Will the Price of bitcoin ever stabilize?

[Wexnident]

~

Well isn't it just supply and demand? Granted that's also pretty hard to identify but I reckon it's going to be pretty obvious at some point when the entire world (or at least a large majority of it) starts using Bitcoin as a MOP in their everyday life. Cause at that point you bet Bitcoin is at the very least stable enough to be used as such. Granted I don't think that's possible, or at least I don't see it happening since the market will always have that level of volatility in it. And there's always some amount being lost due to forgotten wallets so even the 21m supply dwindles down and if demand just keeps going up, then the price would still inevitably move.

[DanWalker]

As Bitcoin matures and becomes larger, its volatility will also decrease. That is why we will no longer have the opportunity to witness the thousand percent growth and 30x, 50x or 100x returns that bitcoin brought to early investors when it was very small. But bitcoin will never be stable, even gold, it is less volatile but never stable.

It is true that we invest in bitcoin because of its volatility, because we can take advantage of that to make bigger profits. So it is likely that when bitcoin becomes less volatile than gold, many people will lose interest in it and look for alternatives. But there will also be many other investors moving into bitcoin just like they are doing with gold. Not everyone enjoys roller coasters and risks.

[Kelward]

Bitcoin's price is being determined by the demand and supply. It's not peg to the stable asset such as fiat money or something else. It means Bitcoin's price will never stabilize. There will always be volatility to be involved in Bitcoin's price, big or small. It goes up and down based on supply and demand in the market.

Some said it less volatile due to the adoption, but voltility will always be there forever.

Without volatility Bitcoin will become like a stablecoin that will most likely be pegged to itself and it'll cease to be a store of value. As long as Bitcoin has a limited supply and there's demand and supply for it, it'll continue to be volatile. It is an asset because it has the potentials to reach ATH in it's bull circles, therefore it has to dump and pump before it's price can rally, skyrocket to hit ATH. The rapid adoption of Bitcoin can not give room for it to be stabilized, people will always have positive or negative reasons to sell and buy. What I foresee in the future is that it's price will always hit new ATH because of it's reputation and potentials.

[AmaGold70]

I'm just curious. The beauty of investing in bitcoin or any other crypto is in it's volatility. Volatility makes smart investors to study the market trends- know when to buy and also when to sell in order to maximize profit. The value  of bitcoin is basically based on it's acceptability - as more and more countries adopt bitcoin and maybe build a reserve for it, it's value will definitely increase. However if bitcoin is generally adopted worldwide it's prize will become more stable and the volatility factor that investors leverage upon will fade. While it's possible that at this point the price may be $500k or more but this same price will become more stable and conversely not a very good investment option. Someone may say why has the price of gold not stabilized- well gold is physical and it's physical usage may increase. There are only 21million bitcoin that will ever be, but converting these to it's smallest unit (Sat.) and dividing it among the world's population is more than enough for everybody (approx. 300k sats), which further buttress my points on bitcoins potential stability with general acceptability.


If the price will ever stabilize, what are the factors we need to look out for as investor to know that the time has come for us to apply extraordinary wisdom ?

Even gold is not stable so don't expect Bitcoin to be stable, it's volatility nature and its dump and pump is exactly what makes it a store of value, Bitcoin is volatile in nature and even at that Bitcoin has attracted new investors. Bitcoin wasn't created to be stable and this is what makes it fun for me because I'm always curious to know the next time it will come up with, everyday comes with a new heartache or excitement with Bitcoin. Maybe it will be less volatile in future but it will take a long time maybe in the next 50/100yrs, but ontill then Bitcoin's stability is just a myth.

[bangjoe]

Bitcoin will never be stable because bitcoin has a cycle, therefore bitcoin will not be stable plus bitcoin trading is quite busy so that it helps price fluctuations.

moreover if bitcoin is stable it is very unattractive to many traders and investors, so if it were me, I would not be interested if bitcoin had a stable price, except maybe in stake can get rewards that will be an option, but it will not be as much as we expect if the price is stable.
we can be sure that bitcoin will not be stable forever because the price is according to the supply and demand market and also with its decentralized nature makes Bitcoin very certain to be unstable.

[liuka]

As I have noticed so far the price of bitcoin has never been stable and will never be stable. Because the price of bitcoin goes up every second and down every second and Every day the price will never be the same.

Moreover, The price of Bitcoin is very dependent on a lot of news such as when trump ratified or enforced a strategic reserve where the price of bitcoin increased. Even when saylor bought bitcoin and announced it on twitter the price of Bitcoin Also increased so that it was difficult to see the price of bitcoin stable for a long time.

For me, the instability of the price of bitcoin is why bitcoin is widely glanced at by many investors to trade or make bitcoin a long-term investment.

[Agbamoni]

The answer is no. When you visit a market with a lot of price changes due to demand and maximum supply at time you can't get that product for a fixed price in a long time. The price will remain dynamic from time to time. The same thing is applicable to Bitcoin but in the Bitcoin market the price changes in real time. You can get it cheaper now while in the next few seconds it is higher than what you go it.

Traders and investors are always buying/selling which is another reason why Bitcoin prize will never stabilize. Unless it is regulated by a central authority which is not possible.

[Promocodeudo]

I'm just curious. The beauty of investing in bitcoin or any other crypto is in it's volatility. Volatility makes smart investors to study the market trends- know when to buy and also when to sell in order to maximize profit. The value  of bitcoin is basically based on it's acceptability - as more and more countries adopt bitcoin and maybe build a reserve for it, it's value will definitely increase. However if bitcoin is generally adopted worldwide it's prize will become more stable and the volatility factor that investors leverage upon will fade. While it's possible that at this point the price may be $500k or more but this same price will become more stable and conversely not a very good investment option. Someone may say why has the price of gold not stabilized- well gold is physical and it's physical usage may increase. There are only 21million bitcoin that will ever be, but converting these to it's smallest unit (Sat.) and dividing it among the world's population is more than enough for everybody (approx. 300k sats), which further buttress my points on bitcoins potential stability with general acceptability.


If the price will ever stabilize, what are the factors we need to look out for as investor to know that the time has come for us to apply extraordinary wisdom ?

OP am sure that you know what volatility is all about and I also that you're aware that volatility is Bitcoin thing, so if Bitcoin is known for it's volatile nature thats to say that there's no need of thinking about about something that may not come to reality, op there's something I want you to meditate on which is, what if Bitcoin existence is centered on it's price instability, so are we to expect it to be stable, I feel you're thinking too much though it is good to ask questions and also think abstract sometimes to get the views of the community at large but you should consider the concept of Bitcoin before saying somethings, volatility is one of the concepts of Bitcoin followed by it's long-term concept too, op price correction must occur from time to time, upsurge must take plece too, each of this events has what it does in Bitcoin investment, so for me I have accepted the fact that Bitcoin is a volatile asset and that shouldn't be a hindrance for me since this volatility is all about the dip and the upsurge which I think is perfect for an investment like that.

[yhiaali3]

It's true that if Bitcoin's price becomes more stable, it will no longer be an attractive investment option, but at the same time, it will become more attractive for global adoption by large institutions and governments.

Also, if it becomes more stable, it will become a very attractive option as a store of value and a hedge against inflation. In my opinion, these are far more important than investments that rely on volatility, as this will allow Bitcoin to fulfill its primary function for which it was created.

[_BlackStar]

It's true that if Bitcoin's price becomes more stable, it will no longer be an attractive investment option, but at the same time, it will become more attractive for global adoption by large institutions and governments.

Also, if it becomes more stable, it will become a very attractive option as a store of value and a hedge against inflation. In my opinion, these are far more important than investments that rely on volatility, as this will allow Bitcoin to fulfill its primary function for which it was created.

I agree with you - when bitcoin stops providing high returns, it will become a great store of value for large corporations, both private and government. I don't see that scenario happening in the next 10 to 15 years - but it is one worth thinking about. Bitcoin has been a high-yielding investment asset for a long time - so if its annual returns are reduced due to mass adoption, then investors may have other avenues to get a decent return. I know this has probably been thought or stated by others - but it is the truth.

High annual returns are part of the reason why many people are willing to invest in bitcoin - but if annual returns get lower, then I believe investor interest in bitcoin may also decrease. But again - this is not going to happen anytime soon.

[GeorgeJohn]

People who is novice in bitcoins investment they're the one that doesn't know the price stability in cryptocurrency investment more especially in bitcoins, but an experienced investor do take it time to invest,  and an experienced investor will make a research to know if it purchases bitcoins now, if the price will decrease in next month or in next two month,  so base on the research will determine his comfort to purchase bitcoin.

Another thing is that, do not invest on Bitcoin under durance, because if you invest on Bitcoin on durance you will not be able to calculate exactly if you will make a profit on the process or not...its very clear that price of Bitcoin is always rotational, the price doesn't stay consistent it always interchanges, so therefore any investor have to make a proper investigation before they could invest.

[Marvell1]

Bitcoin will never be stable because bitcoin has a cycle, therefore bitcoin will not be stable plus bitcoin trading is quite busy so that it helps price fluctuations.

moreover if bitcoin is stable it is very unattractive to many traders and investors, so if it were me, I would not be interested if bitcoin had a stable price, except maybe in stake can get rewards that will be an option, but it will not be as much as we expect if the price is stable.
we can be sure that bitcoin will not be stable forever because the price is according to the supply and demand market and also with its decentralized nature makes Bitcoin very certain to be unstable.

Bitcoin cycles can change or even disappear because there are no regulations or laws that guarantee that the Bitcoin cycle will always repeat itself. Just like what is happening, we hit ATH before the halving and there is no guarantee the bull run we are expecting will repeat this year. Things may change more in the future as bitcoin becomes more influenced by governments and the economy. But bitcoin will never be stable, simply because bitcoin is being used and turned into a financial market, and financial markets will always be volatile because that's how it exists.

Bitcoin will not be stable, but volatility will certainly decrease and returns will diminish over time as it matures. At that point, many investors will lose interest but I don't think that will happen anytime soon, it's still too early to talk about bitcoin becoming more stable and becoming a store of value like gold.

[wheelz1200]

Yeah it eventually will stabalize.  For one more volume needs to come into the market.  More volume more stable pricing.  Second is all the crypto gambling (i.e meme coins) needs to eventually go away.  People move money in and out of bitcoin to buy and sell these complete scams and ponzis.  Once those 2 things happen i think we finally see a "normalized" market.

[btc_angela]

The answer is no. When you visit a market with a lot of price changes due to demand and maximum supply at time you can't get that product for a fixed price in a long time. The price will remain dynamic from time to time. The same thing is applicable to Bitcoin but in the Bitcoin market the price changes in real time. You can get it cheaper now while in the next few seconds it is higher than what you go it.

Traders and investors are always buying/selling which is another reason why Bitcoin prize will never stabilize. Unless it is regulated by a central authority which is not possible.

There is also one factor, which is everyone can invest on it and the market is open 24x7 that's why it will never be stabilized. When some part of the globe is sleeping, the on the other side, they are awake and they are the one who are doing the trading.

And with that cycle is intact or at least it has never been broken yet, the price is going to be very volatile and unstable. And that's one thing that we love about it, I mean we can make money out of it's volatility.

[Megaboss12]

I'm just curious. The beauty of investing in bitcoin or any other crypto is in it's volatility. Volatility makes smart investors to study the market trends- know when to buy and also when to sell in order to maximize profit. The value  of bitcoin is basically based on it's acceptability - as more and more countries adopt bitcoin and maybe build a reserve for it, it's value will definitely increase. However if bitcoin is generally adopted worldwide it's prize will become more stable and the volatility factor that investors leverage upon will fade. While it's possible that at this point the price may be $500k or more but this same price will become more stable and conversely not a very good investment option. Someone may say why has the price of gold not stabilized- well gold is physical and it's physical usage may increase. There are only 21million bitcoin that will ever be, but converting these to it's smallest unit (Sat.) and dividing it among the world's population is more than enough for everybody (approx. 300k sats), which further buttress my points on bitcoins potential stability with general acceptability.


If the price will ever stabilize, what are the factors we need to look out for as investor to know that the time has come for us to apply extraordinary wisdom ?

OP am sure that you know what volatility is all about and I also that you're aware that volatility is Bitcoin thing, so if Bitcoin is known for it's volatile nature thats to say that there's no need of thinking about about something that may not come to reality, op there's something I want you to meditate on which is, what if Bitcoin existence is centered on it's price instability, so are we to expect it to be stable, I feel you're thinking too much though it is good to ask questions and also think abstract sometimes to get the views of the community at large but you should consider the concept of Bitcoin before saying somethings, volatility is one of the concepts of Bitcoin followed by it's long-term concept too, op price correction must occur from time to time, upsurge must take plece too, each of this events has what it does in Bitcoin investment, so for me I have accepted the fact that Bitcoin is a volatile asset and that shouldn't be a hindrance for me since this volatility is all about the dip and the upsurge which I think is perfect for an investment like that.

I am not sure you understand the view point here. We are bringing possibilities to bare... As investors, we think and envisage long term. Every visionary knows that when the adoption of a commodity is uncertain, the volatility of it's price increases. But when demands increase, prices surge (for fixed assets). but when demand climaxes price stabilizes. The amount of bitcoin that will ever be is fixed at 21m, and the hope of a long term investor is  a general adoption of the coin for a maximum surge in price and conversely maximum profit. But this same general adoption will also spell less volatility which will make bitcoin a means of storing assets rather than a good investment option. That's what we're bringing to bare here bro...

[Megaboss12]

People who is novice in bitcoins investment they're the one that doesn't know the price stability in cryptocurrency investment more especially in bitcoins, but an experienced investor do take it time to invest,  and an experienced investor will make a research to know if it purchases bitcoins now, if the price will decrease in next month or in next two month,  so base on the research will determine his comfort to purchase bitcoin.

Another thing is that, do not invest on Bitcoin under durance, because if you invest on Bitcoin on durance you will not be able to calculate exactly if you will make a profit on the process or not...its very clear that price of Bitcoin is always rotational, the price doesn't stay consistent it always interchanges, so therefore any investor have to make a proper investigation before they could invest.

I believe you just moved slightly away from the subject. We are discussing price volatility here and not profit making strategies. I am of the opinion that somehow, someday in the near or far future the price of bitcoin will stabilize and it may not be a good investment option at that point but a good means of preserving assets.

[Btcdeybodi]

However if bitcoin is generally adopted worldwide it's prize will become more stable and the volatility factor that investors leverage upon will fade

I don't think the volatility of Bitcoin will fade, Bitcoin is not a stable coin so even if it has been adopted globally, there will still be market volatility because some people will surely sell their bitcoin which will cause a decline in the price and some investors will still buy when the price falls and the price bounce back again and it continues in that upwards and backwards movement which is the volatility. Surely, volatility of bitcoin will reduce but it will not fade away totally.

[aoluain]

Bitcoins volatility is more or less linked to the fact that it is decentralised, Bitcoin
is open for buy, sell and trade 24, 7 365 days per year, the markets dont close for the
weekends.

Buy, sell and trades happen without the need for a broker and can be transacted
with as little as $10, so viven all this volatility wont disappear.

Historically Bitcoin's market volatility was viewed as negative but there are plenty
of experienced traders making good profits based on volatility. We need to see
that volatility as a feature!

[_BlackStar]

-snip-

I believe you just moved slightly away from the subject. We are discussing price volatility here and not profit making strategies. I am of the opinion that somehow, someday in the near or far future the price of bitcoin will stabilize and it may not be a good investment option at that point but a good means of preserving assets.

Even if in the future the price of bitcoin becomes more stable - but bitcoin remains a good choice for investment or as a hedge. As long as investors can still generate returns from bitcoin and traders can still make a profit - then as long as bitcoin will have enthusiasts. I agree that maybe the returns are no longer as big as before - but bitcoin will still be a good choice for most of them. Low profitability will not make bitcoin a bad choice as an investment asset - even fiat tends to give lower returns if you have a deposit in the bank.

[JeffBrad12]

if there's bigger market cap and bigger trading volume it can stabilize easily, bitcoin isn't too different compared to the like of stock or even gold, its just that the mcap is still too low for it to stabilize but eventually it will once bitcoin grown several times higher in both mcap and volume compared to now which I speculated will happen maybe in 2035 with bitcoin's cyclic nature and linear growth of price.

eventually the whales' money will have smaller effect to manipulate the market and will be even more viable to be used for practical use like transaction even though it already is viable right now.