A cryptocurrency with volatility can't be used as money - page 7.

bangkit tri

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Quote from: JohnBitCo on January 19, 2019, 02:28:49 AM

Quote from: Vaculin on January 14, 2019, 11:24:19 PM

Quote from: snipie on January 14, 2019, 01:55:39 PM

Quote from: fauzan Ichsan on January 11, 2019, 11:19:55 AM

Quote from: ?? on ??

don't never dream of replacing fiat with crypto as a payment currency.
very unlikely, even if the fiat currency will be replaced, it looks like gold is more suitable as a payment currency, a currency that will never experience inflation.

indeed fiat cannot be replaced by bitcoin at this time, but gold is also difficult to replace fiat. even if that happens, of course it's been a long time ago, because we know gold is a valuable asset that has been recognized starting from the kingdom era

Gold was used before as a way for payment or to exchange goods with it. Nowadays no i doubt it will happens to replace fiat. Societies are trying to go cashless in almost every field. We may not see bitcoin as a national currency but we will see blockchain based national cryptocurrency in the coming years.

That will definitely happen, we are going to that direction already and bitcoin and crypto is easy to carry and secure compared to gold.
The use case of crypto is also better compared to gold so I believe people will see which are more valuable between the two but this will take time.

I know that people will not use gold as the gold was already been replaced by the fiat currencies. Its the matter of whether people will quit fiat and use digital currency instead ?

Well, not until bitcoin price is stabilized. I mean you will not want a person buying a car for some bitcoins and in the evening the price of the amount is reduced by 5 percent or so. This is the disadvantage of volatile currency. I hope with regulations this problem will be solved and then bitcoin will be used as a major currency.

besides that with all countries using bitcoin, volatile will be small, because many bitcoin and whales holders will have difficulty controlling it, unlike today. in my opinion at this time it is still difficult to use BTC as money as you demonstrated

superstarbtc

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cryptocurrency with volatility can be used as money when the merchant and the user pay it with cryptocurrency so it depends of mass adoption irrespective of prices

JohnBitCo

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Quote from: Vaculin on January 14, 2019, 11:24:19 PM

Quote from: snipie on January 14, 2019, 01:55:39 PM

Quote from: fauzan Ichsan on January 11, 2019, 11:19:55 AM

Quote from: ?? on ??

don't never dream of replacing fiat with crypto as a payment currency.
very unlikely, even if the fiat currency will be replaced, it looks like gold is more suitable as a payment currency, a currency that will never experience inflation.

indeed fiat cannot be replaced by bitcoin at this time, but gold is also difficult to replace fiat. even if that happens, of course it's been a long time ago, because we know gold is a valuable asset that has been recognized starting from the kingdom era

Gold was used before as a way for payment or to exchange goods with it. Nowadays no i doubt it will happens to replace fiat. Societies are trying to go cashless in almost every field. We may not see bitcoin as a national currency but we will see blockchain based national cryptocurrency in the coming years.

That will definitely happen, we are going to that direction already and bitcoin and crypto is easy to carry and secure compared to gold.
The use case of crypto is also better compared to gold so I believe people will see which are more valuable between the two but this will take time.

I know that people will not use gold as the gold was already been replaced by the fiat currencies. Its the matter of whether people will quit fiat and use digital currency instead ?

Well, not until bitcoin price is stabilized. I mean you will not want a person buying a car for some bitcoins and in the evening the price of the amount is reduced by 5 percent or so. This is the disadvantage of volatile currency. I hope with regulations this problem will be solved and then bitcoin will be used as a major currency.

yusupjatigumilar

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Therefore I prefer to call bitcoin an investment commodity and not as a transaction tool like a fiat money function, but we can use this bitcoin to send large amounts of money in long distances but at a low cost and not to go through the bank so the government does not can monitor the transaction, but maybe because it is considered illegal in some countries.

Naida_BR

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Quote from: Dncer on May 09, 2018, 05:04:40 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 couldn't agree more with this statement. However, the reason why volatility exists is that cryptocurrencies are not used daily for everyday transactions but they are used for storing value and it is something like a kind of investment. If cryptos start to be used daily then their value will be more stabilized as there will be more buy/sell orders and transactions.

Incodium Coin

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Let's be reminded that even fiat currencies usually have fluctuating exchange rates. Swings in the market ensure that the demand for and supply of any currency results in these upwards and downward movements. Fixed exchange rates are a thing of the past, and l think the same rule applies to cryptocurrencies.

Triwiyono

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there is a point too, but if it is to replace a temporary transaction maybe bitcoin can. like changing to long-distance transactions, but having to exchange bitcoin with the original currency so that the value doesn't go down. if the transaction uses butcoin, but saving the old bitcoin until the price goes up or down of course it can't.

PuertoLibre

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Quote from: horrifiedx1 on January 15, 2019, 09:35:59 AM

Quote from: Irvinn on January 15, 2019, 02:16:25 AM

Quote from: Dncer on May 09, 2018, 05:04:40 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?

The high price volatility of cryptocurrency is a very big obstacle for its use by states, their bodies and business structures. However, for ordinary people, decentralized cryptocurrency provides greater opportunities and advantages compared with the national money of the states and high price volatility is one of such advantages. We earn on cryptocurrency, largely using its high price volatility. Therefore, it is both an advantage and a disadvantage of cryptocurrency.

I think in addition to high volatility as an obstacle in making it a currency, of course every country wants to have its own currency, and with a decentralized system it makes it irrelevant as a currency, although crypto is a smart technology, but currently it cannot be used as a tool transaction

High volatility is known issue for crypto payments and some projects already want to test their alternative digital currency that pegged to fixed value. I have no idea how they want to implement this but having idea doesn't have same mean to have successful way to solve issues for payment processors.

Snaic

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Quote from: horrifiedx1 on January 15, 2019, 09:35:59 AM

Quote from: Irvinn on January 15, 2019, 02:16:25 AM

Quote from: Dncer on May 09, 2018, 05:04:40 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?

The high price volatility of cryptocurrency is a very big obstacle for its use by states, their bodies and business structures. However, for ordinary people, decentralized cryptocurrency provides greater opportunities and advantages compared with the national money of the states and high price volatility is one of such advantages. We earn on cryptocurrency, largely using its high price volatility. Therefore, it is both an advantage and a disadvantage of cryptocurrency.

I think in addition to high volatility as an obstacle in making it a currency, of course every country wants to have its own currency, and with a decentralized system it makes it irrelevant as a currency, although crypto is a smart technology, but currently it cannot be used as a tool transaction

I do not think that every state is now striving to create its own centralized cryptocurrency. Most states still continue to study cryptocurrency, others simply take a wait-and-see attitude in this matter. In addition, centralized cryptocurrency states should not strongly conflict with the decentralized cryptocurrency. The cryptocurrency of individual states will in fact represent national money, only in digital form. They will predominantly walk within this state and be used as a type of cashless means of payment.

horrifiedx1

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Quote from: Irvinn on January 15, 2019, 02:16:25 AM

Quote from: Dncer on May 09, 2018, 05:04:40 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?

The high price volatility of cryptocurrency is a very big obstacle for its use by states, their bodies and business structures. However, for ordinary people, decentralized cryptocurrency provides greater opportunities and advantages compared with the national money of the states and high price volatility is one of such advantages. We earn on cryptocurrency, largely using its high price volatility. Therefore, it is both an advantage and a disadvantage of cryptocurrency.

I think in addition to high volatility as an obstacle in making it a currency, of course every country wants to have its own currency, and with a decentralized system it makes it irrelevant as a currency, although crypto is a smart technology, but currently it cannot be used as a tool transaction

Irvinn

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Quote from: Dncer on May 09, 2018, 05:04:40 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?

The high price volatility of cryptocurrency is a very big obstacle for its use by states, their bodies and business structures. However, for ordinary people, decentralized cryptocurrency provides greater opportunities and advantages compared with the national money of the states and high price volatility is one of such advantages. We earn on cryptocurrency, largely using its high price volatility. Therefore, it is both an advantage and a disadvantage of cryptocurrency.

btcyoda

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Quote from: Pattart on January 15, 2019, 12:20:46 AM

Quote from: Vaculin on January 14, 2019, 11:24:19 PM

Quote from: snipie on January 14, 2019, 01:55:39 PM

Quote from: fauzan Ichsan on January 11, 2019, 11:19:55 AM

Quote from: ?? on ??

don't never dream of replacing fiat with crypto as a payment currency.
very unlikely, even if the fiat currency will be replaced, it looks like gold is more suitable as a payment currency, a currency that will never experience inflation.

indeed fiat cannot be replaced by bitcoin at this time, but gold is also difficult to replace fiat. even if that happens, of course it's been a long time ago, because we know gold is a valuable asset that has been recognized starting from the kingdom era

Gold was used before as a way for payment or to exchange goods with it. Nowadays no i doubt it will happens to replace fiat. Societies are trying to go cashless in almost every field. We may not see bitcoin as a national currency but we will see blockchain based national cryptocurrency in the coming years.

That will definitely happen, we are going to that direction already and bitcoin and crypto is easy to carry and secure compared to gold.
The use case of crypto is also better compared to gold so I believe people will see which are more valuable between the two but this will take time.

Gold is still used in some areas and is known as dinar anyway. but fiat is certainly still the main currency. the point is that even though cryptocurrency is not the primary. but it will still be used as a legitimate currency in some places. regardless of its fluctuations..

Yes, you are right people have already considered to Gold even though it is fluctuating in the market. In the same way, they will use they will use the cryptocurrency as a prominent for the transaction. Still, the cryptocurrency is at the beginning which will securely be traded in the market in the coming days.

Pattart

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Quote from: Vaculin on January 14, 2019, 11:24:19 PM

Quote from: snipie on January 14, 2019, 01:55:39 PM

Quote from: fauzan Ichsan on January 11, 2019, 11:19:55 AM

Quote from: ?? on ??

don't never dream of replacing fiat with crypto as a payment currency.
very unlikely, even if the fiat currency will be replaced, it looks like gold is more suitable as a payment currency, a currency that will never experience inflation.

indeed fiat cannot be replaced by bitcoin at this time, but gold is also difficult to replace fiat. even if that happens, of course it's been a long time ago, because we know gold is a valuable asset that has been recognized starting from the kingdom era

Gold was used before as a way for payment or to exchange goods with it. Nowadays no i doubt it will happens to replace fiat. Societies are trying to go cashless in almost every field. We may not see bitcoin as a national currency but we will see blockchain based national cryptocurrency in the coming years.

That will definitely happen, we are going to that direction already and bitcoin and crypto is easy to carry and secure compared to gold.
The use case of crypto is also better compared to gold so I believe people will see which are more valuable between the two but this will take time.

Gold is still used in some areas and is known as dinar anyway. but fiat is certainly still the main currency. the point is that even though cryptocurrency is not the primary. but it will still be used as a legitimate currency in some places. regardless of its fluctuations..

deppil

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Quote from: PlusOne88 on December 27, 2018, 09:53:40 PM

Yes this is true. The volatility of a digital currency is a hindrance to the idea of using it as a currency. The reason is clear and simple, you would loose the value if suddenly it goes down especially when very low. The value can't be stored for long because if it goes low it wouldn't gain from it and only when value rises up. But there could be some other ways which we can still use the currency and thst is for us to figure out. I also have some ideas but I still have to think and check if it could be feasible.

Yeah the current concern is fluctuations which make it difficult for someone to use crypto as a currency and payment method because it will harm one party if fluctuations occur very quickly, I hope there is the latest payment method innovation, where crypto is directly converted to fiat so that fluctuations can be avoided

chrisculanag

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Quote from: Vaculin on January 14, 2019, 11:24:19 PM

Quote from: snipie on January 14, 2019, 01:55:39 PM

Quote from: fauzan Ichsan on January 11, 2019, 11:19:55 AM

Quote from: ?? on ??

don't never dream of replacing fiat with crypto as a payment currency.
very unlikely, even if the fiat currency will be replaced, it looks like gold is more suitable as a payment currency, a currency that will never experience inflation.

indeed fiat cannot be replaced by bitcoin at this time, but gold is also difficult to replace fiat. even if that happens, of course it's been a long time ago, because we know gold is a valuable asset that has been recognized starting from the kingdom era

Gold was used before as a way for payment or to exchange goods with it. Nowadays no i doubt it will happens to replace fiat. Societies are trying to go cashless in almost every field. We may not see bitcoin as a national currency but we will see blockchain based national cryptocurrency in the coming years.

That will definitely happen, we are going to that direction already and bitcoin and crypto is easy to carry and secure compared to gold.
The use case of crypto is also better compared to gold so I believe people will see which are more valuable between the two but this will take time.

Yes i agree with you sir , and because its easy to us to collect more crypto than the gold and that is the way of us to earn more but like you said there are many times to earn . Crypto for me is better than holding gold and we are same believe that crypto are more importants and easy to use in many ways.

Vaculin

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Quote from: snipie on January 14, 2019, 01:55:39 PM

Quote from: fauzan Ichsan on January 11, 2019, 11:19:55 AM

Quote from: ?? on ??

don't never dream of replacing fiat with crypto as a payment currency.
very unlikely, even if the fiat currency will be replaced, it looks like gold is more suitable as a payment currency, a currency that will never experience inflation.

indeed fiat cannot be replaced by bitcoin at this time, but gold is also difficult to replace fiat. even if that happens, of course it's been a long time ago, because we know gold is a valuable asset that has been recognized starting from the kingdom era

Gold was used before as a way for payment or to exchange goods with it. Nowadays no i doubt it will happens to replace fiat. Societies are trying to go cashless in almost every field. We may not see bitcoin as a national currency but we will see blockchain based national cryptocurrency in the coming years.

That will definitely happen, we are going to that direction already and bitcoin and crypto is easy to carry and secure compared to gold.
The use case of crypto is also better compared to gold so I believe people will see which are more valuable between the two but this will take time.

snipie

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Quote from: fauzan Ichsan on January 11, 2019, 11:19:55 AM

Quote from: ?? on ??

don't never dream of replacing fiat with crypto as a payment currency.
very unlikely, even if the fiat currency will be replaced, it looks like gold is more suitable as a payment currency, a currency that will never experience inflation.

indeed fiat cannot be replaced by bitcoin at this time, but gold is also difficult to replace fiat. even if that happens, of course it's been a long time ago, because we know gold is a valuable asset that has been recognized starting from the kingdom era

Gold was used before as a way for payment or to exchange goods with it. Nowadays no i doubt it will happens to replace fiat. Societies are trying to go cashless in almost every field. We may not see bitcoin as a national currency but we will see blockchain based national cryptocurrency in the coming years.

Tylev

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Quote from: Dncer on May 09, 2018, 05:04:40 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 is really difficult to use cryptocurrency in business because of its high price volatility. In addition, for the same reason, it is very difficult to report to tax authorities or to audit business structures. Besides the fact that a cryptocurrency has a greater volatility, it is difficult for a business to work with a cryptocurrency also because, unlike banks, it is difficult to provide documentary evidence of the transaction price.
I think that the cryptocurrency will be used in connection with this by more citizens, not business structures.

andieoke

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This is indeed difficult, the price of Bitcoin which can go up and down very drastically can make it very difficult for people to believe Bitcoin can be used as real money. Because it's true, when we buy a Bitcoin at a high Bitcoin price, and suddenly the value drops far, then we will lose a lot of our money. In my opinion, bitcoin is more appropriate if it is made into an investment or it can also be made into money, provided we also continue to use ordinary fiat currencies. So when the price of Bitcoin goes down, we can shop with Fiat money and save Bitcoin until the price rises again.

Visbay

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Quote from: jcarlo on January 12, 2019, 04:13:07 AM

Quote from: FlightyPouch on January 11, 2019, 07:57:38 PM

Quote from: biskitop on January 10, 2019, 11:40:41 PM

you can, and what you need to remember is that if bitcoin is used as money for payment, then the volatility will not be as extreme now. do you know that the bitcoin market is like this because bitcoin is only traded in the market, not used as a payment instrument or anything other than the btc market.

Well, that is the reason it is used like that. The volatility makes the price move since no one is really controlling or manipulating the price unless you have a lot of them. It is used as a payment in the past but it was also rejected by a lot of platforms and even some regretted that they've actually accepted it as a payment. It can be used as a money if we will be able to remove that volatility, and I don't think it will be that easy.

Volatiling on price happen in fiat money too. Bitcoin can be a currency if government regulating it and maybe this happen in next few years. Bitcoin price always volatile because the price depend on supply and demand and there is no central banks that can control the supply.

Yes I love the volatile nature of bitcoin as it gives me more and more opportunities to buy it at very low price. As you said in fiat it happens because currency rates rise and falls with time. So if you see the price of bitcoin is decreased then just go and buy some at affordable prices later on after holding you will be able to sell again at high price.

Topic: A cryptocurrency with volatility can't be used as money - page 7. (Read 34026 times)