Topic: A cryptocurrency with volatility can't be used as money - page 5. (Read 34045 times)
High price volatility of cryptocurrency is indeed a very serious obstacle to its use as a means of payment. However, the output can always be found. Now there are various mobile applications and bank cards that provide an opportunity, having a cryptocurrency, to formally make payments in national currency at the rate in effect at the time of payment for the goods or services. This form of payment will be especially beneficial for sellers of goods, because this eliminates the difficulties with reports and tax authorities. In this case, it is also possible that a document may be recorded in the national currency, and in fact, at the request of the seller of the goods, the calculation can be made in cryptocurrency.
Obviously, Bitcoin price is known for it’s volatility and fluctuation. So, it’s better to hodl it since there is a strong chance to see higher prices. At this point it wouldn’t be a smart move to use Btc to make payments.
However people are much adopted to the reality of bitcoin. Understanding the volatility of the market it has gained more importance as an I investment source rather than a payment gateway. As more acceptance and usage is found around common people we can expect the marketplaces around to accept bitcoin as payment beyond its volatility. 
It is true that if the value of bitcoin decreases eating the value of fiat in bitcoin that we have will also decrease, therefore if bictoin is used as a payment tool then there must be a system that regulates pricing automatically according to the price of bitcoin at that time, otherwise there will be parties who are disadvantaged when the bitcoin price is corrected. Unless the bitcoin price has reached a stable point where there will be no large price correction occurs.
there are still many problems that may arise other than volatility, especially when the transaction accumulates too much, it will be related to the length of transactions and costs that are swollen, but actually this is constantly being handled by the developer and third parties. But for now, the volatility that has occurred has not been possible for that.
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
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 somehow's got a point but what if your flat doubles its value? To think that its just a currency like pounds or dollars where the price changes everyday. The only difference is that it changes massively. When the time comes that its an official currency, im sure government would study it better or maybe launch some ICOs for that.
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 somehow's got a point but what if your flat doubles its value? To think that its just a currency like pounds or dollars where the price changes everyday. The only difference is that it changes massively. When the time comes that its an official currency, im sure government would study it better or maybe launch some ICOs for that.
Is it going to be involved with the usage like a normal money it need to be regulated properly otherwise possibly the best way will not been going here so the cryptocurrency is always like the alternative for the money but it will not being built up with the proper way then it is not useful.
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 to the articles point regarding this argument ,but it will depend on the mindset and understanding of the receiver of bitcoin or any cryptocurrencies in exchange to his service or products or property i guessWhat do you think about this argument?
i am glad that cryptocurrency doesnt have the stability of fiat currency
then there will not be something special about holding bitcoin or altcoins
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.
Of course, even if the crypto doesn't have stability, we can still use it as money, as long as the place where we buy the goods accepts it, however, very few shops accept this problem when the value of crypto always has too strong fluctuations. We never even want to use crypto for these cases because holding is better and can bring us profit while spending only wastes opportunity, so in people's minds, volatile crypto can still be used as money but very few people do it, it is unnecessary when fiat still exists.
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.
Just because it is volatile we can't stop using it a currency. It has got value and based on the same we can use it a currency. Even if USD is considered, it has got a stable value with small marginal variation in relation to other country fiat. The technology is getting valued these days and as a result our bitcoin and other cryptocurrencies were valued. More stores all around have come up with the understanding and has begun to accept same as currency.
Fiat's does regulated by country, lets say support from government to actually control the price, cryptocurrency is about decentralisation, power by everybody but seems the use case now it's more about accumulation of assets and profit, for instance people buy house for growth, but with fiats, btc works similarly for now at least. People care more about the price, not the actual active addresses though
We can still used it as money actually more and more establishments are using crypto as mode of payment today meaning if it is not good to used as mode of payment then why it is many establishments are looking forward for this? Volatility is not the reason why they dont want to used it the only reason is they are negative towards crypto as this moment.
high volatile feels when we convert to fiat currency. but if it's still in the crypto scope, I don't think this is a big problem. I think the main problem is legalization, where if the legality has not been obtained, it is certainly difficult to become the official currency in a countryas long as there's end users who will be willing to accept this system it will soon to be well recognized and be allowed everywhere.
We can still used it as money actually more and more establishments are using crypto as mode of payment today meaning if it is not good to used as mode of payment then why it is many establishments are looking forward for this? Volatility is not the reason why they dont want to used it the only reason is they are negative towards crypto as this moment.
high volatile feels when we convert to fiat currency. but if it's still in the crypto scope, I don't think this is a big problem. I think the main problem is legalization, where if the legality has not been obtained, it is certainly difficult to become the official currency in a country
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?
Thats is wrong argument. Each product price is determined by supply and demand. People need products and industries produce the product in specified scale for those people, the the comparison between the number of product that people need and the number of product that provided by industries will determine the price. You can know more about it if you learn about Microeconomy. But, bitcoin with its volatility today can't become the main currency that replace fiat money. Because the price is still unstable, it can be dangerous for the country's economy. But the price of it will rise because the bitcoin increasing demand is growing. Bitcoin price in the future will be more stable but still tend to rise at that time I am sure that bitcoin will be widely used by people around the world. What do you think about this argument?
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
Volatility has and will always be a very big issue with Bitcoin and other cryptocurrencies especially with our desire to make Bitcoin be a part of the mainstream population. Yes, it can cause a little mayhem for a business considering that Bitcoin has this tendency (especially if there is a bull run) to go up fast and sometimes to go down at the same rate. This can be remedied with the help of third-party infrastructure and I think we already have these apps in the marketplace. Still, volatility is the reason why in many cases there are overspeculations happening in the market because this can induce many to always hold their hoard in anticipation of a big increase days ahead. On the other hand, many are also benefited with the Bitcoin volatility as this is why traders love to their business with it. In other words, volatility can be good or bad for Bitcoin depending on which side are you in the equation and depending on which view you are leaning with and depending if this is giving you benefits or not.
We can still used it as money actually more and more establishments are using crypto as mode of payment today meaning if it is not good to used as mode of payment then why it is many establishments are looking forward for this? Volatility is not the reason why they dont want to used it the only reason is they are negative towards crypto as this moment.
high volatile feels when we convert to fiat currency. but if it's still in the crypto scope, I don't think this is a big problem. I think the main problem is legalization, where if the legality has not been obtained, it is certainly difficult to become the official currency in a country 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 statement is inarguably true. Of course, as the price of what you purchase changes, its value also changes. Same thing is trye even with physical commodities. They may also lose or gain value. But this doesn't mean that you cannot use crypto as money or as a mode of payment just because it is volatile. Even fiat is volatile. You buy dollars, per se, then you'll trade it with euro when the price suddenly dumps. Does this mean you cannot use the dollars that you bought to purchase goods? Of course not! The issue here lies on the volatility rate and movement, how high and low its volatility is and how fast does it change within a specified time.
We can still used it as money actually more and more establishments are using crypto as mode of payment today meaning if it is not good to used as mode of payment then why it is many establishments are looking forward for this? Volatility is not the reason why they dont want to used it the only reason is they are negative towards crypto as this moment.
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