A cryptocurrency with volatility can't be used as money

[Caelanpelley]

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, when the value of money goes down, the value of the goods goes away. If you buy a house and after 5 years you want to sell it. But the currency is now depreciated, meaning you've lost. Or now you buy bitcoin and 5 after the price increase bitcoin strong you have words compared to the time you bought.

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[bitkanu]

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?

Real estate has its own market value but i dont think that fluctuation of bitcoin will affect its value. If you bought a land worth 10K usd when prices of bitcoin is high then it would always be worth 10K if prices of bitcoin is low.

Frankly honest, there's a time when properties have a downfall aswell, something that has value will have its volatilty and property is one of them, even people have talked about property bubble lately.
Never think that property will just goes up its value, maybe in a third world country the price will grow that way because the population growing so fast but in developed country with negative population growth? I don't think so.

[Ikay]

I don't think that's exactly how it works but in my own research just a reading research the volatility is not a case if we use that as a money because it is a digital currency and it will use to buy a product or a thing just like other company they use their cryptocurrency to buy a thing from them.

[emma crypto 1013]

Depends on what you use it as? 1 bitcoin equals 1 bitcoin for trade or hold..

If you Google you will find that 1Usd =45 INR in 2012 and today 1USD=65 INR.. DID that make people to stop using USD as money? NO!

[Eliyo]

A cryptocurrency with volatility can be used as money. If legalized/legitimatized in a particular jurisdiction, it would function and any challenges therefrom would be sorted afterwards.

The assertion that If the value of the money decrease, that means the value of the merchandise decrease would not be believed because the exchange rate of fiat money between two countries increases and decreases as well based on their economic indices. In this wise, the value of merchandise purchased are entered in the seller / purchaser's books using the exchange rates ruling at the date of sales/purchase.

Therefore, regardless of volatility a cryptocurrency can be used as money in the same way as fiat money is used on merchandise.

[kive2k]

I think that it takes more time for bitcoin, so that the tsyna was more menial than the fixed one. Crypto currency should be used as money, it just takes more time ...

[Muspion]

For me the price will be more stable in the future so that will make them more able to adapt to this movement. I do not think that's true because the money we use now has the same thoughts as the ups and downs

[yahamidu]

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?

Maybe If crypto currency with volatiliy less, it can be used as money. When the demand is stable, it will happen.

[MuffinMaster]

For me the price will be more stable in the future so that will make them more able to adapt to this movement. I do not think that's true because the money we use now has the same thoughts as the ups and downs

It has but they are not that big like in crypto, you know  that currencies has pumps and downs like 1$ not 50/80% of its value, in future if it will be more stable people will make it possible to make transactions in more and more places.

[Qungis]

This is a reliable and well-known argument and it is true. The currency cannot be volatile. Otherwise, no one will use it.

[tambok]

Yes it is right that due to the volatility of bitcoin it can't be used as money, I don't think it would ever implemented that it will become the replacement of fiat, I think it would remain the same as to what is the situation of bitcoin right now, which is good thing at some point since we do have an opportunity to earn.

[ricardobs]

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.

If someone is angry with this volatility thing, then surely he must understand that things aren’t that much easy here. If this volatility is just vanished or intentionally killed, then there wouldn’t be any sense of bitcoins at all. They become usual like every other source of money. There wouldn’t remained any sort of difference or superiority of bitcoins than stock and other same sources.

[Activitycoin]

For me the price will be more stable in the future so that will make them more able to adapt to this movement. I do not think that's true because the money we use now has the same thoughts as the ups and downs

Right bitcoin is not the only volatile currency but the real money also make price high and down,  noting has a stable price,  as crypto currency is an innovative currency but even then it has more value than the fiat and people are crazy for using bitcoin as currency to buy goods and enjoy shopping, bitcoin attracts people to use it and which is being a reason for less value of bitcoin in market now a day, according to me bitcoin is best source of payment for good more better than fiat and paper money.

[carlisle1]

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?

What about japan?they are using bitcoin as currency so how is that?

They are very affected on everything while the truth is this has nothing to do with them,what i wanna say is lets face our own problem and lets not get involved in this wasnt for us

[diodora]

This is very much true. Since, bitcoins is so much volatile, it is not practical for small transactions.

[DMCR lah]

Cryptocurrency lacks intrinsic value that is capable of generating revenue such as ordinary products or services. Moreover, since cryptocurrency is a relatively new asset, investors face the challenge of evaluating its value through traditional assessment models.

[nodulelibyane7]

Infact volatility issue is so much climbing the headlines now a days that it has become a global issue now a days

[surfinonmyownwavebaby]

In theory it appears like you lose value but in actuality you gain value. Say you purchase a flat for 1 BTC @ 300k. Now say 1 BTC is worth 200k a little while later. Your house value is not dependent in the BTC but rather what the free market says in the real estate market. Lets say your house didn't lose that much value in one year and was worth 280k now. In this example scenario you would have gained 80k equity despite the fact that it looks like you are losing 100k equity.

[xali]

I always thought that the only bad thing of crypto was the huge volatility, i would love to have my money backed on crypto, but i am afraid of buying one bitcoin at $10000 and then having it worth less than $4000 at the next day.

[bagsladderg]

if you buy a shirt for primary cost and then when it goes down then you have to sell it in low cost, in loss. How can it be reliable then.