Let's Stabilize Bitcoin

[DanWalker]

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 being a highly volatile coin is what makes Bitcoin different from the others. This is it's own charm so why will you removed this? If you do, Bitcoin will look ordinary and people may not really be interested on it anymore. I see no issues on using Bitcoin as a currency despite having that said characteristic. Transactions are still smooth on my side and the fees are not really that exaggerated.

I guess some people are just OA (over-acting). They are too picky or sensitive. But I'm sorry, Bitcoin can't just favor them because they are only a small percent compared to those people who gladly like and accept Bitcoin for who it is. There are still other cryptos out there which are more stable and then there are literally stable coins like USDT and USDC. Why can't those people use them instead? That should solve their problem easily.

Conversely, I don't feel comfortable using bitcoin for payment because of its volatility. I don't want to buy bitcoin for $25k and have to use it to pay when it's only $15k. That makes me spend more money, whereas if I used fiat, I wouldn't have to pay any extra costs, not even transaction fees. As long as bitcoin is volatile, it's really difficult to use it as a currency. But you're right, we like it because its volatility can be profitable, if it becomes stable, quite a few people will leave it immediately.

[1715141731]

1715141731

[1715141731]

1715141731

[Don Pedro Dinero]

No and it doesn't matter.

1 It is not necessary
2 You can't do anything about it
3 It can be used for payments just fine

Well, the point is that as the price goes up and more people adopt it, at least in theory the price will become more stable, with less fluctuation. It is the same with company shares and other assets: the first few years are very volatile but also very profitable, and over time they stabilise both in terms of profitability and volatility. But we don't know when it will stabilise. Maybe it is by the year 2150 or thereabouts.

Of course, stabilising it with voluntary actions as the OP would like is impossible, or could only be attempted with political actions, similar to price controls, as stompix says, which would be the only way to stabilise it.

[Artemis3]

Conversely, I don't feel comfortable using bitcoin for payment because of its volatility. I don't want to buy bitcoin for $25k and have to use it to pay when it's only $15k. That makes me spend more money, whereas if I used fiat, I wouldn't have to pay any extra costs, not even transaction fees. As long as bitcoin is volatile, it's really difficult to use it as a currency. But you're right, we like it because its volatility can be profitable, if it becomes stable, quite a few people will leave it immediately.

So what? another day it will be 40k. Unlike hyperinflation, you can have some lows and many highs, with fiat the only direction there is, is down.

Yeah its like gold where initial extraction vs almost nothing is ever found anymore, that may be a century or more away (just like gold).
You shouldn't think too much about it, if you are full into Bitcoin (no fiat) you simply spend what you need and save the most you can. But some people don't have discipline and want to burn it all or "invest it" because they still think its like fiat where if you don't invest it it will lose its value. There is no need to invest bitcoin, you can just hold it, it will at least not collapse like fiat can, that's for sure. Any downs are temporary, we have 14 years and the only direction it goes is up. Why? Because the only direction of fiat is down. Why? Because fiat is infinite while bitcoin is finite. Why? Because fiat is created and destroyed by few people but Bitcoin rules cannot be changed by a minority like in most altcoins and all fiats.

Suppose nobody perceives bitcoin value going up ever, as in, nothing in Bitcoin can make more valuable. What is the market net effect? Price goes up, because, all fiats and most altcoins are designed to lose value. Reality is that bitcoin market availability is very small and only going smaller. From time to time, some amounts are dumped by those who think its time to sell, only to be rapidly acquired by others who think its cheap, net effect, it has increased even if fiats were perfect and not losing value. But...

Both Bitcoin perception is going higher, AND fiat perception is going lower. Perfect storm which may bring the next economic crisis. Those crisis are inevitable as long as they let the State manipulate interests rates, money emission and whatnot. Read Austrian school of economy if you want to know about the economic cycle. What State has put Austrian school economists at least as gov advisors? El Salvador. Start kicking the monetarists so you can get what Bitcoin is; Hayek would say private money but in any case not garbage money which is not debt credit expansion based and huge shock for the mainstream economists who fear deflation because their scheme would then collapse.

The value of things is subjective. There is no such thing as intrinsic value. Doesn't matter how many hours you spend or what resources you used, if the buyer doesn't want it, you won't sell it. The power is in the buyer, not in the worker, this breaks Marxism/Socialism as well. Oh why wouldn't they teach Austrian Economy more in school/college... this, politicians don't like being told step aside and let the economy take its course without your intervention.

Bitcoin kicks the State out of the money, it is a tool in the right direction, more will come. Those who adopt it, will be spared from the next crisis that will come. It will be too late when it kicks, don't be keeping fiat, change it while you can, and start getting paid and pay with bitcoin, close the circle for true freedom.

Fluctuation is freedom
Pegging is tyranny

ALL hyperinflations decreed a peg. "Stable" coins are pegs, against fiat which in itself you know its infinite trash. Many altcoins/cbdcs think "bitcoin is bad" and emulate fiat, and some even peg or both more often than not, using the ponzi scheme known as fractional reserve. You will only lose what little wealth you may have left, unless you go with plan BTC.

The time is now, tomorrow will be too late.

[Mpamaegbu]

Until we begin to think of Bitcoin as more of an asset than a means of payment, this type of reasoning will continue to inundate our minds. From the evidence of things around us, we can see that Bitcoin attracted people to it because of its power to replicate value in price and not necessarily because we pay for things with it. If it's as a payment option, there are several altcoins that can do that. No one stabilizes assets. They're meant to appreciate or depreciate in value, subject to the law of demand and supply. This is what I see with Bitcoin.

Fluctuation is freedom
Pegging is tyranny

I'm in agreement with that, completely. It's the same tyranny of the financial institutions and middlemen that Satoshi aimed to dismantle and someone is asking for it to still be upon us?

[jp123]

It is doubtful that prices will stabilize if market capitalization rises.

I don't see a path for Bitcoin to be widely used for payments.

[taufik123]

Until we begin to think of Bitcoin as more of an asset than a means of payment, this type of reasoning will continue to inundate our minds. From the evidence of things around us, we can see that Bitcoin attracted people to it because of its power to replicate value in price and not necessarily because we pay for things with it. If it's as a payment option, there are several altcoins that can do that. No one stabilizes assets. They're meant to appreciate or depreciate in value, subject to the law of demand and supply. This is what I see with Bitcoin.

stable words do not exist with Bitcoin, and it is characteristic of crypto to have volatile prices.
Except for stablecoins which are designed to be stable 1:1 with Fiat.

Now Bitcoin is more of a volatile asset for speculation and not for payment and is only based on its value.
Many people are interested in Bitcoin because of its increasing value. But when the value does not increase and stabilize then someone's interest in entering will decrease.

Regarding the OP Thread that wants to stabilize Bitcoin, Stable may be in the sense of Sideway or movements that tend to be passive and give altcoins the opportunity to start recovering prices, But stable as a stablecoin it will not be possible.

[kro55]

It is doubtful that prices will stabilize if market capitalization rises.

I don't see a path for Bitcoin to be widely used for payments.

There is no doubt that it is certain, no asset can increase continuously and endlessly. The larger the capitalization, the smaller the volatility and we can also easily see that bitcoin cannot increase 1000 times or 100 times in recent years as the capitalization is increasing. But that doesn't mean it will be as stable as fiat, just that bitcoin's volatility will be smaller.

As for whether it can be widely used in payments or not, that is for the government to decide, we have no right to decide that. So don't rush to draw conclusions about the future right now.

[Bitcoinpoly]

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?

If Bitcoin price was stabilize in the first place I’m sure won’t be interested in Bitcoin today, you can into Bitcoin because you are attracted by its significant performance over the course of time. If the price was stagnant I’m sure it won’t interest you to buy or invest in.

[Minor Miner]

Until we begin to think of Bitcoin as more of an asset than a means of payment, this type of reasoning will continue to inundate our minds. From the evidence of things around us, we can see that Bitcoin attracted people to it because of its power to replicate value in price and not necessarily because we pay for things with it. If it's as a payment option, there are several altcoins that can do that. No one stabilizes assets. They're meant to appreciate or depreciate in value, subject to the law of demand and supply. This is what I see with Bitcoin.

stable words do not exist with Bitcoin, and it is characteristic of crypto to have volatile prices.
Except for stablecoins which are designed to be stable 1:1 with Fiat.

Now Bitcoin is more of a volatile asset for speculation and not for payment and is only based on its value.
Many people are interested in Bitcoin because of its increasing value. But when the value does not increase and stabilize then someone's interest in entering will decrease.

Regarding the OP Thread that wants to stabilize Bitcoin, Stable may be in the sense of Sideway or movements that tend to be passive and give altcoins the opportunity to start recovering prices, But stable as a stablecoin it will not be possible.

Bitcoin's volatility is benefiting us greatly, I don't understand why the OP wants it to become stable. Agreed that volatility is a barrier to bitcoin becoming a popular currency, but as an investment asset it also offers significant benefits. I also agree with your thoughts, we are interested in bitcoin because its value is increasing, in case it stabilizes. I believe that not too many people will be interested in it. Except for the OP, I really want to know if anyone here wants bitcoin to become stable, is there anyone who doesn't want to make money?

[mindrust]

We don't need to.

If you want a coin that's stabilized, use a stable coin. They are stabilized by default.

Bitcoin will never be stabilized against usd because 1 btc = 1 btc. It is the USD that's moving against bitcoin.

Also the investors will lose their interest in btc if they see the same price every day.

[Webetcoins]

It is not possible, Bitcoin is a volatile currency because it has a limited supply and the demand keeps increasing which is the reason why its price keeps going up and down. Besides, what will be the difference between fiat and Bitcoin if it becomes stable? It will just become a decentralized fiat and I bet people wouldn't like that as much as they like Bitcoin right now, and the biggest reason for that is because it is volatile and it tends to increase in price.

The level of adoption that we have right now is mainly because of the reason that Bitcoin's value keeps increasing over time which has made a lot of people gain interest in Bitcoin and cryptocurrencies, if it was a stable currency, I don't think it could become this much popular or had this much fame.

[jp123]

The dollar is not a stable, is it?

[promise444c5]

snip

Maybe OP should read more on fiat and centralised market . It should give him a better understanding about it.
Besides,  Bitcoin volatility makes it possible for investors and traders to earn while investing in Bitcoin as it has been said but why would they want it stable??(rhetorical).

However, BTC also have a dedicated amount already and you still want it to be stable despite it current market cap and value.How will people perform exchange,  think of it OP , maybe when you read more on it you will understand better.

[siedemtrzy]

The dollar is not a stable, is it?

Well, nothing in this world is totally stable. But fiat is stable enough (well, in most countries) to be used as currency.

[Odohu]

I don't see this as feasible; where will you start from? You must understand that volatility is the response of the market to demand and supply and this is unique across various assets. It will interest you to know that Nasdaq and Dow Jones are highly volatile as well despite being the stock of some of the biggest firms in the world and have huge liquidity.

I am keen on learning your proposed method of stabilizing the price of Bitcoin as you have not really given us a clue to that effect. I understand your concern is how Bitcoin can gain deeper penetration into the mainstream as many people always use the volatility as excuse for their skepticism towards Bitcoin.  This is well understood and I can assure you that in a matter of time, many people will surely embrace Bitcoin.

[Woodie]

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

I don't think this will be possible to achieve as not everyone is treating BTC as a currency, others see it as a store of value and whenever Bitcoin price goes up..then it's more than likely that they will sell to recoup some from this move hence stabilizing price fluctuations is almost impossible...besides price fluctuations are a good thing as they show the power of supply and demand or tag of war between sellers and buyers & if this isn't present price would be in an equilibrium where price fluctuations are minimal.

The dollar is not a stable, is it?

Well, nothing in this world is totally stable. But fiat is stable enough (well, in most countries) to be used as currency.

"Nothing in this world is totally stable," agreed!!
And the thing with currencies is that the common person only sees 1 dollar and looks stable to everyone, but unfortunately, there is a whole lot going on with fiat that we don't see and traders will tell us the dollar needs to be quoted with its other digits to make it look like this $1.0881 and its constantly changing which shows its not really stable  .

[retreat]

It will be quite difficult to stabilize Bitcoin because the price of Bitcoin depends on demand and sales and you cannot control this completely because the distribution of Bitcoin is global and it is held by millions of people who can buy and sell Bitcoin at any time. Moreover, for stable coins, we already have stablecoins which can be used by users for more stable trading, so there is no point in stabilizing Bitcoin.

[Nrcewker]

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?

We can’t make Bitcoins stable. The reason is very simple. Bitcoins are limited in numbers. Bitcoins were originally developed in order to server as a decentralised coin. But today each and everyone is treating as an digital asset. So the keeps on buying and selling the coins which won’t stop and the price will go up like this. Bitcoins cannot be made stable in any way possible. Yes if there was an unlimited supply of the coin, then we could have said things here differently.

[Mpamaegbu]

~

Bitcoin's volatility is benefiting us greatly...

Exactly! Remove that volatility from Bitcoin and you will see the entire market go to sleep. Bitcoin is on the driving seat in this industry. Most often when it bleeds, the entire market feel the pain; and when it's thriving the entire market comes alive. We've seen this happen many times. Now, to want it to become stable, as in, to expect to see the type of movements we find in stable coins with Bitcoin? Nah, that won't be exciting. We need this adrenaline pumping in our chests while trading this market. OP should seek other altcoins to trade if they really want something stable.

The dollar is not a stable, is it?

No, it isn't. You can check currency pairs in Forex trading and see how the dollar fluctuates against other currencies it's paired with.

[jp123]

I don't think the dollar is in demand internationally(Same for other stablecoins).

The proposal is like splitting Bitcoin into three, each with its own price fluctuations.