Volatility in Bitcoin from temporary uncertainty about its future (vs. both political opposition & crypto competitors), not from its supply limit. As these uncertainties decline its volatility will decline until it reflects more the uncertainty in fiat than its own.
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@NickSzabo4 could you say that again but in another way? You mean Btc volatility can decline to more stable growth in time right?
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Thanks. Twitter will use this to make your timeline better. UndoUndo
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How will the volatility decline? N when will crypto assets stop pegging to fiat? Is it after we’ve reached max supply? Help me out here with answers please
@NickSzabo4 -
It's not complicated. The more dollars (for want of a better term) an asset contains in its market cap, the less effect $1 (or $1 million / billion / trillion) flowing in or out of it will have.
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1/ As I'm reading, Nick is saying more than just that. It's that once there is more certainty that btc is the "winner" volatility will decrease. At the moment some people think bch/xrp or whatever other token might win, at some point btc will be so established and dominant
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2/ that the market won't be pricing in the risk of another crypto winning, and having wild swings in price as a result of this. Same goes with the politics, people are still scared it can or will be "shut down" by the powers that be. Once these are no longer options and everyone
End of conversation
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