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> Cryptocurrency market is extremely volatile. This isn't that far from normal. I think you inadvertently confirm OPs point. Cryptocurrencies with their volati

by cromka 5y ago

> Cryptocurrency market is extremely volatile. This isn't that far from normal. I think you inadvertently confirm OPs point. Cryptocurrencies with their volatility cannot replace regular currencies.

intotheabyss 5y ago
Cryptocurrency is a misnomer. Most cryptos aren't trying to be currencies in the traditional sense. For example, RAI is a stablecoin on Ethereum that's not pegged to any fiat currencies. You can think of RAI as a stable form of ETH.
- echelon 5y ago
  What does that even mean?
  - intotheabyss 5y ago
    It means that ETH which is a decentralized cryptocurrency can be used as a collateral for an algorithmic stablecoin called RAI that adjusts its price based on the price of ETH from a Uniswap price feed and a PID controller and arbitrage. To mint RAI you need to deposit ETH. The goal of RAI is to create a stablecoin which dampens the price movements of ETH over long periods of time.
    - jakeva 5y ago
      The fact the community felt the need to invent a "stablecoin" isn't terribly reassuring
      - diabeticApe 5y ago
        Why not? Its a new asset, what is wrong with improvement? I mean using that logic does it also disturb you that somebody invented the seat belt? Would you prefer they didnt invent seat belts? Would that have been more reassuring of the relative safety of the vehicle if they never admitted that you could die in a car crash? The point of stable coins is really only apparent if you're trading crypto just like the importance of seat belts might make more sense to somebody that drives daily.
      - miracle2k 5y ago
        On the contrary, decentralized stablecoins are some of the most exciting things in the space. The MakerDAO system, which issues the DAI stablecoin, is earning 2.5 million every year, distributed to token holders. It has survived multiple market crashes. Algorithmic stablecoins attempt the same thing w/o collateral, and seem to have done well in this drawdown as well.
    - bhk 5y ago
      Are you talking about the RAI that traded at $0.0186 a few days ago and that you can now sell for $0.00022 ? That's a "stablecoin"? https://atomars.com/trading/RAIUSDT https://atomars.com/trading/RAIUSDT
      - intotheabyss 5y ago
        No, that's not the RAI I'm talking about. This is https://www.coingecko.com/en/coins/rai https://www.coingecko.com/en/coins/rai
inter_netuser 5y ago
650B is a small market cap for a global currency. Gold is 12T. Once Bitcoin gets to 10T, volatility should drop.
Mc_Big_G 5y ago
This makes no sense. 1 BTC still equals 1 BTC.
- randomsearch 5y ago
  Currencies are used to purchase things. If the purchasing power of 1 BTC changes dramatically, it matters.
  - Mc_Big_G 5y ago
    You're assuming I care how much something costs in dollars.
    - klyrs 5y ago
      This makes me wonder how you pay for basic living expenses like rent/mortgage, food, clothes, etc
    - imtringued 5y ago
      If you are a US citizen you will have to pay taxes in dollars.
      - ric2b 5y ago
        Dollars are one of the easiest things to buy with Bitcoin, so how is that a problem? I also need water to live my life, but that doesn't make me feel the need to price everything in gallons of water.
        prepend 5y ago
        Fluctuating prices suck for paying taxes. Buy bitcoin at $1 on Jan 1, sell at $10 on dec 31. I now owe taxes on $9 in gains, so I’ll need USD$3 on April 15. If on Jan 2, I buy more Bitcoin at $10 and it drops to $6 on April 15 that will suck because then I’ll need to sell half my Bitcoin to pay taxes.
    - 5y ago
scsilver 5y ago
Thats the thing, they arent currencies, they are assets that can act like currencies when convenient.
- not_jd_salinger 5y ago
  > hey arent currencies, they are assets The irony here of course is that the only way that Crypto currencies would meet any standard definition of an asset would be if they were functioning currencies. Going with Investopedia's straightforward definition "An asset is a resource with economic value", how is a non-currency crypto coin in any way a resource or possess economic value?
  - thecrash 5y ago
    Presumably your complaint is that cryptocurrencies don't have "economic value", but what theory of value are you using to decide that? Exchange theory of value says that a commodity has two values: a use value (what it can do for you outside of the market) and an exchange value (what others will give you for it in the market). I think it'd be correct to say that cryptocurrency has no use value, but it obviously does have economic value. And it's far from the only asset with these characteristics.
  - diabeticApe 5y ago
    Simple. Gold is an asset that is not used as currency but provides the holder with certain desired benefits and the asset can be liquidated if needed. Crypto is similar in that it prodives a financial vehicle that posesses certain properties. Im not saying they should all be thought of as digital gold but that lile gold, they provide value not only in thier price tag but in some inherent property that provides value to the user (this property varies wildly from crypto to crypto and is what makes each project distinct and unique.
    - sashimi-houdini 5y ago
      Let's shift this one level up: Simple. Bitcoin is an asset that is not used as currency but provides the holder with certain desired benefits and the asset can be liquidated if needed. Skepticoin is similar in that it provides a financial vehicle that possesses certain properties. I'm not saying it should be thought of as digital bitcoin but that it's like bitcoin, it provides value not only in its price tag but in some inherent property that provides value to the user.

by cromka 5y ago

> Cryptocurrency market is extremely volatile. This isn't that far from normal. I think you inadvertently confirm OPs point. Cryptocurrencies with their volatility cannot replace regular currencies.

intotheabyss 5y ago

Cryptocurrency is a misnomer. Most cryptos aren't trying to be currencies in the traditional sense. For example, RAI is a stablecoin on Ethereum that's not pegged to any fiat currencies. You can think of RAI as a stable form of ETH.

echelon 5y ago
What does that even mean?
- intotheabyss 5y ago
  It means that ETH which is a decentralized cryptocurrency can be used as a collateral for an algorithmic stablecoin called RAI that adjusts its price based on the price of ETH from a Uniswap price feed and a PID controller and arbitrage. To mint RAI you need to deposit ETH. The goal of RAI is to create a stablecoin which dampens the price movements of ETH over long periods of time.
  - jakeva 5y ago
    The fact the community felt the need to invent a "stablecoin" isn't terribly reassuring
    - diabeticApe 5y ago
      Why not? Its a new asset, what is wrong with improvement? I mean using that logic does it also disturb you that somebody invented the seat belt? Would you prefer they didnt invent seat belts? Would that have been more reassuring of the relative safety of the vehicle if they never admitted that you could die in a car crash? The point of stable coins is really only apparent if you're trading crypto just like the importance of seat belts might make more sense to somebody that drives daily.
    - miracle2k 5y ago
      On the contrary, decentralized stablecoins are some of the most exciting things in the space. The MakerDAO system, which issues the DAI stablecoin, is earning 2.5 million every year, distributed to token holders. It has survived multiple market crashes. Algorithmic stablecoins attempt the same thing w/o collateral, and seem to have done well in this drawdown as well.
  - bhk 5y ago
    Are you talking about the RAI that traded at $0.0186 a few days ago and that you can now sell for $0.00022 ? That's a "stablecoin"? https://atomars.com/trading/RAIUSDT https://atomars.com/trading/RAIUSDT
    - intotheabyss 5y ago
      No, that's not the RAI I'm talking about. This is https://www.coingecko.com/en/coins/rai https://www.coingecko.com/en/coins/rai

inter_netuser 5y ago

650B is a small market cap for a global currency. Gold is 12T. Once Bitcoin gets to 10T, volatility should drop.

Mc_Big_G 5y ago

This makes no sense. 1 BTC still equals 1 BTC.

randomsearch 5y ago
Currencies are used to purchase things. If the purchasing power of 1 BTC changes dramatically, it matters.
- Mc_Big_G 5y ago
  You're assuming I care how much something costs in dollars.
  - klyrs 5y ago
    This makes me wonder how you pay for basic living expenses like rent/mortgage, food, clothes, etc
  - imtringued 5y ago
    If you are a US citizen you will have to pay taxes in dollars.
    - ric2b 5y ago
      Dollars are one of the easiest things to buy with Bitcoin, so how is that a problem? I also need water to live my life, but that doesn't make me feel the need to price everything in gallons of water.
      - prepend 5y ago
        Fluctuating prices suck for paying taxes. Buy bitcoin at $1 on Jan 1, sell at $10 on dec 31. I now owe taxes on $9 in gains, so I’ll need USD$3 on April 15. If on Jan 2, I buy more Bitcoin at $10 and it drops to $6 on April 15 that will suck because then I’ll need to sell half my Bitcoin to pay taxes.
  - 5y ago

scsilver 5y ago

Thats the thing, they arent currencies, they are assets that can act like currencies when convenient.

not_jd_salinger 5y ago
> hey arent currencies, they are assets The irony here of course is that the only way that Crypto currencies would meet any standard definition of an asset would be if they were functioning currencies. Going with Investopedia's straightforward definition "An asset is a resource with economic value", how is a non-currency crypto coin in any way a resource or possess economic value?
- thecrash 5y ago
  Presumably your complaint is that cryptocurrencies don't have "economic value", but what theory of value are you using to decide that? Exchange theory of value says that a commodity has two values: a use value (what it can do for you outside of the market) and an exchange value (what others will give you for it in the market). I think it'd be correct to say that cryptocurrency has no use value, but it obviously does have economic value. And it's far from the only asset with these characteristics.
- diabeticApe 5y ago
  Simple. Gold is an asset that is not used as currency but provides the holder with certain desired benefits and the asset can be liquidated if needed. Crypto is similar in that it prodives a financial vehicle that posesses certain properties. Im not saying they should all be thought of as digital gold but that lile gold, they provide value not only in thier price tag but in some inherent property that provides value to the user (this property varies wildly from crypto to crypto and is what makes each project distinct and unique.
  - sashimi-houdini 5y ago
    Let's shift this one level up: Simple. Bitcoin is an asset that is not used as currency but provides the holder with certain desired benefits and the asset can be liquidated if needed. Skepticoin is similar in that it provides a financial vehicle that possesses certain properties. I'm not saying it should be thought of as digital bitcoin but that it's like bitcoin, it provides value not only in its price tag but in some inherent property that provides value to the user.