Topic: Why would Crypto be the future currencies if it's so volatile? (Read 856 times)
Bitcoin can always coexist with fiat currencies it is. All countries has some currencies on their own bitcoin is created for the people who is sick and tired of their own centralized currency who has done nothing but to oppress, exploit and drowned them in debt. Those people seek a better currency to use and they found it in crypto currency which is bitcoin which gives them freedom to freely use their money unlike the over regulated fiat currency.
September 15, 2017, 01:47:54 AM
September 02, 2017, 09:27:23 AM
Just think of a crypto that is not volatile like fiat? a stable currency not increasing and decreasing its value is the same as less volatile crypto. If it is stable it will not go high price like the bitcoins right now. Volatility is a big part of bitcoins price and if we less it it might be not have a good future because the investors and the users will lose their interest.
Sure, volatilty attracts traders and speculators, but it fends off merchants that could easily boost up bitcoin's economy by degrees. It wouldn't be a sound payment method if it keeps on changing prices and services and merchants would still be dependent to a concierge such as Bitpay if they would like to accept bitcoin as a form of payment.
September 02, 2017, 09:25:59 AM
I agree that almost every crypto currency is volatile but there is a reason for it. Even if we are dealing with crypto currencies for more than 5-6 years, I believe that it is still in its early phase and it is new to us (considering the majority) and more and more force is joining us daily. Not everyone is aware of the functions, security and further scope of it and thus most of us try to defend our capital (nothing wrong in doing so) but that creates panic selling wave which shuffles the price per unit, experienced investors buy more units in the dips so price rises again. Such cycle creates volatility on the price chart and we won't be able to achieve price stability, unless and until we educate ourselves.
I see an optimistic picture for next 5 to 10 years because we will have matured user base and higher average awareness score for the same as compared to that of today. This is still in development mode but still promising.
I see an optimistic picture for next 5 to 10 years because we will have matured user base and higher average awareness score for the same as compared to that of today. This is still in development mode but still promising.
September 02, 2017, 09:22:43 AM
Hi
Whilst I am a believer of the future of cryptocurrency, I do have a critical question which I believe will define its success or failure.
How can a currency be strong and reliable if it is super volatile versus EUR/USD/... ?
Why would I ever pay goods in Bitcoin for instance, if I know that tomorrow the same product can twice as expensive (in USD when converted from Bitcoin)? I believe this can only work if the full system is in Bitcoin (meaning you get your salary paid in Bitcoin, you pay your rent in Bitcoin and you spend Bitcoin for daily expenditures -> which is something I dont believe will ever happen)
Below an article of Howard Marks on cryptocurrency, with some total crap but also some valid questionmarks.
Cheers
Howard Marks on Digital Currencies
The New York Times notes that together, the outstanding Bitcoin and Ether are worth more than Paypal and almost as much as Goldman Sachs. Would you rather own all of the two digital currencies or one of those companies? In other words, are these currencies’ values real? They’re likely to keep working as long as optimism is present, but their performance in bad times is far from dependable. What will happen to Bitcoin’s price and liquidity in a crisis if people decide they’d rather hold dollars (or gold)
Whilst I am a believer of the future of cryptocurrency, I do have a critical question which I believe will define its success or failure.
How can a currency be strong and reliable if it is super volatile versus EUR/USD/... ?
Why would I ever pay goods in Bitcoin for instance, if I know that tomorrow the same product can twice as expensive (in USD when converted from Bitcoin)? I believe this can only work if the full system is in Bitcoin (meaning you get your salary paid in Bitcoin, you pay your rent in Bitcoin and you spend Bitcoin for daily expenditures -> which is something I dont believe will ever happen)
Below an article of Howard Marks on cryptocurrency, with some total crap but also some valid questionmarks.
Cheers
Quote
Howard Marks on Digital Currencies
The New York Times notes that together, the outstanding Bitcoin and Ether are worth more than Paypal and almost as much as Goldman Sachs. Would you rather own all of the two digital currencies or one of those companies? In other words, are these currencies’ values real? They’re likely to keep working as long as optimism is present, but their performance in bad times is far from dependable. What will happen to Bitcoin’s price and liquidity in a crisis if people decide they’d rather hold dollars (or gold)
It feels like what he's trying to say is that Bitcoin will be a shitcoin in the future because people will hold dollar. Were all in a great lines of questions here but I think they are just afraid that the dollars that they love will lost its value. We have the underhand on this one because it would be a crisis when the government and banks refuse to hug this technology. The technology is not perfect but it has potential that far syurpasses your dollar and I think instead of closing your eyes on what can blockchain technology can offer just watch how cryptocurrencies take over this era.
September 02, 2017, 09:05:37 AM
Just think of a crypto that is not volatile like fiat? a stable currency not increasing and decreasing its value is the same as less volatile crypto. If it is stable it will not go high price like the bitcoins right now. Volatility is a big part of bitcoins price and if we less it it might be not have a good future because the investors and the users will lose their interest.
September 02, 2017, 08:05:05 AM
Volatility is terrible right now, and there's no way that bitcoin would act as sound money compared to what fiat currently does. Aside from that, tx fees are crazy and ridiculuos; sending money to someone would require you to spend at least a dollar before someone receives it within the next 10 minutes. Albeit the original proposal of Satoshi, bitcoin isn't ready yet to live up with that.
September 02, 2017, 06:56:24 AM
I think that it is so valatile because it's market cap is till not as high as it used to be. One day it will spread far enough and the rates would be mutch more stable. Yes, it will take some years but i belive that one day it will be more stable 
September 02, 2017, 06:28:31 AM
Crypto currency will soon be a means of earning in the future, and ordinary currencies will remain for settlement. I do not believe that instability will be more important than conventional currencies.
September 02, 2017, 03:54:11 AM
September 01, 2017, 04:50:44 AM
Because it’s an absolutely new approach to finances. The reason of its volatility is the young age of a currency. And there are still few places where you can buy something with crypto. So people keep their coins, or maybe trade them. But when they want to buy something in a store they are more likely to sell some of cryptos and buy goods with fiat. As soon as our world will be more adapted to cryptocurrency, it will be less volatile for sure.
Between now and future where this dream will come true if at all, there is a process and in that process, a lot of anomaly would have been addressed and part of that would include the issue of volatility and for those assuming that bitcoin will be adopted without addressing the issue of volatility are just jokers because it will not happen especially for merchants. Also, between now and that future it is expected that the population that would be involved in bitcoin would have been large enough to establish stability in which people coming in at that time would do little or no impact to price.
All crypto currencies have a completely different philosophy and structure than Fiat money. Yes, this leads to the fact that the price of bitcoin fluctuates constantly, but it only gives additional opportunities for earnings.
It only describes a relative degree to which something is shifting on a percentage basis. It doesn't say whether value is increasing or decreasing.
Bitcoin's price both increases and decreases depending on the time, and to the individual it depends when they bought it. If the volatility was steadily going up, no one would ever spend it at all and it would be just about the worst currency ever.
The gold price was once stable, because a government would agree to exchange gold for a fixed amount of fiat money. Thus inflation happened as governments accumulated more gold.
Now, the gold price is not stable because its price is mostly based on speculation and not real-world use.
A similar thing applies to Bitcoin. The problem is that Bitcoin users love to rebel against governments, but to make BTC a steady means of payment, it would need to already have taken over pretty much all payments in the world.
Imagine this scenario.
One day you buy a rock that is worth $12.
In 6 years, your rock is worth $3,400.
Its fair to say the value of your rock is subject to a extremely high degree of volatility(price shift).
People forget volatility can be a good thing or a bad thing(its not always negative).
It only describes a relative degree to which something is shifting on a percentage basis. It doesn't say whether value is increasing or decreasing.
One day you buy a rock that is worth $12.
In 6 years, your rock is worth $3,400.
Its fair to say the value of your rock is subject to a extremely high degree of volatility(price shift).
People forget volatility can be a good thing or a bad thing(its not always negative).
It only describes a relative degree to which something is shifting on a percentage basis. It doesn't say whether value is increasing or decreasing.
Crypto currencies ,especially bitcoin would be the future because they are free from inflation.Whenever there is a demand for currency,the corresponding government starts printing more paper currrencies and issues them for circulation which creates inflation in the currency.It starts losing its value.More over,if any government suddenly says that high value notes are banned just as indian government did in demonitization,people holding such currencies suffer.But since bitcoin is decentralized,no one could devalue it and so it becomes a secured currency.
You know what, I pose the same question. How will cryptocurrencies stand any chance when their prices are so volatile. I saw this post yesterday and I was continually thinking about it. Why would Satoshi make a currency that has no chance of being accepted but the general public because of its volatility? Suddenly, it came to my mind that Bitcoin is a deflationary currency. The Bitcoin halving continually decreases the supply of coins that are circulating. When demand increases or stays the same, the price of Bitcoin would continually go up; slowly but surely.
This means that Bitcoin price would not drop if enough people, the world population, used it. The price would either increase or sustain, never drop. I know that a price hype is also classified as volatility, but a price increase is always good.
This means that Bitcoin price would not drop if enough people, the world population, used it. The price would either increase or sustain, never drop. I know that a price hype is also classified as volatility, but a price increase is always good.
At the momtny market cap of all cryptos is really small and in the nearest future we wont see any changes in economics.
Still FIAT would be much more stronger and cryptos wouldnt replace it for sure.
Still FIAT would be much more stronger and cryptos wouldnt replace it for sure.
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