Can the volatility of Bitcoin be curbed?

[storfox]

I do not yet know a way to reduce the volatility of bitcoin prices and it seems to me that it will be very difficult to do because bitcoin is decentralized, also bitcoin is used now as a tool for investing and reducing the volatility of bitcoin prices will lead to a decrease in investment interest.

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[jcmansah7]

Sometimes i don't want to give too much of a hope when there is not any. The volatility of bitcoin cannot be curbed because the primary reason for which bitcoin was created has been thrown away and know people have implemented their own reasons for personal gains. Bitcoins were supposed to be a mode of payment for transactions but not holding it like an asset which has a specific value against time. It is so funny that we the crypto enthusiasts who are wishing so bad for the legalization of bitcoin will not agree to dumping it, because people would lose huge sum of money but i must be honest i don't see any other way out aside dumping the coin.

[brylle34]

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?


 

Volatility measures the variance of the price of a certain financial instrument within a certain period of time. It is commonly associated with the risk level of the instrument, a highly volatile instrument is regarded as risky and a less volatile instrument as less risky.

Therefore, it is important to understand the volatility of bitcoin and other cryptocurrencies if you are looking to invest or trade in the cryptocurrency space.

Here are the most important take-aways of the bitcoin volatility analysis based on our data:

Bitcoin weekly volatility reached up to 60% per annum during the previous year (Figure1), but other coin pairs saw even bigger swings. Bitcoin is definitely the most liquid coin, its order books show the deepest sell and buy offers, therefore a big trade will have a smaller price impact, hence a smaller price volatility. Bitcoin is, however, still more volatile than any fiat currency pairs.

When comparing Bitcoin trading versus fiat currencies, we observe that BTC versus CNY is the most volatile market (Figure2). This is mainly due to the previously zero trading fees on Chinese exchanges that bumped up volume.

Bitcoin volatility can be traded

we can't change it because that is how we traders earn always think that even bitcoin drops there a big opportunity to earn, for me volatility is a good thing also.
see further details here https://www.cryptocompare.com/coins/guides/5-things-you-need-to-know-about-bitcoin-volatility/

[ladydark]

Volatility is one of the main feature of bitcoin which is used by traders to gain huge profits and it could not be controlled as it is a decentralised currency.

[StarKay]

I don't think they're design limitations rather they're what the hodlers/traders/users have turned Bitcoin into. Maybe in the long run, Bitcoin price will achieve stability.

[xuan87]

People love Bitcoin because of its decentralization and with decentralization the volatility couldn't be avoided, and there is no way to control the volatility, because most of the people used Bitcoin as investment, and there are tons of traders active every day, it's makes the volatility even worse

[wiser]

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?

Things that tend to dampen volatility are widespread adoption and use, lots of volume on exchanges so price doesn't move very quickly, and intrinsic value.

Bitcoin has some serious challenges for widespread adoption, and its decentralized, leaderless nature pretty much guarantees those challenges will not be effectively addressed for the time being.

A centralized exchange rate mechanism would pretty much defeat the purpose of decentralized peer to peer transactions, so I wouldn't recommend it, and I don't think it would work anyway.

I don't see Bitcoin evolving in a way that could curb the volatility, though it might be dampened somewhat by significantly more speculators getting into the game.

For an example of a cryptocurrency that is proactively addressing these challenges with Bitcoin and gearing up for widespread global adoption, take a look at DNotes and its sister company DNotes Global. The project is not widely known at this point, has been operating largely under the radar, but over the past four years it has been very steadily and quietly building up and putting together the pieces, and one day, probably in the next couple years, it's going to take the world by storm. All of a sudden, there will be a digital currency that seamlessly bridges the gap between cryptocurrency and traditional financial structures, that is totally user-friendly and intuitive to use, and which is supported by an extensive ecosytem to give it intrinsic value. You don't build something like that overnight, but for most people it will appear like the proverbial overnight success.

[luoli66]

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.

I very much agree
Bitcoin's price will gradually stabilize as it is tapped
Because bitcoin is lost again, when some wallets are forgotten, the bitcoin inside disappears.

[levvv]

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?


 

indeed, volatility is the main characteristic of cryptocurrency. I dont know well what makes crypto so volatile but it is not always bad.
i think there is no guarantee bitcoin's volatility will be gone if it going to be centralized. Bitcoin and crypto should be stay decentralized.

[spartanrules]

Actually volatility of bitcoin is natural. Only thanks to it we can make profit and earn money quickly. If you like stable fluctuating you can just trade in forex for example. But personally I like such volatility, because it provide us opportunities to buy cheap and sell in high.

[troack]

In my opinion, the fluctuation of bitcoin is not necessarily limited by the fact that it fluctuates much, it is just showing the trader and interacting, thanks to the fluctuation that I have embarked on bitcoin.

[KuyaBreezy]

One of the major strengths Bitcoin has is it's freedom. The fact that it can operate freely without external influences and intervention is what makes it attractive, foe the volatile status to be eliminated, there must be some sort of control on how BTC operates which will greatly affect it's freedom. The volatile nature can be curbed only if BTC is centralized, something that i sot see happening anytime soon especially with most governments battling BTC so much so that some are doing away with it completely

[takadada]

Should limit the fluctuation of Bitcoin, giving users more losses, and greater profitability

[CurrenCyTRR]

it will definitely decrease

[bigjake89]

Until btc price stabilizes, I don't think we will get new average Joe's money come into the market

[nakamitu]

It is limited by the support and resistance, it can not be limited, so the player can control it.

[Assface16678]

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?


 

There is a possibility that bitcoin's high volatility rate could be curbed or stabilized, however, it is not possible for the existing progress the technoligy had now. We can't use something as creating a physical represetntation of bitcoin sin e it would destroy the integruty of the coin and moreso it is very expensive shpuld we plan to do it. Also, if bitcoin would stabiliae now, it wouldn't be suitable for investing anymore.

[ladydark]

No way.Volatility of bitcoin could not be solved.

[knggtrrz]

It is quite possible although it is a very long shot. Looking at the prices over the past three months, it is obvious that the volatility has decreased significantly but then, it is Bitcoin,right? You never can predict accurately what might happen next

Agree, bitcoin price is very unstable and we cannot really tell what will happen to it in the coming months, price falls and price rises unexpectedly. this is the reason why so many people are into bitcoin now though price cannot really give assurance of sure profit.

[Heavens Gate]

Crypto is affected by both internal and external factors. External factors like economic factors affecting a dominant crypto player like China, Japan and South Korea go a far way in affecting the price. These kind of events cannot be controlled hence to a large extent the volatility cannot be curbed