> History tells us that the US dollar is much
> more volatile than bitcoin can be.
There have been at least a couple of recent periods where there was a bitcoin 'bubble.' I'm questioning how he as a merchant, would deal with that (if bitcoin was his main transactional currency)? His customers likely are all using a different currency locally, and would have to exchange that currency for bitcoins.
For example:
Let's say a month of service costs 3 bitcoins, and currently a bitcoins cost 8 rupees (24 rupees/month for service). What happens when the price of the bitcoin rises to 20 rupees / bitcoin? Does the price (in bitcoins) drop? What happens if this significant rise only happens in one market, but not another? What if one 50% of his customer-base experience significant exchange increases, but the other 50% doesn't?
It's a curious thing, because almost no one is being paid (salary/wages) in bitcoins, so they all need to exchange the local currency to pay for service.
> Plus I do not think that Kim will want to
> have anything to do with that currency.
I was using the USD as an example. The same comments could apply to whatever the local currency is of his potential customers.
[ Also chances are that if the bitcoin is volatile against one currency it's not not necessary stable against all others. ]
For example:
Let's say a month of service costs 3 bitcoins, and currently a bitcoins cost 8 rupees (24 rupees/month for service). What happens when the price of the bitcoin rises to 20 rupees / bitcoin? Does the price (in bitcoins) drop? What happens if this significant rise only happens in one market, but not another? What if one 50% of his customer-base experience significant exchange increases, but the other 50% doesn't?
It's a curious thing, because almost no one is being paid (salary/wages) in bitcoins, so they all need to exchange the local currency to pay for service.
I was using the USD as an example. The same comments could apply to whatever the local currency is of his potential customers.[ Also chances are that if the bitcoin is volatile against one currency it's not not necessary stable against all others. ]