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

[igorc]

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

[Raflesia]

I think cryptocurrency will not be real money but it can be said that digital money must be connected to the internet, well crypto will be a modern exchange tool when it has been widely used throughout the world to use cryptocurrency as their needs.

Even buying things now is already available with cryptocurrency I think this will continue to grow in other stores to be able to buy it.

[Darker45]

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

First of all, I have only made use of cryptocurrency as real money online. I have yet to experience paying crypto in a restaurant, shopping center, hotel, and so on. I am more than excited to try it, though.

Based on experience, the real hindrance why crypto is seldom being used as real money is that there are too few land-based stores and other businesses that actually accept cryptocurrencies as payment. Volatility is one thing, for sure, but then I am certain that many of my countrymen are still using crypto in paying bills, buying game credits and cellphone loads despite its volatility. So I guess if only there are many commercial establishments accepting crypto payments, it will be used as real money.

[Ucy]

A well decentralized and properly governed cryptocurrency can actually become "real money and real medium of exchange". Infact, it can become one of the best (if not the best) money, if things are done properly. It's quite easy to put things in order, but I wonder why real or important developments/implementations are slow... probably due to good and useful ideas/things getting supressed?

[btc_angela]

Volatility is one of the biggest factor why crypto can't really take off and can't be considered a real money as of this time. It became one of the biggest speculative asset, hindering its progress in my opinion. But I do hope that this kind of mindset will change in the future. Just imagine if crypto will be adopted, you can buy everything, from coffee to groceries with your mobile phone. Personally, I have been using bitcoin to pay for my bills, internet, phone, water and even electricity. But it's not p2p though, sort of someone still in the middle to exchange my bitcoin to fiat to be able to be accepted by those services.

So I voted: "Yes, I used crypto many times mostly to pay for services"

[hatshepsut93]

Volatility is the problem #1, because of it people who don't own Bitcoin don't view it as money, they view it as a highly speculative investment. And majority of the population is not interested in trading and risking, so it's a huge turnoff. Only after Bitcoin will be relatively stable for multiple years will the public opinion start shifting.

[aysg76]

I think cryptocurrency will not be real money but it can be said that digital money must be connected to the internet, well crypto will be a modern exchange tool when it has been widely used throughout the world to use cryptocurrency as their needs.

Even buying things now is already available with cryptocurrency I think this will continue to grow in other stores to be able to buy it.

In developed countries they are already implementing mode of payments via crypto currencies. However, in developing countries it is going to be grim reality to implement such high tech payment solution.

I have not used cryptocurrency or bitcoin to buy any goods only to convert to cash before use. The reason is that, people have not really accepted it because of internet connection that is involved in it. Also, volatility issue. Because it value is not steady, this is another challenge.

Off course that is the issue with developing countries as well. Also, while thinking about this post I also clicked one more thing on my mind - mentality of people! That is most of them are not ready to accept such payment solution. Most of them are not even aware of crypto's.

Volatility is the problem #1, because of it people who don't own Bitcoin don't view it as money, they view it as a highly speculative investment. And majority of the population is not interested in trading and risking, so it's a huge turnoff. Only after Bitcoin will be relatively stable for multiple years will the public opinion start shifting.

That comes at tertiary or below rank. The volatility is later when people will start to know what crypto is in first place and how important it could be in real life applications.

[LeGaulois]

Volatility is the problem #1, because of it people who don't own Bitcoin don't view it as money, they view it as a highly speculative investment. And majority of the population is not interested in trading and risking, so it's a huge turnoff. Only after Bitcoin will be relatively stable for multiple years will the public opinion start shifting.

Volatility is caused by exchanges, not by Bitcoin itself. And the same volatility is what attracts people for a decade now.
Risks? We don't have any risk in the stock markets which are also volatile? Developed economies didn't take any risks?

Example: buy $1 today and get $10 in 5 years, who wouldn't be attracted to such an offer? Risks are everywhere but if you never take any risks anything good will happen in your life, it's how it works. It's a matter to balance 'the risks'.The golden rule in investments, never put ll your eggs in the same baskets

People are not interested in trading and taking risks but they have no problem to take the risk when buying a scratch ticket with 0.0001% chance to recover their money lol

[Blackdeath]

In my own personal opinion, maybe the reason why it is hard for cryptocurrency to be accepted by the government of a country and to be the main currency is because not everyone have the enough technology to have their own cryptocurrency and cryptocurrency is being used for illegal activities such as scams and frauds.

[joniboini]

In developed countries they are already implementing mode of payments via crypto currencies. However, in developing countries it is going to be grim reality to implement such high tech payment solution.

I don't really think crypto payment is such a high tech thing. You can literally use your phone to scan a QR code and then send the payment. Or there are several crypto debit card that you can use just like any debit/credit card.

The rate of adoption or people using cashless payment via EDC might below but it doesn't mean they can't use it. In fact, digital payment/e-wallet such as Transferwise is gaining popularity now. It is definitely not impossible.

[hatshepsut93]

Volatility is caused by exchanges, not by Bitcoin itself. And the same volatility is what attracts people for a decade now.
Risks? We don't have any risk in the stock markets which are also volatile? Developed economies didn't take any risks?

Example: buy $1 today and get $10 in 5 years, who wouldn't be attracted to such an offer? Risks are everywhere but if you never take any risks anything good will happen in your life, it's how it works. It's a matter to balance 'the risks'.The golden rule in investments, never put ll your eggs in the same baskets

People are not interested in trading and taking risks but they have no problem to take the risk when buying a scratch ticket with 0.0001% chance to recover their money lol

Exchanges are just free market, you can't really blame them for it. And stock market is not as risky as Bitcoin, plus stocks aren't fully speculative, their value is based on the performance of their company. With Bitcoin traders don't care much about fundamentals.

And you can't really compare Bitcoin with lottery tickets, they are attractive because they seem to cost only a little. But how many people throw thousands of dollars in casino?

Anyway, we are talking about currency here, and most people don't want their currency to be volatile, that's a fact.

[Bitum]

There are not many people currently using cryptocurrencies, for normal users this is still complicated technology, although infrastructure has developed rapidly recently. Nevertheless, technology is not yet mature. So my opinion - not user-friendly and very difficult for ordinary people

[el kaka22]

Can and will are different questions. Can bitcoin become medium of exchange? Definitely, it already is for some stuff. Will bitcoin be medium of exchange? Not commonly, people use their own fiat currencies for that. When there is fiat currency backed by government that is basically always 1 to 1 within itself, there is no reason to use crypto currency for the wide usage, if we use it like that crypto would go up but honestly do we really need it to be like that?

I think crypto is in the perfect position, maybe couple trillion dollars market cap would be the max of this, that way we could basically live under the radar without having to deal with everyone around the world, but also be a good niche product of investment so that we can take ourselves some profits as well without banks getting too involved.

[Gozie51]

A well decentralized and properly governed cryptocurrency can actually become "real money and real medium of exchange". Infact, it can become one of the best (if not the best) money, if things are done properly. It's quite easy to put things in order, but I wonder why real or important developments/implementations are slow... probably due to good and useful ideas/things getting supressed?

I think you have forgotten to consider one thing and that is volatility. Will decentralized or regulation be able to take away volatility from cryptocurrency? I'm trying to see how volatility can be reduced, if that is done, then it is really going to play the role of money.

[tomahawk9]

Most cryptos that people think have the potential of functioning as a medium of exchange (and therefore as money) are pseudonymous, and that's a big no no for many governments around the world...And why do we care about what the crooked govt around the world have to say about X or Y crypto?

Well, a medium of exchange should be largely accepted by the majority, right? If it isn't, because the govt and the law say that it (in this case, a cryptocurrency) is not money, then say bye bye to crypto adoption = majority won't use it, and it becomes a very niche money-like digital item. So, IMO one of the main things (other users above pointed out some more) stopping cryptos from becoming a medium of exchange is (ironically) one of their main strength: their pseudonymous (and in some cases anonymous) properties.

But it's not p2p though, sort of someone still in the middle to exchange my bitcoin to fiat to be able to be accepted by those services.

So I voted: "Yes, I used crypto many times mostly to pay for services"

You shouldn't have voted for that option because, according to what you said, you aren't exactly using crypto as payment.

Not only are you using a middleman to exchange your coins to fiat, but you're (most likely) also using a middleman to pay for your services with fiat (like a bank in a bank transfer). The option "I used crypto for X or Y" should be selected if the transaction was made directly to the vendor's wallet...Just saying (:

[kawetsriyanto]

Voted "never". Unfortunately, in our country, using crypto for the payment tool is forbidden. Well, that's against the law to use it for payment purposes. But we can use crypto for the digital asset, it is legal here. It seems we still need a lot of time to use crypto for paying something here. Anyway, what do you mean by "real money"? Do you think it will be printed? Bitcoin is created for the purpose to be electronic cash (money). It mustn't be printed. It has no differences with fiat if it is finally printed.

[igorc]

Voted "never". Unfortunately, in our country, using crypto for the payment tool is forbidden. Well, that's against the law to use it for payment purposes. But we can use crypto for the digital asset, it is legal here. It seems we still need a lot of time to use crypto for paying something here. Anyway, what do you mean by "real money"? Do you think it will be printed? Bitcoin is created for the purpose to be electronic cash (money). It mustn't be printed. It has no differences with fiat if it is finally printed.

Hi! By real money I mean the use for transactions, not just the use as an asset...Regarding the printing - why do you think that it mustn't be printed? Most people around the world use cash for most of transactions, the lack of printed Bitcoin is its disadvantage, don't you think so?

[sunsilk]

Nothing stops crypto as being real money nor a medium of exchange. Actually, by simply observing the forum it's already being used as its purpose.

You can see transactions made with bitcoin and other altcoins which you can easily distinguish the answer to your question.

[abhiseshakana]

Cryptocurrency can indeed be a medium of exchange, but it can never be physical money. For now, because in some countries the productive generation is still a parent, not a millennial generation, it will be very difficult to make crypto as a daily medium of exchange, unless physical cash is actually withdrawn from circulation and replaced with digital money.

If physical money is withdrawn from circulation, the government must ensure that facilities and infrastructure are ready and technology can be accessed easily and simply by everyone.

[Furious 7]

I think it will be difficult because cryptocurrency will not act as real money in the transaction but some also legalize it because they know about the blockchain technology that is so accurate in applying it to a government system.
Like India, the Supreme Court does not prohibit the existence of bitcoin there, but still cryptocurrency cannot be used as the main money in any case because it would violate in my opinion.