A cryptocurrency with volatility can't be used as money

[Questat]

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?

There is no connection with bitcoin and flat, so why the flat would lose its value. It is true that bitcoin is a very volatile currency, but it has more advantages than disadvantages so we have to keep that in mind.

There are two sides, if you use bitcoin as money which you just use it for payment in your daily living, then it's a bad idea as it's volatile and people can't afford to lose even a small value especially those who people who just work to earn. In the other side, if you use bitcoin as investment, it's better as it's value will increase in the long run as the market continues to get better and better in the long run, but only investors will benefit it.

Bitcoin can only compete with fiat if it's stable enough, but I don't think it will be stable as fiat since it's decentralized price could move when there is speculation in the market.

We need 3rd party to make this happen, bitcoin to third party to payee, that should happen.

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[Cherylstar86]

A cryptocurrency if it can be used as money, what happens is that when it is in the accumulation stage and in bearish trend it is not profitable, because the cryptocurrency obeys the bitcoin movements, and if it is in those phases, simply the price does not It goes up, but if the bitcoin market is in a bullish trend, I'm sure that they will use it.

It's something like what happens when the bitcoin goes up, that the fees in the Exchanges go up a lot.

I don't think so. like the dollar index has fluctuations. but the difference is that fluctuations in bitcoin are like uncontrollable, so in an instant it can rise or vice versa. and I think this is the problem

  We are aware about its value fluctuations and it is up to us on how we deal. Thus, in every aspect has an advantage, we can buy every dip and purchase when it is massively pump. And I think crypto currency will be used as money even the market phase has carrying high volatilization, because many people are resembling and keep positive of its outcome.

[Wingzcrypto2018]

If is volatile we still can use a crypto coin and we will pay as it is if is accepted to shops, if the product cost 5$ we pay 5$ taken from bitcoin wallet or another coin accepted  and still can be used as money.

But the big problems is, majority of the merchants are not having an idea about in cryptocurrency. And probably, few of the merchants in the entire world are only accepting crypto. Though, if you trade crypto in the market it is obviously volatile in terms of its price value depending if the coins has a good volume in the market and established a huge traders.

[Yukyzu]

terms of being a currency must be stable. if a currency has a volatile nature, I think it will be very difficult to set prices. this is also the main reason why bitcoin is only used as an alternative. well, besides that, of course the people's finances or economy are changing at any time.

[merchantofzeny]

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.

I agree with this. In the long run it's actually wise to own bitcoins. I think some people are only worrying about its day to day uses. We're currently on a bullish trend now but just a few months ago we've been through one of the longest bearish season where people found they can buy less with the bitcoins they have.

[trickyriky]

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?

There is no connection with bitcoin and flat, so why the flat would lose its value. It is true that bitcoin is a very volatile currency, but it has more advantages than disadvantages so we have to keep that in mind.

It seems that the governments of most countries do not take Bitcoin seriously. Probably, I am wrong but they are sure that virtual currency with great volatility cannot be used as money. Once, it will happen.

[hahay]

terms of being a currency must be stable. if a currency has a volatile nature, I think it will be very difficult to set prices. this is also the main reason why bitcoin is only used as an alternative. well, besides that, of course the people's finances or economy are changing at any time.

Yes, that is the reason why bitcoin cannot replace fiat because bitcoin has a value of volatility and vice versa, money is a value that is able to be stable even though it sometimes goes down and rises, but the value of the currency will not move too high or too low. That argument is true and it seems that bitcoin is difficult to be more stable because demand continues to increase over time.

[Aldrinx00]

It's true that cryptocurrency is a volatile market but i don't see the connection that if you a buy a flat with bitcoin then bitcoin price starts to drop then your the flats value also drop? Physical items don't rely on digital prices but with the country's economic growth and inflation.

[pungopete468]

terms of being a currency must be stable. if a currency has a volatile nature, I think it will be very difficult to set prices. this is also the main reason why bitcoin is only used as an alternative. well, besides that, of course the people's finances or economy are changing at any time.

Alternative payment. indeed the nature of being a currency is not in bitcoin. This has been discussed in this discourse. but of course it will make rejection because it will not be able to. unless a country issues their own crypto currency whose value does not rise or fall,but this also still can't. each country has its own rules

[pinkpanther03]

Volatility of cryptocurrency is one of the issues that prevents these digital assets such as bitcoin to go mainstream. How could these coins be used as a payment if time and time again the fluctuations is very huge in either directions. But, the problem is that holders treat these coins as assets that expected to rise in value.

[haidil]

terms of being a currency must be stable. if a currency has a volatile nature, I think it will be very difficult to set prices. this is also the main reason why bitcoin is only used as an alternative. well, besides that, of course the people's finances or economy are changing at any time.

This explanation is very good because of the unstable nature of the crypto currency, this will cause an unstable economic impact on society

[Leyss]

It should be agreed that the high price volatility of cryptocurrency creates significant difficulties for its use as a means of payment. However, the first experience in using combined various payment systems together with cryptocurrency is able to solve this problem, at least partially. We are talking about the possibility of using another Bitcoin cryptocurrency in various bank cards, under which it will be possible to withdraw cryptocurrency on an account at the rate on the day of their withdrawal, however, in fact, calculations will be made in local currency. I am sure that in the future there will also arise other ways to avoid the negative consequences of high price volatility of cryptocurrency in trade.

[syamster]

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.

I agree with this. In the long run it's actually wise to own bitcoins. I think some people are only worrying about its day to day uses. We're currently on a bullish trend now but just a few months ago we've been through one of the longest bearish season where people found they can buy less with the bitcoins they have.

Yes this is best time to own bitcoin because the price is low, we can buy so many coins at low price as later on the price will be high so we will  be able to get profit,. Volatility gives us more opportunities to buy at low or at affordable price, so I think is applicable even if it changes the price, with time it only increase gives more chances of earning and getting profit.

[Lanatsa]

Volatility of cryptocurrency is one of the issues that prevents these digital assets such as bitcoin to go mainstream. How could these coins be used as a payment if time and time again the fluctuations is very huge in either directions. But, the problem is that holders treat these coins as assets that expected to rise in value.

I dont know why people do see this thing to be a currency? Why they shouldnt remain to treat it as an asset instead.If we do try to look throughly
its clear that crypto wont really be fitted in to the sense on making it as a money and with high volatility alone it isnt really be considered thats
why its just a normal thing to think off that this thing isnt possible.

[awik p]

Volatility of cryptocurrency is one of the issues that prevents these digital assets such as bitcoin to go mainstream. How could these coins be used as a payment if time and time again the fluctuations is very huge in either directions. But, the problem is that holders treat these coins as assets that expected to rise in value.

I dont know why people do see this thing to be a currency? Why they shouldnt remain to treat it as an asset instead.If we do try to look throughly
its clear that crypto wont really be fitted in to the sense on making it as a money and with high volatility alone it isnt really be considered thats
why its just a normal thing to think off that this thing isnt possible.

indeed, cryptocurrency has become the initial goal as a currency, although in the course of its high price fluctuations, due to factors of demand and supply. without the support of many countries I think it is difficult to suppress volatility, and it is difficult to be used as a currency

[radjie]

Volatility of cryptocurrency is one of the issues that prevents these digital assets such as bitcoin to go mainstream. How could these coins be used as a payment if time and time again the fluctuations is very huge in either directions. But, the problem is that holders treat these coins as assets that expected to rise in value.

I dont know why people do see this thing to be a currency? Why they shouldnt remain to treat it as an asset instead.If we do try to look throughly
its clear that crypto wont really be fitted in to the sense on making it as a money and with high volatility alone it isnt really be considered thats
why its just a normal thing to think off that this thing isnt possible.

indeed, cryptocurrency has become the initial goal as a currency, although in the course of its high price fluctuations, due to factors of demand and supply. without the support of many countries I think it is difficult to suppress volatility, and it is difficult to be used as a currency

yes, it is very difficult if the cryptocurrency can be used as a currency. the main factor that can make crypto currencies as global currencies is only a country that can formalize crypto currencies as a world currency that can be used as an alternative payment transaction tool and is able to be centralized in one country that greatly influences global economic growth.

[Leyss]

In general, the banker is right. The high price volatility of cryptocurrency is a very big obstacle to its implementation as a means of payment. Even with small transactions, where the calculations occur almost instantly, price volatility is not very important. The high volatility of prices in the cryptocurrency plays a large role where a lot of time passes between the agreement on the transaction and payment. In this case, the trade will be more like a lottery, where, as a result of a price change, one of the parties will definitely lose, the other will win. Business loves certainty and a clear calculation of profits, and businessmen in this case will not want to risk it.

[Farma]

In general, the banker is right. The high price volatility of cryptocurrency is a very big obstacle to its implementation as a means of payment. Even with small transactions, where the calculations occur almost instantly, price volatility is not very important. The high volatility of prices in the cryptocurrency plays a large role where a lot of time passes between the agreement on the transaction and payment. In this case, the trade will be more like a lottery, where, as a result of a price change, one of the parties will definitely lose, the other will win. Business loves certainty and a clear calculation of profits, and businessmen in this case will not want to risk it.
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in general, something that is not stable, cannot be used as a medium of exchange. well, that is also one of the reasons why bitcoin is not accepted as a real exchange tool. it's just that, people use it on the internet with agreed conditions. of course the price will also be adjusted at that time. very difficult to make things unstable as a medium of exchange.

[romero121]

Volatility is much spoken as the key factor for the decreased usage of bitcoin same as money. This is true from business people view, because they have made huge investments and when market turns downtrend, the business accepting bitcoin will face a huge loss. This happens as the investment amount will be in the turn around for buying selling, buying selling and so on.

From common people's view it can be used as money, because these days we make use of different online wallets for all our transactions and buying purposes. Whether the market is uptrend or downtrend there won't be much difference as the buying will not be same as that of the investment on business.

[shoreno]

Volatility is much spoken as the key factor for the decreased usage of bitcoin same as money.

you maybe right . some people dislikes volatility but most people will agree on me that volatility is an advantage as it gives an oppurtunity to earn more income when the price rise . not only an income but volatility also helps us to buy coins at a cheaper cost  .   money isnt also volatile .

This is true from business people view, because they have made huge investments and when market turns downtrend, the business accepting bitcoin will face a huge loss.

they should have known that investing is risky and investing in cryptos is even more risky due to thier volatile nature  . business owner or merchants should also be aware of this fact before they have proceed to use cryptos  .