Will Bitcoin volatility prevent adoption?

[Cutieh01]

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.

Yes, it might true that Bitcoin volatility prevent adoption, but volatility is a built-in tool of Bitcoin. It's not gone this far of existence and popularity without the presence of volatile. For me I love volatility because it makes Bitcoin as the number one crypto.

[1713523937]

1713523937

[1713523937]

1713523937

[1713523937]

1713523937

[Athenakim.22]

bitcoin being use as currency by the masses is far from reality because of the volatility that prevents mass adoptions woldwide and the limitations when it comes to technology since some places in the world has limited access or no access at all to internet so they cannot use cryptocurrency. So, in my opinion  bitcoin can be adopted but not a mass adoption because volatility is preventing it.

[genixye]

The volatility of bitcoin has prevented a massive global adoption, but volatility has also allowed bitcoin to have its own unique market, so volatility is a double-edged sword.

[Omega Weapon]

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

True, which is why bitcoin right now is a great investment but a terrible currency no one wants to spend his bitcoin in a product or service because they are afraid that if they do and the price skyrockets then they're going to miss and those profits, this is why many people use bitcoin mostly as an investment by holding for the long term rather than a currency that mostly time is used in a very short frame.

[Averim]

It is true that the bitcoin volatility has a negative impact but when we talk about the unpredictable price of bitcoin i think that we can't aspect to be 100 or 1000$, so i believe that when you measure everything in one coin than it doesn't mater the volatility, not as much as some believe. In conclusion the volatility it not the cause but an excuse in the bitcoin adoption.

[Tenderino]

So far bitcoin is well adopted or at least the most adopted coin despite all the fluctuations it had experienced since its introduction. Therefore it looks like volatility is not a problem to prevent people from using bitcoin and as a payment option the high fluctuation does not play much a role. If I remember correctly, the basic idea of bitcoin was to use it as an anonymous and decentralized payment system and not as a value storage. So if you use it as a value storage you can win and you can lose. The early adopters won a lot whereas the late investors lost a significant amount. But that is the risk of investments and has nothing to do with the payment function.

[drachman]

The volatility of bitcoin is in a way preventing adoption, many people do not want to put their money in bitcoin just to realize that a day later its value in fiat has gone down, I remember that the very first time that I bought bitcoin that happened to me and I was nervous because I actually bought that bitcoin to use it as a currency so I needed to wait a few days for the price to recover before I could use it.

[BitHodler]

The volatility of bitcoin is in a way preventing adoption, many people do not want to put their money in bitcoin just to realize that a day later its value in fiat has gone down, I remember that the very first time that I bought bitcoin that happened to me and I was nervous because I actually bought that bitcoin to use it as a currency so I needed to wait a few days for the price to recover before I could use it.

It's important to understand that the short term market isn't something worthy of your confidence. If you plan to use it as currency, then you should spend your coins as soon as possible after you having bought them.

Even if you buy them in a more stable market, it doesn't really mean much with how the sentiment can change in a matter of minutes based on a dump or certain announcement. It's too speculative.

That being said, due to its speculative nature people are more interested in trading Bitcoin than actually using it as currency, so the adoption won't experience any obstacles due to the volatility, people absolutely love it.

[deisik]

The volatility of bitcoin is in a way preventing adoption, many people do not want to put their money in bitcoin just to realize that a day later its value in fiat has gone down, I remember that the very first time that I bought bitcoin that happened to me and I was nervous because I actually bought that bitcoin to use it as a currency so I needed to wait a few days for the price to recover before I could use it.

It's important to understand that the short term market isn't something worthy of your confidence. If you plan to use it as currency, then you should spend your coins as soon as possible after you having bought them

That makes no economic sense

Really, why would you want to buy coins if you want to spend them right away when you can just spend whatever you buy them with directly (dollars, euro, etc)? It could make some sense if you wanted to boost adoption even if that meant losing on trading fees and spreads, but this is definitely not what most people here are looking for (or if you earned these coins somehow). That said, people buy coins as a store of value (kind of) or a vehicle for speculation so that they can sell them later at a massive profit (as they think) and buy something grand like a yacht or an isle

[arctic circle]

This is what prevents bitcoin from being adopted, along with high transaction fees and slow confirmation times. Volatility is an advantage to some users of BTC such as for traders but it can be said that it is a hindrance for adoption.

[ricardobs]

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.

Well I think this is a chain. Like people want big profits and big profits come from bitcoins only when prices ranges differently. Whenever people buy at low and sell at high, only then they could be able to earn money. So this low and high will just happen when bitcoins would be volatile.

If they are stuck to one price and don’t come up and down, people wouldn’t be earning enough from them and ultimately popularity just would be faded out.

[KorakPawon]

macroeconomic understanding of Bitcoin behavior combined with price stability that will determine prices accurately after the market recognizes Bitcoin as an asset.

[yugyug]

Decentralization has a greater effect of the bitcoin's volatility it also creates uneven distribution and imbalance to the bitcoin ecosystem. To solve this volatility, mass adoption should be takes first place before establishing the right price. We need to saturate the market demand to prevent influxes of prices. Saturation generates slow price movement thus volatility is minimised.

[Ushono]

No one will need bitcoin without volatility. Because it's all used as a speculative tool.

[billbear]

People are fearing to buy bitcoin, becouse they think that it will again lost its positions in price, and they would lost their money on it.

[koleskok]

Bitcoin is still very young and takes a long time to become a mature currency. Volatility is also an issue that is always lifted by the media to frighten people to not go into bitcoin however some people especially those who do trade think volatility is good.

[bitbunnny]

Volatility is not obstacle for adoption of Bitcoin but it is the issue for Bitcoin to become mainstream currency.
But to be completely honest volatility is also something that made Bitcoin popular and something that traders live from.
Still I don't think that Bitcoin needs to become mainstream and that volatility needs to be something that can block Bitcoin from further development. Volatility is something that is natural characteristic of Bitcoin and we have to accept it.

[gambitcoin53]

BTC main value proposition is to be a decentralized currency and/or value store. 1. The BTC community desires it to be widely adopted by the population. But price volatility prevents so. A significant amount of people cannot afford the cost of volatility.

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.

Common counter-arguments:
3 "BTC is volatile but it always rises in the long-term so it doesn't matter". Is it does, it increases the cost of business. I can't start a bakery with only BTC capital because in the first dip I will have to take loans to pay wages.
3.1 "Oh, but you can't see that happening because you can't see far enough." This sounds like a highly utopian view. Pragmatically, we need a path from here to there, I turn to you and ask, how can we get there?
3.2 "Okay, it doesn't matter for some people and that's all". Okay, then BTC will be a niche store of value, contradicting #1.
4 "Demand will stabilize in the long term." How?
5 "Price stability is a myth, market demands always change them" Sure, it's a myth. Yet it is desirable. If we are designing the system, shouldn't we take that in account? "No, we shouldn't, if you want to do that go and create your own coin." Okay, then BTC will be a niche store of value, contradicting #1.

What incentives do savers have to buy-in on a inflationary money supply? The incentive of stability? That's one reason people agree being exposed to the USD. Am I defending inflation tax? No. I'm asking could there be benefits to having a transparent voluntary contract with varying money supply rate. And I'm leaning towards a yes to this question.

If the supply of a coin could be influenced by price then we would have a more stable coin, the cost we pay is inflation. The issue then becomes an optimization issue, on what would be a proper trade-off.

What are your thoughts?

You have good points. It's true that volatility prevents adoption, in order to have a mass adoption of a certain currency it is recommended to have a stable value. It indicates a stable economy too.

I agree with you both but isnt it what makes bitcoin special and the most valuable coin today? Volatility is needed for bitcoin to grow, it is like Gold, since not everybody can afford it, that what makes it more expensive, a good criteria for traders and users, if the price of bitcoin will be stable, then it will not reach its present value and the leading crypto in the market today. 

[Chachacoin17]

Volatility is not obstacle for adoption of Bitcoin but it is the issue for Bitcoin to become mainstream currency.
But to be completely honest volatility is also something that made Bitcoin popular and something that traders live from.
Still I don't think that Bitcoin needs to become mainstream and that volatility needs to be something that can block Bitcoin from further development. Volatility is something that is natural characteristic of Bitcoin and we have to accept it.

I strongly agree! Bitcoin is volatile by nature and we must enfold that reality. It's not the first time it becomes volatile. Factors affecting bitcoin would be the supply and demand or bad press. What we need is to fully understand of how Bitcoin functions, study its significance and learn to keep calm. Bitcoin is still young, not all people recognized it for now, and I don't think its volatility hinders from adoption. We have to realize that it takes time before we can influence and convince others. Bitcoin is here to stay and although its price may fluctuate, let's remember that there's is still hope that adoption will increase, this trend will change and the volatility will decrease in the long run.

[Best Dreams]

BTC main value proposition is to be a decentralized currency and/or value store. 1. The BTC community desires it to be widely adopted by the population. But price volatility prevents so. A significant amount of people cannot afford the cost of volatility.

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.

Common counter-arguments:
3 "BTC is volatile but it always rises in the long-term so it doesn't matter". Is it does, it increases the cost of business. I can't start a bakery with only BTC capital because in the first dip I will have to take loans to pay wages.
3.1 "Oh, but you can't see that happening because you can't see far enough." This sounds like a highly utopian view. Pragmatically, we need a path from here to there, I turn to you and ask, how can we get there?
3.2 "Okay, it doesn't matter for some people and that's all". Okay, then BTC will be a niche store of value, contradicting #1.
4 "Demand will stabilize in the long term." How?
5 "Price stability is a myth, market demands always change them" Sure, it's a myth. Yet it is desirable. If we are designing the system, shouldn't we take that in account? "No, we shouldn't, if you want to do that go and create your own coin." Okay, then BTC will be a niche store of value, contradicting #1.

What incentives do savers have to buy-in on a inflationary money supply? The incentive of stability? That's one reason people agree being exposed to the USD. Am I defending inflation tax? No. I'm asking could there be benefits to having a transparent voluntary contract with varying money supply rate. And I'm leaning towards a yes to this question.

If the supply of a coin could be influenced by price then we would have a more stable coin, the cost we pay is inflation. The issue then becomes an optimization issue, on what would be a proper trade-off.

What are your thoughts?

You have good points. It's true that volatility prevents adoption, in order to have a mass adoption of a certain currency it is recommended to have a stable value. It indicates a stable economy too.

I agree with you both but isnt it what makes bitcoin special and the most valuable coin today? Volatility is needed for bitcoin to grow, it is like Gold, since not everybody can afford it, that what makes it more expensive, a good criteria for traders and users, if the price of bitcoin will be stable, then it will not reach its present value and the leading crypto in the market today. 

You have point there if price of bitcoin will keep on rise and fall, then everyone will be able to buy and hold bitcoin, I personally wait for bitcoin to get down so I will buy, this way million of people waits for that day when price of bitcoin will be down and they will be able to buy it, I like bitcoin as most volatile currency as it gives opportunity to rich and poor at the same time to buy and store bitcoin, it attracts investors to invest as much as they can.