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44 sats \ 2 replies \ @kilianbuhn 12 Feb \ on: The CCP is now Mining Bitcoin: analysis of Cango buying 50 EH/s bitcoin_Mining
I hate to say it but the unfortunate truth is autocratic regimes mining Bitcoin and making Bitcoin transactions is the most plausible way to break Bitcoins volatility (volatility between BTC and goods and services, not fiat ofc)
Not sure I follow the logic, is it because they will quote BTC-goods exchange rates that everyone then gravitates around?
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I have to agree with @SimpleStacker I don't see how that makes sense.
Also, as an economist, I don't believe Bitcoin will become less volatile as time goes on. We got to remember that we currently have all of the Demand and Supply for money distributed amongst 3 big currencies (USD, EUR and CNY) and they are all manipulated for "satbility".
But once we aggregate all of them into one global market for Demand and Supply of money, the new price of money will be the interest rate (IR) on borrowing bitcoin. And that price will be veeery volatile. As we all try to summarize into one single price, without manipulation, our needs and wants in regards to money, any discrepancy on one end of the world will affect the price (IR) and thus affect the whole world.
The topic of volatility is one I should address on another post, as I see that I have lots to discuss :)
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