Can cryptocurrencies play the role of real money as medium of exchange?

[imstillthebest]

cryptocurrencies are real money but they are only exist digital however there are people create physical versions of cryptos   .

cryptos are volatile and being volatile is one of the factors for people to not use it  because the value of thier money can decrease but not all cryptos are volatile   . there are stable coins too and less volatile coin which can be verry good to use as oppose to the real money   .  to the poll , i answered  " i use cryptos to buy goods most of the time "  its virtual good specifically prepaid recharge for mobile/internet  and im verry satisfied   .

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[Kuligokm]

Cryptocurrencies are mostly decentralized and can't be under governmental control. These features don't allow cryptos to become officially accepted medium of exchange.

[KrisAlex18]

Cryptocurrency can only an alternative for fiat currency, it cannot replace fiat currency because it has a feature of being volatile, so it would be hard for some transactions to happen because there is no fixed price in crypto not like in fiat currency.

But I am still hoping that cryptocurrency would be accepted to all countries because it is a big help for us, it can be used to convert into fiat currency that we can use to buy some goods and stuffs that we needed. But I think this cryptocurrency has a good potential to be adopt by other countries because of our current situation, some people are afraid of going outside to make some transactions using fiat currency, but with cryptocurrency we can do at our home.

[bearexin]

Cryptocurrencies are already serving as medium of exchange, the question is what is making the government not to adopt it? Okay, I know that there are also people that have chosen not to accept and make use of cryptocurrency and that’s because of the volatility and these people feel that it is not safe for them since they might end up losing their money in the fluctuating market.

As for the government, I don’t think that’s the same reason. The government will not accept Bitcoin because it’s a decentralized asset/currency and cannot be regulated (there is no way it can be regulated except through centralized exchanges). Since there is no such possibility, the government will not agree to adopt it.

[Lhaine]

What do you think are the main problems of cryptocurrencies that stop them from becoming real money and real medium of exchange (volatility, etc.)?

Actually more of the trader's really like the volatile price of bitcoin if bitcoin price is stable it will not attract more investors to came in.
You can easily earn profit in bitcoin because of that and this is also the reason to lose if you are not careful to decide when to buy.

If you just want a stable crypto currency then you can choose USDT.

[GDragon]

It's because governments are afraid of bitcoin being decentralized. They think it could be risky, and can be easily used illegally. Without the middleman,  who will you call when there's a problem. They believe bitcoin have no legal recourse.

Why Control Matters
Governments control fiat currencies. They use central banks to issue or destroy money out of thin air, using what is known as monetary policy to exert economic influence. They also dictate how fiat currencies can be transferred, enabling them to track currency movement, dictate who profits from that movement, collect taxes on it, and trace criminal activity. All of this control is lost when non-government bodies create their own currencies.

If bitcoin or another cryptocurrency become widely adopted, the entire banking system could become irrelevant. While this may sound like a wonderful concept in light of the recent behavior of the banking industry, there are two sides to every story. Without banks, who will you call when your mortgage payment gets hacked? How will you earn interest on your savings? Who will provide assistance when a transfer of assets fails or a technical glitch occurs?

[webtricks]

What do you think are the main problems of cryptocurrencies that stop them from becoming real money and real medium of exchange (volatility, etc.)?

It really depends upon what is your definition of real money. Bitcoin can surely be used as a medium of exchange. I tried an experiment last year. I bought commodity from one of my client who is good friend of mine and owner of e-commerce business. Then I reported this transaction as per Indian Accounting Standard 21 (Ind AS-21) which deals with 'The Effects of changes in Foreign Exchange Rates' and treated Bitcoin as foreign currency.

While filing his income tax return, I reported transaction as foreign exchange transaction and it was cleared by Income Tax Authority. Then we tried availing one of the government subsidy and submitted same Balance Sheet. To my surprise, even Central Government didn't object the presence of 'Exchange Loss' account in the financial statement and approved our subsidy application.

[Pixyoxx]

cryptocurrencies can play the role of real money in future by for now i have traded crpyto online for money so it is sort of online money for now i didnt see any restaurants ,gas stations, showrooms , anyshop accepting cryptocurrency well in near future i hope so that government would think about it and maybe it would be acceptable everywhere another main reason why it cant play role of real money as medium of exchange is not eveyone owns bitcoins and as of now most of the people are selling thier bitcoins in panic. hope in near future we will see shops accepting bitcoins 

[tbterryboy]

I think digital goods are the real thing that we should focus on, like for example gaming world is billions of dollars worth and crypto is a great way to enter that as well. Look at crypto, it has a lot of people who are technical as well, engineers, developers, many people who understand about stem stuff and in return those people usually either code the games as well or they like to play games.

So, we do have a lot of stuff in common with the gaming world but for some reason whenever an altcoin was created connecting crypto to gaming, it never worked out, gaming people are smart and do not get fooled all that easily. Long story short we can make those type of digital stuff like gift codes, steam purchases, netflix subscriptions and stuff like that which are purely digital and can't be hold in hand, could be all crypto if we focus on it.

[Janation]

What do you think are the main problems of cryptocurrencies that stop them from becoming real money and real medium of exchange (volatility, etc.)?

Some would say volatility but I think the root of it is because of it being decentralized.

Decentralization is the main reason and I don't really expect to be real money. With nobody or government to control the price, it is just manipulated by the investors and the movement in the market making it volatile. With the decentralization and its anonymity, people look at it as a scam and I think that is another factor.

[bits4books]

- ultra volatility
- your ass can be hacked
- lack of legitimacy
- if your exchange will close today , it is not difficult to guess what will happen to your money
- cryptocurrency's reputation
- inability to pay with coins normally (as follows from the points above)
- 51% attack

[coinfinger]

What do you think are the main problems of cryptocurrencies that stop them from becoming real money and real medium of exchange (volatility, etc.)?

Lol cryptocurrency are already playing the role of real money, they are already a medium of exchange and that’s the main purpose they were created.

The problem is that people don’t really trust cryptocurrency, it’s still new and they don’t understand how it works yet and plus the fact that it is volatile is making lots of people to be scared of making use of it since they are likely to lose their money due to how the price fluctuates wildly. Some people have said that cryptocurrency (bitcoin) will become stable, but I don’t think that’s going to happen any time soon.