It's normal BTC behavior, BTC spikes up and goes down all the time. 10-15% per day moves happen regularly. Open the price chart and look at it.
Currencies need stability of value so that everyone doesn't have to update their prices ever few hours: https://simplicable.com/new/money
But maybe in the new world, all prices can be in digital and thus ever changing?
If customers paid a conversion to some unit each time, and conversion is determined at point of sale. One customer may pay 100pBTC for a loaf of bread, and another may pay 101pBTC.
Does that help, or make things worse?
Your example above shows a 1% swing -- which is nothing. Yesterday BTC dropped by 14-18% depending on how you define it.
Imaging buying a Tesla and you budgeted for $40K but today it jumped $45K. That would throw off your plans and you wouldn't probably buy it, hoping for things to change. This means that the thing you are using for the transaction is actually preventing commerce because now timing matters. This is a hinderance to commerce and those using it will not have the liquidity/dynamic economy as compared to those using a stable currency.
This is a sign you are not using a currency for the transaction but rather an asset.
Now USD is stable in parts because it is accepted widely and everything is denominated in it. If everything was denominated in BTC, then it would have similar stability. Basically the more things are denominated in a particular currency/asset, the more stable it becomes.
It doesn't meet the requirements of a good currency. There is hyper inflation and they have redenominated it a few times now and are planning on doing it again.
Is a boat with a huge hole in its hull a good boat? Technically it is probably a boat, but it isn't what one would consider a good and desirable boat and it doesn't allow one to do what one can usually do with boats.
This is the same with BTC. You can call it a currency, but if you use it as a currency it doesn't currently exhibit the properties that one wants from a currency.
Aaand you just moved the goal posts. Notice how you switched your argument from "currency" to "good currency". So dishonest.
I think you want a binary world where things are either A or B and not somewhere in between. BTC is being used as a currency in El Salvador and it is government mandated as a currency. Thus it is a currency by that definition. But my argument is that it isn't a good currency based on its properties (which I listed some and also linked to an article on desirable principles of a currency), rather it has the qualities of an asset.
I think I haven't changed what I am arguing, but I think you misunderstood my argument as something much more simplistic than what I was actually saying.
>Which is why BTC is an asset and not a currency.
Is a pretty straight forward sentence
Does it meet the 10 characteristics here?https://simplicable.com/new/money
I think that few are using BTC as a currency because it doesn't make sense as a currency, rather 99.9% of people are using it as a speculative investment asset.
I'm under the belief that if it can be locally commonly exchanged for goods or services is a currency. If its gold, cash, btc, or bottle caps. If its a good form of currency or not is a completely different question
This encourages people to hold BTC because its relative value increases over time. Thus BTC by being deflationary encourages holding and not spending. It will lead to a less dynamic economy than if we had an inflationary currency which encouraged spending/investment.
This scheme also effectively fucks over the future generations since older generations had the opportunity to hoard wealth while they were earning couple BTCs each month, but then future generations will be only earning couple hundred satoshis. If you think property prices are now out of hand just think what happens when about half the population has effectively millions of dollars in inheritance. If your parents fucked up and didn't leave you any of the family fortune you are just screwed with no way to recover. Or if they died in an accident and their bitcoin wallets were now locked forever.
Cryptocurrencies give you a deflationary option. Don't like it? Don't use it.
I think cryptocurrencies are the future, and we will see more and more stores accepting them, and the conversions will happen automatically.
As a customer why would you make payment in a currency with high fees, poor ux, slow transactions and just enough anonymity to make it perfect for scammers?
As a payment processor why would you touch this currency with a barge-pole given the above problems?
Cryptocurrency isn’t the future of currency or payments, and bitcoin in particular is solving the wrong problems, badly.
Physical currency was always an instrument of states, and now they have better ones, which retailers, consumers, and states prefer (digital currencies, not cryptocurrencies). In many countries cash usage is down to 20%, it's expensive to produce and manage and not required any more.
If the gov't can maintain a bond rate below that of the inflation rate, it also acts as a small tax to help fund the gov't - which also isn't a bad thing.
Not that any of this matters at the moment, because the real limitation of cryptocurrencies is the tiny transaction throughput.
Wild volatility can occur whenever a rich person or rich group liquidates a lot of their holdings.
Price went down few thousands, that's like ever other Tuesday in BTC world.