Topic: A cryptocurrency with volatility can't be used as money - page 4. (Read 34026 times)
It should be agreed that the high price volatility of cryptocurrency creates significant difficulties for its use as a means of payment. However, the first experience in using combined various payment systems together with cryptocurrency is able to solve this problem, at least partially. We are talking about the possibility of using another Bitcoin cryptocurrency in various bank cards, under which it will be possible to withdraw cryptocurrency on an account at the rate on the day of their withdrawal, however, in fact, calculations will be made in local currency. I am sure that in the future there will also arise other ways to avoid the negative consequences of high price volatility of cryptocurrency in trade.
terms of being a currency must be stable. if a currency has a volatile nature, I think it will be very difficult to set prices. this is also the main reason why bitcoin is only used as an alternative. well, besides that, of course the people's finances or economy are changing at any time.
This explanation is very good because of the unstable nature of the crypto currency, this will cause an unstable economic impact on society 
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.
terms of being a currency must be stable. if a currency has a volatile nature, I think it will be very difficult to set prices. this is also the main reason why bitcoin is only used as an alternative. well, besides that, of course the people's finances or economy are changing at any time.
Alternative payment. indeed the nature of being a currency is not in bitcoin. This has been discussed in this discourse. but of course it will make rejection because it will not be able to. unless a country issues their own crypto currency whose value does not rise or fall,but this also still can't. each country has its own rules
It's true that cryptocurrency is a volatile market but i don't see the connection that if you a buy a flat with bitcoin then bitcoin price starts to drop then your the flats value also drop? Physical items don't rely on digital prices but with the country's economic growth and inflation.
terms of being a currency must be stable. if a currency has a volatile nature, I think it will be very difficult to set prices. this is also the main reason why bitcoin is only used as an alternative. well, besides that, of course the people's finances or economy are changing at any time.
Yes, that is the reason why bitcoin cannot replace fiat because bitcoin has a value of volatility and vice versa, money is a value that is able to be stable even though it sometimes goes down and rises, but the value of the currency will not move too high or too low. That argument is true and it seems that bitcoin is difficult to be more stable because demand continues to increase over time. 
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?
There is no connection with bitcoin and flat, so why the flat would lose its value. It is true that bitcoin is a very volatile currency, but it has more advantages than disadvantages so we have to keep that in mind.
It seems that the governments of most countries do not take Bitcoin seriously. Probably, I am wrong but they are sure that virtual currency with great volatility cannot be used as money. Once, it will happen.
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.
terms of being a currency must be stable. if a currency has a volatile nature, I think it will be very difficult to set prices. this is also the main reason why bitcoin is only used as an alternative. well, besides that, of course the people's finances or economy are changing at any time.
If is volatile we still can use a crypto coin and we will pay as it is if is accepted to shops, if the product cost 5$ we pay 5$ taken from bitcoin wallet or another coin accepted and still can be used as money.
But the big problems is, majority of the merchants are not having an idea about in cryptocurrency. And probably, few of the merchants in the entire world are only accepting crypto. Though, if you trade crypto in the market it is obviously volatile in terms of its price value depending if the coins has a good volume in the market and established a huge traders.
A cryptocurrency if it can be used as money, what happens is that when it is in the accumulation stage and in bearish trend it is not profitable, because the cryptocurrency obeys the bitcoin movements, and if it is in those phases, simply the price does not It goes up, but if the bitcoin market is in a bullish trend, I'm sure that they will use it.
It's something like what happens when the bitcoin goes up, that the fees in the Exchanges go up a lot.
I don't think so. like the dollar index has fluctuations. but the difference is that fluctuations in bitcoin are like uncontrollable, so in an instant it can rise or vice versa. and I think this is the problemIt's something like what happens when the bitcoin goes up, that the fees in the Exchanges go up a lot.
We are aware about its value fluctuations and it is up to us on how we deal. Thus, in every aspect has an advantage, we can buy every dip and purchase when it is massively pump. And I think crypto currency will be used as money even the market phase has carrying high volatilization, because many people are resembling and keep positive of its outcome.
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?
There is no connection with bitcoin and flat, so why the flat would lose its value. It is true that bitcoin is a very volatile currency, but it has more advantages than disadvantages so we have to keep that in mind.
Bitcoin can only compete with fiat if it's stable enough, but I don't think it will be stable as fiat since it's decentralized price could move when there is speculation in the market.
We need 3rd party to make this happen, bitcoin to third party to payee, that should happen.
bitcoin's inherent nature from decentralization. will have to accept its fluctuations and risks. That's why the crypto market is really attractive. Perhaps no, future bitcoin or later it is still leaning toward speculation rather than means of payment / money. Bitcoin is accepted by many countries as a method of payment for many different activities, products and services. But here we talk more about speculation on 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?
What do you think about this argument?
There is no connection with bitcoin and flat, so why the flat would lose its value. It is true that bitcoin is a very volatile currency, but it has more advantages than disadvantages so we have to keep that in mind.
A cryptocurrency if it can be used as money, what happens is that when it is in the accumulation stage and in bearish trend it is not profitable, because the cryptocurrency obeys the bitcoin movements, and if it is in those phases, simply the price does not It goes up, but if the bitcoin market is in a bullish trend, I'm sure that they will use it.
It's something like what happens when the bitcoin goes up, that the fees in the Exchanges go up a lot.
I don't think so. like the dollar index has fluctuations. but the difference is that fluctuations in bitcoin are like uncontrollable, so in an instant it can rise or vice versa. and I think this is the problem It's something like what happens when the bitcoin goes up, that the fees in the Exchanges go up a lot.
A cryptocurrency if it can be used as money, what happens is that when it is in the accumulation stage and in bearish trend it is not profitable, because the cryptocurrency obeys the bitcoin movements, and if it is in those phases, simply the price does not It goes up, but if the bitcoin market is in a bullish trend, I'm sure that they will use it.
It's something like what happens when the bitcoin goes up, that the fees in the Exchanges go up a lot.
It's something like what happens when the bitcoin goes up, that the fees in the Exchanges go up a lot.
cryptocurrencies will volatility can be used for money and all been proved in countries like Venezuela and Argentina in both countries crypto currencies are used as major currencies for various transactions
However, we are not talking about national centralized cryptocurrencies. Just such cryptocurrencies are fully regulated in price and the volatility is minimal. However, a decentralized cryptocurrency always has and will have high price volatility and this is indeed a big problem for its use in business, especially if deals are made that by their nature require a long time from the moment the transaction is made to its implementation.However, the cryptocurrency is just beginning to develop and ways to circumvent the negative impact of the volatility of the cryptocurrency can still be found.
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 with it, something similar with inflation, there was times in certain country, mostly after WW II, when a bread for example was couple millions in the national coin. Volatility is bad for the business if you dont have control. What do you think about this argument?
The banker is right because since the cryptocurrency is a volatile currency it can not be used as the main currency because it value can change at any time and the economy need a stable currency which can prevent the economy from going into sudden inflation. But in at that if we look at it from a positive side you will know the potential of cryptocurrency being used as the mainstream currency.
The volatility of the digital currency depends on how the market moves, it indeed a big thing in terms of using it as payment, before using to pay you need to check the trend of it first in the market that makes me realise that the crypto or btc is good for investment rather than using it as a mode of payment.
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