Price stability


#1

Hi everyone,

Like a lot of you, I love Electroneum and I strongly believe this project can change the way finance and cryptocurrencies are percieved in the world. But still, one question.

A cryptocurrency supposed to be used all around the world includes stability. How can Electroneum “ensure” a certain level of stability in order to avoid to buy your muffin 1.20$ in the morning and 2$ the next day ?

How will vendors do ? Change the price every single day based on the value of ETN ?

Just wondering.

Best regards.

@Phergoph


#2

Most point of sale systems that use crypto automatically work out how much crypto you need to match the dollar or local fiat currency. So there price stays the same it just works out for you how much crypto you need to purchase it.

Your quite right in thinking it will be going up and down. The stability will probably not come for along time I would imagine until ETN has reached most of its targeted market. You can easily see how much ETN you have or are spending is worth in various currencies so it would just be down to the user to keep an eye on its value.


#3

As an investor, I’m interested more so in volatility. The currencies interchangeability with FIAT will suffice to make it useful as a means of payment however, the value of a crypto is directly proportionate with market cap, which fluctuates regularly. If that were not the case, there would be absolutely no point in investing. Remember, crypto is a multi function financial instrument, where as FIAT has a single function. We’re all here for the volitility.


#4

like richard said… they are at the whims of the market. In saying that he also said that when ETN is being used in the gig economy and in the developing nations the currency will be circulating within an economy hopefully offering some stability in price.


#5

By stability, do you mean its good if ETN stays at .006th of a cent forever?


#6

Because it’s a currency, you are quite right that ETN’s goal over time is stability. But as investors, let’s hope it’s not stable at this price . …