Topic: A cryptocurrency with volatility can't be used as money - page 3. (Read 34045 times)
I think that we should not forget that we are still at the stage of development of the cryptocurrency market and it is quite possible to assume that once a cryptocurrency becomes very stable in its price. Today, many are interested in cryptocurrency Only because its volatility provides a guarantee of a good profit. But if the cryptocurrency becomes stable, then it will be appreciated for its functionality and practicality.
It is true. A highly volatile currency will produce a gistrust among its holders. It will not be a fair trade because if a currency behaves like this, you really cannot store it at a long period of time and at the same time, its value cannot be appreciated even after a few years. A stable coin would be close to being tradeable.
Every cryptocurrency on the market has its major and unique purpose. Some are highly volatile and this helps crypto traders to utilize that feature to trade with it on daily basis to earn profit. Others which are with low volatility can served as long term investment because it takes time for such coins to make huge spikes.
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.
right for transactional things, but the problem here is the volatility of unstable values. each trade product cannot function healthily if the payment media is always changing in price. This is not at all suitable and threatens product value rotation.The stock entity as a projection target is healthier than just isolated as a currency
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?
my personal insight in this matter is that Bitcoin has high votality and cannot be use as a main currency
to buy or sell actual goods or necessities that we use on a daily basis
anyways for me bitcoin is not a currency its a digital money and a high potential investment
Insipte of crypto volatility still we are witnessing steady growth of cryto in terms of merchant acceptance so we can say crypto is growing all over world number of atms are more and merchants also accepting crypto
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?
is he really a chief UBS bank? because his reasoning doesn't sound like a chief. he should know that if you exchange your current asset into a different one it doesn't matter if the value of the previous asset decrease. the current asset you have is still have the same value when the time you exchange it. as a Chief he's knowledge about this should be vast. unless what he said is Biased against cryptocurrency.
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.
Price volatility Crypto currencies are indeed very high and this is very risky to use as a transaction tool. but in reality we can now use it in several countries and several online stores.
and it can be used as money.
and it can be used as money.
I think volatility was naturally been part of crypto currencies and we are aware about its existence. Somehow, volatility can be manage with people who has open minded and wide patience. And I believe crypto coins with high volatility will still exceed and perform its bountiful platform.
All of us today use credit cards for settlement of our accounts, as well as using the Internet to buy and sell different things. Based on this, we have entered the age of digital currencies. But in order to convert real money to digital, we need to go to the bank or to the terminal in order to get the equivalent on our digital wallets. Cryptocurrency is the very tool that simplifies these tasks. But it is precisely volatility that is a big problem, because prices cannot be stable. But this is also fixable, because the cryptocurrency market is affected by the lack of legalization of cryptocurrency in many countries, the lack of regulatory processes and the presence of uncontrolled speculation. If this situation is rectified, then why is it impossible that the cryptocurrency will take the place of real money and will be used as a means of payment.
Price volatility Crypto currencies are indeed very high and this is very risky to use as a transaction tool. but in reality we can now use it in several countries and several online stores.
and it can be used as money.
and it can be used as money.
Reminds me of the earlier days when one of my major thoughts before buying anything with cash was, "This is going to cost me $30, but if Bitcoin moons, I would be paying a lot more for this useless thing."
I really, really, really wish I could go back in time. I'm sure that's a very common feeling in the crypto universe.
I really, really, really wish I could go back in time. I'm sure that's a very common feeling in the crypto universe.
Volatility is much spoken as the key factor for the decreased usage of bitcoin same as money.
you maybe right . some people dislikes volatility but most people will agree on me that volatility is an advantage as it gives an oppurtunity to earn more income when the price rise . not only an income but volatility also helps us to buy coins at a cheaper cost . money isnt also volatile .This is true from business people view, because they have made huge investments and when market turns downtrend, the business accepting bitcoin will face a huge loss.
they should have known that investing is risky and investing in cryptos is even more risky due to thier volatile nature . business owner or merchants should also be aware of this fact before they have proceed to use cryptos . 
Volatility is much spoken as the key factor for the decreased usage of bitcoin same as money. This is true from business people view, because they have made huge investments and when market turns downtrend, the business accepting bitcoin will face a huge loss. This happens as the investment amount will be in the turn around for buying selling, buying selling and so on.
From common people's view it can be used as money, because these days we make use of different online wallets for all our transactions and buying purposes. Whether the market is uptrend or downtrend there won't be much difference as the buying will not be same as that of the investment on business.
From common people's view it can be used as money, because these days we make use of different online wallets for all our transactions and buying purposes. Whether the market is uptrend or downtrend there won't be much difference as the buying will not be same as that of the investment on business.
In general, the banker is right. The high price volatility of cryptocurrency is a very big obstacle to its implementation as a means of payment. Even with small transactions, where the calculations occur almost instantly, price volatility is not very important. The high volatility of prices in the cryptocurrency plays a large role where a lot of time passes between the agreement on the transaction and payment. In this case, the trade will be more like a lottery, where, as a result of a price change, one of the parties will definitely lose, the other will win. Business loves certainty and a clear calculation of profits, and businessmen in this case will not want to risk it.
[/quote
in general, something that is not stable, cannot be used as a medium of exchange. well, that is also one of the reasons why bitcoin is not accepted as a real exchange tool. it's just that, people use it on the internet with agreed conditions. of course the price will also be adjusted at that time. very difficult to make things unstable as a medium of exchange.
[/quote
in general, something that is not stable, cannot be used as a medium of exchange. well, that is also one of the reasons why bitcoin is not accepted as a real exchange tool. it's just that, people use it on the internet with agreed conditions. of course the price will also be adjusted at that time. very difficult to make things unstable as a medium of exchange.
In general, the banker is right. The high price volatility of cryptocurrency is a very big obstacle to its implementation as a means of payment. Even with small transactions, where the calculations occur almost instantly, price volatility is not very important. The high volatility of prices in the cryptocurrency plays a large role where a lot of time passes between the agreement on the transaction and payment. In this case, the trade will be more like a lottery, where, as a result of a price change, one of the parties will definitely lose, the other will win. Business loves certainty and a clear calculation of profits, and businessmen in this case will not want to risk it.
Volatility of cryptocurrency is one of the issues that prevents these digital assets such as bitcoin to go mainstream. How could these coins be used as a payment if time and time again the fluctuations is very huge in either directions. But, the problem is that holders treat these coins as assets that expected to rise in value.
I dont know why people do see this thing to be a currency? Why they shouldnt remain to treat it as an asset instead.If we do try to look throughlyits clear that crypto wont really be fitted in to the sense on making it as a money and with high volatility alone it isnt really be considered thats
why its just a normal thing to think off that this thing isnt possible.
yes, it is very difficult if the cryptocurrency can be used as a currency. the main factor that can make crypto currencies as global currencies is only a country that can formalize crypto currencies as a world currency that can be used as an alternative payment transaction tool and is able to be centralized in one country that greatly influences global economic growth.
Volatility of cryptocurrency is one of the issues that prevents these digital assets such as bitcoin to go mainstream. How could these coins be used as a payment if time and time again the fluctuations is very huge in either directions. But, the problem is that holders treat these coins as assets that expected to rise in value.
I dont know why people do see this thing to be a currency? Why they shouldnt remain to treat it as an asset instead.If we do try to look throughlyits clear that crypto wont really be fitted in to the sense on making it as a money and with high volatility alone it isnt really be considered thats
why its just a normal thing to think off that this thing isnt possible.
Volatility of cryptocurrency is one of the issues that prevents these digital assets such as bitcoin to go mainstream. How could these coins be used as a payment if time and time again the fluctuations is very huge in either directions. But, the problem is that holders treat these coins as assets that expected to rise in value.
I dont know why people do see this thing to be a currency? Why they shouldnt remain to treat it as an asset instead.If we do try to look throughlyits clear that crypto wont really be fitted in to the sense on making it as a money and with high volatility alone it isnt really be considered thats
why its just a normal thing to think off that this thing isnt possible.
Let's ignore the real estate value of your apartment and assume it has a fixed price; it means that you bought it for $10,000:
In 2013 considering that the value of the Bitcoin $ 100: you need 100BTC to buy an apartment.
In 2017 assuming that the value of the Bitcoin $ 1000: you need 10BTC to buy an apartment.
Today, assuming that the value of the Bitcoin $ 10,000: you need 1BTC to buy an apartment/flat.
I agree with you that the price of the Bitcoin is variable, but it tends to go bullish that means its value increases over the days than paper money.
In 2013 considering that the value of the Bitcoin $ 100: you need 100BTC to buy an apartment.
In 2017 assuming that the value of the Bitcoin $ 1000: you need 10BTC to buy an apartment.
Today, assuming that the value of the Bitcoin $ 10,000: you need 1BTC to buy an apartment/flat.
I agree with you that the price of the Bitcoin is variable, but it tends to go bullish that means its value increases over the days than paper money.
I agree with this. In the long run it's actually wise to own bitcoins. I think some people are only worrying about its day to day uses. We're currently on a bullish trend now but just a few months ago we've been through one of the longest bearish season where people found they can buy less with the bitcoins they have.
Jump to: