>there is still no reason to assume that it will ever stop having these extreme fluctuations.
Think of the difference in waves occurring in a big pool vs a little pool, when a person of the same weight dive in it. In a little pool, a person dives, the waves are proportionally very big. In a big pool, the person diving hardly affects the water in its totality.
The same applies to Bitcoin. The more each coin is worth, the less big buyers and sellers will impact the overall market.
So, if Bitcoin had a total market capitalisation of, say, 10 trilliion, then even big players would only affect a few Satoshi as they buy in and out of the market, therefore the fluctuations would decrease.
Of course, there's still be people who had held on to their coins from the very beginning, so their leverage on the total market would be big, still. But such people would be very few and far between, because everyone has a selling point. Also, it wouldn't be in their interest to rock the boat very much, just as it isn't in any central bank to buy too much gold in one go, because their movements affect the market price much more than people buying and selling at the margin.
Think of the difference in waves occurring in a big pool vs a little pool, when a person of the same weight dive in it. In a little pool, a person dives, the waves are proportionally very big. In a big pool, the person diving hardly affects the water in its totality.
The same applies to Bitcoin. The more each coin is worth, the less big buyers and sellers will impact the overall market.
So, if Bitcoin had a total market capitalisation of, say, 10 trilliion, then even big players would only affect a few Satoshi as they buy in and out of the market, therefore the fluctuations would decrease.
Of course, there's still be people who had held on to their coins from the very beginning, so their leverage on the total market would be big, still. But such people would be very few and far between, because everyone has a selling point. Also, it wouldn't be in their interest to rock the boat very much, just as it isn't in any central bank to buy too much gold in one go, because their movements affect the market price much more than people buying and selling at the margin.