Post
Topic
Board Economics
Re: If Bitcoin had a stable price, would it still be as popular?
by
TheUltraElite
on 26/04/2017, 15:15:49 UTC
Yes it will probably be like gold in digital form but I'm not sure it will happen because bitcoin is decentral and bitcoin holders will not get much profit, I like the fluctuating bitcoin

It wont be happening anytime soon considering the importance as a trading commodity in people's minds. Many traders are thriving on the fluctuation in prices, making daily profits there and thus leveraging the market even more. That drives the economy and the price of bitcoin considering a local currency. If it get stagnant then traders are likely to sell some coins - while others will buy it - so the stagnancy will be temporary and not permanent.
Now, people have different opinions on what I'm about to say, but having volatility is a very important part of the market for Bitcoin, or at least it used to be. Not sure if it has that much of an impact anymore. Something that really drew early investors in was the ability to make a lot off of the swings so prevalent in the market, nowadays I don't know if investors care all that much. I think everyone is just looking for growth.
the point is, without volatility bitcoin will have less marketcap because traders are what brought so many investments in bitcoin, volatility really matter


But the thing is as soon a the market become a big stagnant, there will be rise of some pumping groups who will pump coins and make the price fall. Immediately huge number of traders will buy bitcoin and raise the price again. Again others will sell and the cycle will continue. This is why the market wont become stagnant anytime soon. The traders will allow volatility be there otherwise there is no profit for them.