A cryptocurrency with volatility can't be used as money - page 26.

Janation

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Quote from: burner2014 on May 24, 2018, 03:20:56 PM

Quote from: Tylev on May 24, 2018, 02:54:50 PM

Crypto currency with its high volatility can be used as money, but not as basic, but along with the circulation of ordinary national money of the state. Parallel circulation of the crypto currency can not cause damage to the country's economy by its volatility, since the planning of the economy, the price of goods and services will be indicated in the national currency. An example of this is the use of crypto currency in Japan, where in parallel with the national money, it gives profit to the economy of this state.

It is true, I myself won't ever bother to use bitcoin to pay my bills as of the moment since the price is too low, but if the price would be high I will do it.

And that is another reason why Bitcoin will never be used as a money since it is just treated as an asset. Bitcoin became a popular crypto currency because of its volatility, that volatility made a lot of investors invest on Bitcoin since they knew that the price will still go up and it did. Yes, fiat's price are changing but not as volatile as Bitcoin since if fiat moves quickly as Bitcoin's price, that certain country will probably have a problem the reason Bitcoin will never be used as a currency or a real money.

Financial Freedom 4U

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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?

If I sell my house to you for Bitcoin, I can decide what I am going to do with coin, if I am not interested in Bitcoin speculation as most merchants aren’t, then you can convert it too FIAT the same day. From that perspective the argument makes no sense, it implicates that you have to hold it for a long time (“few years later”) before it can be converted.

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Quote from: nelsledma on May 25, 2018, 02:18:48 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?

Do you think there is anything called money that is not volatile, although Bitcoin is very volatile and that’s what makes it different from every other thing called money in the market. But if you talk about volatility, anything called money fluctuates in price, including stocks/assets. If you check the price of Gold it is not always at the same price at all times. Same thing applies to when you compare the price of dollar to other currencies like pounds sterling, euros and, rupees.

right, we can see the forex market, which has high volumes too, i think this is because many governments have not legalized btc in their country, and it is natural that they should study it thoroughly

nelsledma

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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?

Do you think there is anything called money that is not volatile, although Bitcoin is very volatile and that’s what makes it different from every other thing called money in the market. But if you talk about volatility, anything called money fluctuates in price, including stocks/assets. If you check the price of Gold it is not always at the same price at all times. Same thing applies to when you compare the price of dollar to other currencies like pounds sterling, euros and, rupees.

reverseflash

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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?

And you are capable to call currency with zero volatility? Actually volatility depends on from what party to look. For example - It not the bitcoin becomes cheaper, but the dollar rises in price and vice versa.

burner2014

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Quote from: Tylev on May 24, 2018, 02:54:50 PM

Crypto currency with its high volatility can be used as money, but not as basic, but along with the circulation of ordinary national money of the state. Parallel circulation of the crypto currency can not cause damage to the country's economy by its volatility, since the planning of the economy, the price of goods and services will be indicated in the national currency. An example of this is the use of crypto currency in Japan, where in parallel with the national money, it gives profit to the economy of this state.

It is true, I myself won't ever bother to use bitcoin to pay my bills as of the moment since the price is too low, but if the price would be high I will do it.

Tylev

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Crypto currency with its high volatility can be used as money, but not as basic, but along with the circulation of ordinary national money of the state. Parallel circulation of the crypto currency can not cause damage to the country's economy by its volatility, since the planning of the economy, the price of goods and services will be indicated in the national currency. An example of this is the use of crypto currency in Japan, where in parallel with the national money, it gives profit to the economy of this state.

Geleve

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yes i agree with that. but thre reason of this volatility is that crypto currencies are very newly born. when people start to adapt using cryptocurrencies, volatility is going to start decreasing.

LadyCoin

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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 think Bitcoin is more suitable for investment, because it is fluctuating and has no center, in other words there is no control from the government. so it is very difficult to calculate in the up and down of its price for the price of a good.

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Quote from: loveinberlin on May 24, 2018, 12:53:05 PM

Why not? I think when more companies accept it, it will be possible to use it as money without any problems! I would like to see this moment as soon as possible. Think dollar is also volatile and not stable but it is money

No one want to accept a currency as payment method which price is not stable because they might lose their profits fter the trade.Dollar also have volatility but the volatility of bitcoin is very huge when compared to dollar.

loveinberlin

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Why not? I think when more companies accept it, it will be possible to use it as money without any problems! I would like to see this moment as soon as possible. Think dollar is also volatile and not stable but it is money

Dncer

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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.

I think also that the marjet is too young. But I also think that the market has to follow the spending power to control the inflation. But the spending power is different in the countries...
Many questions difficult to answer for the moment.

spyerf

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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?

the bitcoin value is always changing and I think this is the real difference between bitcoin and fiat. and I feel bitcoin is more appropriate in assets than currency. only in terms of buying and selling using bitcoin, fiat will not decrease its value. it's just that we have to spend more bitcoin to pay for the goods when the bitcoin value is down.

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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.

I disagree with you too,if something is called as currency then it needs to be used fluently everywhere buying few products at the market section doesn't make bitcoin as currency.Everyone need to start treating bitcoin as a currency if we want the crypto to stay longer.

Dodoymabs

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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.

gambitcoin53

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Quote from: Sled on May 24, 2018, 03:35:27 AM

Quote from: gambitcoin53 on May 24, 2018, 03:25:07 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?

what? once you bought something using bitcoin will not decrease its value in the future, its value will not be based on the current price of bitcoin anymore not unless you are selling your flat and accept bitcoin as payment. and why would you sell it when the price of bitcoin is low? no one is stupid enough to do that. once an item is bought in bitcoin, the value will remains the same until you appraised it in bitcoin. if doing so, you are not a wise trader.

I don't think that is true that when you bought something with bitcoin then it will not have a lesser value in the future because the price of bitcoin is depending on the demand from the people in the market so if the demand of the people will become lower and the price will also become lower and that thing will have a lower value also. It is all about the demand and pricing of bitcoin.

if we are talking about the item's value in bitcoin, if we are comparing the value when you bought it and the value if you are to sell it. of course the value differs, depends on the current market value, the op's argument is "if you buy a flat with bitcoin and few years later the bitcoin value decrease... Your flat lose his value as well. " if and only you are to sell it in bitcoin's price at the wrong time. his example is buying a flat, on how much you bought it, it will remain as is, now the value differs on the timing of when you are to sell it, again in bitcoin's price.

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Quote from: gambitcoin53 on May 24, 2018, 03:25:07 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?

what? once you bought something using bitcoin will not decrease its value in the future, its value will not be based on the current price of bitcoin anymore not unless you are selling your flat and accept bitcoin as payment. and why would you sell it when the price of bitcoin is low? no one is stupid enough to do that. once an item is bought in bitcoin, the value will remains the same until you appraised it in bitcoin. if doing so, you are not a wise trader.

I don't think that is true that when you bought something with bitcoin then it will not have a lesser value in the future because the price of bitcoin is depending on the demand from the people in the market so if the demand of the people will become lower and the price will also become lower and that thing will have a lower value also. It is all about the demand and pricing of bitcoin.

gambitcoin53

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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?

what? once you bought something using bitcoin will not decrease its value in the future, its value will not be based on the current price of bitcoin anymore not unless you are selling your flat and accept bitcoin as payment. and why would you sell it when the price of bitcoin is low? no one is stupid enough to do that. once an item is bought in bitcoin, the value will remains the same until you appraised it in bitcoin. if doing so, you are not a wise trader.

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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, I agree. A crypto currency with volatility cannt be used as money. If the price is more stable, I think it can.

expless

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Quote from: Eliyo on May 19, 2018, 11:07:40 AM

A cryptocurrency with volatility can be used as money. If legalized/legitimatized in a particular jurisdiction, it would function and any challenges therefrom would be sorted afterwards.

The assertion that If the value of the money decrease, that means the value of the merchandise decrease would not be believed because the exchange rate of fiat money between two countries increases and decreases as well based on their economic indices. In this wise, the value of merchandise purchased are entered in the seller / purchaser's books using the exchange rates ruling at the date of sales/purchase.

Therefore, regardless of volatility a cryptocurrency can be used as money in the same way as fiat money is used on merchandise.

in my opinion, it all depends on the government of any state whether bitcoin can be used as medium of exchange or not. Most of the countries are not ready to legalize bitcoin within their boundaries and this is keeping bitcoin away from getting attention of every single person. Those people who are involve in technology or trading are well aware of digital market and support it too but others are ignorant even after learning about it.

Topic: A cryptocurrency with volatility can't be used as money - page 26. (Read 34026 times)