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Board Beginners & Help
Re: Bitcoins heavy price movements unfortunately show the advantages of fiat currenc
by
modrobert
on 14/06/2011, 05:04:42 UTC
But this only works because we have the Dollar as a relatively stable benchmark. Without such a standard it would be much more difficult to really judge how to fix your prices. You would always have to match it against your purchase and restocking prices. While this would be possible, it opens up lots of potential problems which are hard to handle. Because of this, bigger companies often use futures and the like to protect themself against such currency risks (which do exists in fiat currencies, even if to a much smaller amount an primary in international trades between different currencies). Now imagine, everybody has do do something like this because of much higher currency volatility.

If there was no currency to relate to there wouldn't be any BTC fluctuations. That's why I also suggested only selling 50% of BTC received from customers. Perhaps some day we can keep 100% in Bitcoins and get rid of currency like USD, but then it has to grow a lot first.