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That's true, but it's also the only thing you can expect if Bitcoin succeeds. Eventually the volatility should subside somewhat, as the market grows. It already
by rebuilder 10y ago
That's true, but it's also the only thing you can expect if Bitcoin succeeds. Eventually the volatility should subside somewhat, as the market grows. It already has, although obviously it's still a roller coaster ride. How much volatility an uncontrolled currency exhibits should be interesting to see if Bitcoin sticks around for good.
- hendzen 10y agoWhy exactly will the volatility ever subside? Currencies that are considered stable are not magically so - this is the result of a careful balancing act by central banks. Bitcoin doesn't have an equivalent entity managing the rate of increase in the money supply.
- rebuilder 10y agoI'm not saying it will go away, I'm just saying, as the trading volume and usage of BTC increases, the amount of money it takes to move the market grows higher. This should result in lower volatility than we have now, but how much lower is an open question we'll see answered if Bitcoin keeps growing.
- johndevor 10y agoFor the same reason that the volatility of gold subsided. Bigger pool of water = smaller splash when you throw the rock in.