Question: In the long run when cryptocurrency is used for machine to machine payments would a token with fixed value not offer a benefit over other volatile systems?
Imagine a non profit making machine requires electricity for use.
- A user pays 10 Tokens and the machine begins to work.
- 10 Minutes later the machine has completed its task.
- During that time the Machine was paying 1 Token per minute for the electricity being used such that the 10 Token cost to the user covers the cost of the electricity.
If the value of Tokens is varying slightly over this time period amount of electricity that 1 Token can buy (in £ or $) is changing. If the value of tokens decreases then the machine will be unable to finish the task without accruing a debt.
Though this could be avoided by using an electricity provider who bills for electricity useage in Tokens this just moves the problem further upchain (how do they procure their energy source ect).
The only situations in which this is not an issue is when either the delay between recieving payment and paying expenses is short enough that volitility is not an issue or when there is a closed economy in which the Tokens are used, in which case the volitility is externalised and is irrelevant to this problem.
Having a token with fixed price (such as Tether for example) would alleviate this, however my understanding is that tether can maintain price stability through creation/destruction of tokens - something which I don't believe is possible using iota (currently).
I look forward to hearing feedback on these thoughts.
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