Topic: A cryptocurrency with volatility can't be used as money - page 31. (Read 34026 times)
Being a volatility of a crypto currency could cause in two types only maybe you will lose lots of profit or gain more profit. However its depend if you know how to sell or but a kind of coin you want to invest. Knowledge is the more important to surpass of being a volatile of a crypto currency.
I think it is very possible to use but the most important is the total supply available from the coin is unlimited which means there will be no price game that can trigger the rise and fall of the coin price so it is stable and very safe to use.
Indeed.I thoroughly concur. In any case.in a setting that an unstable money can't be received. What we need is a steady cash where by it vary less regularly and less bounces.At the point when that happens, entrepreneurs can receive bitcoin or any digital currencies in their business as a methods for trade for products ams administrations.
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?
The value of the flat doesn't decrease, there's no relation between the value of the flat with bitcoin. Since you have used your bitcoin to purchase something, it's almost the same as you have cashed out your bitcoin and payed it with cash.
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?
Crypto currency with its high volatility can go as money, but only in parallel with the national money of the state. She can not walk like the main currency. In order for price fluctuations in the value of crypto-alaota not to be reflected in the purchased product, this product should still have the possibility of buying and selling for other money that is not a crypto currency. Then the price drops of the crypto currency will not affect the value of the goods. What do you think about this argument?
Your economist is certainly quite right. But it concerns to visit only Bitcoin, but also gold/money/precious metals. You can not now hang on Bitcoin all the troubles of mankind, because he tries to strengthen his position, as well as all the money in his time.
One of the reasons cryptocurrency has great volatility is the supply and demand of it is only circulating to small time and big time investors along with crypto whales and pump and dump groups that manipulates prices. However if cryptocurrency were to be accepted by people to buy necessities just like fiat or other assets then the prices will be more stable as there will be more supply in the market and it will be evenly distributed.
Thanks for your answers. I see this question create many answers with differents minds.
My translation is maybe not perfect but I'll try again cause it's a french article :
"A money wich increase its value is totally not appropriated as a curreny. If the value of the money increase, that means one thing : the value of the merchandise decrease. And the decline of the merchandises prices is called "deflation".
Some specialists say that the bitcoins value can be regulated by itself. I hope that but don't really see how that's possible.
My translation is maybe not perfect but I'll try again cause it's a french article :
"A money wich increase its value is totally not appropriated as a curreny. If the value of the money increase, that means one thing : the value of the merchandise decrease. And the decline of the merchandises prices is called "deflation".
Some specialists say that the bitcoins value can be regulated by itself. I hope that but don't really see how that's possible.
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 wouldn't use purchasing flat as an example since it is doesn't fit with the argument.
But anyways, what you are saying actually makes sense and I too believe that this is correct. In fact, I even think that most of the people here in this forum would agree to such argument(except for those people who are too attached emotionally to cryptos that even when they know it isn't right, they still want cryptos to be a national currency). Using cryptos as it is today as a replacement for our current fiat would put a country adopting it in chaos. Only common sense is needed to see through this.
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?
This sounds pretty nonsensical. Real estate is an asset class in itself. How does it matter if you bought it with bitcoin or something else. The value of the flat will depend on the overall outlook of the real estate market.
It would be better if you can provide a link to the article because it seems like you are misreading something.
Although the argument that a cryptocurrency with too much volatility cannot be used as money has its merits but the volatility seems to matter only because we are comparing the value of bitcoin against fiat. In a scenario where bitcoin is actually working as currency, there will be need for a set of indices standardized by calculating amount of common goods that, say, 1 BTC should buy. Such an exercise would either need regulatory intervention or bitcoin adoption would have to go widespread with merchants deciding this value governed by free-market competition.
This is when volatility would not really matter.
So far, it is obvious that unless you are just converting straight up to fiat after completing sales, you may actually stand the chance of losing a lot with the volatile cryptocurrency that fluctuates heavily in price.
I think in essence is that cryptocurrency will only be an alternative currency until the future or the foundation of the project or a certain profits, it's like money that can be buying something but still., it just the money that only exists in cyberspace and it will not be like real money in the real world because with all on its characteristics.
A crypto currency with volatility can not be used as money. I cant imagine fiat currency rising or falling with in a short period of time like bitcoin.There will be chaos every where.Volatility in Bitcoin does not yet have a generally accepted index that is why it is seen as an asset . Bitcoin is mapped by bad press that is why the mainstream society are not into it and the security in it, scammers and hackers are not helping the crypto world.
Well, i totally agree. But in a context that a volatile currency can't be adopted. What we want is a stable currency where by it fluctuate less often and less jumps. When that happens, business owners can adopt bitcoin or any crypto currencies in their business as a means of exchange for goods ams services.
Real state,Gold and other assets price also fluctuate,If you buy a flate and you using it at least 2 year you already recover your money and till now it is seemed Bitcoin price increased and as a rational investor you will sell it when Bitcoin price will high rather you buy it.
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?
This seems to me the battle of volatile cryptocurrency and the stable assets like fiat money and real estate. For me the new trend of profitable cureency is cryptocurrency and yes it is obviously not that good as a currency due to it's volatility however it is still a profitable currency for cryptocurrency traders and not intended for buying and selling of goods. What do you think about this argument?
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?
Yes, I agree when the cryptocurrency with volatility can't be used as money. It must be stable. I think when the demand is balance the suplly , it will happen. The crypto will be used as money. Maybe in 2022, I think.
I also think that the volatility of the encrypted currency, of course, can not be used as a currency, if both sides agreed on the quantity and price of the transaction, but the price is not stable after the arrival of the goods, the financial difference is very difficult, then the deal is very difficult to succeed.
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?
A currency with high volatility can be used as a currency people will just have to adapt themselves to it, you just need to look at what happens when a currency goes through hyperinflation, when that happens people adapt to that currency by spending their money as fast as they can because if they don't do it then they will not be able to buy the same products and services tomorrow, and if people can use a currency like that even for a short amount of time then people will be able to adapt to bitcoin and its movements. What do you think about this argument?
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?
It does not make sense in that way as because the dollar/fiat value is also not stable it also fluctuates though not as much as bitcoin does. But over the time bitcoin will get stable too it is just starting its long journey its gonna take years and developments in bitcoin and the whole market will be much more stable than it is at the moment.
Hard to know about that. Maybe in the future we will have to use a currency which is totally volatiled. Stable is not always good. Fluctuation can somehow change the world in the most ridiculous way. You have to wait to see what will happen in the future
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