The assertion that Cryptocurrency cannot perform tge function of money in the real sense of it because of its high volatility is correct.People take Cryptocurrency as an asset I of money.
So they use it as a store of value.
Topic: A cryptocurrency with volatility can't be used as money - page 8. (Read 34026 times)
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.
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.
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 is one of the issues bitcoin has been dealing with, volatility. This might be an obstacle for bitcoin to go mainstream. But, how could bitcoin be stable when is treated as a digital assets. Huge investors are really playing around to earn profit. There's nothing we can do with these manipulators. This isnone reason why bitcoin is so volatile.
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.
I partially agree with you. Volatile cryptocurrency is poorly suited for use as money. But things acquired with cryptocurrency will not lose or increase their value with it.
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 eravery 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.
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 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.
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.
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.
I partially agree with you. Volatile cryptocurrency is poorly suited for use as money. But things acquired with cryptocurrency will not lose or increase their value with it.
If we take this particular example, then the same can be said about any other currency. You buy an apartment for US dollars, but this doesn't guarantee you that in a few years this apartment will not lose in value, even if the dollar has lost in value. That is, this example absolutely doesn't show how unreliable purchase is in bitcoins.
The price of an apartment or US dollars do go up and down but this ratio is very less. Bitcoin on the other hand moves 10 percent up and down within a single day and this is certainly not favorable for anyone doing business as money he got in the morning may be will 5-10% down in the evening and all the budget and planning is disturbed.
It doesn't matter much. If a person is serious about trading, then such volatility, on the contrary, is a positive one. The bottom line is that investing is risky and any currency is always unstable. The stability of national currencies is highly questionable, since we all know that their rate increases and decreases over time or under the influence of any circumstances. So, the described statement of the author: "impossible to use a currency with volatility as money" is initially false.
You can sell your house for more BTC, isn't it?
Suppose you bought a house for 10 BTC. A year later, BTC lost 50% of its value. And you can sell your house for 20 BTC. Easy.
But what about volatility. It makes sense when we talk about short distance. If i want to buy an icecream for 0.1 ETH, but it's 0.2 ETH after 20 mins, it will be a trouble for me.
Suppose you bought a house for 10 BTC. A year later, BTC lost 50% of its value. And you can sell your house for 20 BTC. Easy.
But what about volatility. It makes sense when we talk about short distance. If i want to buy an icecream for 0.1 ETH, but it's 0.2 ETH after 20 mins, it will be a trouble for me.
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?
nope. I disagree with this view. because it is very absurd. When we buy any asset, we have to pay the amount with that value. So the price of the BTC dropped sharply, it was only affected a little but not reduced too much. What do you think about this argument?
It is true that the value of bitcoin can change at any time and is very vulnerable to changes in value when we transact. The risk borne by the recipient of bitcoin if the value drops.
This is true in all ramifications.
The reason why cryptocurrency is seen to be more of an asset than money is because of it's volatile nature.
The Fiat money is not volatile and that is why it is functioning effectively in that regard.
The reason why cryptocurrency is seen to be more of an asset than money is because of it's volatile nature.
The Fiat money is not volatile and that is why it is functioning effectively in that regard.
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.
Obviously , cryptocurrency can not be used as money. But i have some questions , why cryptocurrency have to be used as momey? When we can use USD, EURO,..?? What is the purpose of cryptocurrency becoming stable? If it becomes stable, we can make money with it?
But anyway, cryptocurrency is always fluctuating and it cannot be used as money
But anyway, cryptocurrency is always fluctuating and it cannot be used as money
We are living on technology world and if government regulated bitcoin as currency, i am believe people will use bitcoin as money because its more secure and flexible. Imagine we travel to around the world and we using bitcoin as money and i am believe its very helpful because its more secure
cryptocurrencies are mostly as asset management cryptocurrencies are rapidly growing currencies and most of the cryptocurrencies can be used as an asset as well as payment processor example pundix
The fact is that crypto currency now is used as fiat currency, it is recognized for tool payments in some countries. And fiat currency is also volatile as crypto currency. Thus, I think both fiat currency and crypto currency have same value, what makes it different is that one is real and crypto currency can be used only in digital. And one is control by government and crypto currency is decentralized. The most important thing is both are same.
Even if cryptos have volatility and can't be used as official mediums of exchange then it's got another use case and that's what many people have resorted to now (trading). I also believe it is due to this that some countries have started regarding cryptos as assets rather than money.
Fiat is volatile as well though not in the level of crypto. I think once crypto's volatility becomes more tamed, that's the time that people will seriously look at the transactional use for it more than it's profit making use.
Why not ? Fiats or the local currencies that we used today is also volatile but not as high as cryptos and even if they are volatile they are still being used as a form of money in order for us to buy goods or pay for someone/something else .
that scenario is also applicable to cryptos and we are actually already using our cryptos as a payment medium .
Not just cryptos or fiats but anything that has a value , can always be used as a form of money.
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