Well everything is a matter of perception, it is known that there is a hegemony of the dollar of almost 60% dominance against 40% with respect to the euro and other important currencies, but do not underestimate Bitcoin. Recently Tim Draper in an interview said that Bitcoin frees people, since transactions can be made quickly and is not controlled by governments or any country, that although lacking privacy is a technology that is above the regulations presented by the Traditional economy, if you want to make a transfer of a lot of money, banks sometimes block the account to look for the origin of the funds, with Bitcoin not.
Now despite the regulations that exist, they want to take away freedoms, the Exchanges with their KYC and countries with regulations is not convenient, somehow they want to take control. Bitcoin represents money, it is as important as any fiat currency, in addition the intrinsic value it has is so high that it is not even backed, there is only its blockchain network and a huge speculative market, accompanied by a technology that the world is knowing every day.
Here is the article to extend Tim Draper's opinion: https://bitcoinist.com/tim-draper-bitcoin-btc-superior-currency-frees-people/
Topic: Why Bitcoin is not that good as currency? - page 11. (Read 2195 times)
Money and currency is like the same because they are just fiat that you can spend to buy something. It is more appropriate if we will use it as an asset because bitcoin is a safe haven for our money or currency since it really holds it value in terms of long term basis. Bitcoin is a good investment for people who want to jump into an aggressive investment with a high chance of making profit.
You must've misunderstood my point. Money or rather Fiat Money(which in this case in the form of paper bills and coins) is a currency; Bitcoin(which in this case is in the digital form) is also a currency. But Currency, on the other hand, is anything that has value and is accepted/well-known by the public. That's why I'm only considering it as a currency, but not money.
I agree on Bitcoin being an asset but being a safe haven is arguable. If safety is what we consider the most in any investment, then I'd rather invest in a less volatile asset such as Gold.
There are people who says bitcoin cannot replace the cash because of its high volatility. The value of bitcoin is always changing as time passing and it is the reason why there are people that are not considering bitcoin as payment method
The obvious and most important reason why Bitcoin is not perceived by people as a currency for everyday settlements is its high volatility. Bitcoin is like shares. Nobody pays for goods and services shares, the price of which is little predictable. The same is true for the main cryptocurrency. People need a stable digital currency as a digital cash for daily settlements.
Bitcoin could be paired up with fiat to use it as currency. If we look at the functions of currency, it is something that could be used for trading or clearing payments etc. all such things could be done with bitcoin. I don’t see any problem in using bitcoin as currency. The first bitcoin ATM has been launched as well which means people are ready to use it as currency.
Bitcoin is still too volatile to realistically be used as currency.
And then, those who trust in its development will be careful not to spend it: if it really grows as expected, it would be a stupid move.
For now the situation is fluid. But let's be optimistic.
And then, those who trust in its development will be careful not to spend it: if it really grows as expected, it would be a stupid move.
For now the situation is fluid. But let's be optimistic.
The obvious and most important reason why Bitcoin is not perceived by people as a currency for everyday settlements is its high volatility. Bitcoin is like shares. Nobody pays for goods and services shares, the price of which is little predictable. The same is true for the main cryptocurrency. People need a stable digital currency as a digital cash for daily settlements.
I've been telling this for a very long time.
The worst part about it is, some people treat Bitcoin as "money", which is quite arguable. I treat it as a "currency" and an "asset". Its volatility is probably the only thing that differs it from fiat and other assets such as gold, silver. Though we can argue that volatility has its disadvantages, which convince other people to not invest in Bitcoin but experienced traders/investors would say otherwise.
Someday a new system will provide such service.
The obvious and most important reason why Bitcoin is not perceived by people as a currency for everyday settlements is its high volatility. Bitcoin is like shares. Nobody pays for goods and services shares, the price of which is little predictable. The same is true for the main cryptocurrency. People need a stable digital currency as a digital cash for daily settlements.
I've been telling this for a very long time.
The worst part about it is, some people treat Bitcoin as "money", which is quite arguable. I treat it as a "currency" and an "asset". Its volatility is probably the only thing that differs it from fiat and other assets such as gold, silver. Though we can argue that volatility has its disadvantages, which convince other people to not invest in Bitcoin but experienced traders/investors would say otherwise.
Someday a new system will provide such service.
The obvious and most important reason why Bitcoin is not perceived by people as a currency for everyday settlements is its high volatility. Bitcoin is like shares. Nobody pays for goods and services shares, the price of which is little predictable. The same is true for the main cryptocurrency. People need a stable digital currency as a digital cash for daily settlements.
I'd agree that some increase of monetary supply is required to match growing economy, but Bitcoin is so small when compared to fiat, and until it will start representing a big amount of consumer transactions, there's no point in talking about deflationary spirals. Perhaps Bitcoin will never be big enough to cause any significant effects on economy with its fixed supply, and that's fine, I'm happy that we have global alternative to fiat even if it's rarely used.
The fixed supply is not a problem in terms of being a currency because bitcoin can be used even at a few decimal form so there is no need for us to get an unlimited supply. The only problem why bitcoin is not that good just like the traditional currency is because of the stability that the bitcoin lacks where in, the people do not preferred a volatile currency because they might lose some of the value of their money when the price fluctuates.
I'd agree that some increase of monetary supply is required to match growing economy, but Bitcoin is so small when compared to fiat, and until it will start representing a big amount of consumer transactions, there's no point in talking about deflationary spirals. Perhaps Bitcoin will never be big enough to cause any significant effects on economy with its fixed supply, and that's fine, I'm happy that we have global alternative to fiat even if it's rarely used.
Why would it be impossible to cash out crypto if it is illegal in a country? There is literally no way anyone can know about you cashing out as long as you do not use a bank account. There are tons of places where you can cash out your bitcoins in paper form (cash) instead of bank account, one of them is literally localbitcoins.com, you can meet with people there and do whatever you want.
Obviously, it would make it very difficult and challenging but at the same time it is just a hurdle, not a total ban, they can't totally ban it and stop you doing something like that. However when countries tax it and make it legal, they make a ton of profits from it, hence I think countries realized there is no way to stop bitcoin so best course of action would be taxing it.
Obviously, it would make it very difficult and challenging but at the same time it is just a hurdle, not a total ban, they can't totally ban it and stop you doing something like that. However when countries tax it and make it legal, they make a ton of profits from it, hence I think countries realized there is no way to stop bitcoin so best course of action would be taxing it.
For me, bitcoin is not that good as currency because it created differently to our regular money. There some factors why because bitcoin is created a digital currency, decentralized currency, can't control by the government, almost anonymously transaction because of the codes, and also uncontrollable. If you pay using fiat money through a bank and get scammed, you can report it to the bank to retrieve your money. But in bitcoin, if you use your cryptos in a payment system and get scam, you can't retrieve your money, especially if the transaction is over/confirm; that's the other reason why banks can't adopt well the cryptocurrencies.
So, why are you here then?
This "digital currency" you've been calling is called "cryptocurrency". Control and uncontrollable are strong words. I'd rather say, Bitcoin is being regulated under government law and anonymity is one of its advantages/disadvantages. Not "uncontrollable" but rather "indirectly influenced" by users.
If you get scammed, it's your own fault. Don't blame the currency or the system.
For me, bitcoin is not that good as currency because it created differently to our regular money. There some factors why because bitcoin is created a digital currency, decentralized currency, can't control by the government, almost anonymously transaction because of the codes, and also uncontrollable. If you pay using fiat money through a bank and get scammed, you can report it to the bank to retrieve your money. But in bitcoin, if you use your cryptos in a payment system and get scam, you can't retrieve your money, especially if the transaction is over/confirm; that's the other reason why banks can't adopt well the cryptocurrencies. 
I don't think Bitcoin is good to be used as currency this way. It's volatile so there will be lots of conflicts. Unlike fiat, it's controllable because it isn't as volatile as crypto. As for me, Bitcoin is a great currency but due to our economic estate, it is best to be used as a digital currency in digital transactions. There would be limits because of its volatility.
Because its price is very volatile, your 1 full cart of grocery today could be just a half if price goes down or 2 full cart tomorrow if price goes up. It is not regulated so it's price won't stable but that's a good thing if you treat bitcoin as a form of investment because it has a big potential to have a big value in the future given that its supply is very scarce.
Did you even read the OP at all?
Although title of the thread is question but OP tried to answer that in his post. Your post looks like desperate attempt to answer the question. Also volatility is not the characteristic of Bitcoin, it is the outcome of one of the characteristic of Bitcoin and that is scarcity. Due to scarcity (limited supply), Bitcoin is deflationary in nature (very well explained in the OP) thus making Bitcoin a speculative asset which in turn make Bitcoin volatile due to the ever-changing difference between demand and supply.
Bitcoin good as currency with less inflation than you have use your money, but get negative respond with many country make bitcoin looks not good digital payment, when you use bitcoin as your legal transaction your payment always increase value every time and not get like this when you make purchase payment by using cash or digital money.
It is becaue Bitcoin is decreasing in price value but if Bitcoin is increasing in value then you will pay less. This is another reason why Bitcoin is not a good currency, the high fluctuation. Being a currency, it should have a minimal volatility, Bitcoin maybe a good store of value in the long run but the high volatility makes it look ugly in terms of being a medium of exchange and not saying Bitcoin somehow have problem in being acceptable by other merchant.
Probably this is enough to show prove that bitcoin is great as a currency when we see more fluctuations in dollar prices over last 6 months than in those of bitcoins. Dollar is controlling inflation throughout the world whereas bitcoin is not doing that as a currency. As far as transactions are concerned, I believe in making them with bitcoin because fiat has so many taxes.
Bitcoin doesn't need to prove anything. Back then, Bitcoin is already showing some promising results, many have doubted, but also many believed it would work out. And it did, now it has been the mainstream. And a lot of things changed since then, we can now utilize Bitcoin in a variety of platforms.
Bitcoin good as currency with less inflation than you have use your money, but get negative respond with many country make bitcoin looks not good digital payment, when you use bitcoin as your legal transaction your payment always increase value every time and not get like this when you make purchase payment by using cash or digital money.
I'm literally confused about whatever you're saying right now.
Bitcoin good as currency with less inflation than you have use your money, but get negative respond with many country make bitcoin looks not good digital payment, when you use bitcoin as your legal transaction your payment always increase value every time and not get like this when you make purchase payment by using cash or digital money.
Bitcoin could not be inflation like money where every year have less value, but if using bitcoin your transaction payment will increase value every year, with money maybe next year you pay with higher amount but at the next time you get with small value because money can get inflation but bitcoin can't.
Probably this is enough to show prove that bitcoin is great as a currency when we see more fluctuations in dollar prices over last 6 months than in those of bitcoins. Dollar is controlling inflation throughout the world whereas bitcoin is not doing that as a currency. As far as transactions are concerned, I believe in making them with bitcoin because fiat has so many taxes. Jump to: