Bitcoin price volatility is often given as the reason why bitcoin is impractical to use for everyday purchases. But will it always be that way?
This quick explainer video shows exactly how and why bitcoin's price volatility is going away all on it's own.
Here's a summary of the 2015 "Can the Price of Bitcoin Stabilize?" WCN episode:
1. Main Topics Discussed:
- Bitcoin Volatility: The episode addresses the common complaint that Bitcoin's price is too volatile.
- Historical Currency Volatility: It suggests that volatility is normal for new currencies and may have been prevalent historically.
- Market Adoption & Price Stability: The core argument is that increased adoption and a larger user base will naturally lead to Bitcoin price stabilization.
- Comparison to the US Dollar: Bitcoin is compared to a small "jet ski" versus the US dollar's large "boat" to illustrate the impact of market size on price stability.
2. Key Quotes:
- "Bitcoin's volatility could easily be a result of natural market fluctuations and therefore should be significantly reduced in time as more people use Bitcoin."
- "It moves up and down with every wave, similar to how the market can push its price up and down daily."
- "All it will take is enough people adopting Bitcoin and the price should stabilize all on its own."
3. People Mentioned:
- No specific individuals are mentioned.
4. Bitcoin Price:
- Approximately $4 billion worth of Bitcoin was in circulation at the time of the episode.
The episode emphasizes that Bitcoin's current volatility is expected and should decrease as its user base and infrastructure grow.