What must happen so that cryptocurrencies are less volatile?

[Kakmakr]

I always think about the Maize farmer story I have been told when I was young. We had a very rich maize farmer in our country and he started with 1 farm. He was very successful and consequently bought more farms in the surrounding area. In the beginning the price of maize was determined by the supply of say 5000 farmers in the district, but as this successful farmer bought other farmers land, the number of farmers in the district decreased.

His 5 sons started to farm and they also started buying land in the district, until they owned almost all farms. Now they were in a position to manipulate the supply of maize to the market. They could plant less maize to hike up the price or hold back the maize in Silos.

This is happening with Bitcoin now, some Bitcoin whales < early adopters > are owning the majority of the coins. So they can manipulate the price, based on the demand and how they supply or hoard coins. < The same thing are being done with other commodities like Oil >

The solution will be to increase adoption to put coins into other people's wallets. The more coins are distributed to more people, the less opportunity there will be for whales to manipulate the exchanges. ^smile^

[huanglui]

I always think about the Maize farmer story I have been told when I was young. We had a very rich maize farmer in our country and he started with 1 farm. He was very successful and consequently bought more farms in the surrounding area. In the beginning the price of maize was determined by the supply of say 5000 farmers in the district, but as this successful farmer bought other farmers land, the number of farmers in the district decreased.

His 5 sons started to farm and they also started buying land in the district, until they owned almost all farms. Now they were in a position to manipulate the supply of maize to the market. They could plant less maize to hike up the price or hold back the maize in Silos.

This is happening with Bitcoin now, some Bitcoin whales < early adopters > are owning the majority of the coins. So they can manipulate the price, based on the demand and how they supply or hoard coins. < The same thing are being done with other commodities like Oil >

The solution will be to increase adoption to put coins into other people's wallets. The more coins are distributed to more people, the less opportunity there will be for whales to manipulate the exchanges. ^smile^

crypto must be volatile  so we can earn on short term and long term

if we look at long term it will go just up

why?

becouse of worldwide adoption and using crypto in real life

so it's the begining  and we will invest in begining

in 5, 10 years we will be rich 

[Kakmakr]

I always think about the Maize farmer story I have been told when I was young. We had a very rich maize farmer in our country and he started with 1 farm. He was very successful and consequently bought more farms in the surrounding area. In the beginning the price of maize was determined by the supply of say 5000 farmers in the district, but as this successful farmer bought other farmers land, the number of farmers in the district decreased.

His 5 sons started to farm and they also started buying land in the district, until they owned almost all farms. Now they were in a position to manipulate the supply of maize to the market. They could plant less maize to hike up the price or hold back the maize in Silos.

This is happening with Bitcoin now, some Bitcoin whales < early adopters > are owning the majority of the coins. So they can manipulate the price, based on the demand and how they supply or hoard coins. < The same thing are being done with other commodities like Oil >

The solution will be to increase adoption to put coins into other people's wallets. The more coins are distributed to more people, the less opportunity there will be for whales to manipulate the exchanges. ^smile^

crypto must be volatile  so we can earn on short term and long term

if we look at long term it will go just up

why?

becouse of worldwide adoption and using crypto in real life

so it's the begining  and we will invest in begining

in 5, 10 years we will be rich  

Wrong, Bitcoin must be distributed to as many people as possible. Bitcoin will benefit more, if there are a huge demand for it and demand will only be stimulated if people want to buy it. Merchants will only support it, if people are using it regularly and if only a few people own/hoard it, there will be no need for them to support it.

Bitcoin is not only about trading and profits and higher prices. Bitcoin also help people to be their own banks and gives them entry to the global financial system. < Previously, poor people were excluded and blocked by centralized financial systems >

Bitcoin also makes global remittance a lot cheaper. < Disrupting services like MoneyGram and Western Union > This puts more money into poor people's pockets. ^smile^

[The_prodigy]

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 yhat an ideal scenario would be if the world continued its trend and almost all retailers can accept the currency and there is a deep and healthy understanding between the market and the consumers then that would make the btc a little bit more stable and be able to provide some comfort to us.

[Lancusters]

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 yhat an ideal scenario would be if the world continued its trend and almost all retailers can accept the currency and there is a deep and healthy understanding between the market and the consumers then that would make the btc a little bit more stable and be able to provide some comfort to us.

In order to develop trade with bitcoins should not just sit and wait when it will happen but to create the conditions for this. Need to reduce the cost of small transactions and to reduce the time of confirmation of payment. The miners do not want to do this and this is a big problem.

[bouren]

Snip

Snip

to if we want to use bitcoin as currency in our local area and for buying selling everything then its need that bitcoin have a stable price. and i think that bitcoin price can only become stable when majority of the people of the world start using bitcoin and bitcoin become as normal currency and we start it as normal currncy for everyting we want to buy online as well as in local shops.

Bitcoins are currently being accepted by many merchants. If you going to ask them, all will say that volatile bitcoin is better than stable one as it allows them to earn much more than market price. Also on other hand they are able to keep bitcoins as reserves which is more effective than keeping hard money as reserves.

[DrGuns4Hands]

bitcoin is famous for being volatile since then and also bitcoin is a decentralized currency that's why bitcoin would never be stable it will change it's price value every second pass because the global market is so huge that's why you can't tell who's buying and selling bitcoins. expect that this year before it ends we can see a $4000 don't be shock if the price of bitcoin dump this coming november.

[hello_good_sir]

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.

Short term stability is not everything. If you really wanted stability then you could just use fiat currencies, but they are only stable in the short run. In the long term they are going to crash in value, guaranteed 100%. Bitcoin is volatile in the short term but it is actually predictable in the long term.

Yes, volatility can be solved. Simple solution is exactly what you said in the OP - more merchants accepting it. But they can't accept bitcoin as just a payment processor. Tehy need to actually ACCEPT bitcoin. Like not through Bitpay, but it goes straight to their wallet, and their price doesn't change when bitcoin price fluctuates. When this is achieved then bitcoin will become stable, naturally. You don't need no central bank for this to work.

Plus, a lot of people only trade cryptocurrencies and hold it because it is so volatile. It's become a part of what cryptos are, in my opinion. Without it a lot of people would actually leave the crypto scene because a lot of traders use it as a hedge against safer investments so that they do not miss out on huge profits on a daily basis, if there was to be an opportunity for trade.

[fearcoka]

bitcoin is famous for being volatile since then and also bitcoin is a decentralized currency that's why bitcoin would never be stable it will change it's price value every second pass because the global market is so huge that's why you can't tell who's buying and selling bitcoins. expect that this year before it ends we can see a $4000 don't be shock if the price of bitcoin dump this coming november.

If as your opinion, the price of Bitcoin will dump after complete SegWit in November 15th, is right? And Bitcoin will repeat the scenario of Litecoin after SegWit, falldown in short time and comeback with new high price

[Proton2233]

Bitcoin exceeded the price of $ 3,000 and now not under any circumstances will not fall below. When you compare bitcoin with other crypto currencies do not forget that bitcoin is a currency completely different level and credibility above and is a pledge of stability.

[arpon11]

When bitcoin go mainstream the volatility will reduced. For example you can see how bitcoin cash went up as high as. $1000 on second of august 2017 because of the activities of pumping group. Manipulation activities couse the volatility we are seeing now. When capitalization is high and professional investors start to invest in bitcoin the volatility will reduce.

[GuppyMan]

Volatility will decrease when the crypto-currencies are accepted, but this will reduce their price and interest of the majority of users who use them as investments because of a rapid price increase.

[South Park]

The answer to this is quite simple. The larger a market is, the less volatile.

Why? Because there is more money invested overall, which reduces the ability of any one individual from affecting it a lot.

For example, even a multimillionaire can have zero effect on the NASDAQ or other stock markets, but a multimillionaire can have a HUGE effect on crypto markets - especially altcoins.

Yeah I do not know why this is so difficult to understand also we need to take in consideration that bitcoin is a completely new concept and this makes the early years of a technology a roller coaster so the only thing we can do is to wait for the day bitcoin becomes less volatile.

[centralbanksequalsbombs]

ALL THE CENTRAL BANKS AROUND THE WORLD STOP ISSUING FIAT AND  KEEP SUPPLY STATIC FOR FIVE YEARS STRAIGHT.

if fiat stabilizes for many years globally, then prices of everything else will stabilize. If not, then the central banks are playing money games and acts of war.

These games have been constantly played by central banks and they never cease to stop - pitfall of humanity.

...atleast (the sound) cryptocurrencies offers an option outside of this evil system.

[sandrun]

Crytal votality can be stopped if there is no supply and demand that occurs on the coin. The price will stop at a certain point and wait for a big transaction to move the votality. You might be wondering why the bitcoin is going up ?? Or why it can happen ?? It's all because of the difference of supplay and demand .. if not balanced .. then there is a significant price ups and downs on the coin

[Kersh768]

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.

It will be less volatile if there'll be more participants or if there will be more people who will use, invest and be more interested to cryptocurrency. I think volatility takes place because the market's demand is not that high. If more people will engage in crytocurrency, the demand will increase that will make the value highly stable or maybe continuously increasing. It will avoid dumps to happen.

[South Park]

I always think about the Maize farmer story I have been told when I was young. We had a very rich maize farmer in our country and he started with 1 farm. He was very successful and consequently bought more farms in the surrounding area. In the beginning the price of maize was determined by the supply of say 5000 farmers in the district, but as this successful farmer bought other farmers land, the number of farmers in the district decreased.

His 5 sons started to farm and they also started buying land in the district, until they owned almost all farms. Now they were in a position to manipulate the supply of maize to the market. They could plant less maize to hike up the price or hold back the maize in Silos.

This is happening with Bitcoin now, some Bitcoin whales < early adopters > are owning the majority of the coins. So they can manipulate the price, based on the demand and how they supply or hoard coins. < The same thing are being done with other commodities like Oil >

The solution will be to increase adoption to put coins into other people's wallets. The more coins are distributed to more people, the less opportunity there will be for whales to manipulate the exchanges. ^smile^

Great story but you are correct, the whales are very powerful but even them must have a limit at some point the price of bitcoin is going to be so attractive that they will being to sell a part of their stash and with that more people will be able to adopt bitcoin and as time passes the volatility is going to not be nearly as big.

[malikusama]

It is not possible yet because market is growing day by day and the supply and demand are also changing according to it. The price will become less volatile when market will become stable, means that the supply and demand will change in a gradual manner.

[South Park]

ALL THE CENTRAL BANKS AROUND THE WORLD STOP ISSUING FIAT AND  KEEP SUPPLY STATIC FOR FIVE YEARS STRAIGHT.

if fiat stabilizes for many years globally, then prices of everything else will stabilize. If not, then the central banks are playing money games and acts of war.

These games have been constantly played by central banks and they never cease to stop - pitfall of humanity.

...atleast (the sound) cryptocurrencies offers an option outside of this evil system.

That is never going to happen, if they maintain the price of fiat static then that means the fiat will become slightly more valuable over time, how are they going to steal from you without you realizing it, if they raise the taxes you will notice and everyone hates paying higher taxes that is why they like to tax with the inflation tax.

[rickadone]

ALL THE CENTRAL BANKS AROUND THE WORLD STOP ISSUING FIAT AND  KEEP SUPPLY STATIC FOR FIVE YEARS STRAIGHT.

if fiat stabilizes for many years globally, then prices of everything else will stabilize. If not, then the central banks are playing money games and acts of war.

These games have been constantly played by central banks and they never cease to stop - pitfall of humanity.

...atleast (the sound) cryptocurrencies offers an option outside of this evil system.

That is never going to happen, if they maintain the price of fiat static then that means the fiat will become slightly more valuable over time, how are they going to steal from you without you realizing it, if they raise the taxes you will notice and everyone hates paying higher taxes that is why they like to tax with the inflation tax.

Yes, I agree with you that crypto currencies can never ever become stable. They are known for their volatility. Stability of digital currencies will defame them. Bitcoins will lose its supporter if it stops pumping and dumping. People are investing into this currency just because pumping gives them opportunity of earning profit.