Topic: A cryptocurrency with volatility can't be used as money - page 2. (Read 34026 times)
Of course, the great volatility of the cryptocurrency, and first of all Bitcoin, makes it very difficult to use them as a means of payment. However, in recent years there have been many different options for their use, which mitigate this undesirable effect in trade. One of such methods is a payment card in which bitcoins are on the account, however, they can be paid in the national currency at the bitcoin exchange rate at the time of the transaction. This form is convenient for both the buyer and seller. However, the disadvantage of this card is the inability to withdraw funds from the card in cryptocurrency. When credited to a card, it is actually immediately withdrawn by the bank from the card, although its equivalent in cryptocurrency remains on the account.
To some degree I agree with this statement " A cryptocurrency with volatility can't be used as money " that you put as title, but I totally disagree with the second statement " If the value of Bitcoin decrease, that means the value of the merchandise decrease ".
It's true that volatility makes it difficult to use cryptocurrency as normal money as the price is changing every single hour and I hope that some day bitcoin price be less volatility so it can be used by normal people in daily life instead the current situation where the most people hold bitcoin as an investment not as money to buy products and services.
It's true that volatility makes it difficult to use cryptocurrency as normal money as the price is changing every single hour and I hope that some day bitcoin price be less volatility so it can be used by normal people in daily life instead the current situation where the most people hold bitcoin as an investment not as money to buy products and services.
The fact is that all cryptocurrency users are divided into two groups. The first group considers cryptocurrency as a means to make money, through trade or investment, when volatility gives a very good city. The second group is people who believe in the prospects of cryptocurrency and expect real use of cryptocurrency in everyday life of a person. And of course, if cryptocurrencies are used as a means of payment, it will only be stable cryptocurrencies. And we still do not know what price Bitcoin will be after the extraction of the last Bitcoin.
I think that volatility is just a consequence of the young market. Much of crypto is highly speculative because we are talking about an expectation of future utility, rather than current here-and-now performance. Add to this the thin markets, and you have a perfect recipe for price fluctuation. I think this will fade away as crypto matures and we begin to see coins being used in the real world.
in general, an unstable currency can indeed make many businesses lose, because of this Fiat becomes a stable transaction tool. however, on the internet, or some people in the world accept unstable cryptocurrency as a currency/medium of exchange. many people sell their goods with it. but, I feel that they are people who want to collect bitcoin/cryptocurrency as an investment tool. but, normally, volatile cryptocurrency cannot be used as a currency because it makes a person's business unstable in profits and losses, especially for other things.in my country, there are regulations that prohibit using cryptocurrency as a medium of exchange because it is dangerous, but it does not matter if you use it in investments, and other businesses, it's just a risk to the person concerned.
Yes of course. Sellers and buyers have enough of their worries, why do they still have the risk of losing from changing the price of 'money'. That is why the payments in the tusd are now gaining popularity. And if the libra still starts and there is no possibility of blocking funds in it, then it can also gain popularity as a means of payment.
I think that volatility is just a consequence of the young market. Much of crypto is highly speculative because we are talking about an expectation of future utility, rather than current here-and-now performance. Add to this the thin markets, and you have a perfect recipe for price fluctuation. I think this will fade away as crypto matures and we begin to see coins being used in the real world.
it is depend on the seller if they want to accept cryptocurrency or not.
but as a whole and will make this crypto a money for the whole world will not be good.
there are many small business that will not carry the weigh of votality.
but as a whole and will make this crypto a money for the whole world will not be good.
there are many small business that will not carry the weigh of votality.
At present, it’s really not possible to use bitcoin as money. Bitcoin is an asset in which you can invest money.
Now there are many ways of acceptable use of bitcoin as money. So, it can be used in various payment cards to purchase goods or provide services. It can be used for various fast transactions, where a short time passes from the moment of agreement to the completion of the transaction. However, on the whole, of course, a decentralized cryptocurrency creates big problems for use as a means of payment due to its high price volatility.
It is a discourse that periodically reappears, that of the excessive volatility of bitcoin.
While it is obvious that this creates difficulties of a conceptual and accounting nature, in the end it is not different from using any other currency: calculations need to be done well, someone wins, someone loses.
While it is obvious that this creates difficulties of a conceptual and accounting nature, in the end it is not different from using any other currency: calculations need to be done well, someone wins, someone loses.
This comparison does not flow at all. Real estate value is determined by the location and the inward and outward appearance and have nothing to do with the Bitcoin price. Besides, What you used 10BTC to buy 4 years ago can buy 8 more of those properties as of today.
At present, it’s really not possible to use bitcoin as money. Bitcoin is an asset in which you can invest money.
I think even in the future, it will not be used.
Bitcoin is decentralized, that is the reason it is volatile.
There is no way that people would be using Bitcoin as money, some platforms accepted Bitcoin then changed their decision because of the volatility in the past. I am referring to Steam by the way.
At present, it’s really not possible to use bitcoin as money. Bitcoin is an asset in which you can invest money.
I think even in the future, it will not be used.
Bitcoin is decentralized, that is the reason it is volatile.
There is no way that people would be using Bitcoin as money, some platforms accepted Bitcoin then changed their decision because of the volatility in the past. I am referring to Steam by the way.
Definitely, I view cryptocurrency as somewhat of an exercise on economics. People really don't know how it will go. But along the way, many have "staked" their assets on it in the hopes of increasing their gains. How it will end entirely depends on the interplay between government, technology, the users and the whales.
We all contribute. I think that with crypto-currencies we will have better arranged economy then we have now
with fiat. Governments, huge corporations, banks are minority, but they control everything, I think with crypto-
currencies each of us can have a voice.
This is not an exercise anymore. This is a real deal, and it`s getting bigger every year. Volatility will not be a problem
forever, when crypto-currencies find their place in global stage and reach some price grow will stop. That can happen only
after full adoption, we will have to be patient for that.
Definitely, I view cryptocurrency as somewhat of an exercise on economics. People really don't know how it will go. But along the way, many have "staked" their assets on it in the hopes of increasing their gains. How it will end entirely depends on the interplay between government, technology, the users and the whales.
I think it can be used as money but for this we need a fast confirmation when send using lightning network and after we pay the merchant have a wallet connected to an exchange and after payment exchange it directly to fiat money via API.
Yes, when making fast transactions, cryptocurrency with great volatility can still be used. However, it can also be used in conjunction with payment cards when there are funds in the bank account, however, settlements are made in national money at the corresponding rate at the time of the transaction. Such calculations neutralize the negative qualities of the high price volatility of the cryptocurrency as a means of payment and may well be used when making retail purchases. 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 absolutely true and that's why economists have argued that bitcoin should be a common currency. Strong volatility is not eligible to make a common currency. because when its prices fluctuate, people don't know how much money or revenue they have each month to plan for the future and everything will get messy. What do you think about this argument?
Yes, while high price volatility of cryptocurrency is a serious obstacle to the use of cryptocurrency as a means of payment, as well as the legalization of cryptocurrency by states. Moreover, there is no reason to believe that over time the price volatility of the cryptocurrency will decrease. However, in the future, the cryptocurrency can be used in various combinations with conventional currency and this circumstance can significantly reduce the negative consequences of its high price volatility.
I am sure that more cryptocurrency will be able to lose interest from many people when its price stabilizes. Today, users are interested in precisely volatility, thanks to which you can earn a lot of money. 
Businesses fear of the volatility and stay without using the bitcoin acceptance. This has been getting changed slowly with more and more marketplace accepting bitcoin and top altcoins. Something that can be exchanged in exchange for fiat has got value and the same when gets used to fiat gets featured to be money. Volatility always gets associated with bitcoin, and surely this will be accepted when days pass.
Yes, while high price volatility of cryptocurrency is a serious obstacle to the use of cryptocurrency as a means of payment, as well as the legalization of cryptocurrency by states. Moreover, there is no reason to believe that over time the price volatility of the cryptocurrency will decrease. However, in the future, the cryptocurrency can be used in various combinations with conventional currency and this circumstance can significantly reduce the negative consequences of its high price volatility.
I think the op messed up on their thought, if you buy something with cryptocurrencies then that will not be affected by the price change in cryptocurrencies. For example, if you buy a house with some Bitcoin then if the price changed in Bitcoin will not affect the value of the house that is nonsense. on the other hand, if you are talking about an investment or saving your money in Bitcoin or any other cryptocurrency then yeah that will be volatile but even gold and silver are also change. The more volatile the currency is the more risk and profit you can get.
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