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> The price volatility seems like a red herring. If you're using it as a currency then you're not holding it for significant periods of time and the entire poin

by andy99 1y ago

> The price volatility seems like a red herring. If you're using it as a currency then you're not holding it for significant periods of time and the entire point is to make it an automated process, so you're buying some cryptocurrency for cash and then immediately spending it. How much volatility do you really expect in the timespan of a fraction of a second? Maybe I don't understand how people use bitcoin but I wouldn't call your description that of a currency but more like a payment processor. I want a currency, e.g. USD to be stable enough that I can comparison shop in it, quote prices to customers in it, and hold some as "cash or cash equivalents" on my balance sheet without undue risk from price fluctuation. USD achieves this, BTC doesn't, which is assume is why people are using the get-in-get-out model being mentioned here of only holding it for as short as possible.

AnthonyMouse 1y ago
You shouldn't be using any currency as a long-term store of value. Even if you want to be denominated in USD and minimize risk, the interest rate on cash in a mattress is zero and the interest rate on US treasuries is non-zero. Meanwhile the historical purpose of holding cash as "spending money" (i.e. liquid assets) is from a time before computers could allow you to keep it as actual investments until the instant you do actually want to spend it. As for using it for pricing, things are typically priced in USD because it's the world reserve currency, or in the dominant local currency in a given country. That doesn't mean that other currencies aren't currencies. Shops in many countries will often accept both local currency and USD even if prices are only listed in one of those, and so what? Anybody can look up the current exchange rate in real time on the internet. Why is it a problem to list prices in USD and then accept that amount of cryptocurrency (or Euros or Yen) at the current exchange rate?
- what-the-grump 1y ago
  Because if it worked better then we’d be doing it already. But no amount of cryptobro podcasts are going to fix the shortcomings of digital currencies. And everyone knows this. My dollar will be worth a dollar tomorrow and will sit in my wallet. My crypto currency is worthless on most of the planet. Do you take payments in LoL skins or vbucks?
  - AnthonyMouse 1y ago
    > My dollar will be worth a dollar tomorrow and will sit in my wallet. My crypto currency is worthless on most of the planet. Then why are there so many places you can exchange a Bitcoin for thousands of dollars?
    - what-the-grump 1y ago
      Many places? Lets see, chase bank has 5k locations in the US. I have 3 locations near me, and if I wanted to use something like on online bank like Betterment, I can go 30-40 locations immediately near me and they will cover the transaction fees... The closest bitcoin ATM is 20 miles away from me in another town at a sketchy gas station. Let me just hop over and grab 3k out of it and get robbed.

by andy99 1y ago

AnthonyMouse 1y ago

You shouldn't be using any currency as a long-term store of value. Even if you want to be denominated in USD and minimize risk, the interest rate on cash in a mattress is zero and the interest rate on US treasuries is non-zero. Meanwhile the historical purpose of holding cash as "spending money" (i.e. liquid assets) is from a time before computers could allow you to keep it as actual investments until the instant you do actually want to spend it. As for using it for pricing, things are typically priced in USD because it's the world reserve currency, or in the dominant local currency in a given country. That doesn't mean that other currencies aren't currencies. Shops in many countries will often accept both local currency and USD even if prices are only listed in one of those, and so what? Anybody can look up the current exchange rate in real time on the internet. Why is it a problem to list prices in USD and then accept that amount of cryptocurrency (or Euros or Yen) at the current exchange rate?

what-the-grump 1y ago
Because if it worked better then we’d be doing it already. But no amount of cryptobro podcasts are going to fix the shortcomings of digital currencies. And everyone knows this. My dollar will be worth a dollar tomorrow and will sit in my wallet. My crypto currency is worthless on most of the planet. Do you take payments in LoL skins or vbucks?
- AnthonyMouse 1y ago
  > My dollar will be worth a dollar tomorrow and will sit in my wallet. My crypto currency is worthless on most of the planet. Then why are there so many places you can exchange a Bitcoin for thousands of dollars?
  - what-the-grump 1y ago
    Many places? Lets see, chase bank has 5k locations in the US. I have 3 locations near me, and if I wanted to use something like on online bank like Betterment, I can go 30-40 locations immediately near me and they will cover the transaction fees... The closest bitcoin ATM is 20 miles away from me in another town at a sketchy gas station. Let me just hop over and grab 3k out of it and get robbed.