A cryptocurrency with volatility can't be used as money

[entrepmind23]

This argument actually gives a justice because no one feels the loss later on However, governments in a country must be ready to support the existence of the system so that smoothness in doing every transaction using bitcoin can be done without any obstacles at all.

We would be comfortable using cryptocurrency as currency in itself if we wouldn't worry about its value in terms of fiat. If we are buying our needs in terms of cryptocurrency and the merchants buy and sell too using cryptocurrency then they wouldn't worry anymore whether its value will go up or not in terms of fiat because their profit is computed in coins and the fiat value wouldn't matter anymore. For now, all merchants do not adopt cryptocurrency yet that's why those who will accept it will have a problem in the volatility.

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[Nelly.G0211]

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, it's impossible to use crypto as fiat for now. But we all know that it is going to be regulated soon, so the level of volatility or should I say an ability to manipulate will become much weaker.
But do we really need it? volatility decreases and the amount of profit decreases together with it..

[Deepa18dec]

I do agree with that. If the price is not stable then you can't use it as a currency/money and cryptos are highly inflationary. Sure there is inflation in any currency but that is gradual in nature while in crypto, you can see the price doubling overnight and then coming back to one tenth of it in next few days.

[Btcschool]

As money, everything that has a price can be used. The fact that the price is volatile is secondary. Yes, and ordinary money can also lose in value for various reasons (devaluation, war, massachnye cataclysms). In historical terms, the life of the currency is 40 years. The US dollar lasts longer, but this is artificial.

Many people worry about this thing and I think it is right that you think if you buy something in crypto and the price drop more you will lose your money. That’s the reason that I say that bitcoin is not for making money and converting into other currencies. It is for use all over the world. When there is only one currency then this problem will be solved.

[moshk555]

This statement would have been considered if it were stated of two to three years ago but as of now, Bitcoin and Ethereum and Ripple are amongst the top currencies used worldwide and they are an effect of volatility on a daily basis so volatility is not the factor when it comes to the use of money.

[Kambal2000]

This statement would have been considered if it were stated of two to three years ago but as of now, Bitcoin and Ethereum and Ripple are amongst the top currencies used worldwide and they are an effect of volatility on a daily basis so volatility is not the factor when it comes to the use of money.

You are right, they were really considered as the top currencies of all time and if we will use this as a currency I think it would be fine since we are basing in the current value of the fiat and not on the value of bitcoin, so it would be still fair if buyers/sellers will use it.

[gnaylor]

it is said by the many analysts at wall street that as bitcoin achieves a 400 billion dollar valuation it will be adopted by many nations as a standard of attractions, at that rate if there are high changes in the price, it will be increasingly difficult to regulate or analyze the small businesses in the country.

[elzjmirra]

And I think it's very difficult if this digital currency replacing the local currency. While now crypto is not necessarily the currency in many countries give permission for access. And only a few countries that permit digital currency to Transact.

[pyosar]

It may all be better to have a crypto currency with greater volatility than dollars, which are very much depreciated due to inflation. Crypto currency will not be so volatile over time.

[Usafstar]

Volatility is always there and i think the fiat has also volatility like the exchange rate of dollar with our country currency is changing every time and our currency become more volatile than dollar so volatility is existed every where in the currency market.

[shinharu10282016]

Even money has volatility. Do you even know the term 'inflation rate'? The ability of money you hold now can change. It can buy you bread and water now. But it can only buy you a bread tomorrow. That's it. Using an example like this can let everyone know how volatile our fiat and current cryptocurrency market together with some manipulation from whales. I doubt we'll be seeing something 'volatile' as bitcoin as it is now.

[gowobonyok]

I agree. because of that volatility, bitcoin is hard to be a valid payment for a good item in the long run. just for some time and in some particular deal, bitcoin can be used as payment. because yes, when someone buys an item with bitcoin for 0.2 bitcoin, then the exchange rate goes down, surely they will raise the price of bitcoin and it is definitely hard to be accepted by the buyer.

[efxtrader]

Even money has volatility. Do you even know the term 'inflation rate'? The ability of money you hold now can change. It can buy you bread and water now. But it can only buy you a bread tomorrow. That's it. Using an example like this can let everyone know how volatile our fiat and current cryptocurrency market together with some manipulation from whales. I doubt we'll be seeing something 'volatile' as bitcoin as it is now.

Indeed, if we watching on forex market, fiat money have high fluctuation too and sometimes more volatile than cryptocurrency. Cryptocurrency high fluctuation because its still unregulated market by government.
Beside that, cryptocurrency market still 9 years old and still not a mature market and I am believe in next future, market will more stable

[scoin9]

The Volatility you speak of is mainly obtainable with very new coins or tokens that haven't lasted for very long, top cryptocurrencies that have been around for very long are not faced with issues of this nature. Cryptocurrency can be used as money but the crypto must have been around for a very long time.

[TheNotoriouss]

It can but IMO the more market volatile the less people want to use it.  In what ICO you willing to participate in jul-aug? Have you heard about Kelvin Blockchain?

[JohnWick_Bitcoin]

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 cant be really used as a currency because of its volatilite price and the volatility is also the reason why cryptocurrency is very profitable today, there is so many use for crypto and not just  a currency.

[dongyi17]

This might be true because of the current condition of bitcoin in the marketplace, we seems get enough with its low, so dip price or value, and so in thinking how can it become a currency everyone used when its value changes from time to time, unless there is a changes that will stabilize it only then will it become truly a currency.

[pinoyden]

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 cant be really used as a currency because of its volatilite price and the volatility is also the reason why cryptocurrency is very profitable today, there is so many use for crypto and not just  a currency.

its not about the volatility that cause the cryptos to become usable as a  money but it is because cryptos are built to store a value .  but yes , volatility is the reason on why cryptos are verry profitable in terms of asset use .

Re: A cryptocurrency with volatility can't be used as money

no .  that is not true , cryptos can still be use as a  currency or a money to be able to buy stuff and pay something despite of thier volatile nature but it is only risky because your money can decrease at some point although it can still also increase if ever the price of cryptos will also increase .

[Cryptoville247]

The argument is a very rational one. The high volatility of cryptocurrencies might make it difficult for the whole world to have a consensus about using it as money or a medium of exchange in the purchase of goods and services. To me, I think something can be done to control this high volatility. A serious check need to be put on certain Crypto projects to be sure of their genuineness or usability of the project. Maybe this can help a little. Till then, the world may not accept cryptocurrency as money.

[darkangel020716]

That is true, volatility in a currency is not a good thing to use in all aspects, because of the inconvenience of its use in the community, its value can change every time and it will not give a good effect in the economy of the country.