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jp_koning's profile
JP Koning
JP Koning
JP Koning
@jp_koning

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JP Koning

@jp_koning

monetary economics|history of money|central banking|free banking|gold|payments|history of thought|finance|stock markets|data viz|alt-currency

Montréal, Québec
jpkoning.blogspot.ca
Joined November 2012

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    JP Koning‏ @jp_koning Apr 24

    The story that a lot of people told me was that as bitcoin got bigger and attracted more users, its volatility would decline towards that of gold. That story isn't panning out.pic.twitter.com/JnQEDZ79OY

    6:27 AM - 24 Apr 2018
    • 35 Retweets
    • 59 Likes
    • hazlittx Ettaroo Aaron Fernando Lawrence H. White Traders Crucible New Leibniz Cryptoquant Rasheed Griffith Mandar Kagade
    24 replies 35 retweets 59 likes
      1. New conversation
      2. Lawrence H. White‏ @lawrencehwhite1 Apr 24
        Replying to @jp_koning

        What's the source for the chart?

        1 reply 0 retweets 0 likes
      3. JP Koning‏ @jp_koning Apr 24
        Replying to @lawrencehwhite1

        Data is from Coindesk for BTC and FRED for gold. I made it myself.

        0 replies 0 retweets 2 likes
      4. End of conversation
      1. New conversation
      2. Vijay Boyapati‏ @real_vijay Apr 24
        Replying to @jp_koning

        Gold is still 50x larger than Bitcoin. Given how far Bitcoin needs to go before being widely adopted, the vol numbers are noise right now (imo). The vol is largely driven by the influx of new people into a still small ownership base.

        4 replies 0 retweets 26 likes
      3. JP Koning‏ @jp_koning Apr 24
        Replying to @real_vijay

        Could be... or maybe something fundamental to bitcoin's nature renders it super volatile at all market capitalizations, which I think to be the case. Chart bears my side out, so far.🙂

        3 replies 0 retweets 1 like
      4. Vijay Boyapati‏ @real_vijay Apr 24
        Replying to @jp_koning

        Yes, I know. Gold teeth are why gold has such low vol! 😉

        1 reply 0 retweets 3 likes
      5. The Bitcoin Project  😉‏ @btcproj Apr 24
        Replying to @real_vijay @jp_koning

        Size + time will lead to stability, not size alone.

        1 reply 0 retweets 2 likes
      6. Niall murray‏ @Niallm941 Apr 24
        Replying to @btcproj @real_vijay @jp_koning

        What will happen over time that will cause the vol to fall?

        1 reply 0 retweets 0 likes
      7. The Bitcoin Project  😉‏ @btcproj Apr 24
        Replying to @Niallm941 @real_vijay @jp_koning

        Lindy effect. Building up trust. Increasing population of observers and hodlers who have seen bear markets recover.

        1 reply 0 retweets 2 likes
      8. Niall murray‏ @Niallm941 Apr 24
        Replying to @btcproj @real_vijay @jp_koning

        Is religion an example which contradicts the Lindy effect?

        0 replies 0 retweets 0 likes
      9. End of conversation
      1. Fernando Nieto‏ @fnietom Apr 24
        Replying to @jp_koning

        It is much more difficult to discover price in a market that is growing 10x in a few months than in a stable one. Bitcoin will not match gold's intraday volatility until its market cap line is as flat as gold's and #hyperbitcoinization has concluded.pic.twitter.com/jFYy1cb1oZ

        0 replies 1 retweet 3 likes
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      1. Miguel Cuneta‏ @MiguelCuneta Apr 24
        Replying to @jp_koning

        Gold has several millennia as a head start. Given that #bitcoin has been in existence for only 9 years, we have a long way to go! To be fair, wait til 2140, when the last $BTC will be mined ;)

        0 replies 0 retweets 5 likes
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      1. Keith Weiner‏ @kweiner01 Apr 24
        Replying to @jp_koning @JordanEliseo

        Bitcoin contains no mechanism to stabilize its price. It contains a mechanism to stabilize its *quantity* which mainstream theory assumes means price.

        0 replies 1 retweet 2 likes
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      1. Moon Rekt‏ @Moon__Rekt Apr 24
        Replying to @jp_koning

        The volatility is because it went up 20x in a year genius.

        0 replies 0 retweets 4 likes
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      1. Dinger‏ @JimAllmendinger Apr 24
        Replying to @jp_koning

        It should take a decade or more. Once miners get more in fees then rewards, supply will even out. Until then, enjoy the ride.

        0 replies 0 retweets 1 like
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      1.  ⚡DreamBTC ⚡‏ @Skantastico Apr 24
        Replying to @jp_koning

        To make this fair you should probably chart a comparable volatiluty for the entire lifespan of gold, say, a couple thousand years? But something tells me you aren't all that interested in actually thinking about the subject objectively.

        0 replies 0 retweets 1 like
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      1. FK  ⚡‏ @frankkane Apr 24
        Replying to @jp_koning

        Your timeline is too short. Add 25 years.

        0 replies 0 retweets 1 like
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      1. dr.winston.o.boogie‏ @dr_w_o_b Apr 24
        Replying to @jp_koning

        Are you sure number of users is increasing? Number of transations doesn't appear to.

        0 replies 0 retweets 1 like
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      1. Cryptoquant‏ @QuantCrypto Apr 24
        Replying to @jp_koning

        Too early for that story.

        0 replies 0 retweets 1 like
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      1. New conversation
      2. Dora E. Mondrian‏ @doraemondrian Apr 24
        Replying to @jp_koning

        Come back when you have the chart for the first 10 years of gold

        1 reply 0 retweets 1 like
      3. 1 more reply

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