A cryptocurrency with volatility can't be used as money

[weblouartisan]

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 you are right, volatility of the cryptocurrency is the reason why we cannot use it as a money for the entire world but i think that government can do something like stacking the price into highest value so we can use it daily but the down side, bitcoins will not be profitable since the price wont go down anymore.

[EdenHazard]

I think if we cannot use as money, we still can withdraw the crypto to money so we can use that money to buy something. but I am sure that in the future, cryptocurrency can be used as money and maybe there is a new coin that is not too volatile so we can use it to buy anything and it could be a new thing for the payment system.

With your statement, is that mean bitcoin is not suitable as a currency? For me, to be called a currency or not it depends on users. Because the basic functions of bitcoin is for the payment system in order to facilitate every human who wants to transact despite having a long distance with fast transaction and transaction fee is relatively cheap. Each user will be different, some only use bitcoin as payment system only and those who use bitcoin as a source of income, because it can be used as a place of investing and trading and this is the excess bitcoin that cannot be owned by fiat currency, so the bitcoin price volatility is an added value not possessed by fiat currency.

[Sengoko]

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?

So let’s assume that we all stopped making use of the regular currencies we are using now just like dollars, euros and the rest of them and starts making use of cryptocurrencies, do you think that Bitcoin will still be volatile? Well, I’m not even sure of that… But one thing for sure is that making use of Bitcoin as a currency is a real bad idea and won’t favor any country… sounds like a stupid idea to me.

[nazaididuan1]

The currency must be stable because other commodities are valued on it, and the cryptocurrencies fluctuate too much.
Another reason that cryptocurrency cannot be used as a currency is that the transfer rate is too slow and the transfer fee is high!

[BartS]

@OP

Gold is volatile, Silver and co are too. The USD/EUR pair is volatile but it's used daily. Ok you can say it's not the same volatility volume but still.
And what about if people stop to use the dollar or a bank run movement?

What it happens is that people see the market of cryptocurrencies and see the volatility, but they do not take the time to look at the volatility of other markets, for example gold has a tendency to reevaluate itself very rapidly against fiat and this happens when the economy is in a terrible shape and it has passed many years since it did it, so it is possible we are going to see it soon and fiat can lose value very fast as well, you just need to look at some counties with difficulties to see rampant inflation.

[superstarbtc]

this discussion is there for a very long time but they are many years passed bitcoin is gaining more and more momentum and adding up more merchants in returns so people acceptance and trust towards technology made them to accept the coin as currency

[Dncer]

this discussion is there for a very long time but they are many years passed bitcoin is gaining more and more momentum and adding up more merchants in returns so people acceptance and trust towards technology made them to accept the coin as currency

With the last financial crack, people trusted the system... but we know what happened. I hope we are not in a similar case.
I mean the blockchain technology is the future, but how we use cryptos now, will maybe change.

[Assface16678]

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 is in any side is correct. In my opinion though. Well in order to use a certain currency it must be in stable form as much as possible because who uses a currency that is changing over time in different ranges. Bitcoin is just pretty much an investment nothing more nothing less, in the moment. But soon once BTC catches too much attwntion it might be used as a currency.

[buternasek]

Real state,Gold and other assets price also fluctuate,If you buy a flate and you using it at least 2 year you already recover your money and till now it is seemed Bitcoin price increased and as a rational investor you will sell it when Bitcoin price will high rather you buy it.

[cpkozak]

This is in my opinion correct. With such constant fluctuations, it can not be regarded as a real currency. All I know is that bitcoin is just a market for investment.

[jeluhtajem]

Real state,Gold and other assets price also fluctuate,If you buy a flate and you using it at least 2 year you already recover your money and till now it is seemed Bitcoin price increased and as a rational investor you will sell it when Bitcoin price will high rather you buy it.

[lanalang]

for my opinion it is scam, if you buy something right now you are the owner, and it is no matter what will be price for Bitcoin

[Xenoph0bia]

For a crypto to be a mainstream currency, it should be stable and not volatile. A stable currency is required for a strong financial market. Price stability contributes to achieving high levels of economic activity and employment by improving the transparency of the price mechanism.
Volatile cryptos, in my opinion are more good investment assets rather than currency as they give you good chances for profit gains in short period of time.

[BartS]

For a crypto to be a mainstream currency, it should be stable and not volatile. A stable currency is required for a strong financial market. Price stability contributes to achieving high levels of economic activity and employment by improving the transparency of the price mechanism.
Volatile cryptos, in my opinion are more good investment assets rather than currency as they give you good chances for profit gains in short period of time.

I disagree with this, it is true that to have a stable and not volatile currency will be better but a currency like bitcoin can still be used as money, people will just need to adjust their behavior to use a currency like that, people adjusted their behavior to use a currency like fiat that is always inflating and that is why savings are so low among the population, but when they begin to use a deflationary currency like bitcoin savings will go up and mindless spending will go down.

[ShineftChaos]

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 you are right, the volatility of the market will affect cryptocurrency and it might be the reason for bitcoins not to be used as a fiat for every country but the advantage is that, the volatility will can be used in order to earn more profit.

[Stephen1989]

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,

[rachelia13]

I agree that bitcoin with volatility can not be used as money, since bitcoin is not a valid exchange rate and tends to be banned by many countries because it is not decentralized. Bitcoin is just one of the high value investments that can be profitable. So if the value is reduced or increased it is something normal in the investment. Bitcoin itself has a high technology that can not be reached by everyone. So it is still difficult to apply as money where there are still some people who even don't know about technology.

[ASHLIUSZ]

Cryptocurrencies cannot be created without volatility, if that's possible then it is same as the traditional fiat. Being volatile makes the cryptocurrency more stronger and valued, because if it is stable people consider the an optional solution for fiat. Now it is not, it gets importance as an investment, trading asset, exchangeable, convertible to fiat.

[amih]

yes, it is true that the current crypto currency can not be used as well as paper money in general. because I think in addition to its volality of crypto currency of course the price fluctuations are never stable. so obviously it would be very difficult to make currency for the transaction tool.

[win365]

I have the same mind for that question. as always it is a way to make people think and creating new ways for creating reality. In what believe or what to do - personal thing.