A cryptocurrency with volatility can't be used as money - page 16.

Kambal2000

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Quote from: gwaps012 on June 29, 2018, 07:09:27 PM

Quote from: Bakemat on June 17, 2018, 10:44:14 AM

Quote from: Dncer on May 09, 2018, 05:04:40 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?

Cryptocurrency is volatile and that is the reason why it was very profitable, other countries will not accept cryptocurrency because their own economy might die if people will focus on investing in bitcoins.

Companies that has merchandise or products like amazon does not have a problem on cryptocurrency because they know that the price of the coin can still grow up and they will earn more profit more than the current price of the item that has been purchased.

I agree with you, volatility in crypto currency is a big hindrance for it to be used as permanent currency, a certain currency must have a fixed value when it is applying for a single country, but on the other business establishments will not have a problem in crypto because they can enter the market whenever they want.

Well, it would be fine with us if the government will not allot it, just think of the opportunity that it could give to us if we will not use crypto as money and just using it as a crypo for investing purposes just like real estate and stock market for sure many of us will still have the chance to earn more.

gwaps012

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Quote from: Bakemat on June 17, 2018, 10:44:14 AM

Quote from: Dncer on May 09, 2018, 05:04:40 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?

Cryptocurrency is volatile and that is the reason why it was very profitable, other countries will not accept cryptocurrency because their own economy might die if people will focus on investing in bitcoins.

Companies that has merchandise or products like amazon does not have a problem on cryptocurrency because they know that the price of the coin can still grow up and they will earn more profit more than the current price of the item that has been purchased.

I agree with you, volatility in crypto currency is a big hindrance for it to be used as permanent currency, a certain currency must have a fixed value when it is applying for a single country, but on the other business establishments will not have a problem in crypto because they can enter the market whenever they want.

stellaekun

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Quote from: Eijrafarm on June 28, 2018, 09:28:32 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.

It can be used but only a few person would want to take the additional risks associated with constant changing rates in the market.it is one of the reasons cryptocurrencies debit cards have not found much acceptance generally

stellaekun

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Price volatility is one of the strongest argument against bitcoin for its adoption as a currency. Merchants do not fancy uncertainty in prices when they deliver services to their clients.it will take a while for the volatility to be resolved because it is in a way related to adoption

MacStone

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pff there are countries with more than 30% of annual inflation, and you dont consider it as volatility? came on my friend

maraclariss14

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Quote from: Bitfling on June 21, 2018, 04:24:27 AM

Quote from: BitcoinNational on June 19, 2018, 06:57:33 AM

The bitcoin shouldn't be used as a a classic currency anyway, do you buy your bread or your coffee with gold?
Moreover that's true that the volatility of the cryptocurrency makes it actually unsuitable to be a real currency that your shops could accept.

In some country like japan, we can using bitcoin as payment in restaurant. But i prefer using fiat money for payment because its more practice and bitcoin is too valuable if we are using for payment

Yes, some countries can regulate crypto currency well like in Japan, but in other country they are not fully accepting crypto currency as their currency because of its volatile price, they need a permanent value the one currency that can maintain a specific value, I think the only use of crypto currency for them is an alternative source of income.

Malya_alkendy

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I once thought so, what would happen if the cryptocurrency is made in Money, while the price up and down quickly. surely there will be people in the profits, but also there will be people who suffered huge losses. and honestly, I am still confused by this.

millionaireshs

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Quote from: Dncer on May 09, 2018, 05:04:40 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?

Of course Crypto Currency with volatility moving is actually affect to your capital money, Let say you invest in bitcoin and other crypto currency if all of these are decreased to each value it is possible to lose your capital money of course. But regarding to decreased the price of merchandise it is because of low cost of importation of number one big player in the world market which is FUEL.

Jamescur

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Intense price fluctuations make cryptocurrencies unsuitable for daily payments and transactions, and therefore lack the important attributes of monetary equivalents.
Therefore, if you want to use cryptocurrencies in your daily life, the stability of its value is especially important.

@baracitamon

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OK, because they fluctuate so electronic money is not widely accepted everywhere, electronic money is too dangerous, holding them high risk. Therefore, it is suitable for some venture capitalists who dare to take risks.

Anthrlive

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This quote is probably taken out of context, because there are many more factors involved in the questions than simply volatility. Many countries have super volatile currencies, that change drastically every week/day, just like bitcoin, but still use this fiat for everything.
In my opinion cryptocurrency can be used as a global currency, something to use for payments across borders, when you can exchange it to fiat quickly, not to lose anything on the instant transaction across the world.

Rox123

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They're volatile because the market is still so young. When more people will start buying and actually using it then we will see normal gains and drops like 5% tops a day. But this could very well be in only 10 to 15 years...

Crypto is the future. Wether you want it or not. Wether you believe it or not.

Eijrafarm

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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.

automaticmoney

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the major problem with cryptocurrency is volatility rather than using as payment processor we can use bitcoin as asset and hold for long-term benefits

Norihiro

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APOLLOX Protocol

Why not? It's kind of risky but everyone can adjust everything to that volatility, though it may seem difficult.

xbl1008

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I think nakamoto foreseen that this even where bitcoin faces massive volatility where prices are moving really fast as if that your profit now can be your loss tomorrow or even minutes or hours after thats why as of now bitcoin seeks regulation from the governing bodies on each country or big institutions to control the factors that affects its price, but some time in the future I think the volatility will be gone and crypto currency will be so advance at that time.

Vicrey

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Quote from: qwertyup23 on June 27, 2018, 12:19:10 AM

Quote from: BillCoin on May 10, 2018, 03:43:45 PM

Cryptocurrency market suffers from volatility for the only reason, the market is still too young and the market cap is really low compared to other virtual assets, so the volatility level is pretty much fair for this market cap level.
Until the price of bitcoin will stabilize around a price range, it's going to be volatility as it is being used by only a short amount of people.

You should consider that one of the reason on why cryptocurrencies are volatile is due to lack of any government intervention/regulation. Since there is no central authority that regulates its transaction and processes, its market supply and demand can be significantly affected by anyone who acquires the most number of bitcoins for price manipulation (also known as whales).
Another thing that you have to consider is when you make bitcoin as a currency, the lesser the volatility, the better as it poses a threat to both the consumer and the producer in terms of profit and loss.

Basically the ideal situation is, cryptocurrencies should be regulated in a way that its volatility can be controlled at some point without having to suffer its investment aspect.

It is true that a currency that has no fixed value cannot be used as permanent currency, Digital currency is so volatile, It should be stable to be a permanent currency, to be able to use by a certain country as mode of payment, it will happen soon, we just need to support crypto currency and have a single currency to represent the crypto sphere.

serjent05

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Quote from: Dncer on May 09, 2018, 05:04:40 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 got your point here. That is if Bitcoin will replace fiat but i dont think it will happen for now and even in the near future. Fiat also changes in value and all commodities has to be based on its value but sad to say, there are time that fiat like dollar are down and yet commodities are still high or expensive. With bitcoin it will be different since the volatility is so high and because of this I dont think it could replace fiat.

darsiderin

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BitSong is a decentralized music streaming platfor

Quote from: Dncer on May 09, 2018, 05:04:40 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?

Wrong logic. This would be correct if only one currency existed in the world. The value of any thing is not determined by the type of money for which this thing is bought. I hope correctly expressed his thought))

BantiHanter

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Agree because of its unstable value, it makes cryptocurrency unusable for money.
But I don't know in the next few years, whether it can be used as a substitute for money or not.

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