Topic: Bitcoin as a Currency (Read 904 times)

Very hopeful and that is what we are all looking forward to as the main potential of bitcoin in the long run and basically, one of the main reasons why we are here. Without bitcoin being used as a currency, its value will not really come out pretty well, and for that reason we just keep seeing the market getting a lot more speculative over time.

Speculation is a normal thing for now, for the fact that the market is still very young, which I believe as time goes on, a lot of things will change in that aspect with mainstream adoption, and in that case, volatility reduces, and of course, we get to see more people seeing the need to use it than just hoard.

Bitcoin can be use as currency but can also use as  investment or an asset. I would like to add some challenges why bitcoin is not yet accepted in our society. The main reason is all government do not support cryptocurrency and I think it is the big challenge that we need to overcome. And, I hope in the near future government will accept so the society will recognize it as currency.

Now, most of the guys that spent their money to buy Bitcoin, take it as the best long-term investment. I am sure that in 5-6 years at least BTC will be also popular as the currency.

Bitcoin can be use as currency but can also use as  investment or an asset. I would like to add some challenges why bitcoin is not yet accepted in our society. The main reason is all government do not support cryptocurrency and I think it is the big challenge that we need to overcome. And, I hope in the near future government will accept so the society will recognize it as currency.

Bitcoin for me was not just a currency but also a form of business that can give me  savings in the future. In short, it can be a form of investment, and use as a form of payment online whether it is a kind of online shopping, monthly bills such as electricity, phone, water and tuition fee as well in the universities who accepted bitcoin.

Bitcoin is often referred to as a currency. And the general name 'cryptocurrency' giving to all digital assets presents them as currencies although having a deeper meaning, hence cryptic currencies

A currency is an object generally accepted in a certain region as a means of payment. Asides the Euro which is used by different countries, each state usually has its own accepted currencies.

Where do currencies get their value?

Currencies are legal tenders stipulated by governments of each nations. And there are financial institutions, usually banks which decides the value a currency has. This could be bank notes, coins, mobile money or codes on a debit card, these can all be classified as fiat money.

There is also Commodity Money. This includes commodities like, gold, silver, diamonds, coal, salt or any commodity which has a value based in its qualities and applications.
Unlike fiat money, these has intrinsic value and are not supported or directly controlled by any financial institution which dictates it's price.

So, is bitcoin classified as fiat money or commodity money?

The above question is better asked as, is bitcoin a currency whose value is determined by what people take it to be or is it based on its intrinsic value and practical applications.
I would say it is a little of both.
Bitcoin is a decentralized protocol with no central control system or official institution which would regulate and determine it's price. Although the bitcoin core and miners pool have a certain level of influence and control on its value. But the community can equally and more effectively affect it's value through demand and supply.

Bitcoin is also a digital asset built on a technology (blockchain) it is borderless and transactions are cheap. And it's value which seems to be consolidating with time, makes it an investment option as well.

What are the limitations of bitcoin?

Bitcoin as a payment option faces a huge problems in government restrictions, adoption limitations and scalability.
With its tps being in the range of 3.3 to 7 transactions per second it can hardly compete with government controlled forms of transactions like VISA with an average of 47,000 tps.
But bitcoin was not created to compete but rather serve as an alternative to fiat currencies (and maybe commodity money also) and give users total control over their assets. Though with such a growing community there has been lots of suggestions on how to tackle the scale limitations. And many propositions this far, such as hardforks and  Segregated witness, popularly called segwit https://en.bitcoinwiki.org/wiki/Amp/Segregated_Witness
Bitcoin Cash which was launched last year increased a blocksize to 7MB. There is still yet to be a consensus to approve Segwit.

Very hopeful and that is what we are all looking forward to as the main potential of bitcoin in the long run and basically, one of the main reasons why we are here. Without bitcoin being used as a currency, its value will not really come out pretty well, and for that reason we just keep seeing the market getting a lot more speculative over time.

Speculation is a normal thing for now, for the fact that the market is still very young, which I believe as time goes on, a lot of things will change in that aspect with mainstream adoption, and in that case, volatility reduces, and of course, we get to see more people seeing the need to use it than just hoard.

Bitcoin does have intrinsic value by virtue of the computing power required to mine it.
It is a digital asset and as such functions on the blockchain and has no physical properties.

Bitcoin can be use as currency but can also use as  investment or an asset. I would like to add some challenges why bitcoin is not yet accepted in our society. The main reason is all government do not support cryptocurrency and I think it is the big challenge that we need to overcome. And, I hope in the near future government will accept so the society will recognize it as currency.

That is not actually a very bad vision as far as I am concerned, it is the crypto space and the rate at which it is growing, I would not be surprised it taking the world by storm, but at the same time, we should still understand that government will never want to give up control no matter what and in every way they will want to make sure that fiat stays relevant. Nonetheless, as this space grows further, and people tend to realize they can have their own freedom, the more they simply discard fiat, but I do not think we are even close at all to seeing that happening any time soon.

I can envision something in the future, wherein fiat would be less and crypto would be more, instant payments and everything that can be seamlessly done without hassle, and the OP was able to bring out the topic in a detailed manner.

a shift in the original function of bitcoin because it is caused by the behavior of the owners and traders, because most owners seek the benefits of bitcoin by selling when prices go up,  and they use bitcoin unlike the function of the bitcoin currency not used for transactions and to buy goods,  so the change in the function of bitcoin is indeed influenced by market participants themselves.

It surely is a curreny, the whole world curreny rather. Because it was not owned by any countries, institution or organization. It was made as a curreny from the first place, it is just us people, government, nations, who's blocking it's way to its destination. We should recognize bitcoin as currency, not an asset or either commodity because it is what it is. And no comment or statement or how is it use as of today would change that fact.  

Bitcoin was initially created as a currency. The thing with currency is that it needs mass acceptance and that's the challenge with bitcoin. This is the reason behind bitcoin used as acommodity.

We all are quite hopeful that one day bitcoin would become the super currency of world. This would be official currency to many countries. We could say the future is all about bitcoin. But yes, this is reality as well that when you have this currency as official one, you need to change the economical law and amend some changes. You must be sure what needs to change that will not affect your economics rather increase it.