A cryptocurrency with volatility can't be used as money

[playboy654]

isn't the crypto currency a digital currency that can be used for digital payments or transactions as well and the possibility that if all the crypto currencies have been recognized as legitimate and valid currencies, I think crypto currencies can be a currency that can be used

if in my opinion crypto will not be used as a legitimate currency in the world because the crypto currency is a digital currency that cannot be used as paper currency, crypto can only be used as an online transaction tool

A cryptocurrency has to be more useful when we are in the difficult situation if it will not be profitable also or investment will helpful in sometime so we can definitely trust this kind of method instead of money but it will not always happened to be more useful.

[drachman]

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?

If bitcoin was used as the main form of money around the world then it will not be volatile at all, he is trying to deceive people into making them believe bitcoin is volatile by nature when that is not the case, the huge volatility comes from the fact that only a few million people individuals are using it and most of them are just speculating with the coin.

[Nnedaddy1]

I agree with you.
The volatility of Cryptocurrency is the main  reason why the public even potential investors are scared of investing in it.....and this in turn results to the low adoption rate of Cryptocurrency that we are witnessing in recent times.
It's volatility has made it extremely difficult for it to be accepted as a legal tender used for exchange of goods and services.

[astik1]

I agree that =a currency with high volatility can`t be used as money. But in the case of the crypto currency, which has many other advantages, and which people want to use as money, this problem can be solved. One possible solution to the problem of volatility is to tie the crypto currency to gold at a fixed rate. This will require the consensus of the crypto community and the sponsor who is ready to make the physical gold market at an agreed price in the crypto. This kind of crypto, backed by gold, may even become a global reserve currency, especially if it was supported by the countries who are looking for ways out of the current hegemony system of the USA dollar.

[sarmrakib]

Its right the value can be decrease but let me ask if its on high then .Its so tough to invest bitcoin against paper money but remind that it not always make you on loss .we have seen bitcoin touched ATH value on the recent past and its about to 18k$ so that he who invested before it they got lots of profit .But we need to think and judge the market before invest against paper  money.

[BennyK]

Yes this is true. The volatility of a digital currency is a hindrance to the idea of using it as a currency. The reason is clear and simple, you would loose the value if suddenly it goes down especially when very low. The value can't be stored for long because if it goes low it wouldn't gain from it and only when value rises up. But there could be some other ways which we can still use the currency and thst is for us to figure out. I also have some ideas but I still have to think and check if it could be feasible.

Yeah the current concern is fluctuations which make it difficult for someone to use crypto as a currency and payment method because it will harm one party if fluctuations occur very quickly, I hope there is the latest payment method innovation, where crypto is directly converted to fiat so that fluctuations can be avoided

The volatility nature of cryptocurrencies is what has caused the paradigm shift from the currency aspect to the investment aspect. Now, people are less willing to accept cryptocurrency as a form of payment because it can lose its value when the market goes down. People prefer to hold some coins for some period of time and make profit when the price spikes due to the same volatility nature - the cause of the interest of many in the investment aspect of crypto.

[shesheboy]

Oh why not ? Arent we already using it to buy stuffs ?  Volatility is not a hindrance to use crypto as a form of money because crypto does actually have a value .   its cool by the way because our money can increase or decrease depeding on the mood of the market  and if ever a merchant decides to use crypto as a payment gateway , he or she can always adjust the price tag of their products .  so that he wont have an issue if ever the price fluctuates too often  .

[jabrix]

Its right the value can be decrease but let me ask if its on high then .Its so tough to invest bitcoin against paper money but remind that it not always make you on loss .we have seen bitcoin touched ATH value on the recent past and its about to 18k$ so that he who invested before it they got lots of profit .But we need to think and judge the market before invest against paper  money.

Bitcoin with high volatility is very vulnerable to short-term trading, so that to be used as a means of payment there must be an agreement between the buyer and seller so that no party is harmed. But for the long term where the digital world has become a necessity, bitcoin will put itself as a currency.

[Loopper]

Its right the value can be decrease but let me ask if its on high then .Its so tough to invest bitcoin against paper money but remind that it not always make you on loss .we have seen bitcoin touched ATH value on the recent past and its about to 18k$ so that he who invested before it they got lots of profit .But we need to think and judge the market before invest against paper  money.

Many concepts that you have to think about if you want to see big profits next year. Everyone only thinks of a good strategy to produce something big that awaits next year.

[nur rochid]

Its right the value can be decrease but let me ask if its on high then .Its so tough to invest bitcoin against paper money but remind that it not always make you on loss .we have seen bitcoin touched ATH value on the recent past and its about to 18k$ so that he who invested before it they got lots of profit .But we need to think and judge the market before invest against paper  money.

Many concepts that you have to think about if you want to see big profits next year. Everyone only thinks of a good strategy to produce something big that awaits next year.

indeed in the crypto world today, fortunately a lot is sought. many are frustrated because prices fall, and they lose. crypto is validated as a currency maybe is a long hope. currently legalized in the stock is good

[Ben K.]

will be interesting to see how this thread ages as more volume comes in

[Marry Finch]

Decentralized cryptocurrency always has high price volatility and this is a very big problem for its use as a means of payment. It is a big problem for a business where, as a rule, it takes a very long time from the moment a transaction is made to its practical implementation. At the same time, when making instant transactions, especially between citizens, the high volatility of the cryptocurrency is not a problem.
At the same time, the high price volatility of cryptocurrency is at the same time a positive quality in trading.

[Muzika]

We can still used it as money actually more and more establishments are using crypto as mode of payment today meaning if it is not good to used as mode of payment then why it is many establishments are looking forward for this? Volatility is not the reason why they dont want to used it the only reason is they are negative towards crypto as this moment.

[rachellee]

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 statement is inarguably true. Of course, as the price of what you purchase changes, its value also changes. Same thing is trye even with physical commodities. They may also lose or gain value. But this doesn't mean that you cannot use crypto as money or as a mode of payment just because it is volatile. Even fiat is volatile. You buy dollars, per se, then you'll trade it with euro when the price suddenly dumps. Does this mean you cannot use the dollars that you bought to purchase goods? Of course not! The issue here lies on the volatility rate and movement, how high and low its volatility is and how fast does it change within a specified time.

[andriarto]

We can still used it as money actually more and more establishments are using crypto as mode of payment today meaning if it is not good to used as mode of payment then why it is many establishments are looking forward for this? Volatility is not the reason why they dont want to used it the only reason is they are negative towards crypto as this moment.

high volatile feels when we convert to fiat currency. but if it's still in the crypto scope, I don't think this is a big problem. I think the main problem is legalization, where if the legality has not been obtained, it is certainly difficult to become the official currency in a country

[CryptoBry]

Yes it's true, if the volatility is too high then its not suitable to be used as currency, imagine one apple cost 1 BTC today the next day it can caused 0.8 BTC and the next day it cost 1.1 BTC, it will make the owner hard to set the price and predict the profit, but if the volatility is within months then I think it is still okay, crypto currencies need to be mass adopted so the volatility is not too high

Volatility has and will always be a very big issue with Bitcoin and other cryptocurrencies especially with our desire to make Bitcoin be a part of the mainstream population. Yes, it can cause a little mayhem for a business considering that Bitcoin has this tendency (especially if there is a bull run) to go up fast and sometimes to go down at the same rate. This can be remedied with the help of third-party infrastructure and I think we already have these apps in the marketplace. Still, volatility is the reason why in many cases there are overspeculations happening in the market because this can induce many to always hold their hoard in anticipation of a big increase days ahead. On the other hand, many are also benefited with the Bitcoin volatility as this is why traders love to their business with it. In other words, volatility can be good or bad for Bitcoin depending on which side are you in the equation and depending on which view you are leaning with and depending if this is giving you benefits or not.

[loopes]

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?

Thats is wrong argument. Each product price is determined by supply and demand. People need products and industries produce the product in specified scale for those people, the the comparison between the number of product that people need and the number of product that provided by industries will determine the price. You can know more about it if you learn about Microeconomy.  But, bitcoin with its volatility today can't become the main currency that replace fiat money. Because the price is still unstable, it can be dangerous for the country's economy. But the price of it will rise because the bitcoin increasing demand is growing. Bitcoin price in the future will be more stable but still tend to rise at that time I am sure that bitcoin will be widely used by people around the world.

[Nasty23]

We can still used it as money actually more and more establishments are using crypto as mode of payment today meaning if it is not good to used as mode of payment then why it is many establishments are looking forward for this? Volatility is not the reason why they dont want to used it the only reason is they are negative towards crypto as this moment.

high volatile feels when we convert to fiat currency. but if it's still in the crypto scope, I don't think this is a big problem. I think the main problem is legalization, where if the legality has not been obtained, it is certainly difficult to become the official currency in a country

Yes, once legalization was been attained the Crypto can be able to use anywhere within the country who permitted it as mode of payment. High volatility can be a problem if the user of it didn't know how to handle it properly on which can cause a loss into the assets but if the people are already knowledgeable the volatility can be a way to earn a profit because they able to know how to handle it properly.

[joshy23]

We can still used it as money actually more and more establishments are using crypto as mode of payment today meaning if it is not good to used as mode of payment then why it is many establishments are looking forward for this? Volatility is not the reason why they dont want to used it the only reason is they are negative towards crypto as this moment.

high volatile feels when we convert to fiat currency. but if it's still in the crypto scope, I don't think this is a big problem. I think the main problem is legalization, where if the legality has not been obtained, it is certainly difficult to become the official currency in a country

Yes, once legalization was been attained the Crypto can be able to use anywhere within the country who permitted it as mode of payment. High volatility can be a problem if the user of it didn't know how to handle it properly on which can cause a loss into the assets but if the people are already knowledgeable the volatility can be a way to earn a profit because they able to know how to handle it properly.

It will affect the businesses who will accept the service, there's already establishment who caters the system and they adopt this new payment process,
as long as there's end users who will be willing to accept this system it will soon to be well recognized and be allowed everywhere.

[waynechong1995]

Fiat's does regulated by country, lets say support from government to actually control the price, cryptocurrency is about decentralisation, power by everybody but seems the use case now it's more about accumulation of assets and profit, for instance people buy house for growth, but with fiats, btc works similarly for now at least. People care more about the price, not the actual active addresses though