Bitcoin Volatility

[alastantiger]

Bitcoin's volatility is one of its features that turns off a lot of people. When someone expresses interest in investing, the majority of financial counselors advise them to avoid doing this. Because it is one of the most volatile assets ever, I believe that is why the adage "invest only what you can afford to lose" exists.

My query is: How will Bitcoin's volatility diminish over time, or what is the single biggest element that could result in a reduction in Bitcoin's volatility?

[1714701130]

1714701130

[1714701130]

1714701130

[1714701130]

1714701130

[thecodebear]

Bitcoin's volatility is continuously lowering. It is much less volatile today than a few years ago. And a few years ago it was much less volatile than it was a few years before that. A few years from today it will be less volatile than it is now.


Volatility naturally goes down as its value grows because it gets harder to move the price. And also because there are fewer dollars that will come in to change the price. If we pretend there will eventually be 10 trillion dollars that will be in Bitcoin, a 1 trillion dollars there is less outstanding money than at 1 billion dollars so less money will come in to change the price. So when most of the people in the world who want Bitcoin already have bitcoin volatility will be far lower not just because there will be so much more money in it so it'll be harder to move, but because there won't be huge pumps and dumps of people coming in and going out of the market.

It will of course never be stable, as nothing with a free market is stable, but its volatility will continuously go lower and lower over time as has already happened throughout Bitcoin's price history. Even today its much easier to trade altcoins rather than Bitcoin because Bitcoin's volatility is far lower than it used to be while altcoins are tiny market caps that are essentially 100% speculation and so they maintain very high volatility.


People who say Bitcoin is risky because it is volatile are either only interested in short term trading/investing or they don't understand the difference between volatility and risk and they are likely just repeating what they heard other people say who also don't understand the difference.

[Ultegra134]

Since when is Bitcoin's volatility a turn-off? It might be for some, but I honestly don't understand those few who are put off by it, since that's what enables you to multiply your money. And that applies to pretty much everything, be it stocks, gold, or other commodities; all of them are volatile, maybe not as much as Bitcoin, but still may go through great price fluctuations during a market crisis or an unfortunate event.

Personally, I find its volatility intriguing; certainly, it's not always positive, but nonetheless, it's what made Bitcoin what it is today. This isn't the first thread that mentions Bitcoin's volatility as a possible threat, which is frustrating.

[franky1]

i can buy a 24pack of pepsi for £8($10) in the bulk aisle
meaning each tin-can is£0.33($0.42)

however in the same retailer buying just a single tin-can in the snack aisle is £0.80($1)

the same retailer has a cafe that does food deliveries where ordering a tin-can of pepsi with fastfood delivery is £1.50($1.85) for just the can of pepsi

meaning fiat fluctuates the price of goods by £0.33-£1.50($0.42-$1.85) ~4x+

a 5x difference.. and no one bats an eyelid at the prices differences of the same product from the same retailer but just in different sections of the store.

..
a clothing retailer january2022 had winter coats at £50($62) and in spring offered 70% discount at £15($18.50)
this year the same coat right now is £60($74)
again no one bats an eyelid of a £15-£60($18.50-$74) 4x multiple

what those in power want to make people beleive is that they are unable nor should ever expect anything better than a 2% savings return. 1.02x .. yet they avoid showing that fiat loses people upto 4x of value depending on when or where you purchase

[Husires]

What causes fluctuations is supply and demand and their distribution. In the early years, the supply of Bitcoin was large and the demand was fluctuating so that the number of people trading in Bitcoin was counted with fingers, and therefore it is easy to find that the price rose by 50% during the day.

If we reach a market capacity, for example, 10 trillion, and the supply is limited, then the demand will be shy, and therefore there will be no change in the price.

The whole secret is the distribution of live retailers.

[FallingKnife]

Volatility is relative.  My cost basis is $50.  I don't worry much about volatility any more.

[lizarder]

Bitcoin's volatility is one of its features that turns off a lot of people. When someone expresses interest in investing, the majority of financial counselors advise them to avoid doing this. Because it is one of the most volatile assets ever, I believe that is why the adage "invest only what you can afford to lose" exists.

More precisely this is the level of risk that many counselors advise against getting involved in investing in bitcoin and of course in relation to Crypto as a whole.

If bitcoin had a level of stability then I would never think it has the value it has today and it could be that bitcoin would not last or even have disappeared in previous years. What makes people believe in investing in Bitcoin because the price fluctuates, there are many opportunities to double profits in a certain period and even though the risk cannot be ignored, people already understand the pattern of investing in bitcoin and volatility is an inseparable part.

My query is: How will Bitcoin's volatility diminish over time, or what is the single biggest element that could result in a reduction in Bitcoin's volatility?

The rise and fall of bitcoin prices is one of the events that cannot be separated in the market, this will apply as long as bitcoins can still be traded, because that is what causes bitcoin to be more valuable today.

[Kemarit]

Bitcoin's volatility is one of its features that turns off a lot of people. When someone expresses interest in investing, the majority of financial counselors advise them to avoid doing this. Because it is one of the most volatile assets ever, I believe that is why the adage "invest only what you can afford to lose" exists.

On the contrary, I think majority loves its volatility because that's how they make some money. I'm not saying that there is manipulation by some entity to make it as volatile as they want it to be so that they can buy cheap and earn profits in short term, but that's how the game is being played now. The rules have been change already when whales enter the ecosystem.

My query is: How will Bitcoin's volatility diminish over time, or what is the single biggest element that could result in a reduction in Bitcoin's volatility?

It won't, there are traders around the world, constantly buying and selling. So the price is going to change no matter what.

And obviously, there are no central authorities who's going to call and handle it's price fluctuations.

[Obari]

Bitcoin's volatility is one of its features that turns off a lot of people. When someone expresses interest in investing, the majority of financial counselors advise them to avoid doing this. Because it is one of the most volatile assets ever, I believe that is why the adage "invest only what you can afford to lose" exists.

My query is: How will Bitcoin's volatility diminish over time, or what is the single biggest element that could result in a reduction in Bitcoin's volatility?

I personally believe the volatility in Bitcoin is one of the major reason why people are making money off Bitcoin and that's why Bitcoin is been referred to as an asset and I don't think the volatility will ever get diminished and if it ever does, then I don't think most persons will still want to be in Bitcoin.
On the other hand, I doubt if the volatility of Bitcoin is the reason why people are been turned off as I think the volatile nature of Bitcoin is one major reason why people are embracing Bitcoin more so as to earn some good profits off their deposit.
People need to learn more of risk management rather than bother over volatility.

[panganib999]

You can look at it that way and see bitcoin's volatility as a not-so-good thing since "hurr durr could drop bitcoin's value to zero in one go hurr durr", which is true don't get me wrong, but purely situational and would almost always not gonna happen in the real world. At the same time, this "volatility" is what makes bitcoin's value pump sporadically, granting tons of users massive amounts of profit, bigger than any investment you could ever make in your life. So will you look at the glass and see it as half-empty or half-full? It's just a matter of perspectives really.

[TribalBob]

why is Bitcoin volatility deadly? I don't think it's deadly because that's what can make people become/benefit,
indeed the adage "invest only what you can afford to lose". always be the main benchmark in investing in crypto but not forever we will experience losses there will definitely be a win one day if we patiently wait

[DaNNy001]

Bitcoin's volatility is one of its features that turns off a lot of people. When someone expresses interest in investing, the majority of financial counselors advise them to avoid doing this. Because it is one of the most volatile assets ever, I believe that is why the adage "invest only what you can afford to lose" exists.

My query is: How will Bitcoin's volatility diminish over time, or what is the single biggest element that could result in a reduction in Bitcoin's volatility?

I think what you actually call a limitation to bitcoin is actually what drags people more to invest. for example bitcoin first rise after it was created saw many people to become more aware of the sudden rise and many people were still scared though that the price might not go up again and so decided not to invest but that when volatility comes in play because the price will definitely drop which now creates a window for people to invest knowing fully well its going to go up. Its volatility makes it stand out from  every other coins which eventually die off. Bitcoin is very unique from all other altcoins and I know this as I was given a window to start investing last year when the price dropped drastically after hitting its all time high.

[BitDane]

My query is: How will Bitcoin's volatility diminish over time, or what is the single biggest element that could result in a reduction in Bitcoin's volatility?

To diminish Bitcoin's volatility one must address the factor that affect volatility. And these factors are:

• Securities supply and demand
• Geopolitical variables
• Factors of socioeconomic status
• An options contract’s expiration date

And the cause of price volatility

• Seasonality and Weather
• Sentiments

you can read the explanation of each on this article[1]

Now if we are able to control this factors and causes, we can minimize the volatility of the price of Bitcoin but the question is, can we control these factors and causes?  Obviously no.  So there is no way to remove the volatility of Bitcoin.  The fixed supply may affect volatility but it is not enough to remove volatility of Bitcoin making it act like a stablecoins.

In conclusion, Bitcoin will always be volatile.


[1] https://www.tickertape.in/blog/volatility/

[jossiel]

Bitcoin's volatility is one of its features that turns off a lot of people. When someone expresses interest in investing, the majority of financial counselors advise them to avoid doing this. Because it is one of the most volatile assets ever, I believe that is why the adage "invest only what you can afford to lose" exists.

Meanwhile, stocks are also volatile but they never talk about that because that's what they want for people to buy.

My query is: How will Bitcoin's volatility diminish over time, or what is the single biggest element that could result in a reduction in Bitcoin's volatility?

It won't be gone but it's likely to reduce overtime as we go approach for those halvings but it will take a lot of time before we finally see it reduced.

And if there's one thing with that, even if we talk about its volatility will be reduced or not, all of it are gonna be unpredictable.

[trendcoin]

Bitcoin's volatility is one of its features that turns off a lot of people. When someone expresses interest in investing, the majority of financial counselors advise them to avoid doing this. Because it is one of the most volatile assets ever, I believe that is why the adage "invest only what you can afford to lose" exists.

My query is: How will Bitcoin's volatility diminish over time, or what is the single biggest element that could result in a reduction in Bitcoin's volatility?

Markets are still very shallow. Once the mass adoption of Bitcoin is complete, there will be more buy and sell orders in the market and price movements will have less volatility. I think volatility is an important detail that shows us that mass adaptation is not yet complete. Once the mass adoption is complete, buyers and sellers will build up enough density and we won't see high volatility again. That's why I think we should enjoy these days. We have to make sure that we buy enough Bitcoins during periods of extreme depreciation. :)

[tbct_mt2]

Bitcoin's volatility is one of its features that turns off a lot of people.

It is able to turn on or turn off some people that depends on types of people. People who can abuse it to get profit will like it but people who get loss with it will turn themselves off after losing dramatic capital.

Always true that the market is a zero-sum game and money does not automatically appear more or less, it only moves from one to another person and change between accounts or pockets.

When someone expresses interest in investing, the majority of financial counselors advise them to avoid doing this. Because it is one of the most volatile assets ever, I believe that is why the adage "invest only what you can afford to lose" exists.

Investment and trading is risky and risk means potentially loss so that advice is true. It is helpful for you to force yourself to be more prepared before joining by learning more, practicing with demo accounts more.

My query is: How will Bitcoin's volatility diminish over time, or what is the single biggest element that could result in a reduction in Bitcoin's volatility?

More regulations, bigger trading volume, less effects from fuds by better regulations enforced, less impacts from Bitcoin halvings.

[drwhobox]

Bitcoin's volatility is one of its features that turns off a lot of people. When someone expresses interest in investing, the majority of financial counselors advise them to avoid doing this. Because it is one of the most volatile assets ever, I believe that is why the adage "invest only what you can afford to lose" exists.

Agreed, I saw people avoid bitcoin because of its volatility, but I love bitcoin for that. Volatility gives me more chances to buy bitcoin and store them for the future. I don't know which financial counselors advise people not to invest in bitcoin but I am sure that those so called gurus don't have any prior knowledge about finance.

[rat03gopoh]

Price tracker sites, visible trading activity (spot market, futures), they cause real visible volatility.

I actually can't expect the volatility to decrease, because basically bitcoin supply is only concentrated to a few centralized wallets and there aren't as many bitcoin users as revealed in various statistics and surveys. Someone who has an interest and "power" can expect that any price will change in a short time, because it really only needs to add a few digits when bitcoin is traded on a centralized service.

[fuguebtc]

I personally believe the volatility in Bitcoin is one of the major reason why people are making money off Bitcoin and that's why Bitcoin is been referred to as an asset and I don't think the volatility will ever get diminished and if it ever does, then I don't think most persons will still want to be in Bitcoin.

Exactly, the volatility of bitcoin is the reason for us to invest in it instead of other assets, high volatility will generate big profits, and I see that as the advantage of bitcoin rather than fear it. But the volatility of bitcoin is decreasing and getting smaller, bitcoin is no longer growing thousands of percent like in the early years of its development. Its profit is getting smaller and smaller compared to shitcoin, and that's also why people don't choose bitcoin but choose altcoin to invest.

[Solosanz]

The current Bitcoin marketcap is $552,393,326,519 which is really high to manipulate it, the government can print new money but it will increase inflation rate. When the Bitcoin circulation supply already near to 21 Millions and the demand is high, the Bitcoin price will keep increase. It's just a matter of time the volatility will decrease and Bitcoin price could be more stable.

If Bitcoin price was $1,000 and now $10,000 it's mean the price is 10x times higher.

But if Bitcoin price was $1,000,000 and now $1,100,000, it's just 10% even though the increment higher.