What do you think is a safe market cap to reduce volatility?

[ebruwifxnx]

As the market cap gets bigger, volatility reduces for many reasons, most importantly because one party loses control to manipulate the market without substantial funds. So the question is, what market cap do you think we need to see before the price starts to stabilize. The current cap floats around 1 billion while the USD cap is roughly around 1.2 trillion.

[cbeast]

This begs the question that Bitcoin volatility can be reduced. Historically, the price is stable when volume is low. Some folks hypothesize that very high volume will create stability as well. I think that Bitcoin requires us to think about volatility as a long term metric. Extreme volatility that would otherwise kill any other financial device is the lifeblood of Bubblecoin.

[superduh]

As the market cap gets bigger, volatility reduces for many reasons, most importantly because one party loses control to manipulate the market without substantial funds. So the question is, what market cap do you think we need to see before the price starts to stabilize. The current cap floats around 1 billion while the USD cap is roughly around 1.2 trillion.

where are you pulling the 1.2 number? it's not correct

[Impaler]

No amount of market cap or valuation or any such thing will bring stability to BTC, the very nature of BTC as a perfectly hard but completely unbacked token of exchange means its valuation is pure speculation and no particular price point or market volume level can rid it of these periodic bubbles, it's a fundamental nature of the beast.  To be remotely stable BTC would need to be either softer, able to flexibly adjust its monetary base in response to demand, or pegged to something of value which must be amenable to control by the block-chain and software.  The only thing I can imagine that fits the later definition is a BTC denominated user fee to maintain a usable wallet.

[Carlton Banks]

Hehe, I remember in late 2011, looking at the charts depicting the June spike and thinking "What an obvious and ridiculous price bubble, not too sure about this now". If you bring the charts up now to include that 2011 spike, it's barely visible compared to what happened in April 2013. The pirateat40 event is almost literally undetectable to the naked eye.

[ebruwifxnx]

As the market cap gets bigger, volatility reduces for many reasons, most importantly because one party loses control to manipulate the market without substantial funds. So the question is, what market cap do you think we need to see before the price starts to stabilize. The current cap floats around 1 billion while the USD cap is roughly around 1.2 trillion.

where are you pulling the 1.2 number? it's not correct

The fed estimates July 2013 1.2 trillion is in circulation
http://www.federalreserve.gov/faqs/currency_12773.htm

The market cap might be larger, but i just went with what is in circulation to make it easy.