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by ninetenfour
1745 days ago
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You want stability. There are many ways to achieve that. 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. |
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