Bitcoin is famous for its wild price swings. It can shoot up in value really quick, but then it can also crash just as fast. Some folks might think this is a positive aspect, while others might view it as an issue. So, that leads me to ask: is the volatility of bitcoin actually something that boosts its growth and opportunities, or is it more of an obstacle for real-world use? Maybe some of you believe we need bitcoin to be more stable for it to really catch on, or do you think these price swings are just part of its evolution? Would love to hear your opinions.
There was a time some people said bitcoin is a scam.
It get to a time they said bitcoin mining is demanding too much electricity.
There was a time United States does not have bitcoin in their national reserve.
There was time no country was mining bitcoin.
There was a time there were no institutions in bitcoin adoption.
But the time we are now, bitcoin has been adopted by retail people, institutions and few countries. Some countries are planning to have bitcoin in their foreign reserves.
There are institutions like Strategy and Metaplanet that are investing in bitcoin. There are bitcoin ETF institutions like Blackrock now. Many countries are lifting their ban just like what Pakistan did recently since 2018 that the country banned bitcoin. Morgan Stanley as just launched bitcoin ETF and so on.
If you are following what is going on, you will see that the volatility is not stopping the adopt.
Bitcoin is not as volatile as before and we expect the volatility to reduce.
If you look at bitcoin today, the major reason why people actually values it more is the ability of bitcoin to actually increase in price, and what is that effect that causes bitcoin to do that, its the volatility in respect of demand and supply. Bitcoin volatility is only target as been too high simply because bitcoin is in its early stages every asset actually suffered from this volatility at early stage. But over the years bitcoin volatility has been well managed by investors which is holding for long period of time.
If bitcoin volatility is an issue why then arent we having same discussion about gold too although not been too volatile, bitcoin remains highly volatile because the market capitalization is still small and with time it will increase and reduces the volatility
People spreading the FUD about it been volatile are basically haters looking for something to say bad about bitcoin.
I think I have explained this via a product life cycle
At the early stage volatility was a feature
It attracted alot of people
Just like a product life cycle
Bitcoin is similar to near maturing stage and a little on growth stage
And volatility is no longer needed as much
And would get lesser that it becomes a bug.
It is not a good feature but it's a double edge sword and aren't we here for over a decade or so and we've seen how adoption been unfold before our eyes? Volatility for an asset that is new and doesn't have much market globally will definitely be present but I think we will past that and I think we should be thankful because those volatility makes more holders to scoop the juicy price before it hits a new ATH. When it becomes stable I think adoption is gone past it.
Volatility is what makes the market unique, and for most people who understand Bitcoin's market performance, it's no longer a constraint. They focus solely on adoption and strong holdings, as Bitcoin has become dominant as a long-term investment asset, no longer a traded asset.
If it's stable, it's not Bitcoin, but fiat or stablecoins like USDT, which are pegged to fiat prices.
Nodont build walls where there arent any. Adoption isnt directly tied to volatility. Bitcoins volatility is intrinsic, just like that of any other asset. However, its high-risk profile naturally places it in the good or bad debatefrom an investment standpoint.
On the other hand, adoption means accepting those conditions, along with the broader set of factors that define it. In other words, its a mistake to think that Bitcoins price alone determines its adoptionit goes beyond that.
You might not use it daily, but you still align with its underlying principles and would be willing to buy or sell when the time comes.
Bitcoin is a wealth redistribution tool, and for money moving hands you need some level of expertise to be able to remain at advantaged position, so for bitcoin it volatility is a big advantage position for it holders most especially those that are trading the commodity on exchanges and depends on bitcoin volatility to make their gains, I don't believe that bitcoin long term investors really have much to worry about volatility, since no matter what, they will still end on a profit note.
Imagine if Bitcoin rose in price to $125k and would never fall back again, nobody would
get the chance to buy Bitcoin at a discount, everyone would say, "damn it, why didnt I buy
some when it was $70k?"
Think about the current situation like this, we already know that the market hit $125k and
now we get an opportunity to buy again at a super discounted price before it goes back
up again.
As an experienced trader you get the opportunity to buy low and sell high with the Bitcoin
volatility market - its a dream for experienced traders.
But for those who are not clued into the market or Bitcoins cycles the volatility is a
very scary thing for sure, and yet adoption has grown over the years and will continue.
Youre out of touch, mate. The problem with volatility in recent years is that its fallen on the upside whilst remaining stable on the downside. Thats the main issue I see. If something you buy can drop very quicklythereby causing you lossesbut doesnt rise just as quickly to generate profits, its not going to attract peoples interest.
Although thats a situation that could change again in the future, and I hope it does that volatility returns to rising levels.
Another problem I see is the extremely high price, which makes people think its very expensive. Thats why many companies carry out a stock split when the price rises significantly. With Bitcoin, theres no need for a stock split; instead of talking about Bitcoin, we could talk about satoshis, and people would see it as much cheaper, but the name Bitcoin is so well established that I dont see that happening.
Assume bitcoin is a bad thing to humanity, I don't think majority of the countries that made bitcoin legalized would have done that because they know it will not bring any benefits to the users, base on bitcoin is a volatility it can increase higher to cause investors to earn income that will encourage them to increase their capital, and it can also decrease to allow those investors waiting for bearish market before they can buy and hold for long term, which is the easiest way investors is using to increase their income, for those that have the knowledge of bitcoin, they don't wait for people to tell them to invest in the bearish season because they know there is an opportunity for those that will use that period to purchase bitcoin.
Volatility is the reason people mass adopt it. Saying the volatility is a barrier to mass adoption would be very wrong because we can get this far because the volatility is interesting.
If bitcoin was growing steady 3% per year, I doubt bitcoin adopters would even be 1/4 of what we currently have today. Thanks to the volatility we get everybody onboard.
To tell you the truth. Bitcoin is already more stable in term of volatilty compared to large stocks out there. Compare their chart you'd find out easily.
With a fixed supply, is it possible that bitcoin will not be volatile? As long as bitcoin comes with a fixed supply and there's still buys and sells, volatility is going to remain a part of bitcoin and to an extent, it has jointly played it part in how adoption has grown to this point.
There are a lot of people that are buying bitcoin this present day just because they want to gain from bitcoin volatility. If it were fixed, a lot of investors will shy away from really getting invested in bitcoin. The positive of bitcoin volatility is far greater than the negative that comes with it.
Not a barrier. It's actually an advantage that everyone is happy about. Because if it's not with Bitcoin's volatility in nature, we won't see $120k+ for this bull run and even the highest for the past years. Compared to the other investments and assets, they're not highly volatile but they still grow. You choose the investments that you're okay with and if you think that Bitcoin's high volatility is an hindrance to your investing style, you shouldn't be investing in it. But even if you don't like that, you'd see that many lives were changed already due to that.
We know that there is a view that Bitcoin's volatility is disturbing in its use as a digital currency. Business actors certainly consider how to manage the risk of the possible decline in Bitcoin's price when transactions are made. It could indeed be because of this that it affects the use of Bitcoin. But perhaps not for large-scale adoption as an asset, because we know Bitcoin has the ability to serve as a store of value. This is utilized not only by individuals, but there are groups or institutions that get involved.
It is important to first understand or establish the reasons and objectives behind peoples adoption of Bitcoin. For those whose goal in adopting Bitcoin is hedging, volatility is not an obstacle because their formula is 1 BTC = 1 BTC, and it is clear that volatility is not a barrier.
There are countries that have chosen to make Bitcoin part of their national reserves, even going so far as to sell off their gold reservesgold being an asset that, at first glance, appears more stable. If they didnt see something more in Bitcoin, they wouldnt be doing it.
Although its decentralized nature is the core element that makes Bitcoin different and unique from other asset classes. But the harsh truth is that most of us are attracted to it because of its volatility and profit potential more than anything else.
Yes, Bitcoin has matured and its volatility is gradually decreasing. That's why it's only increased by about 80% in this cycle compared to its previous all time high. This has left many people more disappointed than pleased.
You are right. It would be a huge mistake to assume that volatility is a barrier to Bitcoin adoption.
So you mean the volatile feature of fiat is also a barrier? So seeing those things its understandable how Bitcoin moves. I
f they enter without any knowledge there's high chance that they lose and provably get valuable experience from their losing trades or investment.
Also the real barrier is the thinking and how uneducated the politicians hating Bitcoin towards new technology. This is primary reason why the adoption rate is so slow, but still good that we are seeing some impressive development, especially that we have seen lots of countries and states starting to create their Bitcoin Strategic Reserve or do other ways to adopt Bitcoin.
We have seen how many of us also take advantage of Bitcoin's volatility to generate profits. So I guess there is nothing wrong with all of this, even though we know Bitcoin's volatility makes users think twice when they want to make transactions. In reality, this is indeed what happens. But I am confident that this will not become an obstacle for the mass adoption of Bitcoin in the future.
Admittedly, not everyone likes the high volatility of bitcoin. Beside many people choose Bitcoin because they believe its volatility will help them earn greater profit. But at the same time, many other hesitate to invest for that very reason. It can be said that volatility is a double-edged sword in Bitcoin adoption
If we talk about the biggest barrier to Bitcoin adoption, I think government and central bank are the biggest barrier Because Bitcoin was designed to oppose their centralized financial system and undermine their power. They are the ones who have slowed down the adoption and popularization of Bitcoin over the years.