A cryptocurrency with volatility can't be used as money - page 11.

vachellie

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Quote from: Dncer on May 09, 2018, 04:04:40 AM

I'm just reading an article in the newspaper. Klaus W. Wellershoff (a last chief in UBS Bank) says that's impossible to use a currency with volatility as money. If the value of the money decrease, that means the value of the merchandise decrease. For example : if you buy a flat with bitcoin and few years later the bitcoin value decrease... Your flat lose his value as well.

What do you think about this argument?

Yes, people will thinking twice to buy something if they know their currency will increase in future or maybe decrease, one party will get a loss if their currency volatile.

Soneo

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Quote from: Eijrafarm on June 28, 2018, 08:28:32 PM

I think a cryptocurrency with volatily can still be used as money since it has a value which can be traded or to buy a product.

I think if you buy goods with bitcoin and whenever the price of bitcoin goes down, items purchased with bitcoin will not go down. simple, the price of goods or fiat does not depend on the price of bitcoin itself.
actually I'm not too familiar with your question, man! we all know that the value of bitcoin is designed to fluctuate

gabmen

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Quote from: fauzan Ichsan on August 18, 2018, 07:25:16 AM

Quote from: sidodadii on August 18, 2018, 06:34:58 AM

but cryptocurrent can be use for transaction. cryptocurrent need fiat to be their price's reference, it make 'how much you need to pay' for some stuff that you take.
but, if some country make cryptocurrent for theirself, than decide the value like their fiat it is possible. but it just allow in their country, if they want to make transaction across the world, they need to adjust with dollar or the other currency.

i think for now bitcoin is only an additional facility for transactions. fiat currency cannot be replaced. besides that it takes a long journey to be accepted by all countries

It's not time yet. And this market still has a long way to go so saying it can't be used as money is judging it a bit too early. Of course we have to consider the volatility of it that makes it hard to use same way as fiat but it has features that make transactions a lot easier and people are looking at it more as an investment or an asset.

microwave

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Quote from: Dncer on May 09, 2018, 04:04:40 AM

I'm just reading an article in the newspaper. Klaus W. Wellershoff (a last chief in UBS Bank) says that's impossible to use a currency with volatility as money. If the value of the money decrease, that means the value of the merchandise decrease. For example : if you buy a flat with bitcoin and few years later the bitcoin value decrease... Your flat lose his value as well.

What do you think about this argument?

That's funny, a lot of people still didn't know how different crypto was compared to normal money. First of all a lot of discrepancies will apparently arise when you compare two different things. This isn't an issue anymore. However, still a lot of people are acting like they are new here in crypto world. Lastly, even though bitcoin and those alts aren't effective as a normal money there are a lot of benefits are being present to them that will surely make our life different from our traditional practices.

fauzan Ichsan

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Quote from: sidodadii on August 18, 2018, 06:34:58 AM

but cryptocurrent can be use for transaction. cryptocurrent need fiat to be their price's reference, it make 'how much you need to pay' for some stuff that you take.
but, if some country make cryptocurrent for theirself, than decide the value like their fiat it is possible. but it just allow in their country, if they want to make transaction across the world, they need to adjust with dollar or the other currency.

i think for now bitcoin is only an additional facility for transactions. fiat currency cannot be replaced. besides that it takes a long journey to be accepted by all countries

deloreswest

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Quote from: Dncer on May 09, 2018, 04:04:40 AM

I'm just reading an article in the newspaper. Klaus W. Wellershoff (a last chief in UBS Bank) says that's impossible to use a currency with volatility as money. If the value of the money decrease, that means the value of the merchandise decrease. For example : if you buy a flat with bitcoin and few years later the bitcoin value decrease... Your flat lose his value as well.

What do you think about this argument?

I do agree but pundi x could make it a bit simple. Merchants who got paid with bitcoin will able to convert it immediately into fiat on current price, i think it do help merchants to accept crypto but still i do agree its too volatile and for me i would not want to buy something with my bitcoin when i still think the price will increasing.

Kusnechik

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Volatility can actually become a stumbling block for approval by SEC of the decision on Bitcoin's ETF.

kniheant2

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right,it is true that the current crypto currency can not be used as well as paper money in general. because I think in addition to its volality of crypto currency of course the price fluctuations are never stable. so obviously it would be very difficult to make currency for the transaction.

sidodadii

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but cryptocurrent can be use for transaction. cryptocurrent need fiat to be their price's reference, it make 'how much you need to pay' for some stuff that you take.
but, if some country make cryptocurrent for theirself, than decide the value like their fiat it is possible. but it just allow in their country, if they want to make transaction across the world, they need to adjust with dollar or the other currency.

Elseye

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ApolloX

Well, while you state that crypto is already extremely used all over the world and in many factors it is way more convenient than traditional money.

Bosx1ne

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Quote from: Dncer on May 09, 2018, 04:04:40 AM

I'm just reading an article in the newspaper. Klaus W. Wellershoff (a last chief in UBS Bank) says that's impossible to use a currency with volatility as money. If the value of the money decrease, that means the value of the merchandise decrease. For example : if you buy a flat with bitcoin and few years later the bitcoin value decrease... Your flat lose his value as well.

What do you think about this argument?

You are wrong! The bitcoin is too volatile and it can still be use as a money. Even the price of bitcoin is unstable, its users is continuing to use it because it is user friendly and it is convenient.

Glok17

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I don't think that you are right because cryptocurrencies are already used as money and the process is developing successfully. Of course, if volatility will lessen it will be better, but it is already a decent system.

biletskiy

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Quote from: voztata on August 14, 2018, 05:31:44 AM

Quote from: Dncer on May 09, 2018, 04:04:40 AM

I'm just reading an article in the newspaper. Klaus W. Wellershoff (a last chief in UBS Bank) says that's impossible to use a currency with volatility as money. If the value of the money decrease, that means the value of the merchandise decrease. For example : if you buy a flat with bitcoin and few years later the bitcoin value decrease... Your flat lose his value as well.

What do you think about this argument?

Is there any cryptocurrency without volatility? Every cryptocurrency in the market fluctuate up and down and they all can be manipulated. I don’t know why people are fond of saying this in a way that Bitcoin is the only cryptocurrency we have that is volatile, they never mention other ones like Bitcoin Cash that is also very volatile, including Ethereum, Litecoin, Dogecoin, Ripple and all of them out there all volatile.

The guy who left this post here was interested in something different. He asked if Bitcoin, being so volatile, could be used as the money. My answer is no but it is the coolest currency to work with it online and earn on it.

automaticmoney

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cryptocurrency volatility is very unstable to use as currency at the same time still merchants are using as currency in various parts of the world which is positive sign for the industry

Scripture

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Are you pertaining to the inflation rate where the purchasing power of money decreases over time?. Example is that when you have a dollar you can buy a lot but now its just the same value of a candy. This is different from cryptocurrency's volatility. Its half investment either so its normal to fluctuate.

Getmon

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Quote from: Dncer on May 09, 2018, 04:04:40 AM

I'm just reading an article in the newspaper. Klaus W. Wellershoff (a last chief in UBS Bank) says that's impossible to use a currency with volatility as money. If the value of the money decrease, that means the value of the merchandise decrease. For example : if you buy a flat with bitcoin and few years later the bitcoin value decrease... Your flat lose his value as well.

What do you think about this argument?

No no no, the value of the flat will not decrease. The value of the flat in that sense is not really determined by the volatility of Bitcoin's price. It is determined by its actual worth in the real world. And since the worth of the flat will always be high because its demand will remain high, its value will increase instead of decrease. But you are right though that a currency that is too volatile will not really prosper. However, Bitcoin will definitely reach a stability stage at the right time.

seneido

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I agree that at its current state, bitcoin is too much of hassle and a risk for business to use as money. The value changes by daily and makes it very difficult to measure. I believe we will find the answer to this solution in the future, but for now I can't see it as money yet.

jaaeeeyyyy

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Quote from: sheryl26 on August 13, 2018, 12:03:25 AM

Quote from: Dncer on May 09, 2018, 04:04:40 AM

I'm just reading an article in the newspaper. Klaus W. Wellershoff (a last chief in UBS Bank) says that's impossible to use a currency with volatility as money. If the value of the money decrease, that means the value of the merchandise decrease. For example : if you buy a flat with bitcoin and few years later the bitcoin value decrease... Your flat lose his value as well.

What do you think about this argument?

I think yes it cannot be because whenever that the price will fall down it is hard to buy things that we wanted to buy because if our money is just right for yhe price and then all of a sudden you it falls then you will wait for it to rise again before you can buy the thing you wanted. So it is much better to stay that way because in that case they can live peacefully without people complaining about that happening.

This is true. But one of the factors that makes the crypto volatile is that the people who uses it. There are panic sellers and such. These people affected the crypto so much. If we dig deeper, fiat did not really have a change because people are consistently using it. Therefore it is stable because people needs it. If thats the case, then if it happens to the bitcoin then it will surely not be volatile in nature.

anti76

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If you buy an apartment, it doesn't matter how much bitcoin will cost.You'll already have an apartment.No need to combine the virtual world with the real one.

rasp

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Quote from: Dncer on May 09, 2018, 04:04:40 AM

I'm just reading an article in the newspaper. Klaus W. Wellershoff (a last chief in UBS Bank) says that's impossible to use a currency with volatility as money. If the value of the money decrease, that means the value of the merchandise decrease. For example : if you buy a flat with bitcoin and few years later the bitcoin value decrease... Your flat lose his value as well.

What do you think about this argument?

Regrettably, Wellershoff is quite right, and cryptocurrencies in their current state cannot be used as a ready substitute for fiat money.
Cryptos are mostly used for speculation (buy at low, sell at high), but not as a stable method of payment.

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