A cryptocurrency with volatility can't be used as money

[supermine]

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,we can't use bitcoin as a currency with this kind of volatility range but with these volatility only the bitcoin got more popular in very short time.So that volatility got both positives and negatives.

But I don't understand how that flat will lose its value when bitcoin loses its value,you meant to say if we have bitcoin as only our currency in usage?

[uozer]

You are somehow trying to bring out issue to ponder here on the volatility of Bitcoin. But thinking about it critically, you should be able to understand that the price of Bitcoin at which an estate is bought does not really affect the physical value of that estate at a later date.. Because the estate shall be valued by then with either Appreciation or Depreciation which shall base on the Economic situation incumbency. However, Bitcoin volatility is been affected or felt much on Exchanges/Market and not on Physical assets like Estate. Hence, cryptocurrencies can be used as money at any given periods in question.

[GreatBug]

I don't think it is true cause money that we use now has same think like $ which is going up and down (of course it is lower than crypto). For me prices will be more stable in future so it will make them more adapted to movements like this.

[Ben K.]

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

Couldn't agree more...volatility has a lot to do with a lack of meaningful transactions on the network. The order books are too thin and once it becomes more widely adopted than the resistance of the buyers and sellers will help to stabilize the price.

Furthermore, there may be other protocols which handle micro-transactions better, in which case one will be like a checking account and bitcoin will be a "savings" account in essence.

[Indrawan77]

I  agree that volatility currencies is not suitable to be used as money, the shop owner will confused with the price setting and need to change the price every day because the owner need to make profit based on the purchase price, that is why bitcoin still cant be used as currency until there are mass adopt, volatility in crypto can't be avoided but it can be decrease when more people used it

[arthotdog]

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?

Currency is different from money,so theres nothing to argue with that.
Bitcoin is tend to be used online meaning transaction over internet is indeed,then if we need to buy or pay something this can be done instantly so if the value decreases later,its nothing matter because the deal has been than before it happens.

I  agree that volatility currencies is not suitable to be used as money, the shop owner will confused with the price setting and need to change the price every day because the owner need to make profit based on the purchase price, that is why bitcoin still cant be used as currency until there are mass adopt, volatility in crypto can't be avoided but it can be decrease when more people used it

But its happening now,that many online shops accepted bitcoin as payments,so what would you say about than?the dont have to change the price daily,becaue they can put fiat price,and the bitcoin value will be adjusted

[Oasisman]

I know its hard for Bitcoin to be considered as currency due to its high volatility, but because of its high demand in the market it did became a currency already. Have you noticed there are already a lot of businesses and services online who accepts Bitcoin as one of the payment option?Cryptocurrency could be a currency over the internet, but not in the real market. Volatility could be negotiated during transactions, payment or prices may change but it all depends on the current Bitcoin price.

[Bianxee]

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 made me think of other things like the value which was not stable. I was starting to get some idea that i know bitcoins will be our future currency, however with the price volatility and almost minutely changes can make some things  high or lower price. For now itcan't be use as money.

[jak3]

I do not agree with the article completely as because because just causing ups and downs in the market but because of banks the value of every countries

[santiPOGI]

It can be used, 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.

[speedy963]

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?

Currency is different from money,so theres nothing to argue with that.
Bitcoin is tend to be used online meaning transaction over internet is indeed,then if we need to buy or pay something this can be done instantly so if the value decreases later,its nothing matter because the deal has been than before it happens.

I  agree that volatility currencies is not suitable to be used as money, the shop owner will confused with the price setting and need to change the price every day because the owner need to make profit based on the purchase price, that is why bitcoin still cant be used as currency until there are mass adopt, volatility in crypto can't be avoided but it can be decrease when more people used it

But its happening now,that many online shops accepted bitcoin as payments,so what would you say about than?the dont have to change the price daily,becaue they can put fiat price,and the bitcoin value will be adjusted

Yes i highly agree with you. It doesn't really matter whether it is volatile or not but the fact that those merchants are basing its price over fiats that makes bitcoin adjusted so easily is not  a problem, besides when bitcoin value changes, it doesn't change the current price of each item being sold by the market.

[r32godzilla]

Yes a currency should have a stable price and very minute fluctuations could be bared.But bitcoin has such a huge fluctuation that within a day,its price even increases or decreases up to 1,000 dollars.That's why,no retail merchant is ready to accept bitcoin as payment.

[yndye]

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 reason why bitcoin can't be use fully as payment option because there is the risk that the merchants will lose instead of profit because its value in fiat decrease. Some are already accepting cryptocurrency but upon receiving the coins, they would immediately convert it to fiat so that they will not lose its value due to fluctuation. Cryptocurrencies can only be use fully as payment option without worrying for fluctuation if all the value of the products and services are price in crypto as well. There would be proper accounting and you can immediately calculate your profit or loss without worrying of its fiat value.

[riboku0105]

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.

Assuming your bitcoin price will always increase from 2013 to 2017, but if the opposite bitcoin price assumption to 2030 is only $ 50 for example, the value of real estate must not be reduced value.

[AlistairJ]

In many countries there was a period of high volatility of national fiat currencies, this complicated the exchange of goods, but did not abolish it. So the volatility of the crypto-currency is not too big a problem to participate in the commodity exchange, the problem of exchanging them for the fiat is much more important.

[sheenshane]

In many countries there was a period of high volatility of national fiat currencies, this complicated the exchange of goods, but did not abolish it. So the volatility of the crypto-currency is not too big a problem to participate in the commodity exchange, the problem of exchanging them for the fiat is much more important.

It means all currencies in each different country is having a volatile which is this complicated in the exchange of goods where is the fiat is can determine the fixed value of goods. Cryptocurrency that high volatile like bitcoin as of now adapting to some countries but it is not the main assets of this currency by its a value exchange. As of now, it is used as an investment that makes profitable to the people not focusing on exchange.

[TastyChillySauce00]

Yes a currency should have a stable price and very minute fluctuations could be bared.But bitcoin has such a huge fluctuation that within a day,its price even increases or decreases up to 1,000 dollars.That's why,no retail merchant is ready to accept bitcoin as payment.

This problem has long been solved if you give enough attention, using bitpay or any kind of payment gateway service will eliminate the risk of fluctuation since it's converting the bitcoin to USD directly at the real time.
And just so you know, there's no stable currency, the price is purely based on demand in the market, sigh, even fiat is not stable at all.

[Valzzz005]

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 am agreeing in the fact that the cryptocurrency can not be an everyday money if they are volatile because there are some instances that you need some exact money but then having a volatile money cannot make that stable. So time will come that you need that money but it falls so you need to add much money, are you getting my point. So if there are some cryptocurrency that will be use as a daily currency that must be a stable one for us to use it like fiat but digital version

[dirham99]

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. if the volatility is too high then its not suitable to be used as currency. Maybe in the future when the crypto currency is stable, they can be used as money.

[timerland]

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.