitely price will increase also.

[deisik]

I think the volatility will work itself out over time. If Bitcoins market cap right now is about $75 Billion - while its a lot of money, it is still small compared to other markets like fiat currencies, gold etc.

Once the overall cap grows, it will gain a certain inertia that will make it harder to swing with such pace

This is faulty logic

First, the market cap of 75B dollars has nothing to do with real money, so you can't possibly say that it is a lot of money (or otherwise) since this money doesn't exist for real. Further, even if the market cap grew multifold, that would likely cause volatility to surge, not to decline. How come? Market cap is just a multiplication of a varible (price) by a constant (number of coins mined). In other words, we can safely look at the price instead of the market cap. And when the price rises, it means that supply diminishes. But given that the monetary supply of bitcoins (i.e. number of coins mined) is almost constant, it necessarily contributes to higher volatility. To sum it up, the higher the price, the (yet) higher the volatility

[senne]

Bitcoin volatility depends upon a number of factors, So it becomes difficult to control all the factors due Volatility of Bitcoin cannot be controlled.There are possibility many reasons behind this like it is decentralized, exchanges being hacked, ban of ICO in few countries and much more, random news or rumors suddenly effects the price. So it can be difficult for one to control the volatility of Bitcoin.

[ronafurw]

it cant be controlled but at some point where everyone wants to hold it rather than selling or spending, it will reach a point where changes in value will be immaterial. One thing i can think of controlling it if whales will construed and control btc price.

Frist of all you said right it can’t be controlled and secondly if it will be controlled then the investors will fled away because people invest in it just because of its volatility and if it will be fixed it will be like banks nowadays it is the most profit giving investment if it will be controlled it will be no more and nobody will invest so let it move like this.

[wuvdoll]

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 think volatility is something that we should control so that many investors will approve bitcoin as their main investment place. If the value of bitcoin is uncertain, then the possibility that you will earn large amount of money would go down and would be affected. But removing it's volatility will remove it's characteristic which may end up making bitcoin another thing. For me volatility is something that we should endure and endured as time passes by. We have to deal with it.

We shouldn't control the volatility, I don't agree with you because the market is free and decentralized. And it has to stay like that forever. Controllng it meaning we're making it centralized. This is aganinst the motto.

I do not agree with that either. What makes bitcoin disruptive is the fact that it is decentralized and cannot be controlled except by the market (supply and demand). As long as we keep having this, we will just have to stick with the decentralized system that we have until maybe we start seeing some balance as time goes on.

I have the feelings it will one day maybe get close to its peak and we may start seeing some little bit of steady price, but not still without the volatility as it will always be present.

[lordquanta]

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 think volatility is something that we should control so that many investors will approve bitcoin as their main investment place. If the value of bitcoin is uncertain, then the possibility that you will earn large amount of money would go down and would be affected. But removing it's volatility will remove it's characteristic which may end up making bitcoin another thing. For me volatility is something that we should endure and endured as time passes by. We have to deal with it.

We shouldn't control the volatility, I don't agree with you because the market is free and decentralized. And it has to stay like that forever. Controllng it meaning we're making it centralized. This is aganinst the motto.

I do not agree with that either. What makes bitcoin disruptive is the fact that it is decentralized and cannot be controlled except by the market (supply and demand). As long as we keep having this, we will just have to stick with the decentralized system that we have until maybe we start seeing some balance as time goes on.

I have the feelings it will one day maybe get close to its peak and we may start seeing some little bit of steady price, but not still without the volatility as it will always be present.

Some points are correct like bitcoin is decentralized and controlled or manipulated with supply and demand. To put it in different perspective other markets have regulators however these markets are also controlled with supply and demand except reality market (which could be blown out of proportion but after that it bursts badly). All the rules and regulation are there for small scale players. These rules are applied for common man and not for big whales, big banks. These big banks and finance houses control the market at their will. So rules are there to just pretend that there are rules and regulation. In case of bitcoin all bets are off, demand and supply. Whoever has deep pockets can go on bull run and later dump coins and earn profit. Here I'm not speaking about people with few hundreds worth bitcoin, but people or companies having bitcoins in thousands and thousands. Bitcoins volatility is direct result of supply and demand and some over enthusiasts.

[naidray]

I think that you can control the volatility of bitcoin by launching a bad or good condition. Good news will increase the price, and the bad will be lowered on the contrary.

Sorry mate, but this cannot control volatility but will even make it more volatile. What do you think has been going on all this few years. I am not sure if you understand the control we are talking about here but the control scenario you just said is apparently not a way to control it.
Controlling is more like finding a way to make the volatility stop and not increase.