Can the volatility of Bitcoin be curbed?

[drmilind2004]

One major obstacle toward Bitcoin's acceptance by the mainstream is its extreme volatility. Effectively, this volatility means that Bitcoin is more a commodity than a currency.

That being the case, if, and that's a big 'IF', we wish to further the cause of Bitcoin as a currency with mainstream acceptance, there needs must be a mechanism in place to 'dampen' the volatility.

Central Banks stabilise their International fiat currencies through some exchange rate mechanism, that prevents excessive volatility. Can a similar mechanism operate for Bitcoin?

But, who will be in charge of a setup that is not just intentionally decentralised, it is explicitly anti-centralised?!

Are these just the design limitations of Bitcoin that we have to put up with; or can Bitcoin evolve?


 

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[Lakshitha1977]

It's hard to see Bitcoin having a stable price until all coins are mined. With the supply and demand and circulation changing it's not easy or impossible to have a stable price for bitcoin. Sometime we've seen wallets , exchanges and certain ICO's put a average price for Bitcoin or ethereum to exchange  other than that any tokens price will be on rapid changes when they traded in the market.

Until all BTC are mined it will still be volatile. Best shot we have to see how a stable price for a crypto currency would work is check out the price change of a token or coin that's already fully pumped to the market. until that happens this advantage and disadvantage is here to stay.

[Invest.Ort]

I think that no, it's still a small market, and very manipulative

[funsponge]

No in our life time. The closer we get to the coins being mined completely the more stable in theory it should get.

It's hard to see Bitcoin having a stable price until all coins are mined. With the supply and demand and circulation changing it's not easy or impossible to have a stable price for bitcoin. Sometime we've seen wallets , exchanges and certain ICO's put a average price for Bitcoin or ethereum to exchange  other than that any tokens price will be on rapid changes when they traded in the market.

Until all BTC are mined it will still be volatile. Best shot we have to see how a stable price for a crypto currency would work is check out the price change of a token or coin that's already fully pumped to the market. until that happens this advantage and disadvantage is here to stay.

You had it exactly right within your first sentence. Bitcoin will continue to be volatile and unpredictable until all coins have been mined. So basically what we are saying it that within your life time you won't see a stable and predictable Bitcoin.

[squatz1]

The only way we're going to get a stable price is from people not using it as an investment tool, and a day trading tool. But that's not going to happen until we fall down substantially, so who knows if that's going to happen. We would have to push for crypto as a currency, and we'd have to make the news for our acceptance and real life usage instead of price increases.

Get people and businesses interested in crypto the currency, and not the investment

[funsponge]

The only way we're going to get a stable price is from people not using it as an investment tool, and a day trading tool. But that's not going to happen until we fall down substantially, so who knows if that's going to happen. We would have to push for crypto as a currency, and we'd have to make the news for our acceptance and real life usage instead of price increases.

Get people and businesses interested in crypto the currency, and not the investment

You might be right but this would also have negative effects on the currency and adoption. For it to be successful and reach mainstream as some people are looking for it to do it would require investment and trading. If everyone held Bitcoin it just wouldn't work as there's not much demand. It no longer becomes a currency but an investment to sell on later if there's no daily trading of it.

[aoluain]

Bitcoins and cryptos volatility cannot be curbed.
The simple reason is its because of the unregulated and decentralised
nature of it. Markets can be manipulated and traders are in a frenzy to
gain as much as possible as quick as possible. Its going to be very
difficult to counteract these facts.

[squatz1]

The only way we're going to get a stable price is from people not using it as an investment tool, and a day trading tool. But that's not going to happen until we fall down substantially, so who knows if that's going to happen. We would have to push for crypto as a currency, and we'd have to make the news for our acceptance and real life usage instead of price increases.

Get people and businesses interested in crypto the currency, and not the investment

You might be right but this would also have negative effects on the currency and adoption. For it to be successful and reach mainstream as some people are looking for it to do it would require investment and trading. If everyone held Bitcoin it just wouldn't work as there's not much demand. It no longer becomes a currency but an investment to sell on later if there's no daily trading of it.

I'm not advocating for investing and trading to go away all together, I'm just saying that I would much rather see investing and trading only make up 1-5 percent of our volume instead of most of our volume and the other is volume in BTC is going to simply be people using the coin itself as intended, as a currency.

We are pretty much a trading coin right now, we aspire to be a world currency.

[bitmover]

Bitcoin volatility is already in decline.


Source: https://www.coindesk.com/bitcoin-where-wall-street-and-silicon-valley-meet/This chart is old,but it does the job.

Also, we are in about 3 months on the range 7-9k. This is low volatility for bitcoin. E até getting there.

[SamReomo]

One major obstacle toward Bitcoin's acceptance by the mainstream is its extreme volatility. Effectively, this volatility means that Bitcoin is more a commodity than a currency.

Bitcoin will definitely remain as an extremely volatile cryto forever because without its volatility there isn't anything going to happen for other cryptos and the traders who want some huge profits will not be interested in it anymore. Calling Bitcoin a commodity isn't very fair and it isn't as stable as fiat. The price of Bitcoin has had major surges during these years and the expectations of having such ups and down are still high even today.

That being the case, if, and that's a big 'IF', we wish to further the cause of Bitcoin as a currency with mainstream acceptance, there needs must be a mechanism in place to 'dampen' the volatility.

Central Banks stabilise their International fiat currencies through some exchange rate mechanism, that prevents excessive volatility. Can a similar mechanism operate for Bitcoin?

Well, there isn't any mechanism or stabilizer to  normalize the volatility of Bitcoin and I am very sure that there won't be anyone ever because if that happens then that would reduce its usage rather than increasing it. The main reason for its market is the volatility and only because of which the investors are earning huge profits compare to any other commodity or stocks or currencies. And, the main things is that the Bitcoin is not operated by any bank or any country and that's why there can be no-one operator of it.

[hugeblack]

Since bitcoin is decentralized, it is supply and demand that causes these fluctuations/volatility.
The price is now stable due to the stability of supply and demand or in other words the lack of hot news that drives investments a lot.
I do not think that the number of bitcoins "all coins mined" will make a big difference in stability, but perhaps the big whales can influence the price.
The stable price does not necessarily mean centralization, check Havven.

[Crypto24hrs]

When you say something is volatile it means that it evaporates at a normal temperature and if BITCOIN is described to be volatile it then means  that it is absolutely out of control like any other volatile substance this is a simple logic.
However if the volatility must be nipped in the bud BITCOIN must under both technological and structural adjustment.

[Vertex_ICO]

Not at the moment and not in our lifetime. 

[laneYcryPto4]

Th volatility of bitcoin can not be controlled as long as it is still being mined.

[MasterNodes.Cash]

This volatility has made many people millionaires and at the same time ruined some people's lives who bought at the top. Until btc price stabilizes, I don't think we will get new average Joe's money come into the market. Too many people have gotten burned.

[CryptoBry]

Setting up a mechanism for the sole purpose of controlling Bitcoin's volatility would make it already just like any other fiat currency under the control of centralized power...that is exactly what Bitcoin is avoiding to happen. In my own opinion, by the time that Bitcoin has already reached the mainstream population the volatility will eventually subsides but the problem is that to get there into the mainstream many think that volatility is the big hindrance...so it can be the case of the chicken and the egg. As to what can be the best solution for this hindrance without affecting its decentralized nature is something that is open for discussion or even a debate.

[Direwolve735]

I believe that bitcoin's volatility can be reduced by regulating the crypto-currency sphere. However, I am against the fact that cryptos are regulated by the state. I believe that every participant in the crypto sphere should ensure its worthy development. Instead of waiting for governments to take action that hinders the development of digital currencies, the participants themselves must make efforts to create proper regulatory control over new innovative financial technologies.

[Pursuer]

volatility is definitely one of the obstacles in front of bitcoin for being adopted but I disagree with calling it the biggest one because this volatility can also mean you can have a bigger buying power as the time goes by. for example when you buy bitcoin at $1000 and in a year it goes to $8000 now you have 8 times the buying power than you had last year so you use it as a currency even spending the profit would be more than enough!

volatility has nothing to do with the design though. it is all about the adoption! it is a weird relationship actually. the more adoption will decrease the volatility but at the same time the current volatility is preventing the adoption. in any case the market needs to grow more for price to become more stable and also exchanges have to stop sucking so that they can grow more so a little dump doesn't cause a big drop!

[timerland]

One major obstacle toward Bitcoin's acceptance by the mainstream is its extreme volatility. Effectively, this volatility means that Bitcoin is more a commodity than a currency.

That being the case, if, and that's a big 'IF', we wish to further the cause of Bitcoin as a currency with mainstream acceptance, there needs must be a mechanism in place to 'dampen' the volatility.

Central Banks stabilise their International fiat currencies through some exchange rate mechanism, that prevents excessive volatility. Can a similar mechanism operate for Bitcoin?

But, who will be in charge of a setup that is not just intentionally decentralised, it is explicitly anti-centralised?!

Are these just the design limitations of Bitcoin that we have to put up with; or can Bitcoin evolve?

Honestly speaking, bitcoin volatility isn't something that I'm particularl concerned about at all. I hear people talking about bitcoin volatility as a really serious issue all the time, but personally, I've never had problems with bitcoin fluctuating in the short term.

All it means is that bitcoin is decentralized, and is a free floating currency independent from anything else - that's actually something positive from one perspective. Also, just because bitcoin is volatile in the short run doesn't mean that it's not a store of value over the long term, which it is, and is much better at than government issued currencies.

The introduction of a central entity to control volatility of BTC would make no sense whatsoever. Nor will it ever happen. Bitcoin's speculative volatility will drop as time goes on, and more people adopt bitcoin as a form of payment. It's that simple, really. And it's not even a problem at this stage to worry about.

[franky1]

fiat markets curb the volatility by having huge amounts of funds on order lines made up of many traders per price point. and also the traders are not hoarding for weeks to make sudden 10-100% profits. but instead making daily/hourly minimal percent profits which actually add up to the same long term profit. but without the wait//risk.

if people started trading knowing that its less risky to wait for 50% spikes every few months.. but instead take 1% a day. they would still get their 50% evry few months, but will less risk, stress and without causing as much volatility required