A cryptocurrency with volatility can't be used as money

[munareal]

A crypto currency with volatility can not be used as money. I cant imagine fiat currency rising or falling with in a short period of time like bitcoin.There will be chaos every where.Volatility in Bitcoin does not yet have a generally accepted index  that is why it is seen as an asset . Bitcoin is mapped by bad press that is why the mainstream society are not into it and the security in it, scammers and hackers are not helping the crypto world.

[denny27]

I think in essence is that cryptocurrency will only be an alternative currency until the future or the foundation of the project or a certain profits, it's like money that can be buying something but still., it just the money that only exists in cyberspace and it will not be like real money in the real world because with all on its characteristics.

[Whosdaddy]

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 sounds pretty nonsensical. Real estate is an asset class in itself. How does it matter if you bought it with bitcoin or something else. The value of the flat will depend on the overall outlook of the real estate market.
It would be better if you can provide a link to the article because it seems like you are misreading something.

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.

Really nonsensical. I guess the guy was just trying to pick an example but he just ended up turning it all the way round. Only if he had change the buying of flat to selling of flat, and the holding of bitcoin decreasing in value after the selling; would only have made the idea of volatile cryptocurrency not being used as money logical.

So far, it is obvious that unless you are just converting straight up to fiat after completing sales, you may actually stand the chance of losing a lot with the volatile cryptocurrency that fluctuates heavily in price.

[Similificator]

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 wouldn't use purchasing flat as an example since it is doesn't fit with the argument.

But anyways, what you are saying actually makes sense and I too believe that this is correct. In fact, I even think that most of the people here in this forum would agree to such argument(except for those people who are too attached emotionally to cryptos that even when they know it isn't right, they still want cryptos to be a national currency). Using cryptos as it is today as a replacement for our current fiat would put a country adopting it in chaos. Only common sense is needed to see through this.

[Dncer]

Thanks for your answers. I see this question create many answers with differents minds.

My translation is maybe not perfect but I'll try again cause it's a french article :
"A money wich increase its value is totally not appropriated as a curreny. If the value of the money increase, that means one thing : the value of the merchandise decrease. And the decline of the merchandises prices is called "deflation".

Some specialists say that the bitcoins value can be regulated by itself. I hope that but don't really see how that's possible.

[the13thsymphony]

One of the reasons cryptocurrency has great volatility is the supply and demand of it is only circulating to small time and big time investors along with crypto whales and pump and dump groups that manipulates prices. However if cryptocurrency were to be accepted by people to buy necessities just like fiat or other assets then the prices will be more stable as there will be more supply in the market and it will be evenly distributed.

[Tan_avia)vl.]

Your economist is certainly quite right. But it concerns to visit only Bitcoin, but also gold/money/precious metals. You can not now hang on Bitcoin all the troubles of mankind, because he tries to strengthen his position, as well as all the money in his time.

[Leyss]

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?

Crypto currency with its high volatility can go as money, but only in parallel with the national money of the state. She can not walk like the main currency. In order for price fluctuations in the value of crypto-alaota not to be reflected in the purchased product, this product should still have the possibility of buying and selling for other money that is not a crypto currency. Then the price drops of the crypto currency will not affect the value of the goods.

[Genemind]

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 value of the flat doesn't decrease, there's no relation between the value of the flat with bitcoin. Since you have used your bitcoin to purchase something, it's almost the same as you have cashed out your bitcoin and payed it with cash.

[jimmybush07702]

Indeed.I thoroughly concur. In any case.in a setting that an unstable money can't be received. What we need is a steady cash where by it vary less regularly and less bounces.At the point when that happens, entrepreneurs can receive bitcoin or any digital currencies in their business as a methods for trade for products ams administrations.

[bitcoinerjawa]

I think it is very possible to use but the most important is the total supply available from the coin is unlimited which means there will be no price game that can trigger the rise and fall of the coin price so it is stable and very safe to use.

[intoy_victor]

Being a volatility of a crypto currency could cause in two types only maybe you will lose lots of profit or gain more profit. However its depend if you know how to sell or but a kind of coin you want to invest. Knowledge is the more important to surpass of being a volatile  of a crypto currency.

[okakaynam]

Its probably right crypto currency is very volatile when it comes to its price so its hard to the market or to the economy to adopt it as mode of payment. Every minute the price or value of bitcoin is changing and the market cannot change the price of every goods instantly so thats why crypto currency is not usable as payment to change fiat money that we used.

[Elmughni]

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 it is true, A crypto currency with volatility cant be used as money. Maybe If the crypto is more stable, They can be used as money.

[fiulpro]

That's something thats stopping each and every country in this world accept Crypto and of course because of volatility will be so hard for everyone to do transactions And day today things . It will be so hard to reevaluate goods after the value change one would need a software that would change the value of goods the instant the value changes online also the value will vary from place to place and it will be so hard to make it work beyond the borders.

It will be like the moment you paid 1 BTC for something and right after that payment the value of that thing became 0.5 BTC what will you do then ?
Fight to give them back ?
It won't ever work this way.

[danim1130]

It can be and it is using by people right now there are so many people out there that using bitcoin and other cryptocurrencies and they know the volatility of it that's why they are using it as money because they can hoard it and can be sell in the highest price in the future.

[Maestro75]

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?

Can the less volatility in Ripple be a major reason why banks are adopting it against choosing the bitcoin or even litecoin?

'Your flat lose his value as well.', This is not true.. We know that real estate do not depreciate. Rather price go up. Whether bought with bitcoin or not does not matter.

[cexylikepie]

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 seems to me the battle of volatile cryptocurrency and the stable assets like fiat money and real estate. For me the new trend of profitable cureency is cryptocurrency and yes it is obviously not that good as a currency due to it's volatility however it is still a profitable currency for cryptocurrency traders and not intended for buying and selling of goods.

Cryptocurrency should be used as an asset, so, many countries used this "currency" under an asset for trading/exchange as you said. U.S, UK, and some countries in EU did not choose the way of Japan to use cryptocurrency as a payment method. Because the volatility of the cryptocurrency price will make the retailers have more trouble to grow the country's economy.

[BitHodler]

Can the less volatility in Ripple be a major reason why banks are adopting it against choosing the bitcoin or even litecoin?

It has nothing to do with Ripple being less volatile than other crypto currencies, because it simply isn't less volatile. Ripple is a centralized crypto currency that technically allows transactions to be reversed.

All aspects of Ripple make it an interesting option for banks and certain financial services, but it has no real use and utility with how governments will tie their own fiat currencies to a token running on their blockchain.

Ripple is nothing more than a get rich scheme with the insane premine that's being kept hidden from the public, but it doesn't really work in their favor. It's one of coins heavily being frowned upon by the crypto industry.

[Iyeman]

Thinking about this, there's some cryptocurrency that is pegged to fiat or even precious minerals, pretty sure that this kind of cryptocurrency have significantly less volatility or almost zero since it will always follow the value of that local currency being pegged, we can use that if that's the case.

Can the less volatility in Ripple be a major reason why banks are adopting it against choosing the bitcoin or even litecoin?

It has nothing to do with Ripple being less volatile than other crypto currencies, because it simply isn't less volatile. Ripple is a centralized crypto currency that technically allows transactions to be reversed.

All aspects of Ripple make it an interesting option for banks and certain financial services, but it has no real use and utility with how governments will tie their own fiat currencies to a token running on their blockchain.

Ripple is nothing more than a get rich scheme with the insane premine that's being kept hidden from the public, but it doesn't really work in their favor. It's one of coins heavily being frowned upon by the crypto industry.

Agree with this, anyone who says ripple is less volatile or at least saying that it's a good cryptocurrency is getting blinded by the fact that it's pure stupid coin, it's not decentralised and stupidly can be reversed, what the point of using ripple when there's PayPal and other similar but with less volatility and more simplicity.