A cryptocurrency with volatility can't be used as money - page 32.

NavI_027

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I definitely agree with the statement of sir Klaus, it will be a bad idea if we will use a volatile currency worldwide because every goods and services fluctuates also in accordance with the current price of that currency. Seems unfair right? Imagine that I bought a food at cheaper price but there's a chance that you can't do the same way due to price inflation or else you are willing to wait to come back in its cheaper price. Grin

I'm sure that you cannot wait very long for that one because food is necessary for us.

I'm not saying that it's a bad idea to replace fiat with crypto (btc to be more specific) because it is possible. Assuming that mass adaption happened for btc, it will not become volatile anymore but now become as stable as an ordinary fiat; the only difference is that we now have a much "hi-tech" form of monetary system.

19spawnfeed

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Quote from: dekafee79 on May 14, 2018, 06:29:21 AM

Quote from: Dncer on May 09, 2018, 04:04:40 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, A cryptocurrency with volatility cannt be used as money. If the crypto is more stable, I think it will be used as money. maybe in 2020 it will happen.

The volatility of the cryptocurrency is one of the characteristics itself. It will consider as a money because you can used this cryptocurrency by buying goods and services through online. The volatile of the price cannot be a reason to consider that the cryptocurrency with volatility price is not a money.

dekafee79

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Quote from: Dncer on May 09, 2018, 04:04:40 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, A cryptocurrency with volatility cannt be used as money. If the crypto is more stable, I think it will be used as money. maybe in 2020 it will happen.

Salesman4coinZ

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I think thats right. I dont think that you can use bitcoin as a daily payment method. First of all beause of the volatility. But even because of the technically site. So when i think about when i was a reseller, and always have to change the price everyday because the currency i used is that much volatile, i think i would go crazy. And you cant change the price all over the day, because to volatility of bitcoin is on some day so crazy, that something you sell would be in the evening like 50% more expensive then in the morning.

elkafee79

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Quote from: Dncer on May 09, 2018, 04:04:40 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 , It's true. If the crypto is more stable , I think it can be used as money. maybe in 2019 the crypto currenccy will be stable. I hope it.

ArteMixer

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Fully agree on that, as bitcoin is not supported by anything it is destined to be volatile and there is nothing really to do about that unless something is massively changed.

Mojo2012

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Quote

Can't agree more. Society will never accept it as a mean of payment under current level of volatility. It just crosses over all the other advantages, because you lose money for nothing and take risk. That is not for everybody.

I think the whole cryptocurrency bubble has to explode, result in a total loss of money for those speculating with it, cleansing the whole cryptoworld of people just greedy for money.
Then it can start fresh, based on the leftofter technology. Eventually it will prevail over fiat money.

supercanada1

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Quote from: Freddie Aguiluz on May 13, 2018, 12:40:16 AM

Quote from: Dncer on May 09, 2018, 04:04:40 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?

We can say that all money like dollar is volatile, but other currecies are much less volitile than the cryptocurrency. So we cant say that cryptocyrrencies cannot be used as money.

You may be right but I think so that if the government takes certain interest in doing such kind of thing, then there are likely chances of this thing to happen and that this will no doubt make this world a better place to live. In addition to this, it will also help the people in meeting all their needs without keeping anything in their wallet and that they can use the crypto coins both as an asset and currency.

yoseph

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Quote from: Crypto Sway on May 13, 2018, 12:21:11 PM

This is an interesting dichotomy. Thankfully for the crypto community, BitCoinage is creating the first arbitrage exchange with the aims of lessening volatility so that crypto in general can be used in a monetary form as well as bring in many people who are simply afraid of investing in the market bc of volatility. Take a look here, what do you think? https://bitcointalksearch.org/topic/ann-meet-the-people-making-crypto-mainstream-3085831

In what ways is that project going to help lessen the volatility of bitcoins, No one will want to accept bitcoin as payment unless they themselves are ready to accept the risks thereof.

Kevin77

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Quote from: Fuhre on May 09, 2018, 07:27:33 AM

in fact I'm not too familiar with your question, man! we all know that the bitcoin value is designed to fluctuate, if you buy goods with bitcoin and at any time the bitcoin price goes down, the goods purchased with the bitcoin will not go down. simple, the price of the goods or the fiat does not depend on the bitcoin price itself.

Apparently, and I am not sure where he must have gotten that news from or that logic from. I can bet there is no news except something he just decided to form in his head which is totally unreasonable.

You buy something worth of $10 equivalent of bitcoin, this purchase has been made and if bitcoin value reduces, you will even end up having more bitcoin if you are to sell that stuff back at that $10 rate which makes the whole sense of the value of what you have purchased reducing with bitcoin value. The only person who is going to be at risk here is the person who sold the stuff when considering the short term fluctuation to the downside.

Crypto Sway

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This is an interesting dichotomy. Thankfully for the crypto community, BitCoinage is creating the first arbitrage exchange with the aims of lessening volatility so that crypto in general can be used in a monetary form as well as bring in many people who are simply afraid of investing in the market bc of volatility. Take a look here, what do you think? https://bitcointalksearch.org/topic/ann-meet-the-people-making-crypto-mainstream-3085831

Crypto Sway

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Can you please provide a link for this newspaper? I'm interested in reading it, thnx.

BitcoinNational

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High volatility is clearly not an asset for a currency. However, we have seen examples of currencies with a big inflation or deflation. So technically it could be used. But as a European citizen, would I accept to use bitcoin on a daily basis ? I am not sure, for the moment I prefer using my Euro. It seems more secure.
Last point, bitcoin cannot be really use as a massive currency, it has not been designed to this purpose.

joebrook

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Quote from: Dncer on May 09, 2018, 04:04:40 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?

It actually true with what he is saying and another way that the retailers can counter this is they immediately sell the crypto that they got from the purchase so that they don't lose money but with the volatility of the crypto the retailers can gain or loss.

mcmge

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Can't agree more. Society will never accept it as a mean of payment under current level of volatility. It just crosses over all the other advantages, because you lose money for nothing and take risk. That is not for everybody.

krishnaverma

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Quote from: Dncer on May 09, 2018, 04:04:40 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?

This is very much true, especially for low prices items like say $10 or below. If you are buying a newspaper for $1 per day tomorrow, will you agree to pay $2 for it next day because bitcoin prices just jumped.

It might not look that big with one time purchases but will have a huge effect on common or daily expenses like that on transport.

Vaskiy

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Volatility is one of the factor which never lets the bitcoin down, because being volatile is its nature and most of the time the end result of price volatility is growth. Bitcoin getting used as a currency needs a larger time space to reach the population which is not possible at present.

Tigorss

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Quote from: Dncer on May 09, 2018, 04:04:40 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?

it has nothing to do with it just like you buy bitcoin using another coin, you might misread the news or articles. but it is true that the rise and fall in prices depends on the volality.

Mojo2012

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Bitcoin and other crypto currencies’ worth is currently determined by the user demand and speculation.
The world is based on real currencies. The volatility of the cryptocurrencies os only a problem, because we have to exchange cryptos to real currencies.
Say a car costs 10000 euros, it will mostly likely cost that for years. Your income will be kind of stagnant too. So if you have 10000 today you can buy the car, if you have 10000 in a year you can bye the same car.
(Not including inflation for simplicity)

Base on speculation cryptos have changed their worth every day, probably ranging from 0 euros to a million.
You simply cant know if you can afford that car tomorrow, even if you could today.

The real problem here is that as long as the world is working with euros (and other currencies) cryptos cant be used as a replacement for money. At least not as long as speculation is such a thing.

But imagine of there were just cryptos! Or even just one crypto currency. Then the real world economy would be based on that and exchange rates would not apply.

Ergo the car woukd always cost xxx crypto. There woukd be no way of gaining money by speculation, so the worth would be stable.

senin

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Quote from: Dncer on May 09, 2018, 04:04:40 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?

You just gave an unfortunate example. If the bitcoin rate falls, the apartment bought for bitcoin decreases in price in comparison with bitcoin, however it will retain its value in comparison with other currencies.
I can give another example. There was information that in December last year, Russia and Turkey had the first deal in bitcoin. Russia supplied Turkey some goods, it seems, some products. This deal, of course, was prepared in advance and in the agreement, a certain number of bitcoins was delivered according to its rate for that time. In December, the bitcoin rate rose sharply, we will count twice. This means that Turkey actually paid twice as much money in bitcoin. Then the bitcoin rate fell from almost $ 20,000 to $ 6,500. How can economists calculate the price and the amount of the goods in this case? Will Russia and Turkey want to play this roulette next time? Very much I doubt.
In the end, we can say that, in fact, decentralized crypto currency can not be used as money, but as the main currency. Such a crypto currency can quite successfully go and be used as money and only along with the circulation of ordinary money.

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