Bitcoin's Volatility Problem

[Kakmakr]

The volatility is not a problem for people who knows what the benefits are.... and also how to use that to their benefit. A lot of people do not care about pseudo anonymity and centralization, so they use payment processors to bypass the influence of Bitcoin's volatility. (All Bitcoin transactions are immediately converted to Fiat currencies)

We have to accept that governments will protect Fiat currencies and Banks, because they benefit from that. (Banks help them to monitor transactions and they have control over the supply of fiat currencies) 

[bayu7adi]

The concept of bitcoin's volatile nature makes it impossible for those who think similarly not to invest in it. Perhaps you are unaware that the price fluctuation makes it a risky investment to make. You only stated the disadvantage when the price lowers, but what if the price rises? Would you still not take the profit or would you prefer to collect the money as it was before the price rise? If you do not want any of this, you can easily convert your bitcoin to a stable coin when you receive it as payment.

The real issue at hand is why sellers fuss over the BTC price after receiving payment and it matches the agreed amount. If a seller is not prepared for Bitcoin's volatile nature, then they are merely taking advantage of blockchain technology. This means the seller is not fully equipped to accept payments using Bitcoin, with all the characteristics it possesses.

When a product is priced in x BTC, the buyer only needs to pay the equivalent amount in x BTC. The buying and selling transaction should proceed smoothly without any hiccups. Ideally, there should be no thought given to the exchange rate between BTC and FIAT during the transaction. This is because the price tag of the item is already in BTC, which is also a digital currency.

[davis196]

the decentralized nature of bitcoin can make it difficult for government and regulartory agencies to monitor and control its use. This can create challenges in areas such as tax collection, money laundering prevention, and consumer protection.

This topic has been discussed a million times. You don't add anything new to the discussion. Just read the old forum thread about this topic, rather than creating new threads.
It's obvious that Bitcoin isn't the most convenient currency for payments. Bitcoin is more like a financial asset, rather than a currency.
If you are too afraid of Bitcoin's price volatility, just don't use Bitcoin. Trying to change Bitcoin protocol, in order to make the price more stable would be step in the wrong direction. The price volatility of Bitcoin has nothing to do with "regulation, money laundering prevention and consumer protection". If there is such connection, can you prove that it exists?

[Strongkored]

For example, if someone were to receive payment in bitcoin BTC for a product or sevice, the value of that payment could decrease significantly before they have chance to exchange it for a more stable currency. Similarly, business that hold bitcoin as an investment may experience significant losses if the value of bitcoin drops suddenly.

Most businesses that accept Bitcoin as payment will use a payment gateway that will instantly convert it into another currency so they include Bitcoin in the payment options just to entice Bitcoin lovers to transact in their business and the Bitcoin received will not be stored long term. Meanwhile, companies that invest in Bitcoin actually expect Bitcoin volatility to continue because these institutions will have the opportunity to make big profits and or buy again when the price has dropped again.

Overall, while bitcoin BTC has the potential to offer many benefits ,its volatility and lack of regulation can create significant challenges for business, governments and us people around the world.

That challenge is preferred by Bitcoin investors, the greater the challenge, the greater the profit that will be obtained

[Ozero]

The high price volatility of cryptocurrency distinguishes this market from other markets. This is the advantage and at the same time the disadvantage of bitcoin and other other crypto-currencies. People have a good chance to capitalize on price fluctuations, but it is very risky for businesses to use cryptocurrency as a means of payment. It is a good alternative to other markets. We have many financial opportunities that practically no one controls. But it is unlikely that it will be possible to reduce the price volatility of the cryptocurrency even with time. Maybe it's for the best.

[Merit.s]

Investment comes with profit and loss,bitcoin investors will not regret if they invest in long term. If you understand the risk in bitcoin investment and know how to tackle it,I don't see it as any challenge. The volatile nature of bitcoin makes it different  from other investment because it follows the concept of demand and supply. As for accepting bitcoin in small businesses, it boils down to the kind of business. If it is the type that needs everyday buying of items or commodity,it will be monotonous. On the other hand,if it is a business that needs once in a week supply bitcoin is good for such. Moreover,bitcoin should be as an alternative means of payment. Whereby, you feel that you want to save your profit in bitcoin. After payment, you leave your profit in bitcoin and convert the rest to fiat.

[Oasisman]

The volatility is not a problem for people who knows what the benefits are....

Bitcoin's volatility is not even a problem, not even once it became a problem. Instead, it is the bread and butter of all the crypto enthusiast.
Those who think Bitcoin's high volatility is some sort of a problem, are those who want to get rich overnight and wants quick and easy profit.
These same people are the ones who most likely have lost their money and wants to ride the hype.

[Awaklara]

Overall, while bitcoin BTC has the potential to offer many benefits ,its volatility and lack of regulation can create significant challenges for business, governments and us people around the world.

I prefer to call it an opportunity. nowadays when Bitcoin is more popular, many of those who come to buy Bitcoin also have it because of its Volatility. that's why Bitcoin trading is also a big concern right now, not just gold and stock trading.
whether or not the use of Bitcoin is appropriate, currently depends on the government that regulates and supervises Bitcoin. some allow for the use of Bitcoin as a means of payment. there are also those that only make regulations regarding asset ownership and trading of Bitcoin assets.

[kelonmusk]

The value of Bitcoin does have its ups and downs, which can definitely create challenges for those who use it for transactions or as an investment.

I think businesses and individuals need to be cautious and aware of the risks involved when dealing with such a volatile currency. Meanwhile, the decentralized nature of Bitcoin can also make it difficult for governments and regulatory agencies to control its use, leading to challenges in areas like tax collection and money laundering prevention.

[Ale88]

The value of bitcoin can fluctuate rapidly and dramatically, sometimes within a single day. This can create challenges for individuals and businesses that use bitcoin as a means of payment or as an investment.

For example, if someone were to receive payment in bitcoin BTC for a product or sevice, the value of that payment could decrease significantly before they have chance to exchange it for a more stable currency. Similarly, business that hold bitcoin as an investment may experience significant losses if the value of bitcoin drops suddenly.

the decentralized nature of bitcoin can make it difficult for government and regulartory agencies to monitor and control its use. This can create challenges in areas such as tax collection, money laundering prevention, and consumer protection.

Overall, while bitcoin BTC has the potential to offer many benefits ,its volatility and lack of regulation can create significant challenges for business, governments and us people around the world.

Bitcoin is still a relatively new thing, so it's not surprising at all that there is high volatility. We are still in the early stages, don't forget bitcoin is just 13 years old more or less, of course it's going to take time before it becomes more stable. I see this as an opportunity anyway because more and more people can see what bitcoin is actually able to do and the kind of value it carries. If bitcoin would have been stable at, let's say, $50/BTC no one probably would have cared about buying it.

[BVeyron]

The value of bitcoin can fluctuate rapidly and dramatically, sometimes within a single day. This can create challenges for individuals and businesses that use bitcoin as a means of payment or as an investment.

For example, if someone were to receive payment in bitcoin BTC for a product or sevice, the value of that payment could decrease significantly before they have chance to exchange it for a more stable currency. Similarly, business that hold bitcoin as an investment may experience significant losses if the value of bitcoin drops suddenly.

The price of BTC in cryptotrade is different than at exchange hubs, the same happens with fiat: the prices of fiat currencies fluctuate in trading, but at exchange points they remain relatively stable... At least they dont change every second.

[tjtonmoy]

What's your backup plan? If someone is already using it in their business or a way of payment, they need to know very well how the market works and how much volatile the market is. You can not just come and implement Bitcoin in your business without knowing all this. If someone is using it already, they are well aware of what kind of risks it holds, and they obviously have a backup up plan for that.
Bitcoin is still not accepted worldwide as a legal currency. So we can't expect to use it as a stable method of payment. What's the thing we still use for all kind of transactions? What is acceptable in any situation without any issue? Yes, it's fiat money. Bitcoin is a replacement for this, but as Bitcoin is still not acceptable is all kind of situation, we need to use fiat in some situations. So using both can make a perfect environment for business use. If you are in loss with bitcoin (price drop), you fiat until it's back to your desire amount, or you are making profits. Also, if you wish to hold to get profits from it, you can also convert it to fiat when you have reached your target profit.
Until Bitcoin becomes the one and only global currency, we need to tackle situations like this with the help of both fiat and Bitcoin.

[loopes]

The value of bitcoin can fluctuate rapidly and dramatically, sometimes within a single day. This can create challenges for individuals and businesses that use bitcoin as a means of payment or as an investment.

off course, but the business who use bitcoin as payment methode have prepared this case. They can exchange directly the bitcoin they have received to their fiat or any stable coin. I am sure they already have plan to handle it. 

For example, if someone were to receive payment in bitcoin BTC for a product or sevice, the value of that payment could decrease significantly before they have chance to exchange it for a more stable currency. Similarly, business that hold bitcoin as an investment may experience significant losses if the value of bitcoin drops suddenly.

Some of businesses who accept bitcoin as payment have automatic system to exchage it then save the whole ammount of transactions that is just made

[Slow death]

when I read for these kinds of things OP posts I'm left wondering what the hell do people really want. when the price was stagnant at 15000$ for a long time I kept reading comments from people complaining that bitcoin was dead because it had no volatility, I remember that at the time I even commented that that situation was good for people who wanted to use bitcoin as payment method, but from what I could see my comment was making those people change their minds, some time later the price of bitcoin started to rise, so people's optimism was already visible

this is because they were already starting to create a thread with predictions of $80,000 or $100k for this year, everything is going well until the price, after reaching $30,000, dropped a little and I saw peximistic comments again, it seems that the price is only it should always go up and it should never go down, which is something impossible to happen, but unfortunately people don't realize that, now I see people complaining about volatility again, only this time they want less volatility, because they think that with this bitcoin will be used for payments, but they forget that it already has fiat that its purpose is precisely to be used for payments, with the appearance of kyc it no longer makes sense to take bitcoin for payments

[jeraldskie11]

The value of bitcoin can fluctuate rapidly and dramatically, sometimes within a single day. This can create challenges for individuals and businesses that use bitcoin as a means of payment or as an investment.

Yes, volatility is one of the reasons why some business owners find it difficult to accept Bitcoin as payment. I am impressed by the business owners who accept Bitcoin since they are not concerned about the price falling. They understand that volatility offers advantages, particularly in Bitcoin, where the value has a significant potential for increase. That is why volatility is not really a concern in terms of payments; the only issue I see is the fee and scalability, both of which are significantly fixed by the Lightning Network.

[ImThour]

How come Bitcoin's Volatility is a problem? I don't get it. It is acting just like a real-world asset and when millions of people try to buy or sell the asset, it can go up and down multiple times in a day.
That volatility isn't a problem, it's great as this gets you more returns on your trades as the chances of big moves are more than normal stocks.

[JoyMarsha]

For example, if someone were to receive payment in bitcoin BTC for a product or sevice, the value of that payment could decrease significantly before they have chance to exchange it for a more stable currency. Similarly, business that hold bitcoin as an investment may experience significant losses if the value of bitcoin drops suddenly.

Those business owners and those individuals that want to be paid or utilize bitcoin as a means of payment would have known the cons and pros of bitcoin before accepting it as a means of payment.

Bitcoin can be used as another means of payment and that doesn't mean you must or should adopt it into your business as a payment method. It is very optional.  Choosing it as a payment method means that the person is ready to accept its volatile price

[Smartvirus]

You didn't say anything that was so invalid but, you somehow strayed from the topic. Like you talking about decentralisation, the government and tax. I feel those weren't suppose to come in or doesn't apply here while talking about volatility.

Of course volatility has been one of the major reasons why bitcoin haven't been able to serve as a currency but, its rather one of the reason why its serving as an asset. Definitely one of the reasons why its loved by many and a lot of us have resulted to hodling rather than spending it like an everyday currency.
There is a question of opportunity to spend but still, many won't as, you tend to lose on your spendings should you have resulted to hodling.

[Wend]

On the contrary, I see bitcoin's volatility as its biggest advantage and I think most people invest in bitcoin because of this advantage. If bitcoin weren't volatile and didn't generate huge returns, not too many people wouldn't have noticed it. Yes, volatility is one of the obstacles to bitcoin becoming a currency but it is profitable for investment and most people are here to invest in bitcoin, very few people want stable bitcoin to be the currency.

[Asuspawer09]

The value of bitcoin can fluctuate rapidly and dramatically, sometimes within a single day. This can create challenges for individuals and businesses that use bitcoin as a means of payment or as an investment.

For example, if someone were to receive payment in bitcoin BTC for a product or sevice, the value of that payment could decrease significantly before they have chance to exchange it for a more stable currency. Similarly, business that hold bitcoin as an investment may experience significant losses if the value of bitcoin drops suddenly.

the decentralized nature of bitcoin can make it difficult for government and regulartory agencies to monitor and control its use. This can create challenges in areas such as tax collection, money laundering prevention, and consumer protection.

Overall, while bitcoin BTC has the potential to offer many benefits ,its volatility and lack of regulation can create significant challenges for business, governments and us people around the world.

I agree with that, I've said many times in my topics about Small businesses in Bitcoin that being a business owner who accepts Bitcoin will have a high risk because of the market volatility, that just means that you're just investing your business money in Bitcoin when is a high risk, every time your customer pays you Bitcoin means your investing on Bitcoin, or you could say that your force to buy Bitcoin at that time. You can't really just accept Bitcoin and then sell it anyway for cash flow on your business because it has a volatile market price, by the time you're going to sell it the market price could be higher or lower, In a business you need cash flow to continue your business and bitcoin payments will be taken out on that cash flow. So if they really want to accept bitcoin they need a lot of cash to cover that for the business to continue.

In my opinion Bitcoin at this point is a great investment but not something that is suitable for payments on your business just because of the volatile market price, maybe in the future things can go differently.