Bitcoin is already the most stable store of value.

[yatsey87]

Isn't it the people who are the volatile party here? I don't think we'll ever get passed this volatility if we continue to peg it to another currency and continue to sell it for lower and lower prices. Surely if people held it rather than sold on the whiff of any bad news then this wouldn't be a problem.

[kzdan]

interesting thread --

the dollar is actually the world's most stable 'store of value' when it comes to currencies.  Countries with much smaller economies than the U.S (e.g. CIS countries) have currencies that remain relatively stable only due to big currency manipulation (i.e. generating new currency to increase the pool of money in that country).  People often hold large amounts of dollars 'under the bed' in CIS states as they understand how stable it is compared with their own domestic fiat currency.

Gold is also a well accepted global store of value because it is rare, cannot be created out of thin air (only through mining) and can be melted down and transformed easily.  Countries fearing the long term future of the dollar are (quite sensibly) buying up huge amounts of gold, Russia for example.  Yes true that Bitcoin price is volatile if you look at short term gains and falls, but just look at the mtgox price over 2 or 3 years, smooth out the curve and you see an overall constant rise.  Its just that the Bitcoin economy is still relatively small compared with dollar, yen, gold etc and is therefore more sensitive !! 

As the Bitcoin economy increases (i.e. through price and number of coins through mining), more stable it will get I think, although it could take a long time !! 

I wrote an article recently about gold and Bitcoin if anyone interested:   http://www.itreco.net/main/bitcoin-and-gold/

[ZephramC]

If its price is extremely volatile its not a stable store of value. Period.

It depends on the time scale.

[Armis]

If its price is extremely volatile its not a stable store of value. Period.

very true, but that's just a symptom of the problem the real problem is a weak and untrustworthy infrastructure, apparently people are only here to see the market value increase, not to see the actual cryptocurrency (CC) used in industry. 

If CC btc was used in industry as much as it is traded or even half as much it would exhibit greater stability even in the face of disappointing news from a major exchange.   

[Bitcoin-Monster]

Bitcoin just crashed to $102 on BTCE. Litecoin appears to be more stable.

[hilariousandco]

If its price is extremely volatile its not a stable store of value. Period.

It depends on the time scale.

Yeah, you need to look at the bigger picture. This is still early days for Bitcoin. Something so new is bound to have its problems before it steadies itself out.

Bitcoin just crashed to $102 on BTCE. Litecoin appears to be more stable.

For the time being, but Litecoins value tends or tended to follow Bitcoin. It's still pegged to BTC remember.

[Ekaros]

7% change in a day for currency is quite bad...

That doesn't really lead to working economy...

[kkaspar]

Only a complete moron would use bitcoin for storing value.
Bitcoin price is made up by pure speculation. Holding your wealth in bitcoin means that you trust your money to the bitcoin community. Trusting this flock of emus without constant supervision is beyond naive.

If you want to store value, then invest in rare earth metals or any in other resources thats demand is growing but the availability dropping.

[jcoin200]

I am all for BTC, but when you wake up and the price has dropped 10% or more, that is a little unsettling.  Its not the best store of value, but still a good idea for people in places experiencing hyperinflation

[Lauda]

dropped to $102? no

Some retard dumped 10,000+ coins in a no-limit order. This will simply scoop up ALL open buying orders, starting from the highest price, until the order is filled. This way some lucky bastards got their buy-orders at $150 filled.

The reverse would happen if somebody buys 10,000+ BTC in a no-limit order, people with $1,500+ sell orders would suddenly get hit.

But with the market volume, this immediately restores. By no means would these scenarios mean that 'the price has dropped to $150' or 'the price has risen to $1500'.

Where did this happen? Btc-e?

[stompix]

dropped to $102? no

Some retard dumped 10,000+ coins in a no-limit order. This will simply scoop up ALL open buying orders, starting from the highest price, until the order is filled. This way some lucky bastards got their buy-orders at $150 filled.

The reverse would happen if somebody buys 10,000+ BTC in a no-limit order, people with $1,500+ sell orders would suddenly get hit.

But with the market volume, this immediately restores. By no means would these scenarios mean that 'the price has dropped to $150' or 'the price has risen to $1500'.

Where did this happen? Btc-e?

Yes , it's that dip at btc-e that everybody is talking about as a crash to 100.

[stompix]

I am all for BTC, but when you wake up and the price has dropped 10% or more, that is a little unsettling.  Its not the best store of value, but still a good idea for people in places experiencing hyperinflation

I really doubt people in countries where there is hyperinflation have more than a few satoshi fer thousands citizen.
Just like the whole whole kenya bitcoin rush was one major myth.

[Lauda]

Not exactly a crash, just a dip, imagine someone making an instant buy order for 10 000+ BTC, it would jump quickly before going back.

[guybrushthreepwood]

I am all for BTC, but when you wake up and the price has dropped 10% or more, that is a little unsettling.  Its not the best store of value, but still a good idea for people in places experiencing hyperinflation

10% drop seems a splash compared to today.

[stompix]

Not exactly a crash, just a dip, imagine someone making an instant buy order for 10 000+ BTC, it would jump quickly before going back.

That's why I said "as a " :

Yes , it's that dip at btc-e that everybody is talking about as a crash to 100.

People love to have some other people panicking as an excuse to panic.

[Sheldor333]

It is not stable, and it won't become any time soon. I do think it will become stable one day, at least stable enough that variations within a day won't be larger then those of regular currencies.

[guybrushthreepwood]

It is not stable, and it won't become any time soon. I do think it will become stable one day, at least stable enough that variations within a day won't be larger then those of regular currencies.

One day? Will that day be in our lifetime? lol.

[FalconFly]

If the present state of BitCoin was to represent the most stable store of value.... oh boy, we'd be fu*&ed. Big time.

It's a permanently endangered, unstable, volatile construction in progress and experimental way to conduct monetary transactions via internet with a still unknown background and uncertain future - nothing more.
It lacks about every single base requirement to be a store of value and in some regards even its value is highly debatable itself.

Complementary FIAT-type virtual commodity at best IMHO, which derives most of its value from the ability to conduct worldwide transactions at relatively small fee and reasonable transaction time - where accepted - and to date mostly outside of government control. Lots of variables that are subject to change without notice, hardly the "qualities" you'd need to have a store of value.

It's a new, virtual "use at your own risk" development restricted to internet use only, so never confuse it with a store of value.

[stompix]

Bitcoin just crashed to $102 on BTCE. Litecoin appears to be more stable.

It crashed for a moment. What would have happen to litecoin if somebody would have dropped 20 000 LTC on the market?
It would have been the same for any altcoin.

Except the fact that bitcoin is already recovering , many of the alt coins would have been frozen at the moment of the drop for ages.

[BADecker]

If the present state of BitCoin was to represent the most stable store of value.... oh boy, we'd be fu*&ed. Big time.

It's a permanently endangered, unstable, volatile construction in progress and experimental way to conduct monetary transactions via internet with a still unknown background and uncertain future - nothing more.
It lacks about every single base requirement to be a store of value and in some regards even its value is highly debatable itself.

Complementary FIAT-type virtual commodity at best IMHO, which derives most of its value from the ability to conduct worldwide transactions at relatively small fee and reasonable transaction time - where accepted - and to date mostly outside of government control. Lots of variables that are subject to change without notice, hardly the "qualities" you'd need to have a store of value.

It's a new, virtual "use at your own risk" development restricted to internet use only, so never confuse it with a store of value.

The question is, how stable is Bitcoin when compared with the money being used in the United states in 1800. Bitcoin is about 5 years old. In 1800, following the new constitution of 1786, the United States already had 14 years to develop their currency and make it work.

I'm not into the history of the various U.S. currencies. The point is not the history. The point is the rapidity with which Bitcoin has become popular.

The world has never seen a currency that is being traded worldwide with the popularity of Bitcoin, go from zero to what it is today, all in just 5 years. Nobody knows how inherently secure and valuable Bitcoin really is. It is just too early to draw a real conclusion. However, one thing is sure, Bitcoin has risen, worldwide, way faster than the German Mark did in Germany, after Hitler rebuilt Germany prior to WWII. And that is fast.