Underlying BTC problem

[Sqooshy]

Hello, this is a continuation of my BTC project. I am trying to figure out what the biggest problem is right now I believe it is volatility. I am open to other opinions and how they could be fixed.

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[Bountyhonter]

Bitcoin's volatility is caused by the whales who have huge amount of bitcoin's who can manipulate the price by buying and selling huge amounts of bitcoin's. some people say bitcoin's volatility issue can't be solved but I don't believe so, I believe that if more people adopt and buys bitcoin it would gradually reduce the amounts that are in the hands of whales

[1Referee]

Volatility isn't Bitcoin or any other coin's problem, it's just a side effect of people's greed. The underlying problem of crypto in general is that the majority of the people don't (yet) understand the problem that crypto is meant to solve, which at the same time is the only thing that gives it value. If people even for a second realized what Bitcoin is, they wouldn't be selling it like empty headed baboons.

I hope that whatever the project is that you are working on, focuses on education of Bitcoin's fundamentals and technical aspects. It doesn't have to be difficult if you stick to the very basics. The easier it is for people to understand, the more likely it is that they will show genuine interest.

[Ladyga]

I believe that there can be many problems and it is impossible to isolate the specific problem of bitnoin, but I think that the problem is that the level of development of trade operations using Bitcoin leaves much to be desired. However, there are certain nuances here. Trade resources, operating on the principle of decentralization, due to the presence of precedents of scandalous bankruptcy of such sites, too slowly gaining popularity and momentum. Bitcoin trading, so far, is more widespread on the stock exchanges that operate on the principle of centralized management.

The fact that cryptocurrencies are at the initial stage of development can be explained by the fact that each problem that arises with individual trading platforms, not the best way affects the stability of the rate of virtual coins.

[Cryptoshops]

One of the biggest problems is the average internet/ phone user does not understand it, or how to use it. The software asociated with Cryptocoins reminds me of when Dos first came about, many people could not use or understand it. When Windows came out it changed the way people used and understood computers. If the software for Crypto does not become "user friendly" for the average user it will die a death and somethign else will take its place.

[loveinberlin]

I don't think that it is the biggest problem. To my mind, the main one is that market is not stable and most people don't believe in crypto and power of coins which make it volatile

[TheBunting]

I personally think that a massive underlying problem with Bitcoin and the Crypto market in general is adoption. I don’t think its at the stage yet where it is ready for mass adoption from your every day person who wants to use it to go pay for their shopping. It has come on leaps and bounds in rhe last year or two, don’t get me wrong. It still has a way to go.

Back at the turn of 2017-2018 was when Crpyto hit its lst peak and we definitely experienced some massive scalability with transactions, mainly with Bitcoin. I know there are many projects in place to tackle this and once these are in full affect it will help make Bitcoin and Crypto more adoptable.

[BitBustah]

Hello, this is a continuation of my BTC project. I am trying to figure out what the biggest problem is right now I believe it is volatility. I am open to other opinions and how they could be fixed.

Volatility will be solved once crypto becomes more mainstream.  This is the gift and curse of being an early adopter, you have to be able to handle these wild price swings.

The biggest problem for bitcoin is scalability but some would argue that it's not a problem because bitcoin should act as a store of value instead being used for micro transactions.  Bitcoin does have the lightning network but some would argue that the forks have more capability to scale.

[jerrison]

i am of the opinion that bitcoin has no problem whatsoever attached to its technological framework. it has no challenges with sending or receiving between wallets but it is normal that when a particular technology comes to existence, its offspring will always have a modified version of it to fix and attend to certain considerations that were overlooked in the beginning.

[KingScorpio]

Hello, this is a continuation of my BTC project. I am trying to figure out what the biggest problem is right now I believe it is volatility. I am open to other opinions and how they could be fixed.

the biggest problem is a mixture betweeen:

the delusion worldwide waking up in  communist world under a communist government (UN) and communist banking cartels,

and the realisation that the bitcoin clan/cult just tried to enslave the entire world to their corrupt index, (ripple and the bribe in with millions of usdollar into the focus of the industry basically shows that)

that is why they give up on taking coinmarketcap as serious and dont trust it a universality. they increasingly consider the entire attempt a joke, some even a ponzi scheme.

that is what I think

[gentlemand]

Volatility is the prime reason most people are here. Obviously many prefer volatility upwards. If there was none most would be gone. Hardly anyone is using it as a currency.

I'd say the biggest problem Bitcoin has is balancing decentralisation with functionality. In many cases the more functionality people demand, scaling and low fees, the greater the threat there is to maintaining decentralisation.

[TheBunting]

I do think the fact that it is more being bought and sold by people as an investment/money making strategy and not actually using it as an actual currency. Therefore with the very small Market Cap of the entire Crypto space, whales are managing to harshly manipulate the market to make themselves money.

Also, I think that there is a too much FUD from banks and big companies that will lose money if Crypto takes off and this is stopping more people buying into this space.

[figmentofmyass]

Volatility is the prime reason most people are here. Obviously many prefer volatility upwards. If there was none most would be gone. Hardly anyone is using it as a currency.

nearly 300k transactions per day---are you sure hardly anyone is using it as a currency?

I'd say the biggest problem Bitcoin has is balancing decentralisation with functionality. In many cases the more functionality people demand, scaling and low fees, the greater the threat there is to maintaining decentralisation.

as technology improves and latency/bandwidth become provably less of a threat from increased block size, i don't think it'll be that big of an issue. this will eventually happen, just not on the timeline gavin andresen and mike hearn thought.

the question for me is, how difficult will it be to smoothly pull off a hard fork?

[gentlemand]

Volatility is the prime reason most people are here. Obviously many prefer volatility upwards. If there was none most would be gone. Hardly anyone is using it as a currency.

nearly 300k transactions per day---are you sure hardly anyone is using it as a currency?

I'd say the biggest problem Bitcoin has is balancing decentralisation with functionality. In many cases the more functionality people demand, scaling and low fees, the greater the threat there is to maintaining decentralisation.

as technology improves and latency/bandwidth become provably less of a threat from increased block size, i don't think it'll be that big of an issue. this will eventually happen, just not on the timeline gavin andresen and mike hearn thought.

the question for me is, how difficult will it be to smoothly pull off a hard fork?

You betcha. I'll guess that's primarily money going to and from exchanges. We hardly hear a peep about actual expenditure these days and that's going to be become even rarer when people don't want to spend at all.

I don't think a hard fork will ever happen apart from the ones that deal with pure catastrophes. It's too late now. There are too many vultures circling too keen to throw a spanner in the works. One of the services the Bcashes has done us is to demonstrate what an utter shitshow it is when things are opened up to splintering.

[figmentofmyass]

You betcha. I'll guess that's primarily money going to and from exchanges.

based on what evidence? that explanation was a lot more compelling during the bubble, when retail investors were constantly being on-boarded and altcoins were all the rage. it's not so convincing during the extreme volume lulls and altcoin death spirals we saw this year. serious arbitragers should be looking at the liquid sidechain by now as well.

We hardly hear a peep about actual expenditure these days and that's going to be become even rarer when people don't want to spend at all.

what were you expecting to hear?

I don't think a hard fork will ever happen apart from the ones that deal with pure catastrophes. It's too late now. There are too many vultures circling too keen to throw a spanner in the works. One of the services the Bcashes has done us is to demonstrate what an utter shitshow it is when things are opened up to splintering.

yeah, so the real issue isn't the trade off between decentralization and functionality. it's that it might be impossible to hard fork to accomplish increased functionality.

[thecodebear]

Volatility isn't Bitcoin or any other coin's problem, it's just a side effect of people's greed. The underlying problem of crypto in general is that the majority of the people don't (yet) understand the problem that crypto is meant to solve, which at the same time is the only thing that gives it value. If people even for a second realized what Bitcoin is, they wouldn't be selling it like empty headed baboons.

I hope that whatever the project is that you are working on, focuses on education of Bitcoin's fundamentals and technical aspects. It doesn't have to be difficult if you stick to the very basics. The easier it is for people to understand, the more likely it is that they will show genuine interest.

this times a million



Volatility has nothing to do with Bitcoin, volatility has to do with the bitcoin market. It's volatile because it is an emerging asset class which people don't understand yet so vast numbers of people come in and out of the market like a huge tide in cycles.

[cluit]

Hello, this is a continuation of my BTC project. I am trying to figure out what the biggest problem is right now I believe it is volatility. I am open to other opinions and how they could be fixed.

Volatility is definitely one of the biggest problems bitcoin is facing if not the biggest problem. However it is a general broad term for what type of problem we have and not the cause for it. There are smaller things we can go deeper and see about it. For example volatility is a problem but what causes volatility? We can go deeper and say that volume (or lack of volume) is cause for the volatility we have.

Since volatility is caused by lack of volume it means that the problem is not volatility but the lack of volume which causes it. Volume is low because the interest for bitcoin and buying/selling it became less popular. Which means we can say that popularity of bitcoin dropped significantly.

It means volume is not the problem but popularity dropping is the reason. Popularity dropped because there was no action in bitcoin that showed any promise. Which means under all of this the trouble with bitcoin is the lack of anything that gives us any hope for the future.

[Febo]

Hello, this is a continuation of my BTC project. I am trying to figure out what the biggest problem is right now I believe it is volatility. I am open to other opinions and how they could be fixed.

Merchants fix this that they immediately exchange BTC into fiat they usually use. Most payment applications have such option. So there is zero risk.

[Bitcoinwaist]

Hello, this is a continuation of my BTC project. I am trying to figure out what the biggest problem is right now I believe it is volatility. I am open to other opinions and how they could be fixed.

how about this fix.  a wallet that has a built in hedge. it automatically goes short against your balance so you are flat neither long nor short. your dollar equivalent stays the same.

ps. I spend bitcoin everyday at nitogensports.eu betting sports. and have for the last 3 years. for a while last year, bitcoin was the preferred method to fund and disburse payments with many of the larger fiat gambling sites. many still use it. but when btc sh*t the bed it fell out of favor. dnm's still do quite a bit of business in bitcoin still.

[gentlemand]

how about this fix.  a wallet that has a built in hedge. it automatically goes short against your balance so you are flat neither long nor short. your dollar equivalent stays the same.

Sounds like a recipe for utter disaster.

The Mycelium wallet does have a service named Coinapult locks in it that allowed you to convert to USD in wallet and then switch back seamlessly. I'm not sure whether it's still going and there've been some complaints about it.

Converting back and forth between USD also creates a tax liability in a few countries. As can shorting too.

[avikz]

how about this fix.  a wallet that has a built in hedge. it automatically goes short against your balance so you are flat neither long nor short. your dollar equivalent stays the same.

I somehow agree to what Gentlemand said about the fix you have proposed. It may lead to an utter disaster if the process is made automated. It will lead to a bigger liquidity issue that the service provider might face and become insolvent after a certain period of time. It may lead to much higher volatility of the asset pricing if the automation is adopted by the mass, which is already a big issue that we commoners face every single day.

The volatility of bitcoin or any other crypto asset can be reduced by proper adoption and circulation. If a currency is not well circulated within the economy, the fate of that currency is to die. In order to survive in the long run, bitcoin and other crypto assets need to be well circulated within the economy through merchant adoption.

[haroldtee]

Volatility to me is not the biggest problem, people's mentality and most especially the newbies and the way they approach the market is simply the biggest problem as far as I am concerned. The thing that makes a lot of people present in this market right now is that they came in for the big money the media promised them. The moon, the stars and the skies with all the FOMO rush. All the idea of wanting to get rich quick without bothering to understand what you are investing in as a person is what has made the market to be on a large scale of speculation right now, and of course, the whales will always take advantage of that any time any day.

[arpon11]

Hello, this is a continuation of my BTC project. I am trying to figure out what the biggest problem is right now I believe it is volatility. I am open to other opinions and how they could be fixed.

Volatility is part of the problem.  Bitcoin has lose over $48billion of it market capitalization on a single day before and there was times that it has gained around $200billion. I think it is volatile and that makes the business not to be able to used it in trading.  If retailers are using it to buy and sell goods it will be very difficult to cope with the market as it can make you rich if you are holding it and it is going up in pricing and your entire capital can be wiped out if you are holding it and it is reducing in pricing.

[nl247]

I don't think that it is the biggest problem. To my mind, the main one is that market is not stable and most people don't believe in crypto and power of coins which make it volatile

Probably volatility may be a problem for some, but that is one of the reasons a lot of traders are in this market, and they are taking a huge chunk advantage of it. However to me, it is not the problem, but the root cause of that volatility, which is high speculative environment and manipulation combined with people's greed are the main problem here. Remove all those aforementioned from the market and you will see less volatility. However, it is a new market, so that would be a lot to ask at this stage until we start seeing real life usage and less speculation.

[el kaka22]

I hope that whatever the project is that you are working on, focuses on education of Bitcoin's fundamentals and technical aspects. It doesn't have to be difficult if you stick to the very basics. The easier it is for people to understand, the more likely it is that they will show genuine interest.

But, an obvious real-time application of BTC must be adopting it for a business which is completely influenced by the volatility of bitcoin price levels. It means the fundamentals and technical aspects of bitcoin has doing nothing for a business. A businessman when adopting bitcoin for their business, they must look into encashing bitcoin and paying back to his customers in bitcoin which is having big complications when the prices of bitcoin is continuously changing. The only known solution here is, instant conversions of bitcoin into fiats and vice versa.

I am trying to figure out what the biggest problem is right now I believe it is volatility.

You must need an active exchanger who will be available with you on all your business hours so that you will be able to convert both of your bitcoin and fiats as per your needs.

To manage volatility of bitcoin effectively with respect a business, you should not hold bitcoin at any point of time. Just convert into fiats immediately once you receive it. When your customers demand for bitcoins, just buy from the exchnager and pay.

[timerland]

Hello, this is a continuation of my BTC project. I am trying to figure out what the biggest problem is right now I believe it is volatility. I am open to other opinions and how they could be fixed.

I see a lot of people try to argue against bitcoin by saying that it is too volatile, it is too unstable to be a viable store of value. Which in my opinion is just not true.

Given the capped currency supply that bitcoin has, in the long run, it can't be subject to debasement or depreciation simply due to the central bank and/or the government abusing their power of printing more money on demand. Countries like Venezuela, Argentina and Zimbabwe have all experienced this, and at the end of the day, fiat is only as good as the central bank's ability to maintain its value, which I wouldn't trust in the long run.

For bitcoin, there is simply no way of manipulating the supply, and thus, it is a great long term store of value. Fluctuations in the short term isn't really a problem at all and doesn't affect its long term mechanics, although arguments saying that transacting in bitcoin while prices are fluctuating is difficult could be somewhat based. However, that should improve by itself simply by time, given more adopters, and actual acceptance of BTC as a currency imo.

[imapessimist]

The biggest problem is hodlers want to more people to put money in so the price goes up that makes sense.  What doesn't make sense is holding all the way down to the bottom again. 

[TheBunting]

The biggest problem is hodlers want to more people to put money in so the price goes up that makes sense.  What doesn't make sense is holding all the way down to the bottom again. 

I disagree, If you look at the charts there are massive selling volumes that outweigh current buying volumes. This is factoring into the price and making it drop..

[upsidedown75]

how about this fix.  a wallet that has a built in hedge. it automatically goes short against your balance so you are flat neither long nor short. your dollar equivalent stays the same.

I somehow agree to what Gentlemand said about the fix you have proposed. It may lead to an utter disaster if the process is made automated. It will lead to a bigger liquidity issue that the service provider might face and become insolvent after a certain period of time. It may lead to much higher volatility of the asset pricing if the automation is adopted by the mass, which is already a big issue that we commoners face every single day.

The volatility of bitcoin or any other crypto asset can be reduced by proper adoption and circulation. If a currency is not well circulated within the economy, the fate of that currency is to die. In order to survive in the long run, bitcoin and other crypto assets need to be well circulated within the economy through merchant adoption.

Another big problem I see is the idea of what bitcoin is for many people and what bitcoin really is different. For example bitcoin supposed to be something that is a revolutionary new money that changes the way we use money and manages to decentralized the currency so that no government could ruin it, it is as untouchable as it gets and really gives people a fighting changes to be at least a bit rich compared to fiat where rich get richer and poor gets poorer.

But what do people use bitcoin for? To get rich by selling it... That's really not what bitcoin is for and you should not buy and sell bitcoin to get richer in fiat amount, just because bitcoin increased in price or decreased in price the interest of people changes and that's incredibly wrong. Bitcoin is still bitcoin and has a lot of chance to fight back with fiat.

[Slow death]

Hello, this is a continuation of my BTC project.

You did not talk about your project, but good luck with your project

I am trying to figure out what the biggest problem is right now I believe it is volatility.

the biggest problem of bitcoin is not being recognized by governments and banks, and for governments and banks to recognize bitcoin is necessary that the exchange adopt ethical practices and forget this habit to put false volumes; we need to stop with this fad of hard fork and create altcoins with names similar to bitcoins; We need to stop with pump and dump on the market.

[Tagus45]

Volatility is not always a bad thing, but it can be an opportunity to make a profit when crypto values ​​jump high, and volatility is also a reason some people are interested in crypto.

[bintangkejoraku]

who can improve this situation is investors, at this time bitcoin has lost many investors and in my opinion bitcoin takes a very long time to get trust from investors again. This bear market makes many investors feel frustrated.

[naidray]

the biggest problem of bitcoin is not being recognized by governments and banks, and for governments and banks to recognize bitcoin is necessary that the exchange adopt ethical practices and forget this habit to put false volumes; we need to stop with this fad of hard fork and create altcoins with names similar to bitcoins; We need to stop with pump and dump on the market.

Why do we need bitcoin to be recognized by governments and banks ? Exchange's false volume is that much big problem for all the bitcoin adapters ? I don't think so. Next time, try to give some exact reason why governments and banks should recognize bitcoins, lol. Forks with confusing names ? Who are care about the shitcoins ?

Moreover we need to consider that bitcoin has already survived for 10 years without any major support from them. It will start dominating governments and banks in next to 10 years, it means it will replace banks but governments will be simply watching the progress of bitcoins as they cannot do anything about it.

Even fluctuations is not also a problem for bitcoins right now. The current lower prices are very big opportunity for those who heard about bitcoins started observing it when it was trading around $20k. People who had already done enough due diligence might be getting ready to enter right now. Then how we can call this volatility a problem ?

[fiomcorka]

I think it is more legal than volatility. There are no regulations ON bitcoin, no government can make any changes on the main code of bitcoin and that is a great thing but if you consider the fact that some governments are keeping the exchanges on a leash and making them give all the info they have automatically to the government and allow the people to buy and sell crypto but pay taxes and basically watch every single move they make it becomes a problem.

In third world countries crypto is becoming bigger not only because people prefer that to their underdeveloped finance and economy but also because they do not have the limitations they have in bigger countries. Hence, the reason why they got bigger adoption rates. I think legal world needs to back off from bitcoin a bit in the bigger countries in order to make the adoption faster.