Over time, Bitcoin's price stability is expected to improve as adoption increases from "summary" of The Bitcoin Standard by Saifedean Ammous
Bitcoin's price stability is closely related to its level of adoption. As more people start using Bitcoin as a medium of exchange, its price is expected to become more stable. This is because a higher level of adoption means a larger network of buyers and sellers, which can help smooth out price fluctuations. In the early days of Bitcoin, when adoption was low, the price was highly volatile. However, as Bitcoin becomes more widely accepted and used in everyday transactions, its price is likely to become less volatile. This is because a larger number of users will create a more liquid market, with more buyers and sellers at any given time. As a result, sudden spikes or drops in price are less likely to occur, as there will be more participants in the market to absorb any shocks. Furthermore, as adoption increases, Bitcoin's price is also expected to become more resistant to manipulation. With a larger user base, it becomes more difficult for any single entity or group to control the price of Bitcoin. This can help to increase confidence in the currency and attract even more users, further increasing adoption and price stability.- The future of Bitcoin's price stability looks promising as adoption continues to grow. As more people use Bitcoin in their daily lives, its price is expected to become more stable, making it a more reliable medium of exchange. This positive feedback loop between adoption and price stability is a key factor in Bitcoin's long-term success as a currency.
