A cryptocurrency with volatility can't be used as money - page 24.

developer4z

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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 agree with Klaus. The market is too volatile. I can see usdT do better job at being crypto than bitcoin for day to day transactions. Most cryptocoins are risky assets rather than currency.

biuifyus

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Since crypto-currencies entered mainstream investment markets, what has cemented their popularity is volatility in their prices.

But the nature of encrypted volatility is not suitable for use as money, and more people see it as a way to invest.

taiwww

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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?

Yeah we dont even need the opinion from someone to think about this as it is logical that volatility is worst enemy of the real currency. If fiat would have been like this then I am pretty sure that economy of the whole world could have collapsed in matte of seconds. I mean fluctuations can cause the prices of stuff around us go crazy, we would have never put a price tag on the candy bar as we would not know whats the value of same currency next day with which we gonna buy it. Dont you think that this is the case. Thats why its bad idea to have crypto currencies on board in the real world replacing the fiat.

Twentyonepaylots

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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.

Market is VOLATILE, we should accept this reality, if the government financial institution would take this on how they will regulate crypto transaction, i think, this would affect the status of Bitcoin in the business and financial market, the nature of investment on Bitcoin mainly on buying and selling in the trading market, yet, if the investors with the help of the government and financial institution would come up to a more favorable regulation or liberal transaction regulation, somehow it would be more favorable in the crypto investors. it is only the issue of acceptance for Bitcoin as main currency in the digital trading.

Sled

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Bitcoin- in bullish time

Quote from: Marcsymon on June 02, 2018, 07:07:02 PM

Quote from: ngefek berat on June 02, 2018, 05:38:22 PM

Such an argument explains how the impact of bitcoin currency if used as a means of payment for the future so the purchase price can go down when the bitcoin value is in bad condition and the trader becomes anxious when such problems occur continuously.

Volatility behavior of bitcoin is not a hindrance to really become as direct currency because it is now started to be accepted in some merchant as payment for obligations. But the value will exactly calculated in a currrent price during transaction payments. Perhaps volatile behavior cant be controlled its either pumping or dumping in the future. So in this case it is on traders strategy and experience how to anticipate volatile which results to gain more profits rather than feeling anxious.

It is a sad truth but we need to accept it. Bitcoin and most of the cryptocurrencies that are so volatile cannot be accepted as a permanent mode of payment or to used as a money because it is not a good way to be a basis for the price of the items or services that you have because the rate changes so fast and that is the reason why it is not a good way to be used as a basis and a money.

Marcsymon

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Quote from: ngefek berat on June 02, 2018, 05:38:22 PM

Such an argument explains how the impact of bitcoin currency if used as a means of payment for the future so the purchase price can go down when the bitcoin value is in bad condition and the trader becomes anxious when such problems occur continuously.

Volatility behavior of bitcoin is not a hindrance to really become as direct currency because it is now started to be accepted in some merchant as payment for obligations. But the value will exactly calculated in a currrent price during transaction payments. Perhaps volatile behavior cant be controlled its either pumping or dumping in the future. So in this case it is on traders strategy and experience how to anticipate volatile which results to gain more profits rather than feeling anxious.

MiXxe

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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.

ngefek berat

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Such an argument explains how the impact of bitcoin currency if used as a means of payment for the future so the purchase price can go down when the bitcoin value is in bad condition and the trader becomes anxious when such problems occur continuously.

Lexurdania

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If we know forex trading, volatility on forex happen every day and no one complain. I am believe that bitcoin can be a currency because right now peoples knowing about bitcoin and trade it and accept it.
Fiat money always have high volatile in forex market and the result is high inflation because money always printed. Different with bitcoin, bitcoin have limited supply and no one control the supply

Mikejones64

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What you have read was not true.. It is impossible to control cryptocurrency. There is really volatility among them. Even real money currency has volatility. If what you read was true, very few will invest in bitcoin.

no0dlepunk

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You might be correct for now, but as soon as the global populace starts using it religiously - you will see the pumps and dumps vanish, and market trades (pairing with fiat) will vanish too. That will solve your problem, hijo.

icoprofits

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cryptocurrency is more or else asset rather than money. due to the volatility in nature more of the users and merchants are treating it as asset rather than day to day currency

coinfinger

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Quote from: ?? on ??

My point is different. when bitcoin comes to the limit and can not be exploited further, it will be finite. And once it is finalized, Bitcoin prices will continue to increase in the future. And when you use Bitcoin to buy a house. The problem goes back to another way, not as you say anymore. do you know Grin

If we think that any of the crypto currency will have a stable market value in the future, then we are thinking of something which is not at all possible and that this will never happen. All the crypto currencies are having highly fluctuating market values and that this is the nature of all the crypto coins. However, we can really expect that the crypto coin like that of the bitcoin can become the global currency as it has this much of the potential.

Icoalert00

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Every money has the volatility and it actually depends on the people who are gathering them and for the people who chose to save it in their bank. The rule of demand and supply is given here because the more the hoard of people the more the value will increase just like cryptocurrency but it doesn't mean it can't be money. It can be money with some opportunity to grow.

loveinberlin

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I can't agree with this statement because everything is volatile. If you think about the dollar, you will understand that this currency also experiences fluctuations in the market. I am sure that btc deserves being approved

ulia93

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Quote from: BartS on May 27, 2018, 11:50:36 AM

Quote from: Dodoymabs on May 24, 2018, 04:21:33 AM

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.

People will just have to adapt that is all, if people around the world can use currencies that lose value very rapidly when they are in the middle of an economic crisis then they can use a currency that can go up or that it can go down, I will admit that it will be way easier if the price was stable but when not even 1% of the human population have adopted bitcoin we cannot really ask for bitcoin to be stable when there is so much potential to go up in value when those people realize that bitcoin is their best option to store the value that they have accumulated over the years.

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.

BartS

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Quote from: genixye on May 30, 2018, 09:57:24 PM

I don't think crypto-currencies can be used as money now, because businesses will lose money rather than profit as their value decreases.

Even a stronger bitcoin can be considered a legal tender, as more and more people see the BTC as a better store of value.

You are mistaken business can convert their bitcoin to fiat immediately without losing a single cent since there are services that offer that already, also if at some point cryptocurrencies replaced fiat then at that point bitcoin will be a lot more stable and you could use it as a currency so as you can see even in that scenario we can use bitcoin for the reason that satoshi created bitcoin in the first place which is to be a currency.

Adhichan

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Quote from: ShadowBits on May 26, 2018, 07:22:08 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?

Of course we can't use any currency that is so volatile since people will not be happy if they have the amount of they want and suddenly it drops lower.

But atleast we still can use it as payment system.it looke like little different between as currency and as payment system.currency can only issued by goverment and be accepted in all.but if as payment system only certain merchant that accepted.

fanBit101

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I am investing in a crypto and I do not expect it to become a daily currency in real life without fluctuations. But with a fair view, cryptocurrency can completely become a conventional currency. By more advanced and more flexible gadgets than fiat. But cryptocurrency is a new market and it needs changes as well as adjustments over time to become feature-rich and user-friendly. All are expected in the future.

Dansamiv

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I agree in part. In fact, the volatility of fiat currencies like uero or usd is still occurring frequently. However, it remains low and medium. That will help to balance or not the difference and inflation in society. Volatility of cryptocurrency is formed from the characteristics of the blockchain technology platform and the decentralized supply. It is difficult to keep balance -> according to the concept and nature of circulation and daily payments. at least not until the synchronization adjustments are made.

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