Isn't speculation and volatility a problem for Bitcoin?

[leea-1334]

Imagine if one day, Bitcoin suddenly becomes less volatile and only moves 1% in a month. Who is going to be trading it anymore except on futures markets and with 100x leverage?

It is a problem as a business currency for retailers especially but anyone who has ever asked for payment in Bitcoin intends to hold on to most of it or as much of it as possible.

Why? Keeping $100 today and Keeping $100 worth of Bitcoin today means you cannot know if it is $100 or $10 in a week but you know in 3 years it will be the same value as what $100 could buy today.

[carrigan]

I don't think it's right to say it's a problem. Everyone knows this and that is precisely what makes you profit. When the price goes down it's a good time to buy the coin and once the market goes up sell the coin. But all things must not be separated from a risk or problem as well as for Bitcoin. When you are deceived by shitcoin it can be one of the risks you have to face. Especially in cryptocurrencies known for their high risk, but behind that all cryptocurrencies can also bring big profits.

[Taskford]

Isn't speculation and volatility a problem for Bitcoin?

Nope speculation given by traders toward bitcoin is not really a problem on bitcoin since it can help people to get curious about what will be the next move of bitcoin, if you think its a problem then best not to listen if someone gives their own speculation since we bitcoin is cannot be predicted by anyone.

Also volatility will be a problem if a trader is greedy and don't know what he do on his coin bough but for experience traders they always be happy to see how market moves fast since every move it creates a possible profit experience traders can earn.

[ChiBitCTy]

Speculation is apart of literally anything and everything in life and it's good to specualte on anything and everything..it's how we figure out what's legitimate and what's not in life.  Volatility is of course a problem, but as the old saying goes.. Rome wasn't built in a day.  We are still in the first, maybe second inning of bitcoin and cryptocurrencies lives..it's going to take some time.

[kryptqnick]

Isn't speculation and volatility a problem for Bitcoin?

Speculation can hurt newbies if they fall for it, and it can sometimes affect the price (but I'd say that this is neutral because sometimes the price decreases, but other times it increases). Volatility has been relatively low, IMO, excluding specific periods when Bitcoin is rising or falling very fast. So, while of course Bitcoin's stability is nowhere near that of a good fiat currency, it's manageable even if we're talking about using Bitcoin as money. Price tags can regularly or constantly be updated, or the prices can be fixed in fiat with a possibility of being with Bitcoin. As for traders, it has been mentioned that volatility is a positive thing for them because that's what gives them an opportunity to profit.

[Semar Mesem]

I don't think it's right to say it's a problem. Everyone knows this and that is precisely what makes you profit. When the price goes down it's a good time to buy the coin and once the market goes up sell the coin. But all things must not be separated from a risk or problem as well as for Bitcoin. When you are deceived by shitcoin it can be one of the risks you have to face. Especially in cryptocurrencies known for their high risk, but behind that all cryptocurrencies can also bring big profits.

Investment certainly takes courage to take risks, if you don't dare to take risks then putting money under your pillow is a good choice. I think bitcoin is a good type of investment but risky so it is not suitable for those who want to get rich suddenly without ever being patient and learning.

[DeathAngel]

Speculation & volatility is an opportunity whilst it’s still here & the market is young. We seem to be following 4 year cycles still so it’s obviously not a bad thing to buy what you can in the bear market & then sell in the bull.
This won’t last forever though, as time goes on & bitcoin becomes more mainstream & widely adopted there will be far less volatility.

[Gyfts]

This is such a tired question that gets asked over and over again - Speculation and volatility isn't great, it isn't a feature unique to bitcoin either.

The volatility aspect of fiat currencies are built in at a loss of 2-3 percent every year, set by the central banks. That's what the target is, and many times they exceed those numbers. Not very predictable, and it sure is tough for built in inflation to be considered a feature, and not a bug. Why is there no talk about volatility in this regard? If you expand time axis for Bitcoin, those volatility spikes flatten out dramatically, and you see an increase in your initial investment (or purchasing power, depending on the way you look at it).

Not a problem, it's an overblown concern. And you could also say that with wider adoption, the price fluctuations will decrease.

[indo1]

But usually speculation is also used to profit in trading. That's also true, if bitcoin were to be used as the official currency of the world, this would be a problem. It seems like bitcoin is no better fit to invest than as a modern finance.

[Mpamaegbu]

Isn't speculation and volatility a problem for Bitcoin?

Nope, both aren't any problem for Bitcoin. Bitcoin is a cryptocurrency and cryptocurrencies are speculative instruments. The crypto industry does well in speculation. That's one. The second issue – volatility. That's what makes Bitcoin what it's today. I don't like it when Bitcoin isn't showing any sign of volatility. When there's no volatility, the market becomes full and without action. I, for one, don't like it whenever the market shows signs of drag or inaction. So, the two items you listed above are the sparks Bitcoin needs. It's a plus and not an effect to Bitcoin.

[Natsuu]

Speculation is apart of literally anything and everything in life and it's good to specualte on anything and everything..it's how we figure out what's legitimate and what's not in life.  Volatility is of course a problem, but as the old saying goes.. Rome wasn't built in a day.  We are still in the first, maybe second inning of bitcoin and cryptocurrencies lives..it's going to take some time.

Indeed, speculation is part of our daily lives, even a small step to what you want will lead to speculations. But the thing is that speculation can be good/bad depending on the understanding you put into it, so for me, take advantage of speculations and the outcomes will be in your favor (most of the time). and with regards to volatility, it's not a good thing, but I've been introduced in to btc with quotes that says "Volatility is very a common part of BTC, so be wary" and up to now, I've been able to put plans in investments/trading which I consider volatility as part of it.

[adzino]

Isn't speculation and volatility a problem for Bitcoin?

Depends on what point of view you are seeing this. If you are seeing bitcoin as an asset, then nope. Speculation and volatility isn't a problem. Invest, hold or take advantage of the volatility and make profit. Now if you are thinking about bitcoin as a regular currency to make day to day transactions, then yes. It is a big problem. Price uncertainty due to high volatility will put off merchants and common people from using bitcoin. Imagine accepting a huge payment in bitcoin and then the price crashed around 5% within few seconds (this is what we have been seeing the last few days).

[Hamphser]

Isn't speculation and volatility a problem for Bitcoin?

Why it did become a problem?

If you do know on what you are talking then its completely the opposite because if bitcoin wasnt volatile at all then you do really think that there would be lots of investors or traders would join
or engage on this market? For sure none.

Let do things to happen and if you dont like volatility then you could always avoid or leave out this market but if you do look things into bigger perspective then you
would realize that these are main things on most people love the most.

[oktana]

IMO, I find it as a challenge in cases where you want to use Bitcoin for payment. Imagine a product price is showed in BTC and then you create a budget for that product just to later realize that there's a change in BTC worth and hence a change in what you have to pay. This can literally happen to anyone and I don't see any solution but to budget more for anything you want to pay for with BTC because the price can make numbers change against your plan(though this should happens only when BTC price goes higher). But, volatility is the nature of Bitcoin so let's embrace it the way it is.

[Welsh]

It is normal for volatility to gradually decrease.

Yeah, it's also in the design of Bitcoin. I was trying to touch upon that above, however Bitcoin is actually designed to have some level of volatility, and the older Bitcoin becomes, and the closer we come to mining the total supply, then the volatility should probably be much lower than current levels. However, that doesn't change the fact that currently the volatility is what's stopping Bitcoin from being used as a everyday currency.

The volatility is directly tied into why Bitcoin is being used as a investment, and a stepping stone if you will to a speculative investor. Most investors currently don't want to use it as a currency, and probably don't even see it as a proper legitimate currency, and instead have the long term goals of withdrawing back into fiat once they've made their money.

[hemzer]

Isn't speculation and volatility a problem for Bitcoin?

yes, a long as majority of people and businesses are willing to believe and accept central bank backed fiat currrencies for their good and services it will be.
The tide has to turn into the same people accepting Bitcoin for their goods and services.

[tabas]

Isn't speculation and volatility a problem for Bitcoin?

Why it is? Bitcoin has been known as an speculative asset and its market is very volatile so why it should be a problem?
Well, maybe for those who have less experience about volatile markets, it is a problem if they lack of awareness.

[Rengga Jati]

Isn't speculation and volatility a problem for Bitcoin?

The two are something different. For its volatility, it will be a problem for people who only expect about rising price again and again without any correction. And if there is no volatility, it means it is like stablecoin, well, we may not be able to see the skyrocket of Bitcoin price.
But on the contrary for the daily traders, scalpers, investors, no, exactly, volatility of Bitcoin is not a problem, except they are panickers.

And about speculation, it will be a matter if we only speculate about something without any analysis. We are here about prediction and speculation, but how we speculate and predict will determine the results. There is no 100% speculation and prediction that are right.

[AakZaki]

Speculation and Votality will benefit those who do have the power to manipulate the market so it is very easy to speculate. High volatility is certainly very risky, but in fact bitcoin does have high volatility. this provides a faster way of investing but needs to be careful.

Speculation and volatility become a problem when we can't control it or take advantage of it. Reading with technical analysis and fundamentals will be very helpful so as not to get caught up in market speculation.

[Natalim]

Isn't speculation and volatility a problem for Bitcoin?

The two are something different. For its volatility, it will be a problem for people who only expect about rising price again and again without any correction. And if there is no volatility, it means it is like stablecoin, well, we may not be able to see the skyrocket of Bitcoin price.
But on the contrary for the daily traders, scalpers, investors, no, exactly, volatility of Bitcoin is not a problem, except they are panickers.

And about speculation, it will be a matter if we only speculate about something without any analysis. We are here about prediction and speculation, but how we speculate and predict will determine the results. There is no 100% speculation and prediction that are right.

Speculation and the market's volatility will never be a problem, but for weak hands it will always be. If you have been here in the market for long, you will probably discover that speculation and volatility are even the reasons why the market is still alive. These what make all the investors get thrilled and excited whatever the result it causes to the market. Either it gives a bullish or a bearish trend, it will not be a problem because long term traders will always turned it into an opportunity to makes profits. Strong hands make it a way to be even more profitable, while weak hands often lose from this market's speculation and volatility.