Will Bitcoin volatility prevent adoption?

[poplolnman]

Yes bitcoin's volatility prevents mass adoptions woldwide. Lets take this situation, a company X gives salary to the employees in bitcoin and suddenly the price of bitcoin increases and after few days it decreases again. It will be a huge loss for the company and what is the reason? Volatility.

In my opinion, bitcoin can be adopted but not a mass adoption because volatility is preventing it.

What you said is so true. Bitcoin can not be usable in other transactions like for instance as you stated. Therefore its volatility prevents mass adoption. There are some advantages and disadvantages as to bitcoin's characteristics.

The volatility made people think that bitcoin is not worthy to invest with since it can cause a massive loss to them. But if people try to reach some knowledge and let theirselves learn on how to defy and earn with volatility then maybe a great adoption will came but for now massive adoption will just a myth since for new guys hard to find bitcoins are legit one for their investment.

Bitcoin as a currency , Bitcoin as a digital asset , Bitcoin as a financial breakthrough etc , it's never enough for those people who looking for something simple , not a complex one like Bitcoin. We need a lot of time indeed to eliminate traditional thinker like that and start the real Bitcoin adoption for the better future. I still optimistic that time would come. Where volatile won't be a big deal anymore.

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[Melvin Narag]

This attribute of bitcoin make it different from any other product and payment method I've ever encounter its like mode of a girl that changes everytime depending on how you threat them.
This make Bitcoin unique as well.

[Omega Weapon]

But I think the is only going to prevent the adoption of bitcoin as a currency, but it's not going to stop the adoption of bitcoin itself, after all there will be many traders that will like to invest in bitcoin so they can benefit from the big movements in the market, so I expect that the volatility will change, sometimes it will be high, sometimes will be lower but at some point after enough money has been invested in bitcoin the volatility is going to subside a little bit and it will allow to us to use it as a currency again.

[Rustamm]

The volatility of bitcoin, of course, greatly affects its legalization by various states. States do not want to have a means of payment of high cost, the price of which will be constantly and significantly changed. It also discourages organizations that are going to use bitcoin as a means of payment, and even citizens. I think that bitcoin will have high volatility always. Decentralized nature and lack of security will always make bitcoin not stable.

[Dudeperfect]

Yes! This issue is mostly in the case of large corporations as even a 1% fall during the transaction might cause them the loss of millions of dollars if they are adopting Bitcoin for their regular transactions. However, volatility must diminish over the time to expand the user base and attracting the institutions who are willing to try crypto for their financial transactions. However, I am optimistic that we will soon see a reduction in the price volatility and it will attract new potential users.

[Noelbetty12]

If bitcoin is to be adopted in any establishment as a form of currency or payment system, it has to be stable. Surely nobody wants to send money or earn money where the value increases or decreases in just a matter of hours. If it is increased upon receiving then it is good but what if it is decreased? Would you be happy to receive your money with only half of its value remaining? Certainly not. This makes volatility a problem.

[nsasuiteb]

I think this is actually what attracts new people to crypto, they come for this volatility, with a goal of making money using this volatility. I understand your point but I can't say something about that as I think bitcoin is much different than other examples of store of values

[eroejoe]

I think not, Bitcoin is very small currency right now with market cap around 160 mld $, so Bitcoin have large volatility because of that. But more and more people like this nature of Bitcoin and love positive trend that Bitcoin have, so they joining in this market because of large volatility and hope for selling with higher price in future. Cryptocurrency markets are like boats: the bigger the boat, the bigger the wave you need to move it. So when people buys Bitcoin they make it less volatile.

[Argoo]

This is already happening. We saw that exactly from the moment when bitcoin in December last year grew in price to twenty thousand dollars and clearly showed itself as a financial bubble, the Indian government began to warn its citizens about the danger of investing in bitcoin and the risks associated with crypto currency. After that, the Reserve Bank of India recommended that other banks stop providing services in the Crypto-currency. I think that this would not have been, had it not been for the sharp increase in the cost of bitcoin in December of last year. This will greatly complicate the process of legalization of the crypto currency by other states this year.

[deisik]

A big argument against inflation is that it raises the cost of business. The same argument can be used to criticize BTC. BTC volatility raises the cost of doing business if BTC is your only capital. If we desire BTC adoption to rise we must take care of BTC price fluctuation. BTC demand is highly unpredictable while supply is predictable, resulting in unpredictable prices. That means volatility can't change unless demand stabilizes

The truth is that a relatively small and stable inflation rate is pro-business really. The consequences of deflation, however small it might be, are by far more dangerous and detrimental to an economy. That's the primary reason why governments adhere to controlled-inflation economic policies. Other than that, the volatility of Bitcoin can be effectively hedged via market means, so it is not the culprit here (one of). Lack of demand for crypto as a means of payment is the first and foremost one

What are your thoughts?

If there were such demand, prices would enter a self-sustaining stabilization loop. Otherwise, it is a vicious circle, and it could be said that the lack of adoption leads to high volatility, though the opposite is also true (that's why it is a vicious circle)

[Bellator]

Many people do not want volatility and deflation system, but how can bitcoin operate smoothly if these system will not apply? Bitcoin cannot move a long life operation if volatility and deflation will not apply. It is the way on how the management provide a good balance system between users and operators.

Thats right votality is a part of bitcoins platforms,if there will be no votality there will never be inflation and cryptocurrency will as good as fiat currencies..Votality might cause fears when bitcoins price falls but the near fact that we can profit when value fluctuates this would be the good effect of cryptocurrency in its investor and holders.

[chris200x9]

I think yes. People are not able to use bitcoin because of the fear that their coin might cost something more than it costs now. For people to use bitcoin as a currency, it pays to know that when you buy a $10 pizza, your pizza will still be worth $10 in the next few hours, days, weeks or even month. If fluctuations becomes rampant then adoption would be very difficult.

Then you should keep fiat currency because it will not change so easily and you're on the wrong side of the investment. Because people are investing money in cryptos because it can move in either direction fast so they have a chance of making profit more here compared to stable fiat currency. Bitcoin is not just a currency but it is an investment and we all want that investment to grow bigger as soon as possible and if bitcoin is stable than you can't expect prices to go high quickly.

[deisik]

I think yes. People are not able to use bitcoin because of the fear that their coin might cost something more than it costs now. For people to use bitcoin as a currency, it pays to know that when you buy a $10 pizza, your pizza will still be worth $10 in the next few hours, days, weeks or even month. If fluctuations becomes rampant then adoption would be very difficult.

Then you should keep fiat currency because it will not change so easily and you're on the wrong side of the investment. Because people are investing money in cryptos because it can move in either direction fast so they have a chance of making profit more here compared to stable fiat currency. Bitcoin is not just a currency but it is an investment and we all want that investment to grow bigger as soon as possible and if bitcoin is stable than you can't expect prices to go high quickly.

The problem is, as I never forget to repeat, a good currency doesn't make a good investment. These states are mutually exclusive to a great extent, at least as long as we speak of good currencies and good investments. A good currency should be stable (give or take a few percentages of usual volatility) while a good investment should be rising in the long run or, if we talk about purely speculative assets like Bitcoin, it should be volatile enough to be interesting to speculators and their likes

Neither of the latter is good for a currency, but the lack of either makes it a poor investment (speculative) vehicle

[zanezane]

Many people do not want volatility and deflation system, but how can bitcoin operate smoothly if these system will not apply? Bitcoin cannot move a long life operation if volatility and deflation will not apply. It is the way on how the management provide a good balance system between users and operators.

Thats right votality is a part of bitcoins platforms,if there will be no votality there will never be inflation and cryptocurrency will as good as fiat currencies..Votality might cause fears when bitcoins price falls but the near fact that we can profit when value fluctuates this would be the good effect of cryptocurrency in its investor and holders.

But the fact that this high volatility is what hinders the adoption. Government doesn't want to have a mass adoption because they don't want people to invest in a risky thing because in the end they might be the one to blame if they'll acknowledge it.

Though for me even our government won't accept this it's still fine with me as long as we can trade freely there's no issue needed to consider.

[BagzMM]

Yes, that could be the main reason why bitcoin will not go mass adoption as currency. Although the volatility helps bitcoin to be popular and make a history about crypto currency and now people will use this as a digital assets as the price could rise up to a remarkable profits.

[ChConcept]

Generally, most of the people hate volatility especially because it is one of the struggles of Bitcoin as a digital currency. Volatility is the number one reason why some businesses and companies doesn't want to asccept Bitcoin as a payment option because its value will be different even after minutes of you making the payment. For me, I agree with that but you have to look at the other side of the story, yes volatility maybe a reason why most people are hesitant in using Bitcoin but we cannot deny the fact that due to its volatile nature, that is why some people are rich here, volatility can multiply your money's worth so it goes two ways, it is a dual edge sword, its up to you how are you going to look at things and make it work for you.

[deisik]

Generally, most of the people hate volatility especially because it is one of the struggles of Bitcoin as a digital currency. Volatility is the number one reason why some businesses and companies doesn't want to asccept Bitcoin as a payment option because its value will be different even after minutes of you making the payment

Hardly anything can be further from truth than that, though this thought is somehow prevailing in the forum, i.e. businesses choose to stay away from accepting crypto because of its extreme volatility. It is a technical issue in itself which is effectively solved by payment processors. Strictly speaking, businesses don't even touch bitcoins or other cryptocurrencies (unless they deliberately choose so), it is these payment processors that accept cryptopayments and deal with volatility through a number of hedging strategies and instruments. As I have already said, it is lack of demand for crypto as a payment method which is the primary reason why virtually no one accepts crypto nowadays. Really, why would anyone want to brush off their clients just because they want to pay with Bitcoin while still accepting dollars or whatever fiat currency merchants price their goods in?

To sum it up, don't confuse cause and effect

[richjohn]

It is somewhat true, but the people who have enough guts do not mind entering this volatile market. How does it even matter if there is volatility as long as you're making enough profit?
No one comes here for long term, people usually invest and exist within a month. That's what makes this market so attractive and you find people from all around the world investing here. So even though a small percentage of people might never enter the forum because of volatility, majority of them would keep coming back to make easy money.

[Wexnident]

Yes bitcoin's volatility prevents mass adoptions woldwide. Lets take this situation, a company X gives salary to the employees in bitcoin and suddenly the price of bitcoin increases and after few days it decreases again. It will be a huge loss for the company and what is the reason? Volatility.

In my opinion, bitcoin can be adopted but not a mass adoption because volatility is preventing it.

I think you have a point. It is so hard to all companies that they giving salary in bitcoin mode because it's absolutely btc has no stable value. However, in a long run, I think it is possible that the peoples salary still can be fiat currency therefore the company will do pay the exact value and payment to their employees. So it could be less hassle and less stress when it comes in payroll day. We can also do massive adoption except to payroll system.

[Iyeman]

Yes bitcoin's volatility prevents mass adoptions woldwide. Lets take this situation, a company X gives salary to the employees in bitcoin and suddenly the price of bitcoin increases and after few days it decreases again. It will be a huge loss for the company and what is the reason? Volatility.

In my opinion, bitcoin can be adopted but not a mass adoption because volatility is preventing it.

I think you have a point. It is so hard to all companies that they giving salary in bitcoin mode because it's absolutely btc has no stable value. However, in a long run, I think it is possible that the peoples salary still can be fiat currency therefore the company will do pay the exact value and payment to their employees. So it could be less hassle and less stress when it comes in payroll day. We can also do massive adoption except to payroll system.

having salary paid in bitcoin is only good for those who, well, wants to make additional money by risking it. the volatility bitcoin is indeed what holding the bitcoin adoption, just like when steam decide to delete bitcoin as one of their payment method after the volatility going crazy and the fee peaking.
However, people nowadays are fine with the volatility of bitcoin, they only consider bitcoin as a trading tool, not a currency, that's what make bitcoin will always stay volatile until people change their mind.