Topic: A cryptocurrency with volatility can't be used as money - page 34. (Read 34045 times)
Yes a currency should have a stable price and very minute fluctuations could be bared.But bitcoin has such a huge fluctuation that within a day,its price even increases or decreases up to 1,000 dollars.That's why,no retail merchant is ready to accept bitcoin as payment.
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?
Currency is different from money,so theres nothing to argue with that.What do you think about this argument?
Bitcoin is tend to be used online meaning transaction over internet is indeed,then if we need to buy or pay something this can be done instantly so if the value decreases later,its nothing matter because the deal has been than before it happens.
I agree that volatility currencies is not suitable to be used as money, the shop owner will confused with the price setting and need to change the price every day because the owner need to make profit based on the purchase price, that is why bitcoin still cant be used as currency until there are mass adopt, volatility in crypto can't be avoided but it can be decrease when more people used it
But its happening now,that many online shops accepted bitcoin as payments,so what would you say about than?the dont have to change the price daily,becaue they can put fiat price,and the bitcoin value will be adjusted
It can be used, it is depend on the seller if they want to accept cryptocurrency or not.
but as a whole and will make this crypto a money for the whole world will not be good.
there are many small business that will not carry the weigh of votality.
but as a whole and will make this crypto a money for the whole world will not be good.
there are many small business that will not carry the weigh of votality.
I do not agree with the article completely as because because just causing ups and downs in the market but because of banks the value of every countries
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 made me think of other things like the value which was not stable. I was starting to get some idea that i know bitcoins will be our future currency, however with the price volatility and almost minutely changes can make some things high or lower price. For now itcan't be use as money. What do you think about this argument?
I know its hard for Bitcoin to be considered as currency due to its high volatility, but because of its high demand in the market it did became a currency already. Have you noticed there are already a lot of businesses and services online who accepts Bitcoin as one of the payment option?Cryptocurrency could be a currency over the internet, but not in the real market. Volatility could be negotiated during transactions, payment or prices may change but it all depends on the current Bitcoin price.
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?
Currency is different from money,so theres nothing to argue with that.What do you think about this argument?
Bitcoin is tend to be used online meaning transaction over internet is indeed,then if we need to buy or pay something this can be done instantly so if the value decreases later,its nothing matter because the deal has been than before it happens.
I agree that volatility currencies is not suitable to be used as money, the shop owner will confused with the price setting and need to change the price every day because the owner need to make profit based on the purchase price, that is why bitcoin still cant be used as currency until there are mass adopt, volatility in crypto can't be avoided but it can be decrease when more people used it
But its happening now,that many online shops accepted bitcoin as payments,so what would you say about than?the dont have to change the price daily,becaue they can put fiat price,and the bitcoin value will be adjusted
I agree that volatility currencies is not suitable to be used as money, the shop owner will confused with the price setting and need to change the price every day because the owner need to make profit based on the purchase price, that is why bitcoin still cant be used as currency until there are mass adopt, volatility in crypto can't be avoided but it can be decrease when more people used it
Yes it's true, if the volatility is too high then its not suitable to be used as currency, imagine one apple cost 1 BTC today the next day it can caused 0.8 BTC and the next day it cost 1.1 BTC, it will make the owner hard to set the price and predict the profit, but if the volatility is within months then I think it is still okay, crypto currencies need to be mass adopted so the volatility is not too high
Couldn't agree more...volatility has a lot to do with a lack of meaningful transactions on the network. The order books are too thin and once it becomes more widely adopted than the resistance of the buyers and sellers will help to stabilize the price.
Furthermore, there may be other protocols which handle micro-transactions better, in which case one will be like a checking account and bitcoin will be a "savings" account in essence.
I don't think it is true cause money that we use now has same think like $ which is going up and down (of course it is lower than crypto). For me prices will be more stable in future so it will make them more adapted to movements like this.
You are somehow trying to bring out issue to ponder here on the volatility of Bitcoin. But thinking about it critically, you should be able to understand that the price of Bitcoin at which an estate is bought does not really affect the physical value of that estate at a later date.. Because the estate shall be valued by then with either Appreciation or Depreciation which shall base on the Economic situation incumbency. However, Bitcoin volatility is been affected or felt much on Exchanges/Market and not on Physical assets like Estate. Hence, cryptocurrencies can be used as money at any given periods in question.
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,we can't use bitcoin as a currency with this kind of volatility range but with these volatility only the bitcoin got more popular in very short time.So that volatility got both positives and negatives.What do you think about this argument?
But I don't understand how that flat will lose its value when bitcoin loses its value,you meant to say if we have bitcoin as only our currency in usage?
I can't agree with this assumption because prices for everything aren't stable. Crypto currency is innovative money but in the nearest future I am sure that most governments will start using it as the main currency
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.
That is really more like looking at it in the long term which obviously makes it even more interesting in that perspective. The thing is that in the long term, except for those who are just looking at the short term of things, at the end, they are still going to be making a whole lot. However, looking at the context of the OP, it would not really play out the way he portrayed it. Flat value that has been purchased already cannot decrease with a decrease in cryptocurrency value; it would only affect the seller in a short while in this case if he still ends up holding. 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.
To be honest, it doesn't make any sense to me. If you are buying a flat worth $100000 then you will have to pay around 11.60 BTC as per the agreement. Even if the price of Bitcoin falls after 6 months, the value of the flat would be the same (depends on the value of similar assets in that area). On the other hand, there is a risk of volatility for the flat seller if he is still holding the Bitcoins with him. That's what crypto is all about today, one should not invest if he not comfortable with the volatile market. Crypto market is still in the development phase and thus volatility will be there for some more years.
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?
If bitcoin value loses its value doesn't mean real estate has the same sentiment. They are different asset or property. It just happen bitcoin is used as a means of payment for the amount of the flat. No relationship to the value of bitcoin.
It all depends on the buying power, if bitcoin stays stable against the USD for one year, you actually lost money in this year as fiat value decreases because it has inflation, so anything below an increase of 4-5 % yearly would be a lose.
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?
If bitcoin value loses its value doesn't mean real estate has the same sentiment. They are different asset or property. It just happen bitcoin is used as a means of payment for the amount of the flat. No relationship to the value of bitcoin.
That's exactly my point that not many agree with.
Huge volatility makes it unuseable for common people and risky for investors. BTC is just a first step, some future coin that will manage not to be that volatile, can take its place in some years. If BTC won't find balance and rise to 20-30k again and then drop - no one ever would be interested in it except some dedicated crypto enthusiasts
Huge volatility makes it unuseable for common people and risky for investors. BTC is just a first step, some future coin that will manage not to be that volatile, can take its place in some years. If BTC won't find balance and rise to 20-30k again and then drop - no one ever would be interested in it except some dedicated crypto enthusiasts
that's quite true and that's why some of people consider bitcoin is only digital asset because volatility still be the main problem to makes bitcoin became an money instead of fiat and volatility too can makes high inflations for the particular countries however i was thinking that if this volatility can't solved which mean make bitcoin as money looks almost impossible
I'll agree
Because fast changing of price can be really difficult for every day using
Maybe, with time will appear new crypto, which have a stable price, but who knows
Also, for more stable coin we need regulations. Bad many countries make their own regulations, which really different from country to country
Because fast changing of price can be really difficult for every day using
Maybe, with time will appear new crypto, which have a stable price, but who knows
Also, for more stable coin we need regulations. Bad many countries make their own regulations, which really different from country to country
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