Let's Stabilize Bitcoin

[The Cryptovator]

Why are you wondering how to stabilize Bitcoin? Bitcoin won't be like a stable coin anyway and it's impossible due to decentralisation. Bitcoin become the most popular and mother of cryptocurrency due to volatility. We can't stop it from being volatile. Investors like to capitalize on the Bitcoin volatile and that's how new investors come to the Bitcoin. Bitcoin always works as a payment method by evaluating stable coin prices or fiat prices. Volatile isn't a reason to not accept Bitcoin as a payment methods.

[Silberman]

In order for Bitcoin to be widely used for payments, it is necessary to stabilize price fluctuations.

Question,
Bitcoin and other currencies A and Prepare B.
A and B are equivalent exchangeable and can also be equivalently exchanged for Bitcoin.

Is it possible to stabilize prices through market mechanisms due to this?

Your idea is not clear but there are coins like wrapped bitcoin that claim to do what you want and the market is still as volatile as it was before its existence, so in my opinion you are just wasting your time thinking on ways to stabilize the market, the best we can do is for the markets to do their thing and if they are volatile then take advantage of it, however I think bitcoin will eventually become more stable as the adoption grows and the block reward keeps diminishing.

[KiaKia]

What do you mean by stable? Or you are talking about price moving side ways? Instability of Bitcoin value is what gives me my daily bread, I am a trader by default and also a long term investor, to make good money out of Bitcoin I always hope for more dump from Bitcoin so that I can have good numbers of Bitcoin before another bull market begins.

If Bitcoin price is stable how will people want to buy Bitcoin? Because the major reason why people are investing in Bitcoin is because of the possible price pump in a year or two, if Bitcoin is stable no one will want it, maybe few people who just want to keep their money away from the banks only.

If this is the truth I am sure that someone like you won't be on this forum today, The majority of people are here because they can make money from Bitcoin.

[WatChe]

Your idea is not clear but there are coins like wrapped bitcoin that claim to do what you want and the market is still as volatile as it was before its existence, so in my opinion you are just wasting your time thinking on ways to stabilize the market, the best we can do is for the markets to do their thing and if they are volatile then take advantage of it, however I think bitcoin will eventually become more stable as the adoption grows and the block reward keeps diminishing.

I too didn't understand the idea proposed by OP but I do agree that there are coins out there that are better in terms of scalability. Yet there prices and community is no way near to bitcoin.
The price volatility of bitcoin works in both directions and is one of prime feature of bitcoin. This volatility has taken price of bitcoin from zero to 67k in one decade. If you want stability and risk free investment then you may better invest in government scheme.

[ZAINmalik75]

Bitcoin will never be stable. Or even if it would be possible, people from this forum wouldn't be able to make it.
Why do you want it to be stable anyway?

He must wanted to see mass adoption of the BTC as most of the people still not adopted BTC just because of its high volatility factor. We all know the prices fluctuates too much sometimes. Which results in some lesser amount of dollars but it also provide more amount  or value to the satoshi we have in custody. He wanted to make BTC a stable coin for which he had to provide reserved amount of money to back the BTC'a each satoshi up.

But the difficult part is BTC has more than 50+ percent of the whole crypto trading volume. It is mostly used coin so I doubt that it would be backed by such huge amount of money to provide reserved assets so that it could become stable. And by stable we also means it is going near to centralization.

Many people including me, like the way BTC is now is, because without volatility why would people invest in it and hold it for longer periods of time. Btc meant to be of high volatility factors which is mainly drive by Demand and supply factor and many others.

Bitcoin is not meant to be as stable coin as it is not some pegged dollar while it is decentralized token. Many other members had already explained it and the concept behind this query is very simple so I hope you must have understand it in full that why BTC can not be stabilize.

[OgNasty]

In order for Bitcoin to be widely used for payments, it is necessary to stabilize price fluctuations.

Question,
Bitcoin and other currencies A and Prepare B.
A and B are equivalent exchangeable and can also be equivalently exchanged for Bitcoin.

Is it possible to stabilize prices through market mechanisms due to this?

Stabilization is something that vendors and users of Bitcoin want. However, those types of users were outcasted from the Bitcoin community in 2017. If you want stabilization, you’re preaching to the wrong crowd. Today people consider Bitcoin digital gold and they don’t want stability, they want massive price increases so they can sell and retire.

[karabiber]

Is it possible to stabilize prices through market mechanisms due to this?

If you want to use Bitcoin as a means of payment, Btc does not need to be stabilized but scalability is one of the most important issues. If you buy a product at a business that accepts bitcoin the transaction time will be longer and the commission fees may exceed the price of the product. This could be solved with the Lightning Network but for now it's not viable. BTC will never be a stable coin. Stabilizing the ups and downs of price movements is against the spirit of crypto markets and since crypto markets and Bitcoin are not controlled by specific mechanisms, it is almost impossible to prevent price fluctuations.

[goldkingcoiner]

In order for Bitcoin to be widely used for payments, it is necessary to stabilize price fluctuations.

Question,
Bitcoin and other currencies A and Prepare B.
A and B are equivalent exchangeable and can also be equivalently exchanged for Bitcoin.

Is it possible to stabilize prices through market mechanisms due to this?

The price fluctuations are going to become more and more stable as Bitcoin is distributed more evenly and more people adopt Bitcoin as the new generation of money. And it will happen, because entire governments are trying to make their own Bitcoin, because they falsely believe that a government-created Bitcoin (in other words, a CBDC) will somehow beat the better and original version. But it won't.

In the meantime, we will have fluctuations. Do the smart thing and leave panic out of the equation while you hodl.

[chigo]

In order for Bitcoin to be widely used for payments, it is necessary to stabilize price fluctuations.

Question,
Bitcoin and other currencies A and Prepare B.
A and B are equivalent exchangeable and can also be equivalently exchanged for Bitcoin.

Is it possible to stabilize prices through market mechanisms due to this?

is bitcoin worth calling "decentralized assets" when the price is stable? of course not, only controlled coins can have a stable price, but for bitcoin, its nature is that its price is highly volatile and forever will decentralized.

[nelson4lov]

Market dynamics are not as simple as you have explained it. It doesn't work like that. Price of Bitcoin will not be able to be stable using that strategy. Also, unlike stablecoins, Bitcoin was created and is available to trade in a free market which determines the price. Trying to keep the price stable will go against the original vision of bitcoin to create a currency that will be truly free from any form of centralization which includes trying to "stabilize the price of Bitcoin".

[letteredhub]

In order for Bitcoin to be widely used for payments, it is necessary to stabilize price fluctuations.

Question,
Bitcoin and other currencies A and Prepare B.
A and B are equivalent exchangeable and can also be equivalently exchanged for Bitcoin.

Is it possible to stabilize prices through market mechanisms due to this?

A number of constituents will have to be suspended to have bitcoin stabilized and that can not happen as we can't suspend demands and supply, divided interests and sentiments  of investors. In fact any stability on bitcoin without having to get to the expected 21M cap will ruin a lot of trust on the bitcoin blockchain, except may op you're insinuating a condition where the price keep rising without a downside fluctuations obviously that's not possible. Bitcoin isn't usdt busd and a list of other stable coins that's why it's decentralized.

[Mr.suevie]

Well I don't know how you use of see it use by other members but I feel bitcoin got this level of fame through being volatile because this makes it a perfect idea for investment purpose and I believe almost every one who has bitcoin and hodling will be due to this and moreover I believe bitcoin is a coins in which has so far bypass stability plea so asking if it's can be stable is just uncalled for.

[Hamza2424]

In order for Bitcoin to be widely used for payments, it is necessary to stabilize price fluctuations.

So buddy why don't you prefer the CBDC's. I don't think its important to stabilize the Bitcoin valuation for the wider use of this as a payment mode.

Stability has nothing to do with Bitcoin as a payment mode, we aren't currently using Bitcoin as a payment mode, Volatility is the beauty of the market which is leading this market towards extraordinary growth in a short time span. 1BTC = 1BTC how much more stability do you need? The unit satoshi can be taken into account to fix the prices of the various products regardless of their fiat conversion.

Most of the people are here to make profits and these profits come through volatility and risk, Most of them will exit of it becomes more stable and according to the demand and supply in the market, BTC is eventually leading its journey toward stability where the even distribution of the total supply help to achieve.

[Raflesia]

However, when saying that bitcoin is stable it will not be possible because looking at the volatility I think it is impossible and indeed I do not expect it to happen.
Bitcoin is one that I think is unique and volatility is one of their uniqueness that makes bitcoin special (for me) so when saying stable for bitcoin then they will lose their uniqueness which makes me not like things like that.
On the other hand, it also won't be able to happen because I think bitcoin will still be on the same axis from the beginning of creation until now so the word "stable" doesn't fit bitcoin.

[jeraldskie11]

In order for Bitcoin to be widely used for payments, it is necessary to stabilize price fluctuations.

Question,
Bitcoin and other currencies A and Prepare B.
A and B are equivalent exchangeable and can also be equivalently exchanged for Bitcoin.

Is it possible to stabilize prices through market mechanisms due to this?

There's no way to make Bitcoin stabilize because the mechanism of Bitcoin is to make the price higher. But we can make Bitcoin less volatile, that is possible if the marketcap will double while it's price stays the same. Because of "scarcity" and a limited supply, we can't easily make it happen. The best thing we can do is to increase the number of people who hold Bitcoin, so that no one can dump Bitcoin's price. We have to bear in mind that Bitcoin is not stable coin such as USDT, and it will never be became stable.

[serjent05]

In order for Bitcoin to be widely used for payments, it is necessary to stabilize price fluctuations.

Question,
Bitcoin and other currencies A and Prepare B.
A and B are equivalent exchangeable and can also be equivalently exchanged for Bitcoin.

Is it possible to stabilize prices through market mechanisms due to this?

It is quite hard to stabilize Bitcoin because the market is dictated by supply and demand and majorly driven by sentiments.  Aside from that, there are lots of speculative investors who can easily sell their stash once their selling price is met. In addition, Bitcoin is still growing and it hasn't set its foundation firmly yet so any news or updates can either shake its market or boost it heavily.  The question you had is already happening in the Bitcoin ecosystem but still the price of BTC is still highly volatile.

[yazher]

Do you want to make it stable? then it will become less valuable than gold when it comes to investment because no one would dare to invest when they know they cannot get anything from it after years because they have plenty of choices out there where they can buy gold and keep it or some real state properties which will gonna increase their value in the future. but when bitcoins become stable I doubt others will buy it and make it their investment like how we see it right now.

[n00ber]

I dislike the comparison between gold and BTC but here I go.

Gold isn't backed by anything but cost it takes to mine it. But it isn't capped.

BTC is created by the electricity it took to mine it providing some likeness of a backing.

BTC like Gold will back itself through scarcity and market cap. As the market cap grows it will become more stable backing unto itself.

Like someone said, maybe use a different product for the desired 1:1. As much a we would like to wish BTC to be the universal cure all, it isn't.

This will definitely happen, when the capitalization becomes large bitcoin will gradually stabilize. Of course it will not be completely stable, there will be insignificant fluctuations like gold. No asset can grow infinitely, it's just an illusion of bitcoin fanatics. That is also why investing in bitcoin as soon as possible, the longer we wait, the smaller our chances are. Bitcoin can no longer generate x10, x100 profits like many other altcoins and that is proof that it is gradually becoming stable.

[Z_MBFM]

In order for Bitcoin to be widely used for payments, it is necessary to stabilize price fluctuations.
Question,
Bitcoin and other currencies A and Prepare B.
A and B are equivalent exchangeable and can also be equivalently exchanged for Bitcoin.
Is it possible to stabilize prices through market mechanisms due to this?

Bitcoin will never stabilize. And if it's stable then people won't be easily attracted to bitcoin. The price of Bitcoin is always rising due to which one can profit by investing here. Although it is a payment medium, it is mostly used as an investment asset. There are some stable coins in the market like USDT, USDC, BUSD etc which can also be used for payment in different places then why are you dreaming to stabilize bitcoin.

[Bitcoin_people]

In order for Bitcoin to be widely used for payments, it is necessary to stabilize price fluctuations.

Question,
Bitcoin and other currencies A and Prepare B.
A and B are equivalent exchangeable and can also be equivalently exchanged for Bitcoin.

Is it possible to stabilize prices through market mechanisms due to this?

It will never be possible that Bitcoin will be a stable currency, OP if you want use a stable coin like USDT, BUSD as a stable coil. If Bitcoin is stable then no one will invest in this Bitcoin and it will lose its popularity once the cryptocurrency collapses. We know that Bitcoin is the only cryptocurrency market that survives and everything depends on Bitcoin. Accordingly, if Bitcoin is stabilized for Bitcoin transactions or payment systems, Bitcoin will lose popularity, and that is why it will never be possible. And no one wants Bitcoin to be a stablecoin, everyone wants Bitcoin to be a store of value.