Topic: A cryptocurrency with volatility can't be used as money - page 23. (Read 34045 times)
Actually very doubtful argument. The price of the product is estimated at the cost of the efforts expended for its release. Here the rate of profit of the campaign that issued it is added. In what currency were the calculations made at the time of issue is not so important. And in general, it all depends on the specific product in question.
it seems that if made for the main money of course will not be and will not be suitable because the price will not be stable and have a very high risk.
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 see no problem in it. fiat money is losing more and more value each year through inflation and other stuff. but with bitcoin you have more chance that the value increases. at fiat money as good as not at all.
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.
You are mistaken as it can be used as money because it is impossible not to have volatility at all, any type of currency has it. Moreover, even dollar we use is volatile as well. I think that the rate of volatility will become less soon
Crypto volatility right now is not suited to become a currency and even if you’d say that dollar have price movement from time to time its not the same with crypto still. For as long as people will not fully adopt and acknowledge crypto then the volatility will be high because people will only use crypto for trading and long term investment not a currency.
I really believe that is the challenge of bitcoin and crypto. Although, decentralized supply is the legacy of bitcoin and crypto. but to become a popular currency in the world as money. cryptocurrency may need more variation from its inherent nature. In addition, Buterin's opening of a discussion on the trend of centralized supply on his twitter. It seems that the future, the supply of focus can bring survival, sustainability and development stronger for cryptocurrency.
You are mistaken as it can be used as money because it is impossible not to have volatility at all, any type of currency has it. Moreover, even dollar we use is volatile as well. I think that the rate of volatility will become less soon
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 agree with this argument.What do you think about this argument?
However,Bitcoin as an example is volatile only because the volume is low compared to fiat currencies and thus can't be used as a currency for the moment.But when Bitcoin will get more interest and have a huge volume like fiat currencies does,it will no longer be volatile and then can be used as a currency.
Volatility is a mathematical measure of the possible change in prices. Relative volatility helps to understand why a daily change in the rate of a large currency by 2% will cause panic in the market, and why daily fluctuations in the cost of Bitcoin (4%) are quite common.
Your header is incorrect it can be used as money but what your header should say is volatility decreases the reliability of this asset. Because it is so volatile you can't rely on an asset like that, but it will still function as money this much is certain.
He says it makes sense that too much more volatile currency can't be used as money. If the exchange rate is very volatile, there are many transactions in real society that are difficult to accomplish. I believe that with the development of the community, bitcoin fluctuations will become smaller and smaller.
For me, it depends on the person if he/she want a stable price rate. We all now that cryptocurrency will not be stable because it is created like that and also that is the nature of cryptocurrency like bitcoin. The volatility price of cryptocurrency trigger many traders to invest in this kind of business because they know that if you invest or trade your cryptocurrency at the almost perfect timing, I’m sure that you profit a massive amount of money. It only difficult to use a money with a fluctuating value if you want to spend it every day, but if you only use at a few times, maybe it’s a great currency to use because your money can grow even at a short period. 
Well, is not only Bitcoin or crypto currency that is volatile but faith currency are all volatile as they all react to the fources of demand and supply and equally other fundamental issues around the world.
Actually I just thought of it and think this is quite reasonable. Since there is no country which uses cryptocurrency as their main currency this means that if cryptocurrency will be used as mode of payment and such. There will be great difference to the amount. I think businesses will either gain or loss.
Do some comparative analysis and see your country’s currency is also volatile in terms of USD is not it? Besides, I do not think the value of the asset you buy with Bitcoin decrease if the value of Bitcoin decreases. Think you buy a house with 50000 AED and after a year the value of AED falls, the value of the house will not and just the depreciation in the values will make the currently product of Dubai cheaper for the Americans and not the old produced products. 
@OP
Gold is volatile, Silver and co are too. The USD/EUR pair is volatile but it's used daily. Ok you can say it's not the same volatility volume but still.
And what about if people stop to use the dollar or a bank run movement?
Gold is volatile, Silver and co are too. The USD/EUR pair is volatile but it's used daily. Ok you can say it's not the same volatility volume but still.
And what about if people stop to use the dollar or a bank run movement?
In order for this rule to be denied, it should be a general currency because it doesn't have anymore value in other currency as it is the only entity used. However it doesn't have that much of a higher possibility for now to be a sole currency because of the lack of technological adaptation at some countries, they still don't have that good of a knowledge to get to know the value of cryptocurrency and it usage in the blockchain technology.
In an ongoing poll, https://bitcointalksearch.org/topic/m.39139333, some people advocate for price-volatility because it is the driving interest for traders in a cryptocurrency. This is true, but what should be the level of volatility that will ensure a balance with price-stability so that ordinary users could use a currency for routine/regular transactions without fear of losing so much value in one swing/fluctuation??
Perhaps if the cryptocurrency is used ubiquitously and Bitcoin will have and use everything, then it will cease to be tied to the dollar and no one will evaluate its price in dollars. After all, it does not matter how the price of Bitcoin has changed in an hour, if a cup of coffee now costs 1000 satoshi and in an hour the same cup of coffee costs the same 1000 satoshi.
We still need something more than adoption for that to happen bitcoin will have to destroy fiat currencies for something like what you are describing to happen, after all you want bitcoin to be the point of reference when it comes to pricing things but we know that is not what it is happening now when the point of reference is the US dollar, after all everything is priced in dollars and until that changes bitcoin will continue to being valued in dollars as well.
the positive factor for cryptocurrency is merchants are used with volatility and accepting cryptocurrency and untapped remittance market is widely using cryptocurrency
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?
He is correct, and this is why there should be no rush to get bitcoin back up to $20,000. At the moment there is a steady rise with a few blips inbetween. This will help to make it a mainstream currency in all countries and on all platforms.
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