It depends on how you look on it !
If you look on Bitcoin as an instrument of payent (on of main role of money is to be payment instrument) when it is money, but on the other hand it is so unstable and the prices change as if it was shares of the company !
Topic: I know Gold and Silver are money. Is Bitcoin money? (Read 2381 times)
The value of money should remain stable, but the value of bitcoins is unstable.
You're right，Bitcoin value must be stabilized before it could become a currency. You forgot the most important property - scarcity. Gazillions of crypto 'currencies' can be created at basically no cost, having identical properties and serving the same function as bitcoin. Infinite digits on a computer screen, yeah sounds a little like the USD.
Gold on the other hand is limited in supply and unique in color, shine and other physical properties.
No other coin can be Bitcoin, though, in the same way that tungsten isn't gold. Bitcoin has its own data, its own protections, and its own rules. You can't create an infinite supply of bitcoins (that is, you can't print yourself to a higher %total ownership), and I don't think you can lump all cryptocurrencies together for the same reason we don't lump all metal together. They all have unique properties and uses.Gold on the other hand is limited in supply and unique in color, shine and other physical properties.
The value of money should remain stable, but the value of bitcoins is unstable.
How we can trade with Bitcoin?
Go to coindesk.com and read.
How we can trade with Bitcoin?
Bitcoin can and should be used as digital/internet currency
Bitcoin is way better than a simple money or currency. It actually make them obsolete.
Cryptocurrency is freedom in the world of FIAT.
The only difference between currency and money is that money can be used as a store of value, because it is backed by something. Take gold for example : it can not be created out of thin air and is scarce. Additionally and due to the previously stated properties, it has been proven again and again to be a very strong hedge against inflation, due to the fact that the total amount of gold is limited, and that is publicly known. Bitcoin has those properties too: it is scarce, hard-limited, it cannot be created out of thin air, so it must follow that due to its scarcity and acceptance it will maintain its value against inflation, that is, as long as people trade in bitcoin.
Just as the old dollar was backed by gold which was redeemable via a bank, the bitcoin is (sort of) backed by the processing power that was spent to create it, and the knowledge that is scarce and cannot be inflated. It's not a rock solid comparison, but it is an example against unbacked fiat currency nevertheless.
So bitcon, and the old dollar, and gold, and precious metals etc can be considered money. They have all the properties of currency ( interchangeable, every unit is worth the same, divisible, durable etc etc) but with the added bonus of real value backing. Fiat money in contrast is backed by no real commodity, so it's currency, not money.
All the above is my opinion and my opinion only. So take this post with a pinch of salt.
Just as the old dollar was backed by gold which was redeemable via a bank, the bitcoin is (sort of) backed by the processing power that was spent to create it, and the knowledge that is scarce and cannot be inflated. It's not a rock solid comparison, but it is an example against unbacked fiat currency nevertheless.
So bitcon, and the old dollar, and gold, and precious metals etc can be considered money. They have all the properties of currency ( interchangeable, every unit is worth the same, divisible, durable etc etc) but with the added bonus of real value backing. Fiat money in contrast is backed by no real commodity, so it's currency, not money.
All the above is my opinion and my opinion only. So take this post with a pinch of salt.
Quote
Its sold to speculators as a replacement currency. But its useless as curency because you have to "mine" it.
Yet again, all you're doing is listing the things you don't like about it and claiming because it doesn't match your preferences for a currency it isn't a currency, that's what these arguments are really about, if people buy stuff with it and trade it amongst themselves for goods or services then it is a currency, whether you like it or not.
I don't know if somebody already gave that answer but to me gold and silver are not money they are (metals obviously and) commodities.
Eventually we can trasform gold or silver into commodity monney by making for example gold or silver coins.
Eventually we can trasform gold or silver into commodity monney by making for example gold or silver coins.
I think I've come to the conclusion that these kind of debates are meaningless with Bitcoin, it was designed to be a currency, therefore it is and it is now also being used as a currency, the arguments about Bitcoin I've seen in regards to whether it's a currency or not usually revolve around what people like about a currency rather than whether it actually is one.
Simple Explanation of my answer: If people use it to trade with, it's a currency
http://dictionary.reference.com/browse/Currency?s=t
currency
Use Currency in a sentence
cur·ren·cy
[kur-uhn-see, kuhr-] Show IPA
noun, plural cur·ren·cies.
1.
something that is used as a medium of exchange; money.
2.
general acceptance; prevalence; vogue.
3.
a time or period during which something is widely accepted and circulated.
4.
the fact or quality of being widely accepted and circulated from person to person.
5.
circulation, as of coin.
Simple Explanation of my answer: If people use it to trade with, it's a currency
http://dictionary.reference.com/browse/Currency?s=t
Quote
currency
Use Currency in a sentence
cur·ren·cy
[kur-uhn-see, kuhr-] Show IPA
noun, plural cur·ren·cies.
1.
something that is used as a medium of exchange; money.
2.
general acceptance; prevalence; vogue.
3.
a time or period during which something is widely accepted and circulated.
4.
the fact or quality of being widely accepted and circulated from person to person.
5.
circulation, as of coin.
Its sold to speculators as a replacement currency. But its useless as curency because you have to "mine" it.
If you need several trillion dollars to prevent some banks from going insolvent to avoid another Great Depression. Easiest way is just to magically make it appear and put it on balance sheet as debt.
Can't do this w bitcoin. Or gold for that matter. Study the Great Depression for god's sake
The duck test:
If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.
If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.
Bitcoin is not useful as money. Neither is gold or silver
Money needs to be elastic in order to be useful in modern economies. As economic activity expands, the money supply needs to expand to meet demand. Liquidity is one important aspect of money.
Read about Modern Money Theory L. Randall Wray if you want to know more. Money should be approached as stock and flow rather than commodity
Money needs to be elastic in order to be useful in modern economies. As economic activity expands, the money supply needs to expand to meet demand. Liquidity is one important aspect of money.
Read about Modern Money Theory L. Randall Wray if you want to know more. Money should be approached as stock and flow rather than commodity
If you can divide the unit "1" infinitely, I can assure you that "1" is very liquid.
Thats not what liquidity means. Liquidity means you want the money to flow. If people are saving you create inflation so they spend it. Thats why we have Central Banks
I think I've come to the conclusion that these kind of debates are meaningless with Bitcoin, it was designed to be a currency, therefore it is and it is now also being used as a currency, the arguments about Bitcoin I've seen in regards to whether it's a currency or not usually revolve around what people like about a currency rather than whether it actually is one.
Simple Explanation of my answer: If people use it to trade with, it's a currency
http://dictionary.reference.com/browse/Currency?s=t
currency
Use Currency in a sentence
cur·ren·cy
[kur-uhn-see, kuhr-] Show IPA
noun, plural cur·ren·cies.
1.
something that is used as a medium of exchange; money.
2.
general acceptance; prevalence; vogue.
3.
a time or period during which something is widely accepted and circulated.
4.
the fact or quality of being widely accepted and circulated from person to person.
5.
circulation, as of coin.
Simple Explanation of my answer: If people use it to trade with, it's a currency
http://dictionary.reference.com/browse/Currency?s=t
Quote
currency
Use Currency in a sentence
cur·ren·cy
[kur-uhn-see, kuhr-] Show IPA
noun, plural cur·ren·cies.
1.
something that is used as a medium of exchange; money.
2.
general acceptance; prevalence; vogue.
3.
a time or period during which something is widely accepted and circulated.
4.
the fact or quality of being widely accepted and circulated from person to person.
5.
circulation, as of coin.
This makes sense to me. Anyone saying bitcoin is "not a currency" definitely has an ulterior motive (they probably feel threatened that bitcoin will take over and their own portfolio will go down). As long as you can by "stuff" with bitcoin, it remains a currency.
I think I've come to the conclusion that these kind of debates are meaningless with Bitcoin, it was designed to be a currency, therefore it is and it is now also being used as a currency, the arguments about Bitcoin I've seen in regards to whether it's a currency or not usually revolve around what people like about a currency rather than whether it actually is one.
Simple Explanation of my answer: If people use it to trade with, it's a currency
http://dictionary.reference.com/browse/Currency?s=t
currency
Use Currency in a sentence
cur·ren·cy
[kur-uhn-see, kuhr-] Show IPA
noun, plural cur·ren·cies.
1.
something that is used as a medium of exchange; money.
2.
general acceptance; prevalence; vogue.
3.
a time or period during which something is widely accepted and circulated.
4.
the fact or quality of being widely accepted and circulated from person to person.
5.
circulation, as of coin.
Simple Explanation of my answer: If people use it to trade with, it's a currency
http://dictionary.reference.com/browse/Currency?s=t
Quote
currency
Use Currency in a sentence
cur·ren·cy
[kur-uhn-see, kuhr-] Show IPA
noun, plural cur·ren·cies.
1.
something that is used as a medium of exchange; money.
2.
general acceptance; prevalence; vogue.
3.
a time or period during which something is widely accepted and circulated.
4.
the fact or quality of being widely accepted and circulated from person to person.
5.
circulation, as of coin.
All currencies lack 1 if you're applying this universally. Some people find no value in money or luxury resources at all.
Bitcoins lacks 7 and 8, although 7 can be attained given time
Bitcoins lacks 7 and 8, although 7 can be attained given time
My biggest question was always how will the "unbanked" use bitcoin without a smartphone?
1.5 billion persons have no bank account but they do have internet and smartphones.
It will still not include everyone, but at least it will reach a large population of persons who have never been able to use banks.
Bitcoin is not useful as money. Neither is gold or silver
Money needs to be elastic in order to be useful in modern economies. As economic activity expands, the money supply needs to expand to meet demand. Liquidity is one important aspect of money.
Read about Modern Money Theory L. Randall Wray if you want to know more. Money should be approached as stock and flow rather than commodity
Money needs to be elastic in order to be useful in modern economies. As economic activity expands, the money supply needs to expand to meet demand. Liquidity is one important aspect of money.
Read about Modern Money Theory L. Randall Wray if you want to know more. Money should be approached as stock and flow rather than commodity
no, when the harvest is good and production is high, everyone's bitcoins will become worth more, and gold and silver will become worth more. Because the amount of gold, silver and bitcoin is stable, but the amount of products available on the market is not. So more products available means a lower price, and less products available means a higher price.
There's no need to inflate currency. That's only the propaganda the capitalist government wants you to believe, so that they have an excuse to keep up the inflation, and making you believe it is a good thing. But inflation is just a way for the government to steal away your money, and the money of everyone else! By inflating the currency by 2% a year, they are stealing 2% of the national GDP per year, on top of all the taxes they already demand.
BTC
I love and use bitcoin regularly. Prior to discovering, bitcoin, I could be considered a gold/silver bug. I'm convinced about the quality of the aforementioned metals but would like your opinion on bitcoin.
Is it money?
For any medium of exchange to be considered money, it must possess the following qualities:
1. General Acceptability
The material of which money is made should be acceptable to all without any hesitation.
2. Portability
Money should be easily carried or transferred from one place to another.
3. Durability
Money material must last for a long time without losing its value.
4. Divisibility
Money material must be easily sub-divided to allow for the purchase of smaller units of the commodities.
5. Homogeneity
Money should be homogeneous. Its units should be identical; they should be of equal quality and physically indistinguishable.
6. Cognisability
Money should be easily recognized.
7. Stability
The value of money should remain stable and should not change for a long period of time.
8. Malleability
The money material should be capable of being melted and put to different forms. Gold, silver, copper, etc., have this quality.
The precious metals, gold and silver by and large, possess the above mentioned qualities of good money material. It is because of this reason, that these metals have been used as money for a considerably long period of time. Government printed money, on the other hand, is not very durable(tears easily), it is not recognized outside of specific borders but might be be capable of being put to different forms(toilet paper)
Is Bitcoin money?
I love and use bitcoin regularly. Prior to discovering, bitcoin, I could be considered a gold/silver bug. I'm convinced about the quality of the aforementioned metals but would like your opinion on bitcoin.
Is it money?
For any medium of exchange to be considered money, it must possess the following qualities:
1. General Acceptability
The material of which money is made should be acceptable to all without any hesitation.
2. Portability
Money should be easily carried or transferred from one place to another.
3. Durability
Money material must last for a long time without losing its value.
4. Divisibility
Money material must be easily sub-divided to allow for the purchase of smaller units of the commodities.
5. Homogeneity
Money should be homogeneous. Its units should be identical; they should be of equal quality and physically indistinguishable.
6. Cognisability
Money should be easily recognized.
7. Stability
The value of money should remain stable and should not change for a long period of time.
8. Malleability
The money material should be capable of being melted and put to different forms. Gold, silver, copper, etc., have this quality.
The precious metals, gold and silver by and large, possess the above mentioned qualities of good money material. It is because of this reason, that these metals have been used as money for a considerably long period of time. Government printed money, on the other hand, is not very durable(tears easily), it is not recognized outside of specific borders but might be be capable of being put to different forms(toilet paper)
Is Bitcoin money?
1. Not yet (but growing by the day)
2. Yes, Definitely
3. Yes, Definitely
4. Yes, more than anything (infinitely divisible, as the 8 decimals can be increased if needed)
5. Yes.
6. Yes.
7. Not yet (but that's to be expected of a technology this new, considering the circumstances it is relatively stable.
8. Irrelevant, if something serves a purpose and serves it well, i don't care about what it can't do. As long as it does what it is designed to do.
All in all, it looks good for bitcoin, and i'd say bitcoin could become a form of true money, and it could even outperform gold and silver, but it's not yet there.
Bitcoin is money,it been stable as a value and is going to stabilize more because people believe in it,also bitcoin code can be printed on paper ,as most of our money this days are made of paper.
It might even come down to two things?
1. Hard or impossible to counterfeit.
2. Believed to hold value.
It helps to be fungible, scarce and portable; but there have been types of money in the past that did not have these additional characteristics. Bitcoin is certainly hard to counterfeit. While not universally accepted to hold value, it is more broadly accepted than almost any world currency.
1. Hard or impossible to counterfeit.
2. Believed to hold value.
It helps to be fungible, scarce and portable; but there have been types of money in the past that did not have these additional characteristics. Bitcoin is certainly hard to counterfeit. While not universally accepted to hold value, it is more broadly accepted than almost any world currency.
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