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> Volatility is a problem for any currency used as a medium of exchange absolutely. Volatility is not an issue for any major world currency (USD, Euro, Yen, et
by ac29 6y ago
> Volatility is a problem for any currency used as a medium of exchange absolutely.
Volatility is not an issue for any major world currency (USD, Euro, Yen, etc). If I pay the bill at a restaurant and ask my friends to repay me on Venmo, the money I receive is worth exactly the same when it hits my bank account a few days later as when the bill was paid. Perhaps you could argue it changed by 0.01% or something due to inflation, but cryptocurrencies can easily change by several percent per day.
- harry8 6y agoThe smaller the level of volatility the smaller the problem. Cash in USD is good enough, not so long ago (still? I haven't kept up) cash is not at all good enough in Zimbabwe (unless you use a foreign currency like e.g. USD).
- qqii 6y agoVolatility doesn't have to be an issue with a cryptocurrency tokens either, there are plenty of stablecoins backed by currencies and plenty of algorithmic stablecoins backed by other cryptocurrencies. At the moment the majority of these exist in public blockchains. There are plenty of models that facilitate the same privacy guarentees for stablecoins.
- sudosysgen 6y agoMobilecoin is not a stablecoin.