Topic: A cryptocurrency with volatility can't be used as money - page 9. (Read 34045 times)
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.
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 is the purpose of a currency? The main purpose is to be able to trade or buy and sell with it. In your statement you admitted the fact that the user was able to buy the flat or what he wants with Bitcoin - that makes it a currency. Depreciating or increasing in value is other state of affairs which makes its investment one of the lucrative one across the globe if you can read the market trend and make right choices with some coins. What do you think about this argument?
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?
That will be true but only if bitcoin was the only currency around the world, and even if that happened it will not make a difference because that would mean that the price of everything will go down as well, now when it comes to bitcoin forget about the media being objective about it, they are going to lie because they do not want people to adopt cryptocurrencies. What do you think about this argument?
There's gonna be a solution to this in the long run, volatility only happens because it's traded in different exchanges where rates changes
from time to time, but if we really want a real money then maybe we can try using cash, it's easier.
I heard about stable coins but I haven't check it yet, I don't know if it's possible.
from time to time, but if we really want a real money then maybe we can try using cash, it's easier.
I heard about stable coins but I haven't check it yet, I don't know if it's possible.
Stable coins, or stable currencies can be stable if you have demand and stable supply. Money is a form of trust, you trust institutions that create money, you are buying a product from a person and you need to have trust in him and product. Managing supply is relatively easy, managing demand is based on expectations, which requires trust. When you see stable coin or currency you need to know that there is team behind that is managing supply all the time, based on expectations they calculate possible demand and they hold stable level. Bitcoin and some crypto currencies supply is already programmed, you have block rewards and halving, this is a simple explanation, demand cannot affect supply, nobody is managing bitcoin supply. How I see it stable coins require central system, you can believe in that or try to believe in decentralised system run by people around the world.
Yes, I also agree with this argument, it is true that crypto cannot be used as money because of its very high fluctuations. That will be detrimental because prices will continue to change so they can lose value. In addition, if used for direct transactions, it will definitely take time. Because the fluctuations are very high, crypto is more suitable if used for trade or investment, this will be more profitable.
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.
Thats true, I think every currency can also fluctuate when their economy is shaky, the point is that even an unstable currency can be a currency, so don't look at bitcoin as not suitable for currencies mate..
There's gonna be a solution to this in the long run, volatility only happens because it's traded in different exchanges where rates changes
from time to time, but if we really want a real money then maybe we can try using cash, it's easier.
I heard about stable coins but I haven't check it yet, I don't know if it's possible.
from time to time, but if we really want a real money then maybe we can try using cash, it's easier.
I heard about stable coins but I haven't check it yet, I don't know if it's possible.
In a large and serious business, high price volatility of cryptocurrency is a very big obstacle to its use as a means of payment. In any transaction, one of the parties will constantly suffer losses depending on the price movements of the cryptocurrency. After all, since the preliminary agreement and until the practical implementation of the transaction, a considerable time passes and during this time the price of the transaction in the cryptocurrency can change dramatically.
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.
I think a cryptocurrency with volatily can still be used as money since it has a value which can be traded or to buy a product.
in economic theory, there are several conditions for a good to be made into money, including: acceptability, stability of value, durability, portability, uniformity. because it requires stability of value, so I think bitcoin still can't be used as moneyAlthough it is very risky but will still have loyal connoisseurs because buyers and sellers will not prioritize the latest prices, they see from the point of view of asset values that have a totality to develop.
Okay, just a question - What is money?
Cryptocurrency just on the starting position of the long way to the future.
What do you know about fiat money start?
|Cryptolaboratory team|
Cryptocurrency just on the starting position of the long way to the future.
What do you know about fiat money start?
|Cryptolaboratory team|
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
I think a cryptocurrency with volatily can still be used as money since it has a value which can be traded or to buy a product.
in economic theory, there are several conditions for a good to be made into money, including: acceptability, stability of value, durability, portability, uniformity. because it requires stability of value, so I think bitcoin still can't be used as money 
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.
investment is risky, even though every investment has a different risk. of course, there is no guarantee that you will get a profit. but crypto conditions are currently not used by many countries
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 high price volatility of cryptocurrency is a significant obstacle to the legalization of cryptocurrency by states. Perhaps with this in mind, Bitcoin is also not widely used as a means of payment in business structures. Many commercial enterprises that initially switched to settlements in the cryptocurrency, then began to abandon it, including because of the high price volatility of the decentralized cryptocurrency. Perhaps, in this connection, Bitcoin will be mainly used among individuals, as well as for making very large transactions involving legal entities.
I wouldn't say that volatility is an obstacle for legalization but it's an obstacle for formal and regulated introduction to economic system. Many countries so far have already regulated Bitcoin but it didn't become the part of monetary and economic system and this is not very likely to happen.
No matter to that volatility doesn't prevent Bitcoin to be used as money but that brings high risk because of constant changing of value.
The high price volatility of cryptocurrency is a significant obstacle to the legalization of cryptocurrency by states. Perhaps with this in mind, Bitcoin is also not widely used as a means of payment in business structures. Many commercial enterprises that initially switched to settlements in the cryptocurrency, then began to abandon it, including because of the high price volatility of the decentralized cryptocurrency. Perhaps, in this connection, Bitcoin will be mainly used among individuals, as well as for making very large transactions involving legal entities.
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 opinion conveyed is very precise and the opinion conveyed may relate to the legality of the currency that not all countries legalize if possible the crypto currency is legalized by all countries in the world, maybe the nature of the crypto currency will change What do you think about this argument?
cryptocurrency with volatility can be used as money and can be used as asset or payment processor we have all the unique features for bitcoin as a payment processor
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's absolutely right. I never thought that bitcoin or any altcoins could be a common currency for a country. it is always volatile and no one can stop it.What do you think about this argument?
Besides, it is not historical, so it cannot become a world currency.
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