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History tells us that the US dollar is much more volatile than bitcoin can be. Plus I do not think that Kim will want to have anything to do with that currency

• pyre 14y ago
  > History tells us that the US dollar is much > more volatile than bitcoin can be. There have been at least a couple of recent periods where there was a bitcoin 'bubble.' I'm questioning how he as a merchant, would deal with that (if bitcoin was his main transactional currency)? His customers likely are all using a different currency locally, and would have to exchange that currency for bitcoins. For example: Let's say a month of service costs 3 bitcoins, and currently a bitcoins cost 8 rupees (24 rupees/month for service). What happens when the price of the bitcoin rises to 20 rupees / bitcoin? Does the price (in bitcoins) drop? What happens if this significant rise only happens in one market, but not another? What if one 50% of his customer-base experience significant exchange increases, but the other 50% doesn't? It's a curious thing, because almost no one is being paid (salary/wages) in bitcoins, so they all need to exchange the local currency to pay for service. > Plus I do not think that Kim will want to > have anything to do with that currency. I was using the USD as an example. The same comments could apply to whatever the local currency is of his potential customers. [ Also chances are that if the bitcoin is volatile against one currency it's not not necessary stable against all others. ]