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dinofelis
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November 27, 2014, 02:17:39 PM |
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Yes it is, and only wider adoption will help here.
@bornil267645
Is still not enough. If you get pay in Bitcoins on Monday and you could buy 10l of Milk with it, but on Friday only 8 then it is to volatile.
I agree with that. The only way to go for bitcoin is merchant adoption. I know that people say that this will not increase price, because it increases velocity. Probably true. However, consider this. If there is initial merchant adoption, those merchants have to pay their stuff in fiat, so they convert immediately in fiat, to avoid the exchange risk. Prices are still based in fiat, and only converted into bitcoin. However, the more there is merchant adoption, the more it will be interesting for merchants to keep some coins, to pay their suppliers who accept bitcoin too, in coins (and avoid double exchange costs). When merchant adoption will generalize, there will be much less incentive for a merchant to immediately convert to fiat. It may also begin to become interesting to receive (part of your) salary in coins directly. Prices would still be first quoted in fiat, and then converted in bitcoin, at current exchange rate. But the more trade is done directly in coins, the more there will be a desire to have prices quoted directly in coins, not and not floating conversions in fiat. I can ONLY think of this as the way of adopting bitcoin. And that may take quite a while. |
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There are several different types of Bitcoin clients. The most secure are full nodes like Bitcoin Core, which will follow the rules of the network no matter what miners do. Even if every miner decided to create 1000 bitcoins per block, full nodes would stick to the rules and reject those blocks.
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theblacksquid
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November 28, 2014, 04:31:27 PM |
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Yes it is, and only wider adoption will help here.
@bornil267645
Is still not enough. If you get pay in Bitcoins on Monday and you could buy 10l of Milk with it, but on Friday only 8 then it is to volatile.
I agree with that. The only way to go for bitcoin is merchant adoption. I know that people say that this will not increase price, because it increases velocity. Probably true. However, consider this. If there is initial merchant adoption, those merchants have to pay their stuff in fiat, so they convert immediately in fiat, to avoid the exchange risk. Prices are still based in fiat, and only converted into bitcoin. However, the more there is merchant adoption, the more it will be interesting for merchants to keep some coins, to pay their suppliers who accept bitcoin too, in coins (and avoid double exchange costs). When merchant adoption will generalize, there will be much less incentive for a merchant to immediately convert to fiat. It may also begin to become interesting to receive (part of your) salary in coins directly. Prices would still be first quoted in fiat, and then converted in bitcoin, at current exchange rate. But the more trade is done directly in coins, the more there will be a desire to have prices quoted directly in coins, not and not floating conversions in fiat. I can ONLY think of this as the way of adopting bitcoin. And that may take quite a while. This is so true. Wages paid in bitcoin is not enough. If business-to-business transactions can be made to settle in bitcoins, bitcoins network effects would go up by another order of magnitude that would actually stabilize the price. |
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Kprawn
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November 28, 2014, 05:39:27 PM |
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I guess the "Is bitcoin too volatile" discussion is over now that the price is stabilizing between $300 to $400. A few months ago, it was the talk of the time, but now everyone is worried about the price, being too low.  We seem not to be satisfied, with anything BTC has to offer. |
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dinofelis
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November 28, 2014, 09:13:05 PM |
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I guess the "Is bitcoin too volatile" discussion is over now that the price is stabilizing between $300 to $400. A few months ago, it was the talk of the time, but now everyone is worried about the price, being too low. We seem not to be satisfied, with anything BTC has to offer. Indeed. What bitcoin now needs, is more stability, not more volatility. And honestly, I think that that is what is going to happen, with all the trading tools around. No trader is going to let the price surge to astronomical heights without cashing in seriously on that - which will dampen the rise. In the same way, no trader will let the price drop to terrible depths, without cashing in on that through shorting. Of course, short-term manipulations, cornering markets, pump and dump and all that will continue to exist. But the army of traders around the world will actually stabilize prices, and reduce volatility in my opinion - so that only slower motions are thinkable. If bitcoin is going to pretend to be a reliable store of value, and currency, then volatility needs to go down. In fact, the price doesn't matter for currency. It is better to have low and less volatile prices, rather than jumps to $3000.- followed by crashes to $50.-. That can be fun for traders, but that's no fun if you want to use it as a currency, or as a store of value. In fact, my opinion is that this would be so much fun for traders, that they will trade it away. And then, the price will follow the market offer and demand. I think bitcoin would become much more accepted as a currency if it were less volatile. And I think that's what's going to happen. |
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sonofacoin
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November 29, 2014, 06:49:31 AM |
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It is very complicated.
How is Bitcoin valued against?... USD, Yuan, Yen, Euro...?
if it is lets say $100 USD... 614.295 Yuan... If USD Rises in price... What is Bitcoin's price?
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XCoinCall
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Call with www.XCoinCall.com Cheap, Simple !!!
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November 30, 2014, 07:33:57 PM |
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We offer calls anywhere and try to keep the price/minute locked for December. If the price is not volatile more merchants will be able to sell really in Bitcoin . It's not possible yet for a merchant to have at least 50% of the business in BTC. If this would be possible then the exchange rate could be partially ignored.
Huge companies like VW make a lot of money with the exchange rate. Usually they balance and keep the market stable , we need this for the BTC too.
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Erdogan
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November 30, 2014, 07:59:15 PM |
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It is very complicated.
How is Bitcoin valued against?... USD, Yuan, Yen, Euro...?
if it is lets say $100 USD... 614.295 Yuan... If USD Rises in price... What is Bitcoin's price?
Te value is general, really measured against all goods. Since it is often traded against the various fiats, it is easy to discover the price of bitcoin in those fiats. But this is not necessary. Bitcoin can also be bought for diverse consumer goods, which is the same as diverse consumer goods can be sold for bitcoin. Bitcoin can be viewed as a commodity. Since it can not be consumed or not produced (in the end), it can only have speculative (monetary value). And for practical reasons, the dual trade deal most of the time has money as one of the goods exchanged. We call it indirect trade using money, but if you want to know how much it is worth, it is best to view it as just another good on the market. |
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sonofacoin
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November 30, 2014, 10:03:59 PM |
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It is very complicated.
How is Bitcoin valued against?... USD, Yuan, Yen, Euro...?
if it is lets say $100 USD... 614.295 Yuan... If USD Rises in price... What is Bitcoin's price?
Te value is general, really measured against all goods. Since it is often traded against the various fiats, it is easy to discover the price of bitcoin in those fiats. But this is not necessary. Bitcoin can also be bought for diverse consumer goods, which is the same as diverse consumer goods can be sold for bitcoin. I guess you didn't understand the question. But before I ask again, I'll clarify a few things. Of course Bitcoin is trades and found in various fiats. [insert Jackie Chan meme here] And everything you said was spot on too. I was opening up to discuss Arbitrage. Which is something that people need to understand to gain on Bitcoin's volatility. |
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delulo
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November 30, 2014, 10:07:09 PM |
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beber456
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November 30, 2014, 10:11:33 PM |
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Is bitcoin too volatile? a little a littl ^^ but i prefer this to a fixing for exemple ...
Bitcoin is a "true" market and is a good thing even if somes rules it .. whalleess!
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Atdhe
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Atdhe Nuhiu
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November 30, 2014, 11:48:57 PM |
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All currencies have times of stability and instability.
For sure there were 100% currencies which has gained or lost more per day than BTC ever did.
Problem of BTC is fast appreciation, which of course can not occur like 1% per day. If everyone knew some currency or protocurrency would gain 1% per day, then why not buy a lot today and wait? And this would cause bubbles. And this is what happens with BTC IMO.
How will BTC behave in future, if it becomes real currency is unknown. On one side it does not suffer from unpredictable monetary policy, which should be argument for higher stability. On the other side there are many economists from the other side that say that wild market will mean less stability, because of the absence of the monetary policy that can stabilize markets as well.
Anyways people lived in volatile times of hyperinflation and unstability and it was not a big problem. Of course the society that must adjust to unstable world is different. I think that BTC economy might be very stable. So stable that people will not like it. Such as deflationary economies are.
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pattu1
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December 02, 2014, 01:41:54 AM |
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It is volatile now because it is still to discover its true value (which I hope will be a million dollars)
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sonofacoin
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December 02, 2014, 01:55:18 AM |
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An yes, to answer OP's original question and the main topic:
Yes, Bitcoin is too volatile to be used as currency. Shit, not even the Russian Ruble behaves like this.
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joksim299
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Bitdice is scam scam scammmmmmmmmmmmmmmmmmmmmmmmmm
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December 02, 2014, 03:47:47 PM |
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Yes but it gives a chance to brokers to earn more but the possibility of huge loss.
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Eastwind
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December 03, 2014, 05:31:48 PM |
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When BTC is used more in daily life, it will be less volatile.
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Q7
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December 05, 2014, 04:54:11 PM |
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Like what you've said it yourself due to the volatility it's better to treat it as an investment rather than a currency. Until the price settles down I guess we just have to accept it. There is no way businesses are going to take the risk to hold on to bitcoin after the sales of items as sometimes their profit margin is too low to accept the volatility price change
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xmasdobo
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December 06, 2014, 03:05:33 PM |
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When BTC is used more in daily life, it will be less volatile.
jobs jobs jobs We need real jobs being paid on btc so the economy flows No one wants to exchange their fiat for btc to buy commodities except excentric early adopter nerds. jobs!! |
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Ayers
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Leading Crypto Sports Betting & Casino Platform
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December 06, 2014, 04:50:27 PM |
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funny thing is that now bitcoin isn't volatile at all, but with a bad price i suppose, first they said that it's volatile then when it is volatile they said the price is bad, they want everything...
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LOBSTER
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December 06, 2014, 05:14:58 PM |
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The problem is the small market cap. Every sale of a Bitcoin whale (I mean four digit amounts of Bitcoins) ends in a dicrease of the price + panic sales etc. If we'd have a stable fundament we wouldn't have such a high variability and volatility...
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