A cryptocurrency with volatility can't be used as money

[Dncer]

Cryptocurrency market suffers from volatility for the only reason, the market is still too young and the market cap is really low compared to other virtual assets, so the volatility level is pretty much fair for this market cap level.
Until the price of bitcoin will stabilize around a price range, it's going to be volatility as it is being used by only a short amount of people.

I think also that the marjet is too young. But I also think that the market has to follow the spending power to control the inflation. But the spending power is different in the countries...
Many questions difficult to answer for the moment.

[loveinberlin]

Why not? I think when more companies accept it, it will be possible to use it as money without any problems! I would like to see this moment as soon as possible. Think dollar is also volatile and not stable but it is money

[jrrsparkles]

Why not? I think when more companies accept it, it will be possible to use it as money without any problems! I would like to see this moment as soon as possible. Think dollar is also volatile and not stable but it is money

No one want to accept a currency as payment method which price is not stable because they might lose their profits fter the trade.Dollar also have volatility but the volatility of bitcoin is very huge when compared to dollar.

[LadyCoin]

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 think Bitcoin is more suitable for investment, because it is fluctuating and has no center, in other words there is no control from the government. so it is very difficult to calculate in the up and down of its price for the price of a good.

[Geleve]

yes i agree with that. but thre reason of this volatility is that crypto currencies are very newly born. when people start to adapt using cryptocurrencies, volatility is going to start decreasing.

[Tylev]

Crypto currency with its high volatility can be used as money, but not as basic, but along with the circulation of ordinary national money of the state. Parallel circulation of the crypto currency can not cause damage to the country's economy by its volatility, since the planning of the economy, the price of goods and services will be indicated in the national currency. An example of this is the use of crypto currency in Japan, where in parallel with the national money, it gives profit to the economy of this state.

[burner2014]

Crypto currency with its high volatility can be used as money, but not as basic, but along with the circulation of ordinary national money of the state. Parallel circulation of the crypto currency can not cause damage to the country's economy by its volatility, since the planning of the economy, the price of goods and services will be indicated in the national currency. An example of this is the use of crypto currency in Japan, where in parallel with the national money, it gives profit to the economy of this state.

It is true, I myself won't ever bother to use bitcoin to pay my bills as of the moment since the price is too low, but if the price would be high I will do it.

[reverseflash]

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?

And you are capable to call currency with zero volatility? Actually volatility depends on from what party to look. For example - It not the bitcoin becomes cheaper, but the dollar rises in price and vice versa.

[nelsledma]

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?

Do you think there is anything called money that is not volatile, although Bitcoin is very volatile and that’s what makes it different from every other thing called money in the market. But if you talk about volatility, anything called money fluctuates in price, including stocks/assets. If you check the price of Gold it is not always at the same price at all times. Same thing applies to when you compare the price of dollar to other currencies like pounds sterling, euros and, rupees.

[breathlessz]

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?

Do you think there is anything called money that is not volatile, although Bitcoin is very volatile and that’s what makes it different from every other thing called money in the market. But if you talk about volatility, anything called money fluctuates in price, including stocks/assets. If you check the price of Gold it is not always at the same price at all times. Same thing applies to when you compare the price of dollar to other currencies like pounds sterling, euros and, rupees.

right, we can see the forex market, which has high volumes too, i think this is because many governments have not legalized btc in their country, and it is natural that they should study it thoroughly

[Financial Freedom 4U]

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?

If I sell my house to you for Bitcoin, I can decide what I am going to do with coin, if I am not interested in Bitcoin speculation as most merchants aren’t, then you can convert it too FIAT the same day. From that perspective the argument makes no sense, it implicates that you have to hold it for a long time (“few years later”) before it can be converted.

[Janation]

Crypto currency with its high volatility can be used as money, but not as basic, but along with the circulation of ordinary national money of the state. Parallel circulation of the crypto currency can not cause damage to the country's economy by its volatility, since the planning of the economy, the price of goods and services will be indicated in the national currency. An example of this is the use of crypto currency in Japan, where in parallel with the national money, it gives profit to the economy of this state.

It is true, I myself won't ever bother to use bitcoin to pay my bills as of the moment since the price is too low, but if the price would be high I will do it.

And that is another reason why Bitcoin will never be used as a money since it is just treated as an asset. Bitcoin became a popular crypto currency because of its volatility, that volatility made a lot of investors invest on Bitcoin since they knew that the price will still go up and it did. Yes, fiat's price are changing but not as volatile as Bitcoin since if fiat moves quickly as Bitcoin's price, that certain country will probably have a problem the reason Bitcoin will never be used as a currency or a real money.

[squog]

It is true. A volatile currency can't be used to exchange goods and services in a wide scale because no one will actually adopt a volative currency. But then again crypto currencies are young, very young. We still have time to mske the currency stronger and stabler by holding our coins and buying more. Let's not get hooked up with panic selling our coins when we see a drop.

[kier010]

it would be hard because it is very volatile. price change anytime and it may change in seconds. crypto today are good for asset and fiat is still ideal for currency. well cyrpto and fiat are a good combination.

[sakokinak]

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

Crypto is the currency and it cannot be called money as it is really volatile. However, the cryptocurrency has got some characteristic of the money - you can buy some stuff and services for it.

[tester4206]

We can use fiat everywhere and every time but we can not use bitcoin everywhere like fiat especially in areas without internet access, it's hard to use bitcoin for everyday life because using bitcoin is not as easy as using fiat

[ShadowBits]

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?

Of course we can't use any currency that is so volatile since people will not be happy if they have the amount of they want and suddenly it drops lower.

[jaaeeeyyyy]

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? once you bought something using bitcoin will not decrease its value in the future, its value will not be based on the current price of bitcoin anymore not unless you are selling your flat and accept bitcoin as payment. and why would you sell it when the price of bitcoin is low? no one is stupid enough to do that. once an item is bought in bitcoin, the value will remains the same until you appraised it in bitcoin. if doing so, you are not a wise trader.

I don't think that is true that when you bought something with bitcoin then it will not have a lesser value in the future because the price of bitcoin is depending on the demand from the people in the market so if the demand of the people will become lower and the price will also become lower and that thing will have a lower value also. It is all about the demand and pricing of bitcoin.

if we are talking about the item's value in bitcoin, if we are comparing the value when you bought it and the value if you are to sell it. of course the value differs, depends on the current market value, the op's argument is "if you buy a flat with bitcoin and few years later the bitcoin value decrease... Your flat lose his value as well. " if and only you are to sell it in bitcoin's price at the wrong time. his example is buying a flat, on how much you bought it, it will remain as is, now the value differs on the timing of when you are to sell it, again in bitcoin's price.

Well who wants to have their money reclining and increasing every time right. As of now bitcoin is just a good investment because it is more than just a normal investment where you can get normal profit, in bitcoin you can get high profits because as we all know bitcoin has a good price range at times. I couldn't agree that it should be a currency as a mode of payment if this matter still exist. So let's just wait whether bitcoin will be our currency or just our investment.

[BartS]

I disagree because we are already using cryptos to buy goods and pay the services. It's already been proven and now it keeps becoming more useful in terms of its function and development. So, I believed that cryptos will be more useful in the coming more years.

People will just have to adapt that is all, if people around the world can use currencies that lose value very rapidly when they are in the middle of an economic crisis then they can use a currency that can go up or that it can go down, I will admit that it will be way easier if the price was stable but when not even 1% of the human population have adopted bitcoin we cannot really ask for bitcoin to be stable when there is so much potential to go up in value when those people realize that bitcoin is their best option to store the value that they have accumulated over the years.

[wildflower18]

We can use fiat everywhere and every time but we can not use bitcoin everywhere like fiat especially in areas without internet access, it's hard to use bitcoin for everyday life because using bitcoin is not as easy as using fiat

Indeed we can use fiat anytime and everywhere but with bitcoin it cannot be easily used. The higher the volatility it can't be easy to use as to pay bills or purchase goods in actual.