I read somewhere that someone suggested that Bitcoin should have less volatility if it wants to be part of the mainstream financial system or be adopted by a greater part of the global population. The logic is that if there is too much volatility, the would be less demand for Bitcoin.
Volatility has been identified as one of the most important barriers to its global adoption (though right now there is no question that Bitcoin is getting popular every day!) especially on the side of the merchants or business entities.
Now, we know that volatility can be minimized once more and more Bitcoin holders would be looking at Bitcoin more as a currency than a commodity but right now this is not yet happening because as the value of Bitcoin is rising we all become speculators.
Is volatility a thing we have to accept as a normal thing as far as Bitcoin is concerned?
The logic is right but how exactly are we going to solve the volatility problem quickly? There is no central bank or anything to control the monetary supply, and this is a part of why bitcoin is so volatile right now.
Is it really a huge problem though? I'm fine with bitcoin volatility. Fiat gives you the illusion of being stable, but really there will be a financial crisis sooner or later due to central banks printing too much money, and the whole thing just spirals out of control. Bitcoin might not be stable right now, but it just proves that it is away from intervention, and i love that. That's why i invest in btc.
Time will do the trick, honestly. As adopters start to pile up for bitcoin, the value will stabilize. No central bank needed.