Topic: A cryptocurrency with volatility can't be used as money - page 15. (Read 34026 times)
I agree. because of that volatility, bitcoin is hard to be a valid payment for a good item in the long run. just for some time and in some particular deal, bitcoin can be used as payment. because yes, when someone buys an item with bitcoin for 0.2 bitcoin, then the exchange rate goes down, surely they will raise the price of bitcoin and it is definitely hard to be accepted by the buyer.
Even money has volatility. Do you even know the term 'inflation rate'? The ability of money you hold now can change. It can buy you bread and water now. But it can only buy you a bread tomorrow. That's it. Using an example like this can let everyone know how volatile our fiat and current cryptocurrency market together with some manipulation from whales. I doubt we'll be seeing something 'volatile' as bitcoin as it is now.
Volatility is always there and i think the fiat has also volatility like the exchange rate of dollar with our country currency is changing every time and our currency become more volatile than dollar so volatility is existed every where in the currency market.
It may all be better to have a crypto currency with greater volatility than dollars, which are very much depreciated due to inflation. Crypto currency will not be so volatile over time.
And I think it's very difficult if this digital currency replacing the local currency. While now crypto is not necessarily the currency in many countries give permission for access. And only a few countries that permit digital currency to Transact.
it is said by the many analysts at wall street that as bitcoin achieves a 400 billion dollar valuation it will be adopted by many nations as a standard of attractions, at that rate if there are high changes in the price, it will be increasingly difficult to regulate or analyze the small businesses in the country.
This statement would have been considered if it were stated of two to three years ago but as of now, Bitcoin and Ethereum and Ripple are amongst the top currencies used worldwide and they are an effect of volatility on a daily basis so volatility is not the factor when it comes to the use of money.
You are right, they were really considered as the top currencies of all time and if we will use this as a currency I think it would be fine since we are basing in the current value of the fiat and not on the value of bitcoin, so it would be still fair if buyers/sellers will use it.
This statement would have been considered if it were stated of two to three years ago but as of now, Bitcoin and Ethereum and Ripple are amongst the top currencies used worldwide and they are an effect of volatility on a daily basis so volatility is not the factor when it comes to the use of money.
As money, everything that has a price can be used. The fact that the price is volatile is secondary. Yes, and ordinary money can also lose in value for various reasons (devaluation, war, massachnye cataclysms). In historical terms, the life of the currency is 40 years. The US dollar lasts longer, but this is artificial.
Many people worry about this thing and I think it is right that you think if you buy something in crypto and the price drop more you will lose your money. That’s the reason that I say that bitcoin is not for making money and converting into other currencies. It is for use all over the world. When there is only one currency then this problem will be solved.
I do agree with that. If the price is not stable then you can't use it as a currency/money and cryptos are highly inflationary. Sure there is inflation in any currency but that is gradual in nature while in crypto, you can see the price doubling overnight and then coming back to one tenth of it in next few days.
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?
What do you think about this argument?
I think, it's impossible to use crypto as fiat for now. But we all know that it is going to be regulated soon, so the level of volatility or should I say an ability to manipulate will become much weaker.
But do we really need it? volatility decreases and the amount of profit decreases together with it..
This argument actually gives a justice because no one feels the loss later on However, governments in a country must be ready to support the existence of the system so that smoothness in doing every transaction using bitcoin can be done without any obstacles at all.
We would be comfortable using cryptocurrency as currency in itself if we wouldn't worry about its value in terms of fiat. If we are buying our needs in terms of cryptocurrency and the merchants buy and sell too using cryptocurrency then they wouldn't worry anymore whether its value will go up or not in terms of fiat because their profit is computed in coins and the fiat value wouldn't matter anymore. For now, all merchants do not adopt cryptocurrency yet that's why those who will accept it will have a problem in the volatility.
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?
What do you think about this argument?
Ithink we are no longer new with his kind of news. We already knew that bitcoin's value is actually unpredictable im exact manner. But it is kind a frustrating to know that we are also in danger.
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?
What do you think about this argument?
You are telling the right thing about the volitility of the cryptocurrency and all but the example which you used about the real estate is not good at all. The value of a real estate doesn't depend upon the currency which you used to purchase it, it depends upon other factors like the demand of the property, population of the place,etc., and i know something for sure that the value of a real estate will keep on increasing because of the population burst, as long as the population keeps on increasing the demand for real estate will increase. Even the value of a $dollar keeps on changing everyday but in that scenario too the value of a real estate increases. Bitcoin, is too volatile to be used as money, i agree with that but that doesn't mean that the value of an asset decreases if i purchase it with bitcoin and bitcoin's price goes down.
This argument actually gives a justice because no one feels the loss later on However, governments in a country must be ready to support the existence of the system so that smoothness in doing every transaction using bitcoin can be done without any obstacles at all.
Real state,Gold and other assets price also fluctuate,If you buy a flate and you using it at least 2 year you already recover your money and till now it is seemed Bitcoin price increased and as a rational investor you will sell it when Bitcoin price will high rather you buy it.
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?
This volatility is just happening because crypto currency in this present time is decentralized. Since it is decentralized there is no regulation to stop the issue and it will only be solve if government will be part of it. I mean if government will create thier own cryptocurrency then volatility is not happening on that particular crypto currency. What do you think about this argument?
Or I must say that, what if the bitcoin volatility good for others, It is really easy to manage your resources by the time bitcoin changes its price, If it goes low, convert it, If it goes high preserve it, because of the changing value, you can make plans can help to gain big profits, bitcoin volatility is normal in such environment where investors and traders are in one place.
yeah agree with it, many company or retail that don't allow bitcoin transaction because the price is so violated that make they confused with price mark, so they don't want if this make they getting lossing the price in their product. but maybe if bitcoin are getting normal price yes it can comeback into used money for payment
It would really hard since we cannot use it everywhere since price was not secured, even me, I won't used it unless the price became stable, but I would prefer the bitcoin value for now since we are earning from it price that was unpredictable.
yeah agree with it, many company or retail that don't allow bitcoin transaction because the price is so violated that make they confused with price mark, so they don't want if this make they getting lossing the price in their product. but maybe if bitcoin are getting normal price yes it can comeback into used money for payment
I think this is the main thing that stands on the bitcoins way to became a worldwide accepted cryptocurrency, is volatility.
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