A cryptocurrency with volatility can't be used as money

[jaaeeeyyyy]

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 simply doesn't work. We've been using fiat currency for decades now, and it has consistently lost its value over time. Yet everyone is still able to conduct business with fiat, even though we know that the value of fiat is going to go down in the long run.

Bitcoin is actually better than that, although its short term fluctuations may be big right now, in the long run, it should hold its value unlike fiat because of its limited supply. And the volatility definitely does not mean that nobody can use it as money.

The only reason why BTC is so volatile right now is the lack of adopters and merchants actually accepting BTC. In the future, this will change for sure.

I actually agree to this and this is pretty much right. People force bitcoin to be a mode of payment but they never knew why it is banned. There's some factors about its price because it has a high volatility and it is so unstable. Imagine the value of BTC right now is high and tomorrow it went down drastically, it is just unacceptable. For Bitcoin to be accepted as a currency then it must be stable in terms of its value first.

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[Dncer]

Dude, I’m a little bit confused with this lol. What does he mean that a currency with volatility can’t be used as a currency by any country? Dude WTF! 😏😆 Is there any currency in this world that is not volatile? Every currency in the world are volatile. Take for example dollar to euro can’t maintain the same price forever, they will always fluctuate, either that dollar goes up against euro or it goes down. Such fluctuation is being caused by how much that comes in and out of the country at the moment. I don’t know if this man you mentioned is still a novice or what?

Mmh he's a famous economist and worked at the head of the UBS swiss bank (one of the biggest in the world).
So maybe it's better to analyse what he says before laughing at him... Dude

[Dncer]

You can find many minds of specialist. France is doing an analyse about crypto and ask very interesting people :

http://www2.assemblee-nationale.fr/15/commissions-permanentes/commission-des-finances/missions-d-information/monnaies-virtuelles/(block)/48243

But that's in french.
What is interesting is that you have people who talk positively about crypto and some others negatively.

[GoodLuck2]

This is very much true. Since, bitcoins is so much volatile, it is not practical for small transactions.

There is volatility even in American dollar but has been used as an international currency throughout the world for decades. What I want to say is that even with volatility in the price, Bitcoin can be used as a currency and why should one care if it is generally accepted for instant transaction. Tesla is very optimistic about the future of Bitcoin and looks forward to accept the technology for payments.

[Dncer]

Volarility has to be controled to take care of inflation, to balance the spending power, etc.
If bitcoin is only stable, maybe that's not enaugh for a currency?

[MarioSPGroup]

Real state,Gold and other assets price also fluctuate,If you buy a flate and you using it at least 2 year you already recover your money and till now it is seemed Bitcoin price increased and as a rational investor you will sell it when Bitcoin price will high rather you buy it.

[alfs75]

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?

Maybe you have a point into this kind of article in newspaper feed  that you read,that its impossible to use this as currency because of its volatility problems when its change to fiat,but maybe this kind of problem in cryptocurrency would soon resolved if the government would legalized the bitcoin,and if these legalization will be implemented there are circumstances that's this volatiltily  could be controlled.

[icecream sandwich]

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 think i will agree tp the fact that they cannot be used as a money especially in daily living because their price are not stable which means that the value in this time will be different to the value on the next few minutes and if you have the exact money to buy that thing and the price changes the money will also changes so that will be the problem and we all know that not all the time the price will increase so they really cannot be used as that thing they are just better as an investment.not a currency at all.

[BartS]

Dude, I’m a little bit confused with this lol. What does he mean that a currency with volatility can’t be used as a currency by any country? Dude WTF! 😏😆 Is there any currency in this world that is not volatile? Every currency in the world are volatile. Take for example dollar to euro can’t maintain the same price forever, they will always fluctuate, either that dollar goes up against euro or it goes down. Such fluctuation is being caused by how much that comes in and out of the country at the moment. I don’t know if this man you mentioned is still a novice or what?

This is correct, every single currency around the world moves in price, it is true that the currencies that the governments are using do not move as much as bitcoin but this cannot be avoided they have complete control of the emission of their currency while this is not true for bitcoin because we do not have direct control about how much bitcoin is created every day and also those currencies have the same problem as dogecoin, dogecoin has not a limit to the amount of coins that are going to be created and the same is true for fiat currencies and that more or less stabilizes the price.

[CryptoMoar]

In my opinion. very vulnerable if cryptocurrency functioned like money. because digital currencies have a fluctuating value. digital currency is better used for long-term investments than to function as money for transactions.

[mybtcasset]

cryptocurrency will be more for an asset rather than daily currency but at the same time most of the users want to use cryptocurrency as a currency as well because they cant trust banks in coming future

[Prodigye]

All types of currencies experience volatility, even the USD. However, bitcoin's extreme volatility does make it unsuitable as a currency.

[expless]

A cryptocurrency with volatility can be used as money. If legalized/legitimatized in a particular jurisdiction, it would function and any challenges therefrom would be sorted afterwards.

The assertion that If the value of the money decrease, that means the value of the merchandise decrease would not be believed because the exchange rate of fiat money between two countries increases and decreases as well based on their economic indices. In this wise, the value of merchandise purchased are entered in the seller / purchaser's books using the exchange rates ruling at the date of sales/purchase.

Therefore, regardless of volatility a cryptocurrency can be used as money in the same way as fiat money is used on merchandise.

in my opinion, it all depends on the government of any state whether bitcoin can be used as medium of exchange or not. Most of the countries are not ready to legalize bitcoin within their boundaries and this is keeping bitcoin away from getting attention of every single person. Those people who are involve in technology or trading are well aware of digital market and support it too but others are ignorant even after learning about it.

[sangungaji]

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?

Yes, I agree. A crypto currency with volatility cannt be used as money. If the price is more stable, I think it can.

[gambitcoin53]

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? once you bought something using bitcoin will not decrease its value in the future, its value will not be based on the current price of bitcoin anymore not unless you are selling your flat and accept bitcoin as payment. and why would you sell it when the price of bitcoin is low? no one is stupid enough to do that. once an item is bought in bitcoin, the value will remains the same until you appraised it in bitcoin. if doing so, you are not a wise trader.

[Sled]

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? once you bought something using bitcoin will not decrease its value in the future, its value will not be based on the current price of bitcoin anymore not unless you are selling your flat and accept bitcoin as payment. and why would you sell it when the price of bitcoin is low? no one is stupid enough to do that. once an item is bought in bitcoin, the value will remains the same until you appraised it in bitcoin. if doing so, you are not a wise trader.

I don't think that is true that when you bought something with bitcoin then it will not have a lesser value in the future because the price of bitcoin is depending on the demand from the people in the market so if the demand of the people will become lower and the price will also become lower and that thing will have a lower value also. It is all about the demand and pricing of bitcoin.

[gambitcoin53]

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? once you bought something using bitcoin will not decrease its value in the future, its value will not be based on the current price of bitcoin anymore not unless you are selling your flat and accept bitcoin as payment. and why would you sell it when the price of bitcoin is low? no one is stupid enough to do that. once an item is bought in bitcoin, the value will remains the same until you appraised it in bitcoin. if doing so, you are not a wise trader.

I don't think that is true that when you bought something with bitcoin then it will not have a lesser value in the future because the price of bitcoin is depending on the demand from the people in the market so if the demand of the people will become lower and the price will also become lower and that thing will have a lower value also. It is all about the demand and pricing of bitcoin.

if we are talking about the item's value in bitcoin, if we are comparing the value when you bought it and the value if you are to sell it. of course the value differs, depends on the current market value, the op's argument is "if you buy a flat with bitcoin and few years later the bitcoin value decrease... Your flat lose his value as well. " if and only you are to sell it in bitcoin's price at the wrong time. his example is buying a flat, on how much you bought it, it will remain as is, now the value differs on the timing of when you are to sell it, again in bitcoin's price.

[Dodoymabs]

I disagree because we are already using cryptos to buy goods and pay the services. It's already been proven and now it keeps becoming more useful in terms of its function and development. So, I believed that cryptos will be more useful in the coming more years.

[Thanasis]

I disagree because we are already using cryptos to buy goods and pay the services. It's already been proven and now it keeps becoming more useful in terms of its function and development. So, I believed that cryptos will be more useful in the coming more years.

I disagree with you too,if something is called as currency then it needs to be used fluently everywhere buying few products at the market section doesn't make bitcoin as currency.Everyone need to start treating bitcoin as a currency if we want the crypto to stay longer.

[spyerf]

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 bitcoin value is always changing and I think this is the real difference between bitcoin and fiat. and I feel bitcoin is more appropriate in assets than currency. only in terms of buying and selling using bitcoin, fiat will not decrease its value. it's just that we have to spend more bitcoin to pay for the goods when the bitcoin value is down.