How high a of a market cap would bitcoin need to have to be 'stable'?

[Este Nuno]

Or at least different market caps for different levels of stability.

What is your estimate for +-1% variation and +-3% variation. Or what do you think is the most realistic +-% range that we'll see?

Gold is what, 9 trillion? And it's still often volatile. I'm guessing this is purely due to speculation.

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[TrailingComet]

100bn $ upwards is the minimum viable stabilising threshold I think
15 to 20x from here

[beatljuice]

(Note that I have no education and little experience in these things)

Apple seems to vary less than 1% most days and its current market cap is ~550 billion.

Canadian dollars are worth ~2 Trillion US dollars and seems to vary as much as Apple so it seems that market cap is only part of what ads stability.

[Este Nuno]

Would it take governments deciding to hold bitcoin in their reserves for bitcoin's market cap to reach these heights or not? Or is private capital sufficient to get bitcoin to the 100 billion, 500 billion or 2 trillion dollar market caps mentioned?

[Dalmar]

Even gold with its huge market cap is still relatively volatile. Bitcoin will always be relatively volatile as long as it isn't used as a widespread unit of account.

[GangkisKhan]

Even gold with its huge market cap is still relatively volatile. Bitcoin will always be relatively volatile as long as it isn't used as a widespread unit of account.

Fiat is stable because it is being regulated by government.

Bitcoin is regulated by free market. And free market is Chaos.

[Dalmar]

Fiat is stable because it is being regulated by government.

Bitcoin is regulated by free market. And free market is Chaos.

The main reason why first world countries' currencies are stable is because people plan long term projects in them. Almost nobody plans things in terms of gold or bitcoin. Hence, the volatility and the twitchy nature of the market.

[MICRO]

Even gold with its huge market cap is still relatively volatile. Bitcoin will always be relatively volatile as long as it isn't used as a widespread unit of account.

Fiat is stable because it is being regulated by government.

Bitcoin is regulated by free market. And free market is Chaos.

I wouldn't call it "Chaos" .
As for market cap, well... Its rly hard to say, once it becomes mainstream and more and more people start to use it , else when we go to extreme with diff , it should stabilize ...

But again we all know how things can change so fast with bitcoin, its rly hard to predict a future for it.

[Este Nuno]

Even gold with its huge market cap is still relatively volatile. Bitcoin will always be relatively volatile as long as it isn't used as a widespread unit of account.

That's what worries me too. Specifically the fact that gold, despite it's 'large' market cap is still unacceptably volatile to used as a currency.

What is interesting though is that gold was much less volatile when US dollars were backed by gold.

[ljudotina]

Even gold with its huge market cap is still relatively volatile. Bitcoin will always be relatively volatile as long as it isn't used as a widespread unit of account.

If it gets widespread enough, it will replace fiat which will make it basicly 100% stable. Noone will ever ask: "how much dollars or euro is 1 btc worh"? Answer would be: "What is dollar or euro?"

[MICRO]

Even gold with its huge market cap is still relatively volatile. Bitcoin will always be relatively volatile as long as it isn't used as a widespread unit of account.

If it gets widespread enough, it will replace fiat which will make it basicly 100% stable. Noone will ever ask: "how much dollars or euro is 1 btc worh"? Answer would be: "What is dollar or euro?"

Hehe. Pretty optimistic post . I dont think we will get there anytime soon . Maybe in like 50 years or so

[ljudotina]

Even gold with its huge market cap is still relatively volatile. Bitcoin will always be relatively volatile as long as it isn't used as a widespread unit of account.

If it gets widespread enough, it will replace fiat which will make it basicly 100% stable. Noone will ever ask: "how much dollars or euro is 1 btc worh"? Answer would be: "What is dollar or euro?"

Hehe. Pretty optimistic post . I dont think we will get there anytime soon . Maybe in like 50 years or so

Well of course. IT can burn right now down to 0 because of some unknown bug, or it can liv eon and take over fiat. It's just one of possibilities. What is for sure is that higher it goes, more stable it will get.

[Este Nuno]

Even gold with its huge market cap is still relatively volatile. Bitcoin will always be relatively volatile as long as it isn't used as a widespread unit of account.

If it gets widespread enough, it will replace fiat which will make it basicly 100% stable. Noone will ever ask: "how much dollars or euro is 1 btc worh"? Answer would be: "What is dollar or euro?"

Even if it does replace the dollar or euro it will still be compared to other things like gold, oil, other cryptocurrencies. Maybe someone will make a stable crypto backed by gold or something like that if bitcoin is too volatile.

[GangkisKhan]

Even gold with its huge market cap is still relatively volatile. Bitcoin will always be relatively volatile as long as it isn't used as a widespread unit of account.

If it gets widespread enough, it will replace fiat which will make it basicly 100% stable. Noone will ever ask: "how much dollars or euro is 1 btc worh"? Answer would be: "What is dollar or euro?"

Hehe. Pretty optimistic post . I dont think we will get there anytime soon . Maybe in like 50 years or so

Well of course. IT can burn right now down to 0 because of some unknown bug, or it can liv eon and take over fiat. It's just one of possibilities. What is for sure is that higher it goes, more stable it will get.

Higher market cap doesn't mean stability. As pointed out by various posters, gold has trillion dollar market cap and it is no where near stable.

[beatljuice]

As big as gold is, my guess is the bitcoin is currently used as a currency in a greater number of transactions than gold (number of transaction, not value transacted). When a large number of people are using it every day I think that will stabilize it more than market cap. People will just expect their dozen eggs to cost about 200 satoshi when they go to the market. Might be 220 satoshi at Safeway and 199 satoshi at WinCo but that expectation will stabilize it a lot.

[Este Nuno]

Even gold with its huge market cap is still relatively volatile. Bitcoin will always be relatively volatile as long as it isn't used as a widespread unit of account.

If it gets widespread enough, it will replace fiat which will make it basicly 100% stable. Noone will ever ask: "how much dollars or euro is 1 btc worh"? Answer would be: "What is dollar or euro?"

Hehe. Pretty optimistic post . I dont think we will get there anytime soon . Maybe in like 50 years or so

Well of course. IT can burn right now down to 0 because of some unknown bug, or it can liv eon and take over fiat. It's just one of possibilities. What is for sure is that higher it goes, more stable it will get.

Higher market cap doesn't mean stability. As pointed out by various posters, gold has trillion dollar market cap and it is no where near stable.

No, but there is a correlation of stability with market cap. As it takes more money to move the market the higher you go.

[Harley997]

Even gold with its huge market cap is still relatively volatile. Bitcoin will always be relatively volatile as long as it isn't used as a widespread unit of account.

If it gets widespread enough, it will replace fiat which will make it basicly 100% stable. Noone will ever ask: "how much dollars or euro is 1 btc worh"? Answer would be: "What is dollar or euro?"

Hehe. Pretty optimistic post . I dont think we will get there anytime soon . Maybe in like 50 years or so

Well of course. IT can burn right now down to 0 because of some unknown bug, or it can liv eon and take over fiat. It's just one of possibilities. What is for sure is that higher it goes, more stable it will get.

Higher market cap doesn't mean stability. As pointed out by various posters, gold has trillion dollar market cap and it is no where near stable.

No, but there is a correlation of stability with market cap. As it takes more money to move the market the higher you go.

This is true. However it will be exaggerated be the fact as to how concentrated bitcoin holdings are. As the market cap get bigger, large holders of bitcoin (especially early adapters who CPU mined several blocks per day) would have a greater incentive to sell off part of their bitcoin holdings. This would cause large swings in prices.

[Este Nuno]

Even gold with its huge market cap is still relatively volatile. Bitcoin will always be relatively volatile as long as it isn't used as a widespread unit of account.

If it gets widespread enough, it will replace fiat which will make it basicly 100% stable. Noone will ever ask: "how much dollars or euro is 1 btc worh"? Answer would be: "What is dollar or euro?"

Hehe. Pretty optimistic post . I dont think we will get there anytime soon . Maybe in like 50 years or so

Well of course. IT can burn right now down to 0 because of some unknown bug, or it can liv eon and take over fiat. It's just one of possibilities. What is for sure is that higher it goes, more stable it will get.

Higher market cap doesn't mean stability. As pointed out by various posters, gold has trillion dollar market cap and it is no where near stable.

No, but there is a correlation of stability with market cap. As it takes more money to move the market the higher you go.

This is true. However it will be exaggerated be the fact as to how concentrated bitcoin holdings are. As the market cap get bigger, large holders of bitcoin (especially early adapters who CPU mined several blocks per day) would have a greater incentive to sell off part of their bitcoin holdings. This would cause large swings in prices.

Yeah, that's true.

And then there is always the threat that Satoshi could come back one day and decide to let loose one million coins on the market

[Swordsoffreedom]

I would say 100 Billion dollars would keep the price very stable
The reason is that a movement of 1 billion dollars would not move the price much in relative percentages but perhaps a lot in Fiat terms still.

Kind of a tricky question since mining would still be occurring and it depends on how many Bitcoins still remain in circulation not lost stolen etc.
Due to divisibility.

[scryptasicminer]

I would say 100 Billion dollars would keep the price very stable
The reason is that a movement of 1 billion dollars would not move the price much in relative percentages but perhaps a lot in Fiat terms still.

Kind of a tricky question since mining would still be occurring and it depends on how many Bitcoins still remain in circulation not lost stolen etc.
Due to divisibility.

Trillion of dollars change hand in the forex market and none of the currency look stable. Yearly fluctuation for more than 25% for some currencies.

I don't think market cap has any correlation with stability.