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Why stability is better than volatility? It doesn't seem that obvious to me. Every time price stability is forced onto something, it just destroyed its market.
by hartator 10y ago
Why stability is better than volatility?
It doesn't seem that obvious to me. Every time price stability is forced onto something, it just destroyed its market.
- dxhdr 10y ago> Why stability is better than volatility? It's self-evident that a stable currency is preferable to volatile, though I'm interested in reading an argument to the contrary. volatile: liability to change rapidly and unpredictably, especially for the worse. stable: not likely to change or fail; firmly established.
- chii 10y agoLet me play the devil's advocate, and day that volatility is an enabler for gambling or betting, and people are known to want to bet.
- Avshalom 10y agoIf you buy in today and it drops to $1.7 tomorrow, do you spend or do you hope that it'll get back near $1700.00 soon? how much are you willing to do with out for how long? that's the question that volatility is constantly asking and it depresses the velocity of money, depressing whatever economy is based on it.
- s73ver 10y agoSuppose I get paid in BTC, and have a landlord that accepts BTC in rent. Let's say my rent is $2000/month. I get paid X amount of BTC a month for my job. If the price of BTC drops below where my X Bitcoin is not enough to pay my rent, that illustrates volatility being a bad thing.
- wolco 10y agoWhen you sell the coin for cash you know exactly the amount you will have. Bitcoin needs a stable secondary currency or an exchange that will process the transaction immediately but sent payment at a later date.