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I have used Bitcoin for purchases in the past. I try not to do it so often because of the exact thing you mentioned, but I feel like this is something that coul
by craigc 9y ago
I have used Bitcoin for purchases in the past. I try not to do it so often because of the exact thing you mentioned, but I feel like this is something that could improve with time.
If Bitcoin does get mass adoption and becomes THE worldwide currency then that also means that the volatility will decrease significantly to the point where I wouldn't have any problem transacting using Bitcoin.
I realize the idea of that actually happening is pretty insane and it is probably more likely that the value will go down to zero, but it is hard to predict the future.
- adrianveidt 9y agoHow would volatility decrease in case of mass adoption?
- craigc 9y agoWhen Bitcoin was $10 a $1 move in price was a 10% change. When Bitcoin was $100 then a $1 move in price was a 1% change. When Bitcoin was $1000 then a $1 move in price was a 0.1% change. If Bitcoin gets mass adoption then the price per Bitcoin could be $50,000 (assume $1 trillion market cap) or higher. At that point a $1 market movement would be a 0.002% change. To get the same 10% movement as at $100 would require a $5,000 market price swing which while possible is less likely. It means a lot more money would have to be bought or sold to cause the same percent movement in price. Bitcoin is already much less volatile today than it was in the past.
- madisfun 9y ago> If Bitcoin gets mass adoption That a big IF. And with the transaction costs it has, I don't see it getting mass adoption any time soon.
- adrianveidt 9y agoyeah, but why is $5,000 less likely. Is there some fundamental reason?