After five years, has Bitcoin finally reached price stability?

[boymilk]

One of the distinguishing characteristics of Bitcoin is that it is extremely volatile. This has always been the case until the past few weeks when the price seems to have stabilized in the 400-600 USD region. Of course such a wide range would still be considered extremely volatile if Bitcoin was compared to fiat currencies but do you think that Bitcoin is in the beginning stages of finally converging onto a stable price? Or do you think that there will be more bubbles and crashes in the future?

[dannyspk]

Hardly. To me, this is just the beginning. Stability will only occur when there's wide adoption and massive market cap. We are far from it. Till then, enjoy the ride!

[rudius]

One of the distinguishing characteristics of Bitcoin is that it is extremely volatile. This has always been the case until the past few weeks when the price seems to have stabilized in the 400-600 USD region. Of course such a wide range would still be considered extremely volatile if Bitcoin was compared to fiat currencies but do you think that Bitcoin is in the beginning stages of finally converging onto a stable price? Or do you think that there will be more bubbles and crashes in the future?

What is different now from other bear markets? price seems stable beacause there was very low volume last weeks and a reversal is in place.

And there will always be bubble and crashes, it is a deflationnary assets prone to exuberance. As the marketcap will mature, price will be less wild. As more and more people wait for the same wild jump&crash in price, it will correct that by itself.

Though, there will be a lot more bubble and bear markets before marketcap will be usefull for merchants.

[Relnarien]

As long as Bitcoin is not universally accepted as a currency and people keep trading Bitcoin as a commodity, it will continue to remain volatile. A mainstream entity publicly investing in Bitcoin can easily cause a bubble, while all it takes for a crash to happen is one Bitcoin investor holding a large amount of it suddenly cashing out. There's also the ongoing struggle to gain official government recognition and mass public adoption. Future halvings, DPR's seized funds getting dumped onto the market, Mt. Gox miraculously recovering another cold storage wallet when Karpeles runs out of money to pay for his lawyers' retainer fees, et cetera -- a lot of things can and will shake the Bitcoin market. Bitcoin is volatile -- that's just a given.

[alexeft]

I don't think it will be volatile when it becomes big enough.
Right now it's just a small boat rocking from side to side with the smallest burst of air.
But, when it becomes the size of a tanker..........

[segeln]

I don't think it will be volatile when it becomes big enough.
Right now it's just a small boat rocking from side to side with the smallest burst of air.
But, when it becomes the size of a tanker..........

+1
nice comparison

[medUSA]

How would you define stability? I think 10% band would be the minimum to be called stable for a currency and 5% is very stable. Bitcoin prices in the past 3 months has gone up to $700 and down to $350, roughly a 30% band. Not very stable in my view.

[zimmah]

Real stability will not happen until bitcoin has at least 5 digits, but more likely 6~8 digits.

[Divinespark]

Yep, I think it will need to be at least $10k before vol settles down

To reach $10k will have to demonstrate use cases beyond store of value properties

[spazzdla]

Not even close,  Kevin O'leary alone could sky rocket or collapse the market.

[frienemy]

How would you define stability? I think 10% band would be the minimum to be called stable for a currency and 5% is very stable. Bitcoin prices in the past 3 months has gone up to $700 and down to $350, roughly a 30% band. Not very stable in my view.

1 EUR was worth 0,80 USD in 2002 and 1,60 USD in 2009, yet both are thought of as very stable. But stability for bitcoin at this stage now would not be desireable anyway.

[RodeoX]

I really doubt it. I'm not sure that price stability is even a necessary feature of bitcoin. It may just be volatile.

[kireinaha]

heh, not even close. If bitcoin were to succeed as an investment asset, then it wouldn't hit a saturation point until it becomes on par to gold or some of the other precious metal categories. If this were to happen, we'd have six digit bitcoin prices. At that point, it could become stable.

If it actually succeeds as a deflationary global currency, then we still have room for massive growth, since only 0.001 percent of the global population currently owns any.

Whatever the scenario, we're nowhere close to stability.

[Nagato]

After five years, has Bitcoin finally reached price stability?

You must be new around here...

[nickenburg]

Yes everyone keeps repeating its very volatile and not a good investment.
Because that's what the news told them, we just had a rough time behind us.
And a chart will always go up or down so I hope we are gonna see a uprising.

[Skele]

Yep, I think it will need to be at least $10k before vol settles down

To reach $10k will have to demonstrate use cases beyond store of value properties

But i think we are not far from it, all we need is one app like bitpay and some chain store accepting bitcoins to let the fun begin, already mit students are doing some like that

[dropt]

One of the distinguishing characteristics of Bitcoin is that it is extremely volatile. This has always been the case until the past few weeks when the price seems to have stabilized in the 400-600 USD region. Of course such a wide range would still be considered extremely volatile if Bitcoin was compared to fiat currencies but do you think that Bitcoin is in the beginning stages of finally converging onto a stable price? Or do you think that there will be more bubbles and crashes in the future?

No.  See 2012.

[ineededausername]

There are threads from a while ago with stability at around $5...

[master-P]

Bitcoin and stability should never be used in the same sentence. Every time we think BTC is stabilizing, it proves us wrong again and again.

[Argwai96]

Its only been a few months. I think that if we stay in this same range for a few years, then we can start talking about stability. Until then.....no