What must happen so that cryptocurrencies are less volatile?

[Stunny]

What would it take?

Does the volatility settle if certain amount of merchants accept payments in crypto? Or should there be more people that would get paid in crypto? OR should there be a cryptoeconomy where people and businesses get income in crypto and spent the crypto?

Furthermore, could the volatility be even solved? I mean of more and more people are getting into Bitcoin, when would such demand cycle cool down?

I would like to know the economics behind it.

[kriptotr]

Volatility could be solved. This will happen itself eventually because the market requires more participants and more depth so that it could generate less volatility. As we have more participants, it won't be that easy to manipulate the prices.

[Kronos21]

Volatility will cease only when bitcoin becomes a real means of payment. Most users use bitcoin for investment and wait for it to rise in price. This was successfully used by whales. If the bitcoin will be used for purchases, the proportion of whales in the market will be reduced and they will not be able to exert such influence on prices.

[Stunny]

Volatility could be solved. This will happen itself eventually because the market requires more participants and more depth so that it could generate less volatility. As we have more participants, it won't be that easy to manipulate the prices.

I agree that if there would be more holders than speculative trading, it would definitely bring volatility down.

[iram1011]

What would it take?

Does the volatility settle if certain amount of merchants accept payments in crypto? Or should there be more people that would get paid in crypto? OR should there be a cryptoeconomy where people and businesses get income in crypto and spent the crypto?

Furthermore, could the volatility be even solved? I mean of more and more people are getting into Bitcoin, when would such demand cycle cool down?

I would like to know the economics behind it.

There have been many such threads. But let me answer it again. Practically if we look at marketcap of Bitcoin, it will take many years to reach a state of less volatility.
Bitcoin has a $42B market cap. This is nothing. Until this market cap grows into the trillions I don’t think Bitcoin will be stable enough. There just isn’t enough liquidity. When the Bitcoin is distributed in large population. It will tend to be stable. Market wouldn't be driven excessively by a single investor holding millions of Bitcoin.

[LoudA__]

What would it take?

Does the volatility settle if certain amount of merchants accept payments in crypto? Or should there be more people that would get paid in crypto? OR should there be a cryptoeconomy where people and businesses get income in crypto and spent the crypto?

Furthermore, could the volatility be even solved? I mean of more and more people are getting into Bitcoin, when would such demand cycle cool down?

I would like to know the economics behind it.

I think bitcoin's volatility can't be removed unless all the bitcoin was mined. Even if many merchants and stores are accepting bitcoin the volatility will still be there as I've said unless the bitcoin is not all mined we still don't need to problem the volatility. Why just don't we use this volatility into our advantage.

[MRlong]

Volatility will cease only when bitcoin becomes a real means of payment. Most users use bitcoin for investment and wait for it to rise in price. This was successfully used by whales. If the bitcoin will be used for purchases, the proportion of whales in the market will be reduced and they will not be able to exert such influence on prices.

So, the price of Bitcoin in present control by mentality of most trader on market. They are reason make Bitcoin price increasing or decreasing, example: just by the news BTC-e exchange down in one day can create panic selling drop price from $2800 to $2500 in one hours lol

[panju1]

What would it take?

Does the volatility settle if certain amount of merchants accept payments in crypto? Or should there be more people that would get paid in crypto? OR should there be a cryptoeconomy where people and businesses get income in crypto and spent the crypto?

Furthermore, could the volatility be even solved? I mean of more and more people are getting into Bitcoin, when would such demand cycle cool down?

I would like to know the economics behind it.

Essentially the market capitalization of Bitcoin will reach such a high level that volatility will die down. If the US Fed prints a few additional dollars, the purchasing power of your dollar doesn't go down immediately, right? It is just a small drop in the ocean.

[merchantofzeny]

First would probably be reaching the cap. In case of bitcoin,  there is a hard cap on the supply and once that is reached, no more bitcoin can be mined. Another would be market reach. It won't do much when all the bitcoins are in circulation but only a few have large amounts of it which they can dump at will.

[webtricks]

What would it take?

Does the volatility settle if certain amount of merchants accept payments in crypto? Or should there be more people that would get paid in crypto? OR should there be a cryptoeconomy where people and businesses get income in crypto and spent the crypto?

Furthermore, could the volatility be even solved? I mean of more and more people are getting into Bitcoin, when would such demand cycle cool down?

I would like to know the economics behind it.

Volatility can't be solved although it can be minimized. Everything having monetary value is volatile until it is regulated by government. Laws of appreciation and depreciation works on every speculated item and cryptocurrencies are no difference. Requiring no intrinsic value, it is easy that cryptocurrencies' market value rise/fall huge with little change in market.
So to stabilize them more, large adoption should take place as well as trading malpractices should be minimized like pump/dump, etc.

[iluvpie60]

the way for cryptos to be less volatile is that we need more regular people using it OUTSIDE of exchanges.

The reason price goes up and down so much on exchanges is due to early adopters/miners/whales. The more regular people using it to actually buy/sell things the tigther the spread will be.

Say you have 75% of the volume during a dump being done by whales/miners/early adopters, only 25% is real transactions being done in this scenario. You need more people/businesses buying in. So they buy in with BTC to get their raw materials, the raw material vendor uses that BTC to buy more components for what they make, and so on. That is what we need more of. It is slowly happening

[btcdepo]

Volatility is not the problem. that is even good thing.

[harizen]

Furthermore, could the volatility be even solved? I mean of more and more people are getting into Bitcoin, when would such demand cycle cool down?

It will cooldown at least when there is no big hoarders anymore and bitcoin will be used more as a currency.

But because of the limited supply of bitcoin and there is no way to increase that and most people takes this as investment, volatility in bitcoin is bound to lasts forever that's why there are speculations of high price in the future which some are taking to the point to reached the unrealistic price.

[richardfisk]

Why do we need to make bitcoin and other crypto less volatile? The volatile is what people like in the cryptocurrency so that they can make money from both trading and long term investment. If this feature does not available, people will get sick of the cryptocurrency and start selling everything which will harm the whole crypto market

[Przemax]

For the bitcoin to be less volatile in a short term it should first reach a support level at somewhere of a fibbonaci retracement, then it should bounce back.

That should give the serious stabilisation of the market, as not knowing the resistance and support by the speculators is getting them nervous.

If that would be established there should just be needed a lot of a speculation capital. That capital should be driven with a mentality of a buy low, and sell high, up to a point that noone can earn money that way. That would reach a stabilisation in price.

Ofcourse one can say that in the leveraged market there is always a risk of taking advantage of others by short or long squizzes. Maybe thats true. But if enough of speculators stabilise the price, the dannger of that happening is lower

[Beerwizzard]

There have been many such threads. But let me answer it again. Practically if we look at marketcap of Bitcoin, it will take many years to reach a state of less volatility.

Volatility may be reduced only if people will start using crypto irl as any other currency. We just need something like a breakthrough to make it easier to buy / sell different things. After that the hype is real and BTC can becope stable pretty fast. I might be too optimistic but I'm pretty sure that the whole process may take just a couple of years.

[machinek20]

Volatility cant be hold or avoided, the only way to make it less volatile is by let someone controlled it, but that won't happened, the crypto currencies volatility happened because it is decentralized, that means that the price is depend on the market and the market wont stop fluctuate until the supply and demand stop

[Rahar02]

What would it take?

Does the volatility settle if certain amount of merchants accept payments in crypto? Or should there be more people that would get paid in crypto? OR should there be a cryptoeconomy where people and businesses get income in crypto and spent the crypto?

Furthermore, could the volatility be even solved? I mean of more and more people are getting into Bitcoin, when would such demand cycle cool down?

I would like to know the economics behind it.

There have been many such threads. But let me answer it again. Practically if we look at marketcap of Bitcoin, it will take many years to reach a state of less volatility.
Bitcoin has a $42B market cap. This is nothing. Until this market cap grows into the trillions I don’t think Bitcoin will be stable enough. There just isn’t enough liquidity. When the Bitcoin is distributed in large population. It will tend to be stable. Market wouldn't be driven excessively by a single investor holding millions of Bitcoin.

Marketcap even just give a little CONTRIBUTION to bitcoin volatile, because :
- marketcap = price * amount in circulation.
- imagine someone who has huge amount of bitcoin such as BTC500,000 orBTC1 Million, he could still manipulate the price.
I think it's better if bitcoin amount is spread widely instead of just one man holding huge amount of bitcoin.
Then, it refers to bitcoin usability, when more merchants accept bitcoin payment and it has spread widely, then the volatility of bitcoin could be reduced.

[abayan]

What would it take?

Does the volatility settle if certain amount of merchants accept payments in crypto? Or should there be more people that would get paid in crypto? OR should there be a cryptoeconomy where people and businesses get income in crypto and spent the crypto?

Furthermore, could the volatility be even solved? I mean of more and more people are getting into Bitcoin, when would such demand cycle cool down?

I would like to know the economics behind it.

Whatever happens the volatiliy will be always present and it can't be solved , Since bitcoins are starting to wake up the people the more people getting into bitcoins the more it have a much volatility . But who knows in the future when almost all people have bitcoins and the mining of has done . The demand for now is still growing let's accept that and follow tge flow make profit that was the only thing we can do now instead of questioning its volatility.

[klf]

Volatility will cease only when bitcoin becomes a real means of payment. Most users use bitcoin for investment and wait for it to rise in price. This was successfully used by whales. If the bitcoin will be used for purchases, the proportion of whales in the market will be reduced and they will not be able to exert such influence on prices.

That is true. As of now, some big whales are controlling the market to make a profit for them by doing these regular pumps and dumps and most of the traders like these volatile markets rather stable markets. But only like us investors want more stable market and it will happen only when more and more people start holding the bitcoins.