What would happen to the bitcoin price if adoption increased on a larger scale?

[Hydrogen]

So is it true that bitcoin price volatility will decrease by itself as bitcoin adoption reaches higher levels?

Market mechanic based principles like nominal rigidity assume a stable world with stable conditions in financial markets and the economy. High inflation, pandemic lockdowns, supply chain disruptions or any of the crazy and chaotic events of the last 2 years are not factored in. Ditto with the insistence of china and central banks around the world to aggressively target inflation protected assets like bitcoin. Or the media neglecting to publicize positive aspects of cryptocurrencies as a normal trend.

Alternate terms to describe "nominal rigidity" could be principles like momentum, inertia and terminal velocity. High volatility assets which fluctuate wildly could gradually lose momentum over time due to their own inertia (the mass of which could increase through mass adoption, no pun intended). Two separate principles which over time deplete an assets terminal velocity, producing lower average volatility. There's an attempt to define the principles involved anyway. Hope it makes sense.

[1713997197]

1713997197

[1713997197]

1713997197

[Taskford]

I read a few things about the increase in bitcoin adoption during this time. El Salvador is one of the countries that have decided to adopt bitcoin as a legal currency and several others as legal tender without making it a primary currency. As I already know, the price of bitcoin is very volatile following changes in the interest of traders in the market so its adoption as a means of payment is something that traders doubt its stability because they are afraid that traders will lose due to falling prices.

But after I read this one, then I believe merchants will be more comfortable adopting bitcoin as a means of payment if adoption on a larger scale occurs in bitcoin.

Source: https://en.wikipedia.org/wiki/Nominal_rigidity

Nominal rigidity, also known as price-stickiness or wage-stickiness, is a situation in which a nominal price is resistant to change. Complete nominal rigidity occurs when a price is fixed in nominal terms for a relevant period of time. For example, the price of a particular good might be fixed at $10 per unit for a year. Partial nominal rigidity occurs when a price may vary in nominal terms, but not as much as it would if perfectly flexible. For example, in a regulated market there might be limits to how much a price can change in a given year.

So is it true that bitcoin price volatility will decrease by itself as bitcoin adoption reaches higher levels?

Actually the one we can experience for that scenario is bitcoin get hype by the time that adoption will happen and we shouldn't think that the hype will last long since even though that there is more demand will be created thru that adoption still we should consider that corrections always happen in crypto. But we shouldn't lose the confidence to corrections or unpredictable market movement  eventhough adoption has been happen but atleast bitcoin gather more strong foundation that this became more better currency of future.

[XCANA]

An increase in demand for Bitcoin is indication that the demand is higher than supply and that will definitely lead to an increase in market value of Bitcoin if that happens. And that is what all traders who bought Bitcoin when it price is low expecting an increase so that they can make huge profit from their trading.

[xSkylarx]

An increase in demand for Bitcoin is indication that the demand is higher than supply and that will definitely lead to an increase in market value of Bitcoin if that happens. And that is what all traders who bought Bitcoin when it price is low expecting an increase so that they can make huge profit from their trading.

It is the basic economic formula: if demand is high, the price will be high as well. It is similar to how, before the pandemic, the price of surgical masks was too low, but when the pandemic hit, the price of masks skyrocketed, becoming prohibitively expensive, but then gradually decreasing as supply increased and could cater to all. It is similar to bitcoin in that if demand is high, the price may rise.

[Kasabus]

An increase in demand for Bitcoin is indication that the demand is higher than supply and that will definitely lead to an increase in market value of Bitcoin if that happens. And that is what all traders who bought Bitcoin when it price is low expecting an increase so that they can make huge profit from their trading.

It is the basic economic formula: if demand is high, the price will be high as well. It is similar to how, before the pandemic, the price of surgical masks was too low, but when the pandemic hit, the price of masks skyrocketed, becoming prohibitively expensive, but then gradually decreasing as supply increased and could cater to all. It is similar to bitcoin in that if demand is high, the price may rise.

Yes. Bitcoin is more on its supply and demand. As of now, bitcoin is definitely increasing its adoption rate because they are already big countries who are starting to accept and legalize bitcoin and may even use it as a legal tender soon. Although there are still parts of the world who are still skeptical about how bitcoin works and its over all usefulness, i know in time they will also learn to adopt it. In the end, bitcoin will become a global currency. It's just a matter of time where all of the individuals will be educated about bitcoin and how it will be functional for us.

[paxmao]

As always, price is about demand and offer. The bitcoin offer is fixed and it is perfectly known to decrement every 4 years. The cost of producing it is as well superhigh and increases continuously. An increase in adoption and circulations means more demand, more fees, thus a higher price is inevitable. The next steps in adoption would mean an extreme jump in value, similar to the ones registered in the past.

[Quidat]

An increase in demand for Bitcoin is indication that the demand is higher than supply and that will definitely lead to an increase in market value of Bitcoin if that happens. And that is what all traders who bought Bitcoin when it price is low expecting an increase so that they can make huge profit from their trading.

It is the basic economic formula: if demand is high, the price will be high as well. It is similar to how, before the pandemic, the price of surgical masks was too low, but when the pandemic hit, the price of masks skyrocketed, becoming prohibitively expensive, but then gradually decreasing as supply increased and could cater to all. It is similar to bitcoin in that if demand is high, the price may rise.

To say off that we've been hoping for this thing to happen on where we do really need that adoption in the first place so that we would really be seeing on how Bitcoin would really progress into the future.
This isnt only limited on itself but also in other altcoins in the market as well.As you have said that it is just really on simply economics subject about the law of supply and demand which its
understandable that price could really go up high if there are sufficient demand on it which its a normal thing to presume on.

[BITCOIN4X]

There is always an opportunity to adopt bitcoin as a means of payment even though we know that this asset is highly volatile. There is no reason why we should be afraid to accept it as a means of payment because we can sell it as quickly as possible. If you are an adopter, then you should consider pulling the latest price from today's active markets as a reference for labeling the goods and services you offer. One thing to note is, you have to wait for confirmation of at least 1-3 confirmation on the block so that you never fail to pay. Whoever you are then you should be aware that 0conf transaction are not safe at all as proof that you have been paid.

What would happen to the bitcoin price if adoption increased on a larger scale?

Demand is increasing, meaning you will see price go to month.

[SatoPrincess]

Should Bitcoin adoption increase on a larger scale, then the demand for Bitcoin will increase and so will the price of Bitcoin  ie law of supply and demand

[Spack17]

I think that the answer is quite simple. If Bitcoin adoption reached a huge level, then the price would be affected by this very positively also. Because when the adoption rate increases very highly, people will start demanding Bitcoin much more than ever before. And this will reflect on the price directly. Because the more the demand, the bigger the price is.

[Viscore]

I think that the answer is quite simple. If Bitcoin adoption reached a huge level, then the price would be affected by this very positively also. Because when the adoption rate increases very highly, people will start demanding Bitcoin much more than ever before. And this will reflect on the price directly. Because the more the demand, the bigger the price is.

Yes. It's just as simple as that. Once the demand will increase, its supply will be lessen, but its value will definitely go along with how high the demand is. And this is what happening to bitcoin now. There are already several countries now where bitcoin is being used as a reserved currency to fiat. And just like El Salvador, bitcoin is already being used as a legal tender, but still people are free to decide if they want to receive fiat or bitcoin as a payment. Bitcoin will be expecting to grow its value from time to time because there will be new additional countries for sure that will be adopting bitcoin soon.

[alpamar99]

An increase in demand for Bitcoin is indication that the demand is higher than supply and that will definitely lead to an increase in market value of Bitcoin if that happens. And that is what all traders who bought Bitcoin when it price is low expecting an increase so that they can make huge profit from their trading.

in fact it is one of the strategies and formulas of the economy where when goods are increasingly scarce, the demand is increasing, the price will automatically skyrocket to high.
and things like this happen in every valuable and salable item for sale and not just bitcoin.
For example, masks, personal protective equipment and hand sanitizers and even oxygen cylinders a few years ago maybe the prices were ordinary because they even tended to be cheap, but look now after the pandemic the prices of these items have skyrocketed because there are indeed more and more enthusiasts who need them, even goods. These were in scarcity when the pandemic hit all the countries.
in bitcoin it's the same when most people are aware and need bitcoin, that's where the beginning of the beginning of an era that we can't predict how expensive bitcoin will be in the future

[geegaw]

An increase in demand for Bitcoin is indication that the demand is higher than supply and that will definitely lead to an increase in market value of Bitcoin if that happens. And that is what all traders who bought Bitcoin when it price is low expecting an increase so that they can make huge profit from their trading.

Here, there are two issues that need to be answered and analyzed, increasing the scale of adoption does not define the volume of bitcoin in the market will need more, sometimes with such a large scale model it is also possible to only need a low amount of bitcoin, it is similar to a large trader investing in accumulating bitcoin, the market cannot fluctuate so much through such a small accumulation point. Plus, what will this scale mean for that region, investment will mean something different than using it as currency.

[Silberman]

I read a few things about the increase in bitcoin adoption during this time. El Salvador is one of the countries that have decided to adopt bitcoin as a legal currency and several others as legal tender without making it a primary currency. As I already know, the price of bitcoin is very volatile following changes in the interest of traders in the market so its adoption as a means of payment is something that traders doubt its stability because they are afraid that traders will lose due to falling prices.

But after I read this one, then I believe merchants will be more comfortable adopting bitcoin as a means of payment if adoption on a larger scale occurs in bitcoin.

Source: https://en.wikipedia.org/wiki/Nominal_rigidity

Nominal rigidity, also known as price-stickiness or wage-stickiness, is a situation in which a nominal price is resistant to change. Complete nominal rigidity occurs when a price is fixed in nominal terms for a relevant period of time. For example, the price of a particular good might be fixed at $10 per unit for a year. Partial nominal rigidity occurs when a price may vary in nominal terms, but not as much as it would if perfectly flexible. For example, in a regulated market there might be limits to how much a price can change in a given year.

So is it true that bitcoin price volatility will decrease by itself as bitcoin adoption reaches higher levels?

I really think that a volatility higher than what you can see in fiat currencies will always be part of bitcoin, however larger adoption and an increase in the use of bitcoin as a form of money should decrease that volatility, right now I think the most important use of bitcoin is as an investment asset, and this is why we see such extreme movements, but if this changes and the more important use of bitcoin goes from an investment asset to money then the volatility should go down somewhat, but it will never completely disappear as its supply is inelastic and this means that any change in the demand will always affect its price in a significant manner.

[_BlackStar]

Thanks to everyone who has provided some of your thoughts in this thread. I think it would be correct to expect that volatility will decrease as greater-scale adoption occurs in bitcoin. If bitcoin's function as a currency took precedence, then its fluctuations would probably be much smaller. But I have my doubts about that because bitcoin whales are always trying to manipulate with their money power. Bitcoin traders or adopters really need to be careful and sell them as fast as possible.

[fullhdpixel]

in fact it is one of the strategies and formulas of the economy where when goods are increasingly scarce, the demand is increasing, the price will automatically skyrocket to high.
and things like this happen in every valuable and salable item for sale and not just bitcoin.
For example, masks, personal protective equipment and hand sanitizers and even oxygen cylinders a few years ago maybe the prices were ordinary because they even tended to be cheap, but look now after the pandemic the prices of these items have skyrocketed because there are indeed more and more enthusiasts who need them, even goods. These were in scarcity when the pandemic hit all the countries.
in bitcoin it's the same when most people are aware and need bitcoin, that's where the beginning of the beginning of an era that we can't predict how expensive bitcoin will be in the future

It doesn't even require to be a good thing or a bad thing neither. For example if Apple creates very little of iPhone 13, then there will be demand while it is still an expensive thing meaning there are rich people in the world that would line up to get it, which is a financially good thing to see that many people willing to buy something so expensive.

However, it also means that in Venezuela people were trying to get food, and the price of food increased a lot because there was very little amount of food and I have seen a video people just boiling water from rivers to drink it and try to stay alive, so people lining up to buy food there and increasing the food prices is not a good thing, it is a horrible thing. So, demand/supply doesn't always mean a good thing, doesn't always mean a bad thing, it requires context. I am not entirely sure where we are now in that scale.

[TheNineClub]

I believe that to be a safe assumption. The volatility can't last forever, it would either devour itself or transcend into more or less stability. And so far, widespread adoption, especially by governments is the only way that we can get to that point. But that will also require balancing on a thin line between total control over crypto and total unregulated chaos.

[Silberman]

Thanks to everyone who has provided some of your thoughts in this thread. I think it would be correct to expect that volatility will decrease as greater-scale adoption occurs in bitcoin. If bitcoin's function as a currency took precedence, then its fluctuations would probably be much smaller. But I have my doubts about that because bitcoin whales are always trying to manipulate with their money power. Bitcoin traders or adopters really need to be careful and sell them as fast as possible.

You are right the influence of whales will never disappear, after all some thought that this could diminish as the price of bitcoin increased and the usage of bitcoin as a currency increased but the issue is that we are not dealing with fiat whales but with bitcoin whales, so this means that even if the value of bitcoin increases against fiat they are still holding bitcoin and they can manipulate the market if they want, but it is also known that the bigger the volume of an asset grows the more resistant becomes against manipulation, so if bitcoin begins to exchange hands and the volume of bitcoin being transacted increases then this could still diminish the influence of whales.

[AicecreaME]

I read a few things about the increase in bitcoin adoption during this time. El Salvador is one of the countries that have decided to adopt bitcoin as a legal currency and several others as legal tender without making it a primary currency. As I already know, the price of bitcoin is very volatile following changes in the interest of traders in the market so its adoption as a means of payment is something that traders doubt its stability because they are afraid that traders will lose due to falling prices.

But after I read this one, then I believe merchants will be more comfortable adopting bitcoin as a means of payment if adoption on a larger scale occurs in bitcoin.

Source: https://en.wikipedia.org/wiki/Nominal_rigidity

Nominal rigidity, also known as price-stickiness or wage-stickiness, is a situation in which a nominal price is resistant to change. Complete nominal rigidity occurs when a price is fixed in nominal terms for a relevant period of time. For example, the price of a particular good might be fixed at $10 per unit for a year. Partial nominal rigidity occurs when a price may vary in nominal terms, but not as much as it would if perfectly flexible. For example, in a regulated market there might be limits to how much a price can change in a given year.

So is it true that bitcoin price volatility will decrease by itself as bitcoin adoption reaches higher levels?

If the mass adoption would happen sooner, surely it will have an effect on the price of bitcoin on the market. If there are more people that will become aware of bitcoin and what it has to offer, there is a high possibility that there will be many investors because they will see its potential. More investors, the better for our community. By the time the big and small businesses, enterprises, and establishments notice that there are many users of bitcoin around the globe, there is a probability they will adopt it as a mode of payment. And if the government sees that there are many people patronizing bitcoin and other cryptocurrency coins, as well as there, are merchants trusting onto it, there is a tendency that they will adopt it as well to become a legal tender like what El Salvador did. Then the cycle will go on. Being an example to other countries, leading the adoption that could totally change the status of bitcoin in one's country and its price value in the market.

Mass adoption is one of the ways to fulfill the original purpose of bitcoin which is being a currency, aside from it being an investment vehicle. If mass adoption would happen, bitcoin will be used around the different parts of the world as a medium of exchange and will not be limited to being an investment like how it is commonly used now. The demand will be higher resulting in the higher value of bitcoin if ever it happens. Hopefully, the concerns and issues about bitcoin processes and transaction will be fixed before this happen to avoid confusion and inconvenience.

[romero121]

When there is increase in the demand, automatically we'll experience rise in the price of bitcoin. This is the basic with bitcoin and anything that has got the limited supply. We saw the rise in the price of bitcoin and the same is followed by the altcoins. This started when large scale investment on bitcoin happened from big corporate companies, which is also a form of adoption.