I'm just curious. The beauty of investing in bitcoin or any other crypto is in it's volatility. Volatility makes smart investors to study the market trends- know when to buy and also when to sell in order to maximize profit. The value of bitcoin is basically based on it's acceptability - as more and more countries adopt bitcoin and maybe build a reserve for it, it's value will definitely increase. However if bitcoin is generally adopted worldwide it's prize will become more stable and the volatility factor that investors leverage upon will fade. While it's possible that at this point the price may be $500k or more but this same price will become more stable and conversely not a very good investment option. Someone may say why has the price of gold not stabilized- well gold is physical and it's physical usage may increase. There are only 21million bitcoin that will ever be, but converting these to it's smallest unit (Sat.) and dividing it among the world's population is more than enough for everybody (approx. 300k sats), which further buttress my points on bitcoins potential stability with general acceptability.
If the price will ever stabilize, what are the factors we need to look out for as investor to know that the time has come for us to apply extraordinary wisdom ?
It's hard to say if the price of Bitcoin will ever stabilize because like you said, it will be limited to 21 million coins but then there are lots of other problems like lost coins. What if the wallet with thousands of Bitcoins get hacked and those coins will get lost? If the demand is high, then this will positively affect the price but if someone steals thousands of coins and decides to sell them, then it will negatively affect the price. Over time, lots of similar events will happen because some people lose access to their wallets and some people invest money in scam projects.
You can't compare gold to Bitcoin in this case because even though gold is physical, its supply is unknown. Bitcoin is no different from gold in real life. Since we all moved in virtual life now, Bitcoin became our gold.
I believe that Bitcoin will remain volatile. It might stabilize after a few decades, but this stabilization will not last for a long time, there will be waves of pump and dump. I like the fact that Bitcoin is stabilizing in a high price range, it's not going down to old prices like 10K and 20K. Once it grows up, it stays steadily high.