Less Volatility Is Needed?

[ekoice]

Yes,volatility is the basic nature of bitcoin.It could not be changed.Bitcoin being a decentralized currency having no central body to control its price,it exhibits its true value either by increase or decrease as per its demand.Its true that this volatility has become a great barrier for merchants accepting bitcoin payment.But in japan,after legalization,thousands of retailers have started accepting bitcoin payment just not considering even about its volatility.Same would be the scenario with other parts of the world.If bitcoin gets legalized,then volatility would not be a issue.

[iram1011]

Bitcoin volatility is indeed great for investors who consider fluctuations as buying opportunity to increase their holdings. But merchants and vendors would refrain from using highly volatile currency. The reason being they can't afford their earned amount to undergo 30% drop the next day. They need to analyze profit and loss margins of their business and have to give tax on gains. There are lots of complications in the business and Bitcoin is certainly not suited for such things.

The volatility of Bitcoin effects its utility. Utility is the base for price growth. Volatility will remain for many more years to come. But with time there will be decrease in volatility when user base will expand more and distribution becomes more uniform.

[bamboylee]

For now we cannot avoid volatility because bitcoin is still a young technology and currency. The problem, I think, is that adoption and stability goes hand in hand. We cannot achieve one without the other. As the technology ages, it gets adopted and become more stable as well.

[The_Dark_Knight]

less ? nooo. We need High volatility because that's one of the reason why there's a lot of new investors in bitcoin. remember high demand is equals to high price of bitcoin. so if there's a big dump many people would buy bitcoin and that's the demand so it will enter the economy that make the price of bitcoin to go high. bitcoin is popular and also known because of it's volatility.

I am not so sure if volatility attracts investors.
As an investor, I want my money to grow. Not to see it change its worth up and down every day. Volatility means uncertainty as well.
When I look at the stock market, whenever there is uncertainty for a specific stock, the price goes down because a part of the investors sell.
I think that the volatility only attracts traders. Sure, they bring money into the market as well. But as quickly as they deposit it, they withdraw it again.

If you invested at the beginning of the year then you made great profits, bitcoin could lose half its price and you will still have profits that no bank or other investment in the world can give, to me that is more than enough of a reason to like the volatility in bitcoin.

Actually when you are a trader in the crypto market, making a profit 10% per day with small funds is possible is normal, even it very easy for traders have experience. Only that, this profits can pass the profits from save your money in bank

Then that is another reason to like bitcoin volatility and the benefits we can get from it, if you can get in a single day what a bank will give you in several years then this is a no contest, bitcoin volatility should be appreciated by both short term traders and long term traders since the benefits that we can get thanks to it are so impressive that there is almost no other investment in the world that can compete with it.

[Surrapatt]

Less volatility in bitcoin maybe necessary, in order to be adopted as a currency by many parties around the world. But the impact, speculators will be reduced because it means close to stable.

[Eugenar]

I read somewhere that someone suggested that Bitcoin should have less volatility if it wants to be part of the mainstream financial system or be adopted by a greater part of the global population. The logic is that if there is too much volatility, the  would be less demand for Bitcoin.

Volatility has been identified as one of the most important barriers to its global adoption (though right now there is no question that Bitcoin is getting popular every day!) especially on the side of the merchants or business entities.

Now, we know that volatility can be minimized once more and more Bitcoin holders would be looking at Bitcoin more as a currency than a commodity but right now this is not yet happening because as the value of Bitcoin is rising we all become speculators.

Is volatility a thing we have to accept as a normal thing as far as Bitcoin is concerned?

Less volatility will be a factor for Bitcoin to be globally accepted as a currency and I agree with it. Most of the currencies specifically regular currencies has a stable market value. It is needed for worldwide exchange, and if the value of a currency is volatile or oftenly changes, it will be a risk. We are hoping that in the future, it will be less volatile since the demand is getting higher as of this moment, maybe it will be highly stable and would make it a good currency.

[warrior333]

I read somewhere that someone suggested that Bitcoin should have less volatility if it wants to be part of the mainstream financial system or be adopted by a greater part of the global population. The logic is that if there is too much volatility, the  would be less demand for Bitcoin.

Volatility has been identified as one of the most important barriers to its global adoption (though right now there is no question that Bitcoin is getting popular every day!) especially on the side of the merchants or business entities.

Now, we know that volatility can be minimized once more and more Bitcoin holders would be looking at Bitcoin more as a currency than a commodity but right now this is not yet happening because as the value of Bitcoin is rising we all become speculators.

Is volatility a thing we have to accept as a normal thing as far as Bitcoin is concerned?

Less volatility will be a factor for Bitcoin to be globally accepted as a currency and I agree with it. Most of the currencies specifically regular currencies has a stable market value. It is needed for worldwide exchange, and if the value of a currency is volatile or oftenly changes, it will be a risk. We are hoping that in the future, it will be less volatile since the demand is getting higher as of this moment, maybe it will be highly stable and would make it a good currency.

To Fiat currency was stable, there is a mechanism like the national Bank. But even he is unable to cope with inflation. Without centralized management, bitcoin will never be stable. But if bitcoin will get centralized management of it will no longer be bitcoin.

[Kidmat]

For now we cannot avoid volatility because bitcoin is still a young technology and currency. The problem, I think, is that adoption and stability goes hand in hand. We cannot achieve one without the other. As the technology ages, it gets adopted and become more stable as well.

Bitcoin has been volatility ever since, it is one of the main factor why users, investors believes in bitcoin. Yes I agree we cannot really avoid the fluctuation. So still there is a need of less fluctuation for bitcoin to be one of the mainstream and be adopts as a global currency.

[The_Dark_Knight]

Bitcoin volatility is indeed great for investors who consider fluctuations as buying opportunity to increase their holdings. But merchants and vendors would refrain from using highly volatile currency. The reason being they can't afford their earned amount to undergo 30% drop the next day. They need to analyze profit and loss margins of their business and have to give tax on gains. There are lots of complications in the business and Bitcoin is certainly not suited for such things.

The volatility of Bitcoin effects its utility. Utility is the base for price growth. Volatility will remain for many more years to come. But with time there will be decrease in volatility when user base will expand more and distribution becomes more uniform.

But this is not correct, a business owner can receive payments in bitcoin and convert them immediately to his own currency, that way they can avoid the volatility you are talking about and still accept payments in bitcoin with ease, but to be honest if I was a merchant I will prefer to keep that bitcoin instead, since I believe in bitcoin not only as a currency but as an investment.

[tiptopgemdotcom]

Bitcoin volatility is indeed great for investors who consider fluctuations as buying opportunity to increase their holdings. But merchants and vendors would refrain from using highly volatile currency. The reason being they can't afford their earned amount to undergo 30% drop the next day. They need to analyze profit and loss margins of their business and have to give tax on gains. There are lots of complications in the business and Bitcoin is certainly not suited for such things.

The volatility of Bitcoin effects its utility. Utility is the base for price growth. Volatility will remain for many more years to come. But with time there will be decrease in volatility when user base will expand more and distribution becomes more uniform.

But this is not correct, a business owner can receive payments in bitcoin and convert them immediately to his own currency, that way they can avoid the volatility you are talking about and still accept payments in bitcoin with ease, but to be honest if I was a merchant I will prefer to keep that bitcoin instead, since I believe in bitcoin not only as a currency but as an investment.

Noone is going to open a new business model just thinking to convert bitcoins to fiat after accepting payments from customers.There are new ICO projects which offer less volatile coins and instant exchange opportunity for businesses.

[Gambler_btc]

High volatility mean we have not a lot of whales here and the market is tiny. Huge potential to grow.

[The_Dark_Knight]

Bitcoin volatility is indeed great for investors who consider fluctuations as buying opportunity to increase their holdings. But merchants and vendors would refrain from using highly volatile currency. The reason being they can't afford their earned amount to undergo 30% drop the next day. They need to analyze profit and loss margins of their business and have to give tax on gains. There are lots of complications in the business and Bitcoin is certainly not suited for such things.

The volatility of Bitcoin effects its utility. Utility is the base for price growth. Volatility will remain for many more years to come. But with time there will be decrease in volatility when user base will expand more and distribution becomes more uniform.

But this is not correct, a business owner can receive payments in bitcoin and convert them immediately to his own currency, that way they can avoid the volatility you are talking about and still accept payments in bitcoin with ease, but to be honest if I was a merchant I will prefer to keep that bitcoin instead, since I believe in bitcoin not only as a currency but as an investment.

Noone is going to open a new business model just thinking to convert bitcoins to fiat after accepting payments from customers.There are new ICO projects which offer less volatile coins and instant exchange opportunity for businesses.

But the issue is that no one is accepting those coins, most merchants that accept a cryptocurrency only accept bitcoin and nothing else, so they have to figure out how to do this, there are payment processors that already do this automatically so that is not really a great issue, you receive bitcoin and then the bitcoin gets converted immediately to fiat and it is sent to you.

[pinky]

Volatility is main problem why payment systems dont want to add bitcoin as option.

[Anfisman]

I read somewhere that someone suggested that Bitcoin should have less volatility if it wants to be part of the mainstream financial system or be adopted by a greater part of the global population. The logic is that if there is too much volatility, the  would be less demand for Bitcoin.

Volatility has been identified as one of the most important barriers to its global adoption (though right now there is no question that Bitcoin is getting popular every day!) especially on the side of the merchants or business entities.

Now, we know that volatility can be minimized once more and more Bitcoin holders would be looking at Bitcoin more as a currency than a commodity but right now this is not yet happening because as the value of Bitcoin is rising we all become speculators.

Is volatility a thing we have to accept as a normal thing as far as Bitcoin is concerned?

Indeed already from the beginning bitcoin, it have very high volatility. Some happy about that and some are sad because they lose their funds. Actually no loss of funds. Their money just changed hands. Example "in the year 2013/2014 Bitcoin increased prices up to 1200 dollars and that time decreased drastic to 200 dollars. There is someone who buys Bitcoin at the price of $1200, then the price drops until $200. I think he does not lose if he can manage it by holding / hold Bitcoin until now, and see for yourself the bitcoin price in this year yesterday can reach almost 5000 dollars. You have nothing to lose but just change hands."
Volatility is a chance for traders. This is For daily traders and short-term investors not annual traders, Bitcoin's volatility provides a great opportunity to make a profit. By predicting short-term trends in Bitcoin properly, the traders can generate huge profits; far more than investors who have a buy-and-hold strategy like the story above.

[d5000]

[...] to be honest if I was a merchant I will prefer to keep that bitcoin instead, since I believe in bitcoin not only as a currency but as an investment.

It's easy to say this in a bull market, where optimism is widespread. But in a bear market like in 2014, it would be very, very difficult to accept Bitcoin in its "pure" form for a typical merchant that has expenses to pay. I sometimes bought things from an online grocery that accepted Bitcoin (without using Bitpay or similar "conversion-to-fiat" tools) in my city in 2014, but they didn't survive the following bear market.

(It's actually not clear if we still are in a bull market or if the mood is beginning to turn bearish again - and the $4400 peak was only a bounce ...)

What merchants instead can do - if their margins are high enough - is to offer their goods for a fixed Bitcoin price over a short time period like 24 hours, where a >10% crash is unlikely and a >30% crash only happens once in two years or so. That would stabilize the currency "on its own" because it has an effect like a buy order that won't be removed.

[jamids]

[...] to be honest if I was a merchant I will prefer to keep that bitcoin instead, since I believe in bitcoin not only as a currency but as an investment.

It's easy to say this in a bull market, where optimism is widespread. But in a bear market like in 2014, it would be very, very difficult to accept Bitcoin in its "pure" form for a typical merchant that has expenses to pay. I sometimes bought things from an online grocery that accepted Bitcoin (without using Bitpay or similar "conversion-to-fiat" tools) in my city in 2014, but they didn't survive the following bear market.

(It's actually not clear if we still are in a bull market or if the mood is beginning to turn bearish again - and the $4400 peak was only a bounce ...)

What merchants instead can do - if their margins are high enough - is to offer their goods for a fixed Bitcoin price over a short time period like 24 hours, where a >10% crash is unlikely and a >30% crash only happens once in two years or so. That would stabilize the currency "on its own" because it has an effect like a buy order that won't be removed.

Well I believed this would be one of the best solution in order for the merchant not worry so much about bitcoin crashing. Bitcoin is enticing to make as payment option because of the tendency of it to increase in value because of its volatility which is both an advantage and disadvantage thus to avoid such discrepancy and loss, the merchant should protect his business first by having an allowance to the price so that in case the price of it go es down, he still have some profit because he may end up closing his business as what you said if he would not have some kind of protection to his funds.

[michellee]

I read somewhere that someone suggested that Bitcoin should have less volatility if it wants to be part of the mainstream financial system or be adopted by a greater part of the global population. The logic is that if there is too much volatility, the  would be less demand for Bitcoin.

Volatility has been identified as one of the most important barriers to its global adoption (though right now there is no question that Bitcoin is getting popular every day!) especially on the side of the merchants or business entities.

Now, we know that volatility can be minimized once more and more Bitcoin holders would be looking at Bitcoin more as a currency than a commodity but right now this is not yet happening because as the value of Bitcoin is rising we all become speculators.

Is volatility a thing we have to accept as a normal thing as far as Bitcoin is concerned?

yes, if bitcoin wants to be part of financial system, less volatility is needed. maybe someday if bitcoin is known by all country and almost all people is using bitcoin, the volatility will be too often and bitcoin can enter to the financial system as a new currency. right now, volatility is the main problem for bitcoin but I think it is good because as long as there is any different for buying price and selling price, we can take profit and right now, I think its no problem if bitcoin can not accepting as currency because we can use bitcoin to in online.

[suvo05]

I read somewhere that someone suggested that Bitcoin should have less volatility if it wants to be part of the mainstream financial system or be adopted by a greater part of the global population. The logic is that if there is too much volatility, the  would be less demand for Bitcoin.

Volatility has been identified as one of the most important barriers to its global adoption (though right now there is no question that Bitcoin is getting popular every day!) especially on the side of the merchants or business entities.

Now, we know that volatility can be minimized once more and more Bitcoin holders would be looking at Bitcoin more as a currency than a commodity but right now this is not yet happening because as the value of Bitcoin is rising we all become speculators.

Is volatility a thing we have to accept as a normal thing as far as Bitcoin is concerned?

If you are being paid with bitcoin for work then you should be concerned about the volatility of the price. But for trading this is good. This is why lots of traders are attracted by it. And one this is good for the bitcoin is despite of its volatility in daily basis if you calculate its value in the end of the year it is always increasing.

[oegarod]

Volatility has got termed as an issue, in reality it's the one that provides the availability to profit through the difference in price happening with time. Maybe in future people will never think of the volatility as an issue. Volatility will continue with digital currency forever.

[aysg76]

I read somewhere that someone suggested that Bitcoin should have less volatility if it wants to be part of the mainstream financial system or be adopted by a greater part of the global population. The logic is that if there is too much volatility, the  would be less demand for Bitcoin.

Volatility has been identified as one of the most important barriers to its global adoption (though right now there is no question that Bitcoin is getting popular every day!) especially on the side of the merchants or business entities.

Now, we know that volatility can be minimized once more and more Bitcoin holders would be looking at Bitcoin more as a currency than a commodity but right now this is not yet happening because as the value of Bitcoin is rising we all become speculators.

Is volatility a thing we have to accept as a normal thing as far as Bitcoin is concerned?

Less volatility will be a factor for Bitcoin to be globally accepted as a currency and I agree with it. Most of the currencies specifically regular currencies has a stable market value. It is needed for worldwide exchange, and if the value of a currency is volatile or oftenly changes, it will be a risk. We are hoping that in the future, it will be less volatile since the demand is getting higher as of this moment, maybe it will be highly stable and would make it a good currency.

Well, volatility is the key nature of the bitcoin which can't be ignored and would last long with it. Also, it is one of the factors that encourage bitcoin investment for the traders. In fact, it offers a great deal to have to huge profits...
But on an average, its value is annually increasing. So dealing with it is always profitable...