That is true. However, before any of that will happen, the price of HBD needs to be stabilized. When it is swaying 20% (or even greater) few will use it for commercial purposes. Businesses simply cannot take the risk on having overnight or short term fluctuations turning a profit into a loss.
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Very insightful article. Made me realize how much hidden fees there are in banking. Someone is paying for that somehow although the transaction itself isn't charged..
Have been converting any hbd I get at the moment mostly to power up or transfer to HE but if the peg works and there's actual opportunities to use it like cash that would indeed change the use case.
When Tesla announced it would accept bitcoin as payment I found it really odd. Haven't really followed that but I assume they just converted the dollar price to bitcoin at the time? And like you said people don't like to part with something they see as an investment. I wonder how many people bought Tesla's with bitcoin..
Those entities that accept crypto will be equating it to the fiat pricing at the time of the transaction. So Tesla, if they were going to continue down that path, which they opted not to,
As for the companies that are accepting Bitcoin, I have a feeling that we will see those companies simply hold the BTC to let it accumulate.
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Yeah that's what I thought so pretty different from what you mention for hbd here. I saw all the flashy headlines about Tesla but nobody talked about how much they actually sold that way. Only mention was the big direct buy..
Agree on the companies probably holding the bitcoin, and shouting how it will all fail and crash just before they buy
20% change from one day to another is really too much for every day use, but if it is annually/yearly, then it is okay.
The annual/yearly change for EUR/USD was 20.09% in 2003.
The daily change in HBD/USD is currently -0.53%, which is acceptable. The daily change is +0.36% for EUR/USD.
If it is being used for commerce. A grocery store, which typically operates on a 6% margin does not want a 20% drop in the value if HBD if it was used for that. That would mean a 14%, on average, lost on each product sold that day.
When it comes to commerce, that doesnt matter to most people since they are transacting in one currency. So the price of the EURO in USD does not affect most of the shoppers or account holders in the Eurozone.
As for those companies who operate on an international scale, this is basically an accounting situation since they have operations often where they are selling their products. Hence, a US company will keep EURO on hand to pay the bills for their EU operations.
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Not really on average because sometimes the value would go up, but in any case, businesses don't want that kind of extra risk.