Topic: A cryptocurrency with volatility can't be used as money - page 33. (Read 34026 times)

I think if we saw on forex market, all fiat money have high fluctuation too. Maybe the fluctuation not like on cryptomarket but the price have a fluctuation. I am believe cryptocurrency can be for payment if regulation issued by government.

Precisely. A debt based monetary system simply does not work, when you can just borrow money out of thin air. And you're right, the people that will suffer from inflation aren't the wealthy, aren't the poor, but the middle class, since they are the ones without investments to produce returns for them.

There tends to be this notion of fiat being constant in value over time, but this is definitely not the case. Even bitcoin appreciating can be seen as fiat depreciating, as more and more people see BTC as more fit of a store of value.

Bitcoin can be as volatile as it likes, but at least I have the peace of mind of knowing that nobody can manipulate it the way the government does to fiat. And volatility is a rather short term concept, BTC shouldn't be that volatile in the long run.

That's true, and the post below also made the valid point of the price (hopefully) normalising later on. This is more applicable to when a particular cryptocurrency gains mass adoption so the actual usage is the main driver behind price, instead of speculation.
When you think of shares, the more established a company becomes, the more stable is the price.
However like shares and fiat (FX markets), cryptocurrencies will continue to have some traders that affect the price through speculation. For example when a large company announces a new venture in a new country, the price increases be a decent %. Or when a country gets downgraded in terms of its credit rating, the price of that local currency/fiat depreciates (falls), as less people demand it. This doesn't make that fiat currency be inappropriate for use as a currency or money.
One can also think back to the old days where people would use other things as money, such as wheat or dates. In such cases, the price would be affected the demand and supply of wheat, leading to sometimes large changes in the price. However they remained being used as money for centuries.
The issue with fiat is that authorities can print lots of fiat almost at will, which can lead to sharp changes in price, even in the short run. This cause doesn't occur with bitcoin.

Wait, your example doesn't even make sense. If you buy a flat with bitcoin, then bitcoin prices drop, how exactly does it make the apartment price drop as well? There is no direct correlation here whatsoever, so I don't know what you're getting at.

Bitcoin is a better currency than fiat, and fiat is being widely used. So what's the issue?

Earlier on the adoption cycle, like right now, prices can be extremely volatile, sure. But as time goes on, this volatility drops. Also, there is a wide variety of ways people can fix the value of their BTC during a trade, so that they are not affected by any exchange volatility. I honestly don't see why BTC can't be money just because it's not pegged to a fiat.

Yes, It is true,.If cryptocurrency with volatility can't be used as money. It must stable. I think In 2020 when the demand is balance with supply, It will be used as money.

Putting all your assets and time to a crypto with volatile stability would infect your brain surging its signal to sell that particular crypto and for that matter don't waste your time reading article of what crypto is the most stable instead study market on your own and start trading, that way you could gain extra experience to your life the most stable one.

Yes, it is true. The cryptocurrency with volatility can't be used as money. If it is stable, I think crypto can be used as money. Maybe in 2020, we will see the crypto is stable. I hope it.

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.

It is right due to high volatility it can't be used as money at least not in near globally, you should not consider cryptocurrency as an alternative to fiat. Consider it as a digital asset whose value can be increased/decreased as per supply/demand in the market. Take it as shares in the market based on a specific project/product same like your shares in the stock market which also depends on a project run by a team doing business with their project/product. If product demand increases whether it is related to stock market share or crypto market in both cases the value of your shares/tokens will be increased.

Buying a flat with bitcoin and because bitcoin reduces in value, your flat value reduces as well ? Are you really high right now ?
By flat, I am sure you are talking about a house in the literal term and for heaven sake, you have nothing to lose buying the flat in the equivalent amount you could have gotten it.

The only person who may have something to lose would be the person that actually sold the flat to you probably not converting to fiat and then the value of bitcoin drops in value which makes the idea of not using bitcoin as money comes to play but your example is totally off.

"It’s precisely the volatility and day-to-day price fluctuation what is keeping the masses away and scared of cryptocurrencies. Imagine if we can assure reluctant people that the value of their money will be stable and safe within the crypto space, so they can enjoy all the benefits from a decentralized and innovative financial system, without all the risks they’ve been hearing about in the news. Everyone can agree stability is important to encourage a wider adoption of cryptocurrencies."

Good read: https://medium.com/@globcoin_io/5-key-facts-about-stablecoins-571819f3b3fa

The problems of value loss have started to become more obvious in recent years than ever before. The wealthy elite won't suffer any loss in purchasing power with how their returns easily cover the loss in value of their fiat holdings, but that's unfortunately not the case for the regular person.

Regulars have one weakness, and that weakness is debt. It's insanely easy to borrow money every month to fill up your gaps, while in the background the value loss of fiat + the interest rates of your loans (short term loans are mostly the worst and most expensive) are pushing you down in the hole even further. It's sickening that a system like this exists. Imagine how more worse the situation will become when we're like 10 years away from now.

Debt is the poison of this system slowly sucking the life out of everyone.

It simply doesn't work. We've been using fiat currency for decades now, and it has consistently lost its value over time. Yet everyone is still able to conduct business with fiat, even though we know that the value of fiat is going to go down in the long run.

Bitcoin is actually better than that, although its short term fluctuations may be big right now, in the long run, it should hold its value unlike fiat because of its limited supply. And the volatility definitely does not mean that nobody can use it as money.

The only reason why BTC is so volatile right now is the lack of adopters and merchants actually accepting BTC. In the future, this will change for sure.

Yes, I agree. if the volatility is too high then its not suitable to be used as currency. Maybe in the future when the crypto currency is stable, they can be used as money.

I am agreeing in the fact that the cryptocurrency can not be an everyday money if they are volatile because there are some instances that you need some exact money but then having a volatile money cannot make that stable. So time will come that you need that money but it falls so you need to add much money, are you getting my point. So if there are some cryptocurrency that will be use as a daily currency that must be a stable one for us to use it like fiat but digital version

This problem has long been solved if you give enough attention, using bitpay or any kind of payment gateway service will eliminate the risk of fluctuation since it's converting the bitcoin to USD directly at the real time.
And just so you know, there's no stable currency, the price is purely based on demand in the market, sigh, even fiat is not stable at all.

It means all currencies in each different country is having a volatile which is this complicated in the exchange of goods where is the fiat is can determine the fixed value of goods. Cryptocurrency that high volatile like bitcoin as of now adapting to some countries but it is not the main assets of this currency by its a value exchange. As of now, it is used as an investment that makes profitable to the people not focusing on exchange.

In many countries there was a period of high volatility of national fiat currencies, this complicated the exchange of goods, but did not abolish it. So the volatility of the crypto-currency is not too big a problem to participate in the commodity exchange, the problem of exchanging them for the fiat is much more important.

Assuming your bitcoin price will always increase from 2013 to 2017, but if the opposite bitcoin price assumption to 2030 is only $ 50 for example, the value of real estate must not be reduced value.

The reason why bitcoin can't be use fully as payment option because there is the risk that the merchants will lose instead of profit because its value in fiat decrease. Some are already accepting cryptocurrency but upon receiving the coins, they would immediately convert it to fiat so that they will not lose its value due to fluctuation. Cryptocurrencies can only be use fully as payment option without worrying for fluctuation if all the value of the products and services are price in crypto as well. There would be proper accounting and you can immediately calculate your profit or loss without worrying of its fiat value.