Topic: A cryptocurrency with volatility can't be used as money - page 17. (Read 34045 times)
Every currency that is used in the world is volatile versus another currency or gold. And we use these currencies every day in our life. That argument is nonsense.
I disagree because we are already using cryptos to buy goods and pay the services. It's already been proven and now it keeps becoming more useful in terms of its function and development. So, I believed that cryptos will be more useful in the coming more years.
I think that crypto in future will be more stable and there will be a lot of more chances for goverments to allow using them as normal money.
Exactly. That is one of the major disadvantage of the cryptocurrencies that has made bitcoin failed to be accepted as a currency. The coins are too volatile and that makes it risky for a company to adopt cryptocrrency to pay for goods and services. That means anytime there is a down trend in the market, there will be a massive company losses
Yep. Agree with your point and crypto or any currency which has volatile cannot be used across the world due to the fluctuations. I really don't know how crypto will become the next currency replacing paper money in future but I really like crypto to replace paper currency. May be in future the volatile may be stopped and there will be some minor fluctuation may happen like US dollar.
Using Bitcoin as a commodity is much more convenient because of its high volatility. Sellers may not rely too much on a currency for which the value falls and rises very quickly.
Every commodities always have high volatile in their price. Bitcoin right now like commodities and its like a gold or silver. Its store of value and i think it can be used as currency as long merchant accepting bitcoin and government issuing regulation on it
This volatility will end one day because we believe that bitcoin will be the future currency in the world and the whole people will use only bitcoin as their regular currency. Then nobody will think of the price of bitcoin in any other currency of the world. All this is for the time being and you are right that with this volatility no crypto is usable in markets.Though i agree that at the current state of things, bitcoin's volatility would make it really hard to be used as money for everyday transactions. But i don't agree that bitcoin doesn't have a bright future based on what's happening right now. Bitcoin's been through a lot in it's young lifetime and what we're seeing is just a phase. Recovery is inevitable whether you believe it or not
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?
By definition, volatility means 'characterized by or subject to rapid or unexpected change' (Merriam Webster Dictionary).
All traded Fiats are by this definition volatile. And they have continued to exist as national currencies and acceptable money. What Klaus W. Wellershoff should have talked about is the 'classical degree of volatility' of a currency. Is it high, is it average or is it low? Currencies with low and average volatility are relatively stable over time. When you plot the value of currencies over time, you will see spikes and these spikes are 'rapid and unexpected changes' aka volatility.
Note that CURRENCY TRADERS CHERISH VOLATILITY & there are numerous reasons as pointed out on this forum in another thread. https://bitcointalksearch.org/topic/m.39139333
A digital currency can be designed to be both STABLE to satisfy & protect the daily utility of ordinary users and moderately VOLATILE to satisfy the appetite of currency traders.
Every commodities always have high volatile in their price. Bitcoin right now like commodities and its like a gold or silver. Its store of value and i think it can be used as currency as long merchant accepting bitcoin and government issuing regulation on it
This volatility will end one day because we believe that bitcoin will be the future currency in the world and the whole people will use only bitcoin as their regular currency. Then nobody will think of the price of bitcoin in any other currency of the world. All this is for the time being and you are right that with this volatility no crypto is usable in markets.
I always thought that the only bad thing of crypto was the huge volatility, i would love to have my money backed on crypto, but i am afraid of buying one bitcoin at $10000 and then having it worth less than $4000 at the next day.
Every commodities always have high volatile in their price. Bitcoin right now like commodities and its like a gold or silver. Its store of value and i think it can be used as currency as long merchant accepting bitcoin and government issuing regulation on it
This volatility will end one day because we believe that bitcoin will be the future currency in the world and the whole people will use only bitcoin as their regular currency. Then nobody will think of the price of bitcoin in any other currency of the world. All this is for the time being and you are right that with this volatility no crypto is usable in markets.Every commodities always have high volatile in their price. Bitcoin right now like commodities and its like a gold or silver. Its store of value and i think it can be used as currency as long merchant accepting bitcoin and government issuing regulation on it
This volatility will end one day because we believe that bitcoin will be the future currency in the world and the whole people will use only bitcoin as their regular currency. Then nobody will think of the price of bitcoin in any other currency of the world. All this is for the time being and you are right that with this volatility no crypto is usable in markets. 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?
Technically, you could use it, as long as you take it's value at the time of transaction. If you instantly convert a coin's value to fiat then you could successfully use it to transfer funds from point a to point b which could save you money and transaction fees especially if you are sending cross-country.
In the long run however, i'm pretty confident that the big currencies will become stable anyway.
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?
Crypto currency's volatility really hinders the adoption of it in the market as actual currency to be exchanged for goods and services. Then again, crypto currencies even BTC for that matter is still young. Given enough time and investors, it will stabilize it's price so that it can be used as for what it is. I just hope the price where it will become stable is high.
I disagree because we are already using cryptos to buy goods and pay the services. It's already been proven and now it keeps becoming more useful in terms of its function and development. So, I believed that cryptos will be more useful in the coming more years.
IF cryptocurency were to be used as money it would actually be less volatile. More users more trust and more investors. Who knows, maybe our current money would then be volatile haha.
Every commodities always have high volatile in their price. Bitcoin right now like commodities and its like a gold or silver. Its store of value and i think it can be used as currency as long merchant accepting bitcoin and government issuing regulation on it
and i think fiat currencies also have volatility, including dollar. which is the parent of another currency. if we look at the dollar index chart, price fluctuates just like the others. and i think if there are many countries that legalize it, then btc can be used as currencyI think the dollar is not too volatile and if we compare with bitcoin, bitcoin is more volatile and I think its really hard to be used as money. people will get panic if the price is suddenly getting down too deep like today and I think there will a chaos if bitcoin is used as currency. but if bitcoin can be stable at one level price then I think bitcoin can be used as money.
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?
We simplify the problem with Direct solution, Crypto currency with volatile movements is like a dollar paper money but it is digital method, let say if we want to buy something using crypto currency it means it is subject for moving price value unless we convert it into our own currency that's the time that money become steady.
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.
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.
Let's ignore the real estate value of your apartment and assume it has a fixed price; it means that you bought it for $10,000:
In 2013 considering that the value of the Bitcoin $ 100: you need 100BTC to buy an apartment.
In 2017 assuming that the value of the Bitcoin $ 1000: you need 10BTC to buy an apartment.
Today, assuming that the value of the Bitcoin $ 10,000: you need 1BTC to buy an apartment/flat.
I agree with you that the price of the Bitcoin is variable, but it tends to go bullish that means its value increases over the days than paper money.
In 2013 considering that the value of the Bitcoin $ 100: you need 100BTC to buy an apartment.
In 2017 assuming that the value of the Bitcoin $ 1000: you need 10BTC to buy an apartment.
Today, assuming that the value of the Bitcoin $ 10,000: you need 1BTC to buy an apartment/flat.
I agree with you that the price of the Bitcoin is variable, but it tends to go bullish that means its value increases over the days than paper money.
very smartly you counted only stable or high price for btc , but tell me what if it is made main currency of any country and then it dipped upto 80% ?
because most of supply of bitcoin also controlled by whales / some groups . so it can be manipulated any time by them . however using it as other form of currency is still ok but making national currency bad idea .
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