One of the barriers to widespread adoption of cryptocurrency is price volatility: in an economy where cryptocurrencies must be exchanged regularly in and out of fiat, users must be confident that price will remain stable from day to day, so that costs are predictable, and profits as well.
Bobbi sells bamboo bikes. Bobbi receives $1000 worth of BiteCoin (not a real coin yet) in payment for a new bike. The following week, when Bobbi pays her supplier, the price of BiteCoin has dropped by half. The bill to her supplier hasn’t changed, and so Bobbi just sold a bike for a big loss. Bobbi decides not to accept BiteCoin anymore. Bobbi thinks cryptocurrency bites.
One of the barriers to widespread adoption of cryptocurrency is price volatility: in an economy where cryptocurrencies must be exchanged regularly in and out of fiat, users must be confident that price will remain stable from day to day, so that costs are predictable, and profits as well.
Bobbi sells bamboo bikes. Bobbi receives $1000 worth of BiteCoin (not a real coin yet) in payment for a new bike. The following week, when Bobbi pays her supplier, the price of BiteCoin has dropped by half. The bill to her supplier hasn’t changed, and so Bobbi just sold a bike for a big loss. Bobbi decides not to accept BiteCoin anymore. Bobbi thinks cryptocurrency bites.
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