A cryptocurrency with volatility can't be used as money

[syamster]

As money, everything that has a price can be used. The fact that the price is volatile is secondary. Yes, and ordinary money can also lose in value for various reasons (devaluation, war, massachnye cataclysms). In historical terms, the life of the currency is 40 years. The US dollar lasts longer, but this is artificial.

That is true, in theory it can be used as normal money but practical noone will trust in "thing" that could go from 20k to 8k just in few days or even shorter, that is why we need more stability to change crypto into normal daily currency.

Well if it rises and falls then is it too normal I think no need to take that stress about it, we can sue bitcoin in any condition, we can use it as money and we can use it as asset as well there is no issue, for me bitcoin is more likely an investment but there are 100k of peoples who are using bitcoin to buy goods same as they use fiat, so don’t say this again if price is volatile so we can’t use it as money.

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[Pab]

Merchants can't keep crypto for long term.They need to pay his bills in fiat
Customers don't want to pay with because of high fee
All together it cause that crypto is not so much used for shopping
Crypto is more like assets than money

[phpartisanmaster]

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?

Obviously we cannot use bitcoins as a currency because the market is volatile but the only reason why most of the people are preferring cryptocurrency is because of bitcoins that is very good for long term investment since the market price is keep on increasing as the time goes by.

[Stavri]

yes i agree with you volatility is not good for payments. but crypto market is very new that is why volatility is so high. it wont be like this in the future when the volumes are increased and cryptocurrencies become more popular.

[goldade]

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 can actually see the reason behind this statement. The volatility of bitcoib nearly makes it impossible to be used as a currency for payment of goods and services.
A good won't have a fixed price if it has to be paid with bitcoins. Two different people will buy the same good at different prices in a time interval of two days or less.
However, I think the volatility is still because Bitcoin has not yet been totally accepted by everyone. A time will come when the price of bitcoin will become more stable and will be used as a currency.

[fullhdpixel]

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?

First of all, who was trying to make use of Bitcoin as a country’s currency. Bitcoin is not a currency. When we mention the word CURRENCY we mean like Dollar, Pounds Sterling, Euro, Rupee, Yen, Peso and the rest of them and not Bitcoin.

Bitcoin is what we call (crypto)currency and that includes Ethereum (ETH), Ripple, Litecoin, Bitcoin Cash and the rest of them. They are completely different and Cryptocurrencies can’t be used as a country’s currency.

[darkangelosme]

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 do agree with that statement, any kinds of cryto right now is very volatile and also depending in bitcoin on how it performs. I think if the trading features of cryptos will stop and the prices of it become steady that's the time we can cryptocurriences as a digital money, my opinion only.

[TheClownSong]

Every commodities always have high volatile in their price. Bitcoin right now like commodities and its like a gold or silver. Its store of value and i think it can be used as currency as long merchant accepting bitcoin and government issuing regulation on it

[BeGoods]

It is true. better digital currency used as a tool for investment like stock in general. crypto value is very changeable and can fall to zero, so it is not possible to be used as money or local money. because it will cause losses for the owner of crypto if used as a means of payment.

That is in some kind a good answer cause normal money is not stable too but its pumps and downs are not that big as in crypto, in future prices of coins could be more stable cause whole amount of btc will be mined and there won't be more parts possible to purchase, future will show us.

Yeah many people say that crypto is not suitable to be used as a method of payment because it fluctuates. because it could be possible loss on the seller or buyer? maybe someday there will be a system where the seller can easily convert bitcoin to fiat directly without any difference in the previous rate. so it will avoid losses due to fluctuations..

[iqlimasyadiqa]

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 that is if we look at the digital currency at the moment. But try to have a vision and direction in the future. When a digital currency can get regulation from the government then it will make the digital currency becomes much more stable. Government regulation will be able to provide an excellent level of trust for digital currency. This is a thing that we all look forward to, Digital currency is a necessity in the future. With various advantages and benefits that we can get then digital currency is a revolution in the world's financial system.

The digital currency is evidence of a technological advance, when the payment medium is physically converted to digital.

[breathlessz]

Every commodities always have high volatile in their price. Bitcoin right now like commodities and its like a gold or silver. Its store of value and i think it can be used as currency as long merchant accepting bitcoin and government issuing regulation on it

and i think fiat currencies also have volatility, including dollar. which is the parent of another currency. if we look at the dollar index chart, price fluctuates just like the others. and i think if there are many countries that legalize it, then btc can be used as currency

[mornabo]

cryptocurrency is people driven currency using the currency for merchants it completely decision taken from merchants acumen point of view if they handle volatility then they will accept

The thing that makes merchants reluctant and difficult to accept bitcoin as payment is due to volatility, how to handle volatility? because when they get paid with bitcoin, the fluctuations will keep going, and maybe the price may decrease because of that, that's what they fear

[goyal.dkg]

Let's ignore the real estate value of your apartment and assume it has a fixed price; it means that you bought it for $10,000:
In 2013 considering that the value of the Bitcoin $ 100: you need 100BTC to buy an apartment.
In 2017 assuming that the value of the Bitcoin $ 1000: you need 10BTC to buy an apartment.
Today, assuming that the value of the Bitcoin $ 10,000: you need 1BTC to buy an apartment/flat.
I agree with you that the price of the Bitcoin is variable, but it tends to go bullish that means its value increases over the days than paper money.

very smartly you counted only stable or high price for btc , but tell me what if it is made main currency of any country and then it dipped upto 80% ?
because most of supply of bitcoin also controlled by whales / some groups . so it can be manipulated any time by them . however using it as other form of currency is still ok but making national currency bad idea .

[qwertyup23]

Cryptocurrency market suffers from volatility for the only reason, the market is still too young and the market cap is really low compared to other virtual assets, so the volatility level is pretty much fair for this market cap level.
Until the price of bitcoin will stabilize around a price range, it's going to be volatility as it is being used by only a short amount of people.

You should consider that one of the reason on why cryptocurrencies are volatile is due to lack of any government intervention/regulation. Since there is no central authority that regulates its transaction and processes, its market supply and demand can be significantly affected by anyone who acquires the most number of bitcoins for price manipulation (also known as whales).
Another thing that you have to consider is when you make bitcoin as a currency, the lesser the volatility, the better as it poses a threat to both the consumer and the producer in terms of profit and loss.

Basically the ideal situation is, cryptocurrencies should be regulated in a way that its volatility can be controlled at some point without having to suffer its investment aspect.

[doraegun]

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?

We simplify the problem with Direct solution, Crypto currency with volatile movements is like a dollar paper money but it is digital method, let say if we  want to buy something using crypto currency it means it is subject for moving price value unless we convert it into our own currency that's the time that money become steady.

[traderethereum]

Every commodities always have high volatile in their price. Bitcoin right now like commodities and its like a gold or silver. Its store of value and i think it can be used as currency as long merchant accepting bitcoin and government issuing regulation on it

and i think fiat currencies also have volatility, including dollar. which is the parent of another currency. if we look at the dollar index chart, price fluctuates just like the others. and i think if there are many countries that legalize it, then btc can be used as currency

I think the dollar is not too volatile and if we compare with bitcoin, bitcoin is more volatile and I think its really hard to be used as money. people will get panic if the price is suddenly getting down too deep like today and I think there will a chaos if bitcoin is used as currency. but if bitcoin can be stable at one level price then I think bitcoin can be used as money.

[AltCoinBuddah]

IF cryptocurency were to be used as money it would actually be less volatile. More users more trust and more investors. Who knows, maybe our current money would then be volatile haha.

[Cryptoproff]

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.

[spongegar]

Crypto currency's volatility really hinders the adoption of it in the market as actual currency to be exchanged for goods and services. Then again, crypto currencies even BTC for that matter is still young. Given enough time and investors, it will stabilize it's price so that it can be used as for what it is. I just hope the price where it will become stable is high.

[Smarty14392]

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?

This  volatility is just happening because crypto currency in this present time is decentralized. Since it is decentralized there is no regulation to stop the issue and it will only be solve if government will be part of it. I mean if government will create thier own cryptocurrency then volatility is not happening on that particular crypto currency.

Yeah I also think that bitcoin volatility is a problem for users. You will calculate the amount in your local currency but bitcoin volatility will change the price. This problem should be solved and the only solution for it is to prevail bitcoin in the world and legalize it, so that everyone can use it as regular currency and there is no other currency for bitcoin calculating.