A cryptocurrency with volatility can't be used as money - page 19.

JohnWick_Bitcoin

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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?

yes it is impossible for a cryptocurrency to use as a money so up until now we can consider it as an asset just like diamonds and gold but people can still use it for digital stores like amazon because they are accepting cryptocurrency payment method.

Boov

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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?

It is really hard to use cryptocurrency as a mode of payment , especially in businesses , why? because it has no stable value , it changes every time , so if one business will use bitcoin as a mode of payment , they are at risk of losing money because they are accepting an investment , not a money , and also it is also hard to regain your capital if you use bitcoin as a mode of payment due to lack of information in financial report which all businesses should have , so with that I do not think that bitcoin or any other cryptocurrency can replace money.

a2offrb

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RISE WITH RAYS FOR THE FUTURE

We should initially not forget that Bitcoin should not be taking for money as in fiat alone, it is also a future store of value, no matter its volatility. I can merely agree that Bitcoin volatility may dissallow it from using it as money, as in sited case of Estate as an instance. But to me, if the bitcoin price at which you buy the estate at the last time decreases this time, you must agree with me that the value of the Estate does not decreases, because it may not be quantify with Bitcoin price alone. And if they did, then the valuer is gaining at the expense of the owner, likewise if the Bitcoin price increases for the Estate, then, the owner is at the upper head making gains. Since this is vice versa, I do not think there should be any cause for Alarm. Life itself is a risk.

dragoz11

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this is for sure a very well known issue about the btc itslef and the majority of users know this. Recently btc`s price is purely manipulated and I believe that within time when things get more serious the price will be more stable.

bitgov

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Quote from: embargo on June 23, 2018, 12:22:17 PM

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.

That is true, in theory it can be used as normal money but practical noone will trust in "thing" that could go from 20k to 8k just in few days or even shorter, that is why we need more stability to change crypto into normal daily currency.

embargo

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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.

Aristus

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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?

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.

TN0904950

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Quote from: Chris BENNETT on June 06, 2018, 08:26:33 AM

if you buy a shirt for primary cost and then when it goes down then you have to sell it in low cost, in loss. How can it be reliable then.

I think Bitcoin's volatility has been affected or felt much in the Stock / Market and not on Physical assets like Estate. Therefore, cryptocurrency can be used as money at any given period.
You somehow try to get into trouble to ponder here about Bitcoin volatility. But thinking about it critically, you should be able to understand that the price of Bitcoin in which an estate is purchased does not really affect the physical value of the estate in the future. Because real estate will be rewarded later with either Appreciation or Depreciation based on the ongoing economic situation.

shelimy

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the volatility of the market will affect cryptocurrency and it might be the reason for bitcoins not to be used as a fiat for every country but the advantage is that, the volatility will can be used in order to earn more profit.

Naughty Princess

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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

Crypto coins are very volatile which is not good to use for payment because it has potential to grow more and buy lot of things. Small earners might want to use fiat for payment because that can be use to invest for more possibilities though there are some stores that accepts crypto as payment and the government make it legal currency, everyone keeps it as their assets.

d1ceplayer

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Quote from: superstarbtc on June 17, 2018, 09:08:39 AM

cryptocurrency is more or less an asset rather than a money we can expect more public acceptance to be called as currency as of now it is store of asset

I do agree it is more of an asset rather than a medium of exchange. And by the way not all the countries have legalized and accepted it as well so cannot be used through out the world. But I do not think the volatility in the crypto currency hinders its ability to be used as money and for general transaction. If you look at the currency of your country in terms of dollar, there is also fluctuation but not so regular and you can use the currency for as money.

BitProCoin

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Volatility is the major complain governments are having again bitcoin outside scamming activities! Price has to be stable if governments who is the major player can adopt cryptocurrencies.

strelkov

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This is true, it applies especially to small items like coffee or food. No small restaurant will accept these as it can cause huge fluctuation in their profit.

traderethereum

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Vave.com - Crypto Casino

it is hard to use cryptocurrency with volatility for using money because the exchanges rate will always fluctuate and it will make the products price always changes too. maybe we need one cryptocurrency that will almost stable every time so we don't have to worry if the price decreases too deep or increase too deep. I think it will be like a USD in the fiat currency that will be for adjusting for the other currency in the world.

ttking

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Often, positive and negative factors overlap each other with a small time difference, resulting in fluctuations in the rate. They are heated by trading games, when players purposefully try to lower or raise it.

Magiklair

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When discussing the market, crypto currency is very often paid attention to its high volatility. Is volatile crypto currency an unavoidable problem for everyone who wants to invest in crypto-currencies? Or is not it all so scary? I think that dollar is also volatile but it is used as the main currency.

tothanhtuan

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My guess is there will be a merging of crypto and modern banking. It may take awhile and come at some cost but the final way forward hasn’t even been seen yet. Bitcoin may not even survive. Xerox Parc had to exist and die before what we know as modern technology. Blockchain will likely see a similar adoption cycle.

rossr1

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Thought interesting, but real. If you look now at exchange rates in different countries. They are similar to crypt courses. Some fall and others are strengthened. Therefore, I think his opinion is not true for the reality of the future.

Bitfling

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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

Yurkov

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Pepemo.vip

Quote from: barabarian1 on June 19, 2018, 06:20:00 AM

It is true. better digital currency used as a tool for investment like stock in general. crypto value is very changeable and can fall to zero, so it is not possible to be used as money or local money. because it will cause losses for the owner of crypto if used as a means of payment.

That is in some kind a good answer cause normal money is not stable too but its pumps and downs are not that big as in crypto, in future prices of coins could be more stable cause whole amount of btc will be mined and there won't be more parts possible to purchase, future will show us.

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