A cryptocurrency with volatility can't be used as money

[Janation]

At present, it’s really not possible to use bitcoin as money. Bitcoin is an asset in which you can invest money.

I think even in the future, it will not be used.

Bitcoin is decentralized, that is the reason it is volatile.

There is no way that people would be using Bitcoin as money, some platforms accepted Bitcoin then changed their decision because of the volatility in the past. I am referring to Steam by the way.

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[Andrews193]

At present, it’s really not possible to use bitcoin as money. Bitcoin is an asset in which you can invest money.

I think even in the future, it will not be used.

Bitcoin is decentralized, that is the reason it is volatile.

There is no way that people would be using Bitcoin as money, some platforms accepted Bitcoin then changed their decision because of the volatility in the past. I am referring to Steam by the way.

Agree that this volatility creates a barrier between store owners and crypto because values change so quickly, updating prices every day is very annoying, sometimes fluctuating too much, many users may complain about the rate, very difficult for use. But using it as money is still an enabling feature because this seems to be an option in obligatory situations, although people may very rarely use and accept less crypto as money but it can certainly be used as money, some services still accept crypto

[Zemomtum]

This comparison does not flow at all. Real estate value is determined by the location and the inward and outward appearance and have nothing to do with the Bitcoin price. Besides, What you used 10BTC to buy 4 years ago can buy 8 more of those properties as of today.

[Brunus]

It is a discourse that periodically reappears, that of the excessive volatility of bitcoin.
While it is obvious that this creates difficulties of a conceptual and accounting nature, in the end it is not different from using any other currency: calculations need to be done well, someone wins, someone loses.

[Ozero]

At present, it’s really not possible to use bitcoin as money. Bitcoin is an asset in which you can invest money.

Now there are many ways of acceptable use of bitcoin as money. So, it can be used in various payment cards to purchase goods or provide services. It can be used for various fast transactions, where a short time passes from the moment of agreement to the completion of the transaction. However, on the whole, of course, a decentralized cryptocurrency creates big problems for use as a means of payment due to its high price volatility.

[Shadidalam1111]

it is depend on the seller if they want to accept cryptocurrency or not.
but as a whole and will make this crypto a money for the whole world will not be good.
there are many small business that will not carry the weigh of votality.

[Cnut237]

I think that volatility is just a consequence of the young market. Much of crypto is highly speculative because we are talking about an expectation of future utility, rather than current here-and-now performance. Add to this the thin markets, and you have a perfect recipe for price fluctuation. I think this will fade away as crypto matures and we begin to see coins being used in the real world.

[prix]

Yes of course. Sellers and buyers have enough of their worries, why do they still have the risk of losing from changing the price of 'money'. That is why the payments in the tusd are now gaining popularity. And if the libra still starts and there is no possibility of blocking funds in it, then it can also gain popularity as a means of payment.

[Farma]

I think that volatility is just a consequence of the young market. Much of crypto is highly speculative because we are talking about an expectation of future utility, rather than current here-and-now performance. Add to this the thin markets, and you have a perfect recipe for price fluctuation. I think this will fade away as crypto matures and we begin to see coins being used in the real world.

in general, an unstable currency can indeed make many businesses lose, because of this Fiat becomes a stable transaction tool. however, on the internet, or some people in the world accept unstable cryptocurrency as a currency/medium of exchange. many people sell their goods with it. but, I feel that they are people who want to collect bitcoin/cryptocurrency as an investment tool. but, normally, volatile cryptocurrency cannot be used as a currency because it makes a person's business unstable in profits and losses, especially for other things.

in my country, there are regulations that prohibit using cryptocurrency as a medium of exchange because it is dangerous, but it does not matter if you use it in investments, and other businesses, it's just a risk to the person concerned.

[Spaffin]

The fact is that all cryptocurrency users are divided into two groups.  The first group considers cryptocurrency as a means to make money, through trade or investment, when volatility gives a very good city.  The second group is people who believe in the prospects of cryptocurrency and expect real use of cryptocurrency in everyday life of a person.  And of course, if cryptocurrencies are used as a means of payment, it will only be stable cryptocurrencies.  And we still do not know what price Bitcoin will be after the extraction of the last Bitcoin.

[negancoin]

To some degree I agree with this statement " A cryptocurrency with volatility can't be used as money " that you put as title, but I totally disagree with the second statement " If the value of Bitcoin decrease, that means the value of the merchandise decrease ".
It's true that volatility makes it difficult to use cryptocurrency as normal money as the price is changing every single hour and I hope that some day bitcoin price be less volatility so it can be used by normal people in daily life instead the current situation where the most people hold bitcoin as an investment not as money to buy products and services. 

[Leyss]

Of course, the great volatility of the cryptocurrency, and first of all Bitcoin, makes it very difficult to use them as a means of payment. However, in recent years there have been many different options for their use, which mitigate this undesirable effect in trade. One of such methods is a payment card in which bitcoins are on the account, however, they can be paid in the national currency at the bitcoin exchange rate at the time of the transaction. This form is convenient for both the buyer and seller. However, the disadvantage of this card is the inability to withdraw funds from the card in cryptocurrency. When credited to a card, it is actually immediately withdrawn by the bank from the card, although its equivalent in cryptocurrency remains on the account.

[tonyvo2017]

I completely agree with Wellershoff, he says it makes perfect sense. because no one wants to take money with too much risk and never knows what its true value is.
If a whole country holds bitcoin and it is constantly volatile, then the central bank agency also cannot predict the economic situation to make decisions about their interest rates. therefore, I am completely against bitcoin becoming a common currency.

[bitbunnny]

I wouldn't say that cryptocurrencies with volatility can't be used as a money or payment method. They can but because of volatility the risk is high and you actually don't know exactly how much you should pay for something because the referal value is always in fiat.
That is the reason why businesses are not very willing to accept crypto as a payment because they could face potential loss and whole payment process is more complicated.

[barabarian1]

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 think you are right with high volatility cryptocurrency not suitable for use as a currency. I prefer to use for value storage devices and investment tools. rather than as a currency. and I'm sure most crypto users think so too. and now the number of stores or companies that accept bitcoin is also small. even in my country it is not permitted to use bitcoin in payments. so far I have only used bitcoin for investment not as a currency.

[reality18]

Why can't a coin with high volatility serve as money? What makes an asset or something act as money? Apparently, it is just agreement between the parties involved in the trade. Once the buyer and seller agree to accept even a stone as their medium of exchange, the stone now gains value and turns to be their money. All cryptocurrencies can act as money irrespective of their unique characteristics. What matters here is the agreement of most of the businesses to integrate them into their payment systems.

[FlamingFingers]

That's true , the volatility is what makes lots of people not accepting it as a means of payment, just like some small scale business owner lamenting about their loses due to the instability

[blckhawk]

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?

Although the argument that a cryptocurrency with too much volatility cannot be used as money has its merits but the volatility seems to matter only because we are comparing the value of bitcoin against fiat. In a scenario where bitcoin is actually working as currency, there will be need  for a set of indices standardized by calculating amount of common goods that, say, 1 BTC should buy. Such an exercise would either need regulatory intervention or bitcoin adoption would have to go widespread with merchants deciding this value governed by free-market competition.
This is when volatility would not really matter.

The problem with this mindset is that, if let's say a governing body has set a standard calculation for how much goods a BTC can buy, and according to you, we'll eliminate the need of fiat so volatility won't matter. Keep in mind that bitcoin is deflationary in nature, only limited of its supply can ever be mined. That means, the fewer the supply left, the higher the value of 1BTC will be, the more it can buy. Sounds good right? Well, not really. Having a currency with too high value would just cause people tend to not spend a lot of the currency, or just hoard. Then, economy slows down, no one wants to use their money since it's too valuable.

[riso2015]

That's true , the volatility is what makes lots of people not accepting it as a means of payment, just like some small scale business owner lamenting about their loses due to the instability

For this reason, Stability-based Crypto was born with various stablecoin. Indeed, because of Crypto volatile prices so that traders can benefit in trading. If there is no volatile price then traders cannot get the profit. However, if for a transaction, I agree that Crypto is not suitable for use as a currency.

[Tungsten-1]

That's true , the volatility is what makes lots of people not accepting it as a means of payment, just like some small scale business owner lamenting about their loses due to the instability

Due to volatility I think there are a lot of benefits of cryptocurrency, the first benefit is trading as the price goes up and down it provide more profit to the traders, the second is holding of crypto currency let we compare gold with crypto then everyone knows that holding of crypto is more profitable as compare to the holding of gold. Also sometimes the volatility of crypto proves very beneficial as payment, let a business owner accept crypto and the price goes up then it is good for the owner.