Bitcoin will never become stable because its not tied to any material, accountable value beyond supply-demand and it doesn't have a central bank to support it and make swings less volatile... A god example would be a garden without a gardener, no matter how good it is underneath, someone has do to the necessary house keeping to keep it in shape.
Sort of like gold.
Gold is not tied to any material, accountable value beyond supply-demand, and it doesn't have a central bank to support it and make swings less volatile. As such, the gold price will never stabilize either. It has the same huge swings whereby the value increases six-fold in a single month, and is then cut in half the following month all the time, right?
No, gold does not have such huge monthly swings. Much more volume (in USD terms) is trading with gold
That was the point I was making. The original quote seemed to indicate that without a central bank that can add and remove currency from the market to force the exchange rate into stabilization, stabilization wouldn't be possible. I offered gold as an example that a central bank is not necessary for stabilization of exchange rate.
Gold is not comparable to
BTC.
True, gold has no bank behind it.
Gold does however have value outside of supply/demand.
Gold can be used to craft items, btc cannot.
The driving force behind golds value is its rarity as a precious metal.
The driving force behind btc value is demand for btc.