A cryptocurrency with volatility can't be used as money

[adamlillian]

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?

nope. I disagree with this view. because it is very absurd. When we buy any asset, we have to pay the amount with that value. So the price of the BTC dropped sharply, it was only affected a little but not reduced too much.

[nizamcc]

You can sell your house for more BTC, isn't it?
Suppose you bought a house for 10 BTC. A year later, BTC lost 50% of its value. And you can sell your house for 20 BTC. Easy.
But what about volatility. It makes sense when we talk about short distance. If i want to buy an icecream for 0.1 ETH, but it's 0.2 ETH after 20 mins, it will be a trouble for me.

[pant-79]

If we take this particular example, then the same can be said about any other currency. You buy an apartment for US dollars, but this doesn't guarantee you that in a few years this apartment will not lose in value, even if the dollar has lost in value. That is, this example absolutely doesn't show how unreliable  purchase is in bitcoins.

The price of an apartment or US dollars do go up and down but this ratio is very less. Bitcoin on the other hand moves 10 percent up and down within a single day and this is certainly not favorable for anyone doing business as money he got in the morning may be will 5-10% down in the evening and all the budget and planning is disturbed.

It doesn't matter much. If a person is serious about trading, then such volatility, on the contrary, is a positive one. The bottom line is that investing is risky and any currency is always unstable. The stability of national currencies is highly questionable, since we all know that their rate increases and decreases over time or under the influence of any circumstances. So, the described statement of the author: "impossible to use a currency with volatility as money" is initially false.

[lamadu3]

Yes this is true. The volatility of a digital currency is a hindrance to the idea of using it as a currency. The reason is clear and simple, you would loose the value if suddenly it goes down especially when very low. The value can't be stored for long because if it goes low it wouldn't gain from it and only when value rises up. But there could be some other ways which we can still use the currency and thst is for us to figure out. I also have some ideas but I still have to think and check if it could be feasible.

I partially agree with you. Volatile cryptocurrency is poorly suited for use as money. But things acquired with cryptocurrency will not lose or increase their value with it.

[biskitop]

you can, and what you need to remember is that if bitcoin is used as money for payment, then the volatility will not be as extreme now. do you know that the bitcoin market is like this because bitcoin is only traded in the market, not used as a payment instrument or anything other than the btc market.

[fauzan Ichsan]

don't never dream of replacing fiat with crypto as a payment currency.
very unlikely, even if the fiat currency will be replaced, it looks like gold is more suitable as a payment currency, a currency that will never experience inflation.

indeed fiat cannot be replaced by bitcoin at this time, but gold is also difficult to replace fiat. even if that happens, of course it's been a long time ago, because we know gold is a valuable asset that has been recognized starting from the kingdom era

[romero121]

don't never dream of replacing fiat with crypto as a payment currency.
very unlikely, even if the fiat currency will be replaced, it looks like gold is more suitable as a payment currency, a currency that will never experience inflation.

indeed fiat cannot be replaced by bitcoin at this time, but gold is also difficult to replace fiat. even if that happens, of course it's been a long time ago, because we know gold is a valuable asset that has been recognized starting from the kingdom era

Well said, but people love the volatility. Because, whenever there is a price variation what he gets as pay in terms of usd or in terms of local currency varies. Even with the stable pricing it isn't possible to replace fiat. Right now bitcoin has reached such a big market just because it has got volatility a major feature. If cryptocurrencies have got stable price, this could have never been this popular.

[yvesp110]

Yes this is true. The volatility of a digital currency is a hindrance to the idea of using it as a currency. The reason is clear and simple, you would loose the value if suddenly it goes down especially when very low. The value can't be stored for long because if it goes low it wouldn't gain from it and only when value rises up. But there could be some other ways which we can still use the currency and thst is for us to figure out. I also have some ideas but I still have to think and check if it could be feasible.

I partially agree with you. Volatile cryptocurrency is poorly suited for use as money. But things acquired with cryptocurrency will not lose or increase their value with it.

Even then it has all the quality that a currency needs to be used for payments. I am happy that my problems are now solved as I can work in office but I can order all the domestic things I need for my daily life. Bitcoin is an investment and at the same time it’s working as money on international level.

[blackhawkeye1912]

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 one of the issues bitcoin has been dealing with, volatility. This might be an obstacle for bitcoin to go mainstream. But, how could bitcoin be stable when is treated as a digital assets. Huge investors are really playing around to earn profit. There's nothing we can do with these manipulators. This isnone reason why bitcoin is so volatile.

[FlightyPouch]

you can, and what you need to remember is that if bitcoin is used as money for payment, then the volatility will not be as extreme now. do you know that the bitcoin market is like this because bitcoin is only traded in the market, not used as a payment instrument or anything other than the btc market.

Well, that is the reason it is used like that. The volatility makes the price move since no one is really controlling or manipulating the price unless you have a lot of them. It is used as a payment in the past but it was also rejected by a lot of platforms and even some regretted that they've actually accepted it as a payment. It can be used as a money if we will be able to remove that volatility, and I don't think it will be that easy.

[jcarlo]

you can, and what you need to remember is that if bitcoin is used as money for payment, then the volatility will not be as extreme now. do you know that the bitcoin market is like this because bitcoin is only traded in the market, not used as a payment instrument or anything other than the btc market.

Well, that is the reason it is used like that. The volatility makes the price move since no one is really controlling or manipulating the price unless you have a lot of them. It is used as a payment in the past but it was also rejected by a lot of platforms and even some regretted that they've actually accepted it as a payment. It can be used as a money if we will be able to remove that volatility, and I don't think it will be that easy.

Volatiling on price happen in fiat money too. Bitcoin can be a currency if government regulating it and maybe this happen in next few years. Bitcoin price always volatile because the price depend on supply and demand and there is no central banks that can control the supply.

[Ezenwanyi1]

The assertion that Cryptocurrency cannot perform tge function of money in the real sense of it because of its high volatility is correct.People take Cryptocurrency as an asset I of money.
So they use it as a store of value.

[Visbay]

you can, and what you need to remember is that if bitcoin is used as money for payment, then the volatility will not be as extreme now. do you know that the bitcoin market is like this because bitcoin is only traded in the market, not used as a payment instrument or anything other than the btc market.

Well, that is the reason it is used like that. The volatility makes the price move since no one is really controlling or manipulating the price unless you have a lot of them. It is used as a payment in the past but it was also rejected by a lot of platforms and even some regretted that they've actually accepted it as a payment. It can be used as a money if we will be able to remove that volatility, and I don't think it will be that easy.

Volatiling on price happen in fiat money too. Bitcoin can be a currency if government regulating it and maybe this happen in next few years. Bitcoin price always volatile because the price depend on supply and demand and there is no central banks that can control the supply.

Yes I love the volatile nature of bitcoin as it gives me more and more opportunities to buy it at very low price. As you said in fiat it happens because currency rates rise and falls with time. So if you see the price of bitcoin is decreased then just go and buy some at affordable prices later on after holding you will be able to sell again at high price.

[andieoke]

This is indeed difficult, the price of Bitcoin which can go up and down very drastically can make it very difficult for people to believe Bitcoin can be used as real money. Because it's true, when we buy a Bitcoin at a high Bitcoin price, and suddenly the value drops far, then we will lose a lot of our money. In my opinion, bitcoin is more appropriate if it is made into an investment or it can also be made into money, provided we also continue to use ordinary fiat currencies. So when the price of Bitcoin goes down, we can shop with Fiat money and save Bitcoin until the price rises again.

[Tylev]

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?

It is really difficult to use cryptocurrency in business because of its high price volatility. In addition, for the same reason, it is very difficult to report to tax authorities or to audit business structures. Besides the fact that a cryptocurrency has a greater volatility, it is difficult for a business to work with a cryptocurrency also because, unlike banks, it is difficult to provide documentary evidence of the transaction price.
I think that the cryptocurrency will be used in connection with this by more citizens, not business structures.

[snipie]

don't never dream of replacing fiat with crypto as a payment currency.
very unlikely, even if the fiat currency will be replaced, it looks like gold is more suitable as a payment currency, a currency that will never experience inflation.

indeed fiat cannot be replaced by bitcoin at this time, but gold is also difficult to replace fiat. even if that happens, of course it's been a long time ago, because we know gold is a valuable asset that has been recognized starting from the kingdom era

Gold was used before as a way for payment or to exchange goods with it. Nowadays no i doubt it will happens to replace fiat. Societies are trying to go cashless in almost every field. We may not see bitcoin as a national currency but we will see blockchain based national cryptocurrency in the coming years.

[Vaculin]

don't never dream of replacing fiat with crypto as a payment currency.
very unlikely, even if the fiat currency will be replaced, it looks like gold is more suitable as a payment currency, a currency that will never experience inflation.

indeed fiat cannot be replaced by bitcoin at this time, but gold is also difficult to replace fiat. even if that happens, of course it's been a long time ago, because we know gold is a valuable asset that has been recognized starting from the kingdom era

Gold was used before as a way for payment or to exchange goods with it. Nowadays no i doubt it will happens to replace fiat. Societies are trying to go cashless in almost every field. We may not see bitcoin as a national currency but we will see blockchain based national cryptocurrency in the coming years.

That will definitely happen, we are going to that direction already and bitcoin and crypto is easy to carry and secure compared to gold.
The use case of crypto is also better compared to gold so I believe people will see which are more valuable between the two but this will take time.

[chrisculanag]

don't never dream of replacing fiat with crypto as a payment currency.
very unlikely, even if the fiat currency will be replaced, it looks like gold is more suitable as a payment currency, a currency that will never experience inflation.

indeed fiat cannot be replaced by bitcoin at this time, but gold is also difficult to replace fiat. even if that happens, of course it's been a long time ago, because we know gold is a valuable asset that has been recognized starting from the kingdom era

Gold was used before as a way for payment or to exchange goods with it. Nowadays no i doubt it will happens to replace fiat. Societies are trying to go cashless in almost every field. We may not see bitcoin as a national currency but we will see blockchain based national cryptocurrency in the coming years.

That will definitely happen, we are going to that direction already and bitcoin and crypto is easy to carry and secure compared to gold.
The use case of crypto is also better compared to gold so I believe people will see which are more valuable between the two but this will take time.

Yes i agree with you sir , and because its easy to us to collect more crypto than the gold and that is the way of us to earn more but like you said there are many times to earn . Crypto for me is better than holding gold and we are same believe that crypto are more importants and easy to use in many ways.

[deppil]

Yes this is true. The volatility of a digital currency is a hindrance to the idea of using it as a currency. The reason is clear and simple, you would loose the value if suddenly it goes down especially when very low. The value can't be stored for long because if it goes low it wouldn't gain from it and only when value rises up. But there could be some other ways which we can still use the currency and thst is for us to figure out. I also have some ideas but I still have to think and check if it could be feasible.

Yeah the current concern is fluctuations which make it difficult for someone to use crypto as a currency and payment method because it will harm one party if fluctuations occur very quickly, I hope there is the latest payment method innovation, where crypto is directly converted to fiat so that fluctuations can be avoided

[Pattart]

don't never dream of replacing fiat with crypto as a payment currency.
very unlikely, even if the fiat currency will be replaced, it looks like gold is more suitable as a payment currency, a currency that will never experience inflation.

indeed fiat cannot be replaced by bitcoin at this time, but gold is also difficult to replace fiat. even if that happens, of course it's been a long time ago, because we know gold is a valuable asset that has been recognized starting from the kingdom era

Gold was used before as a way for payment or to exchange goods with it. Nowadays no i doubt it will happens to replace fiat. Societies are trying to go cashless in almost every field. We may not see bitcoin as a national currency but we will see blockchain based national cryptocurrency in the coming years.

That will definitely happen, we are going to that direction already and bitcoin and crypto is easy to carry and secure compared to gold.
The use case of crypto is also better compared to gold so I believe people will see which are more valuable between the two but this will take time.

Gold is still used in some areas and is known as dinar anyway. but fiat is certainly still the main currency. the point is that even though cryptocurrency is not the primary. but it will still be used as a legitimate currency in some places. regardless of its fluctuations..