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huige007
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October 19, 2019, 01:59:24 AM |
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Why can't a coin with high volatility serve as money? What makes an asset or something act as money? Apparently, it is just agreement between the parties involved in the trade. Once the buyer and seller agree to accept even a stone as their medium of exchange, the stone now gains value and turns to be their money. All cryptocurrencies can act as money irrespective of their unique characteristics. What matters here is the agreement of most of the businesses to integrate them into their payment systems.
I totally agree with you. A coin with high volatility is already being used as money in few places of the world. It is all about people agreeing to use something as exchange medium for buying and selling. The volatility has to do more with grabbing customer at present. Though crypto currencies are gaining fame on daily basis, it needs to get worldwide acceptance in order to perform money function everywhere. That is just a matter of time. |
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reality18
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October 19, 2019, 03:20:35 AM |
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That's true , the volatility is what makes lots of people not accepting it as a means of payment, just like some small scale business owner lamenting about their loses due to the instability
Do you think volatility is the main concern for cryptocurrency not accepted as means of payment by many businesses? Well, I don't think so. Most of the businesses are not accepting cryptocurrency as payment now because of the rules surrounding it in their country. Some countries have stated clearly that cryptocurrency is illegal whereas others have the rules not stated hence remains neutral. |
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agentx44
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October 19, 2019, 04:55:29 PM |
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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 is more ideal to use crypto as an investment rather than a substitution to fiat. The volatility of crypto is way more higher compared to fiat that's why we should not demand having crypto as our mode of payment for everything. Maybe we can let it be a mode of payment for some stores or any other purchasing means but considering it becoming our currency completely, I don't think so. We may just end up having chaos and misunderstandings if that would actually happen. |
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sirminesalot
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October 20, 2019, 05:19:32 AM |
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The cryptocurrencies can be still used as a money but not a day to day type of money. We can still use cryptocurrencies to purchase something in the internet but using it on our daily expenses is not worth it because we will lose money since there is always a transaction fee and you are risking the value of your cryptocurrency with the volatility. Use your cryptocurrency as a money on big purchases and not on cheap ones.
indeed like that the purpose of the creation of cryptocurrency and by following the times and technology of cryptocurrency is needed someday but at this time in my country it still cannot be used real transactions of crypto currency as a legal payment instrument and the government still prohibits direct transactions with crypto currency but I am sure in the future everything will be done |
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Janation
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October 20, 2019, 05:52:47 AM |
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The cryptocurrencies can be still used as a money but not a day to day type of money. We can still use cryptocurrencies to purchase something in the internet but using it on our daily expenses is not worth it because we will lose money since there is always a transaction fee and you are risking the value of your cryptocurrency with the volatility. Use your cryptocurrency as a money on big purchases and not on cheap ones.
Yes, you can use it but the OP has another argument about it. As the OP's example : If you buy a flat with bitcoin and few years later the bitcoin value decrease... Your flat lose his value as well. Relating your statement to the OPs post. If you are selling Rolls Royce Sweeptails and I bought 2 of it, and as you said buy on big purchases using Bitcoin, and I used my Bitcoins. Let's say one month later and the price of Bitcoin dropped, that also means that the car's value you are selling dropped too, do you get it? We can't use Bitcoin because it is decentralized. Now imagine that continues changes happening every day in our lives, you will never know how much a gum really costs in a day. |
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DaveWave
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October 20, 2019, 06:06:51 AM |
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Crypto currencies are very volatile. Stable crypto currencies are in the top 20 but still very volatile compared to fiats. But we all know that there are already businesses that accepts them, particularly bitcoin, eth, bch, xrp and ltc. And we better expect that there will be more establishments that are accepting crypto currencies in the future even with this volatility level.
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Dr.Osh
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October 20, 2019, 06:24:54 AM |
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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?
for this reason many people disagree with the use of crypto as a means of payment. the ups and downs of prices that occur quickly make our assets unstable. however, some countries do not mind if bitcoin, or cryptocurrency with a high degree of volatility is used as an investment tool, because it is already widely used. however, despite that, there are still so many people on the internet using cryptocurrency with volatility as a means of payment for investment purposes, or fast delivery. |
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supercanada1
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October 22, 2019, 03:23:44 PM |
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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?
for this reason many people disagree with the use of crypto as a means of payment. the ups and downs of prices that occur quickly make our assets unstable. however, some countries do not mind if bitcoin, or cryptocurrency with a high degree of volatility is used as an investment tool, because it is already widely used. however, despite that, there are still so many people on the internet using cryptocurrency with volatility as a means of payment for investment purposes, or fast delivery. If we look at the main purpose behind why people are investing in bitcoin and good altcoins, then we can make this conclusion that it is profit they are after ultimately. It is all cool that we have digital currency in our digital wallet and can buy things with it by direct payment but that is not the aim of holding them. Volatility is the whole reason why we have bitcoin produced millionaire with us now. |
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secretgirl
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October 22, 2019, 04:13:22 PM |
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Yes it's true, 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, it will make the owner hard to set the price and predict the profit, but if the volatility is within months then I think it is still okay, crypto currencies need to be mass adopted so the volatility is not too high
I think everything you say is true, bitcoin is a currency that has volatility. but in my opinion bitcoin can still be used as a transaction tool, as long as there is still cash as a counter value of bitcoin, for example USD or other fiat currencies. You give an example of an apple price, at other times it might be that the price of an apple will differ in bitcoin counts when the price of a bitcoin has decreased or increased, but it will still be the same value as the cash currency. in my opinion bitcoin will not be able to eliminate cash, because the value of bitcoin is calculated in cash. The point is in my opinion, bitcoin can be used as a transaction tool as long as there is still cash as a benchmark. |
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yoseph
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October 22, 2019, 04:43:52 PM |
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Yes it's true, 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, it will make the owner hard to set the price and predict the profit, but if the volatility is within months then I think it is still okay, crypto currencies need to be mass adopted so the volatility is not too high
I think everything you say is true, bitcoin is a currency that has volatility. but in my opinion bitcoin can still be used as a transaction tool, as long as there is still cash as a counter value of bitcoin, for example USD or other fiat currencies. You give an example of an apple price, at other times it might be that the price of an apple will differ in bitcoin counts when the price of a bitcoin has decreased or increased, but it will still be the same value as the cash currency. in my opinion bitcoin will not be able to eliminate cash, because the value of bitcoin is calculated in cash. The point is in my opinion, bitcoin can be used as a transaction tool as long as there is still cash as a benchmark. The retailers will definitely think different to what you are saying, they stand to lose millions if a whale manipulates the value of Bitcoins in a single minute, that's why they are not willing to start accepting Bitcoins as a payment method at the moment, the risk is too high for them but with PAX, I am sure they can accept it since its value is based on the US$ |
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toast
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October 23, 2019, 06:29:57 AM |
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The cryptocurrencies can be still used as a money but not a day to day type of money. We can still use cryptocurrencies to purchase something in the internet but using it on our daily expenses is not worth it because we will lose money since there is always a transaction fee and you are risking the value of your cryptocurrency with the volatility. Use your cryptocurrency as a money on big purchases and not on cheap ones.
the most important thing is the issue of legality from the government and for now my country is still prohibited from using crypto as a direct payment transaction, nor can it be used for payment but I am sure that legality will be obtained from the government in the future great hopes for investors to be able to obtain legality in my country safe and comfortable investment of course |
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the rise
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October 23, 2019, 03:53:00 PM |
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from the business side, it is not easy if the company wants to develop business marketing with such currency conditions. If so, they will start with stable coins, and most will definitely be more comfortable with it in the end. So the point here is that crypto with high volatility will remain a stock asset that is not offered even if there are companies that provide risky things like that, they also always measure potential panic ratios that will emerge
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