Bitcoin price should stabilize if there are more transactions.
Biggest issues now are slow payment time, hoarders and over-reliance on few exchanges. I think higher price and faster payment/withdrawal times would decrease the price eventually as bitcoin holders would have more incentive to spend/take profit while the price is high and exchanges would be forced to sell coins after a transaction for merchant withdrawals. For hoarding, if protocol can be updated to charge higher transaction fee for long-held coins, this should make it less profitable to hoard and increase number of transactions.
Comments
Bitcoin price should stabilize if there are more transactions. Biggest issues now are slow payment time, hoarders and over-reliance on few exchanges. I think higher price and faster payment/withdrawal times would decrease the price eventually as bitcoin holders would have more incentive to spend/take profit while the price is high and exchanges would be forced to sell coins after a transaction for merchant withdrawals. For hoarding, if protocol can be updated to charge higher transaction fee for long-held coins, this should make it less profitable to hoard and increase number of transactions.