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"crash" not very accurate choice of words... exchange rate dip maybe better?
USD/GBP fell 19% after the brexit-referendum, that was an abnormal noteworthy event with quite far-reaching consequences.
For BTC it's a daily occurence...
One argument critics bring in I don't understand is that Bitcoin is too volatile to be a currency. If a zoned market solely accept Bitcoin and a good costs say 1 BTC, why does it matter if the BTC-to-USD price is increasing or decreasing? For the zoned market it's still 1 BTC for said good.
> If a zoned market solely accept Bitcoin and a good costs say 1 BTC The problem is that nobody selling regular goods WANTS to sell his goods with a fixed bitcoin price; the volatility of bitcoin would make it easy for buyers to buy the goods only when their prices where especially low in non-crazy-volatile currency and resell the goods at a favorable price immediately. There's arbitrage there
No sellers want the Argentine peso or Zimbabwean dollar either.
I appreciate this has been debated extensively already - but while crypto currency (especially stable coins) can be a worthwhile alternative to fiat money, bitcoin really isn't. A significant crash or surge happens every couple of weeks.
Stable coins are not "crypto" currencies. They have black lists (similar to your bank's fraud department) and they are backed by deposited money (so there is trusted issuer who promises to redeem them for actual cash). So 2 key features of a crypto-currency are lacking in stablecoins: censorship-resistance and absence of centralized trusted parties. That you can move them on a blockchain (as long as permitted) with y…
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.
Which is why BTC is an asset and not a currency. 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?
One argument critics bring in I don't understand is that Bitcoin is too volatile to be a currency. If a zoned market solely accept Bitcoin and a good costs say 1 BTC, why does it matter if the BTC-to-USD price is increasing or decreasing? For the zoned market it's still 1 BTC for said good.
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.
Wild volatility can occur whenever a rich person or rich group liquidates a lot of their holdings.
Unfortunate wording in the title. The price of Bitcoin "crashed" as in plummeted, and the Chivo wallet system they're trying to use in El Salvador "crashed" as in went offline. The Bitcoin network, of course, chugged merrily along, at its usual 4 or so txns/second.
This is the finest example of propaganda. Just look at the photo of a dude with a fire in the backdrop. 1. For most people in El Salvador Bitcoin does not matter and will not matter for quite some time. 2. "Bitcoin crashes" to a value a week or so ago. This is usually called a "correction". Even when it was crashing 80%, it was from some very short-living speculative highs and it's now trading close to all-time-high…
Correction relative to what fundamental value? And what’s the difference between a speculative high and the normal price?
If the new high didn't hold, it was speculative, if it did hold and it went up further, it was its normal pricing.
One argument critics bring in I don't understand is that Bitcoin is too volatile to be a currency. If a zoned market solely accept Bitcoin and a good costs say 1 BTC, why does it matter if the BTC-to-USD price is increasing or decreasing? For the zoned market it's still 1 BTC for said good.