Topic: The economic function of Bitcoin (Read 1244 times)
It is very interesting to read that some users compare Bitcoin with the central bank. But today, users use Bitcoin as an accumulation, which due to its volatility can give a very large income to the future. But you can also use cryptocurrency as a payment method for your accounts, but here the approach still indicates that Bitcoin is a currency with a high degree of security and nothing more. But if you take a single country and its economy, then how Bitcoin will affect the economy, no one has yet precisely and correctly answered this question.
Bitcoins have different economic functions. It acts as a central bank. Bitcoins are known as fixed quantities as stocks have limited supplies. The rapid rise in prices has given us many different questions. What is the economic function of this algorithmic currency?
Exchange function of Bitcoin
Anyone with a bitcoin address can use bitcoin. It is impossible to know who controls each address. Therefore bitcoin must be freely exchanged. This means "sacrifice" that bitcoin has created. This free flow of capital can be from any source. This allowed the bitcoin to become worthless a few years ago.
When this currency is rising in value over time. This is due to the limited provision of bitcoins. While there is increasing demand for them. This is similar to how you bought Apple stock in 1980 during your IPO. You will have to pay $ 22 per share. Due to the limited supply of Apple shares and the increase in demand. Today it is valued at $ 520 per share
At present, Bitcoin is going down continuously, so is it a deflation?
I think like you. The value of the currency is depreciating but it is only a small influence. I think most of the time the whale wants to adjust the price of Bitcoin to make investors anxious and sell off.Exchange function of Bitcoin
Anyone with a bitcoin address can use bitcoin. It is impossible to know who controls each address. Therefore bitcoin must be freely exchanged. This means "sacrifice" that bitcoin has created. This free flow of capital can be from any source. This allowed the bitcoin to become worthless a few years ago.
When this currency is rising in value over time. This is due to the limited provision of bitcoins. While there is increasing demand for them. This is similar to how you bought Apple stock in 1980 during your IPO. You will have to pay $ 22 per share. Due to the limited supply of Apple shares and the increase in demand. Today it is valued at $ 520 per share
At present, Bitcoin is going down continuously, so is it a deflation?
If we see about economic function of bitcoin . Bitcoin difficulty keeps changing every time the new coins being mined so bitcoin is economic strong to handle the supply and demand ratio
the bitcoin that you have is your own bank and at that time there was no need for third parties to make transactions, exchanges and others, you only need a wallet and internet connection to do that. bitcoin and most crypto have a fixed amount of supply and this will be interesting when demand increases and automatically the price of bitcoin will increase because it is indeed like economic law.
it is very true that you convey in your opinion as the times and technology that increasingly crypto currency will be needed for the development of an increasingly advanced economy
I see Bitcoin as a means to pay for goods and various services using the Internet. Since today the number of online purchases is increasing in the world, I consider cryptocurrency to be very promising in this regard.
Bitcoin is an alternative medium of exchange and to be an effective medium of exchange, it must be acceptable in exchange for goods and services. Bitcoin's use is still limited because only few stores or shops are accepting it worldwide compares to the fiat. But bitcoin can be used by people who want to avoid banks and other transactions that requires third party or middlemen. Bitcoin's economic function differs from fiat because it does not involve any government interventions.
Now there are more than just a "few" places where you can spend bitcoins, every year there are more and more places.
Effective medium of exchange is a trust between two or more parties, confidence in fiat system is lost a long time ago, now question is whom will you believe more: in bankers and governments or algorithm? Do you trust people or math? Bitcoin is a tool that can help economy to evolve, on local and global level. Transparency is one of the functions that bitcoin can offer to us. For how long we will live in the dark while rich people are getting richer with help from the governments and banks?
Bitcoin is an alternative medium of exchange and to be an effective medium of exchange, it must be acceptable in exchange for goods and services. Bitcoin's use is still limited because only few stores or shops are accepting it worldwide compares to the fiat. But bitcoin can be used by people who want to avoid banks and other transactions that requires third party or middlemen. Bitcoin's economic function differs from fiat because it does not involve any government interventions.
in my opinion bitcoin is different from the fiat economy that currently exists, but bitcoin can also affect the economy if large fiat funds flow to bitcoin. but basically bitcoin is a valuable asset in the form of digital money. however, if bitcoin can collaborate with fiat currently, it will be good for me.
Bitcoins have different economic functions. It acts as a central bank. Bitcoins are known as fixed quantities as stocks have limited supplies. The rapid rise in prices has given us many different questions. What is the economic function of this algorithmic currency?
Exchange function of Bitcoin
Anyone with a bitcoin address can use bitcoin. It is impossible to know who controls each address. Therefore bitcoin must be freely exchanged. This means "sacrifice" that bitcoin has created. This free flow of capital can be from any source. This allowed the bitcoin to become worthless a few years ago.
When this currency is rising in value over time. This is due to the limited provision of bitcoins. While there is increasing demand for them. This is similar to how you bought Apple stock in 1980 during your IPO. You will have to pay $ 22 per share. Due to the limited supply of Apple shares and the increase in demand. Today it is valued at $ 520 per share
At present, Bitcoin is going down continuously, so is it a deflation?
Any group of assets has a cycle of price increases and discounts. It is inevitable in any market. I understand how you felt at the time of this post. At that time, bitcoin had a very deep discount. Bitcoin has grown very fast and has fallen rapidly during the following year. Currently bitcoin is in a new cycle of stability. Be optimistic and you won't miss the great thing that altcoin offers. Exchange function of Bitcoin
Anyone with a bitcoin address can use bitcoin. It is impossible to know who controls each address. Therefore bitcoin must be freely exchanged. This means "sacrifice" that bitcoin has created. This free flow of capital can be from any source. This allowed the bitcoin to become worthless a few years ago.
When this currency is rising in value over time. This is due to the limited provision of bitcoins. While there is increasing demand for them. This is similar to how you bought Apple stock in 1980 during your IPO. You will have to pay $ 22 per share. Due to the limited supply of Apple shares and the increase in demand. Today it is valued at $ 520 per share
At present, Bitcoin is going down continuously, so is it a deflation?
One of the main functions of bitcoin is that it is a great economic outlet for those nations that have very bad economies, and high inflation, the people who own bitcoin have a relatively high private economy with respect to the average of those who have bitcoin. They are residing in the country and enjoy a minimum wage for their work per month, many times what they earn in their salary is not enough but a few bitcoin can bail out the traditional economy.
The economic function of bitcoin for each country it could help to decrease the unemployment people and they can earn money and fullfill their financial problem in the family through bitcoin, the economy of that country will grow with the help of bitcoin because they can work into bitcoin if you have an internet access.
I don't see that coming, Bitcoin is another system for payment process not a job that someone can get but another process, you can earned Bitcoin indeed by providing services and allow bitcoin to be your earned profits, it can help economy in another way such as much faster transactions that's how bitcoin created to be an alternative to Fiat system.One thing need to remember is like you said its not a job or secured for of investment so learn the caution before doing it.
You do not need bitcoin to be stable to actually buy or sell stuff, I mean the buyer and seller agrees on a price that is purely bitcoin worth or they peg it to dollar like most do and then both sides takes the risks and rewards.
Pizza example comes in handy in these situations, someone sold 2 boxes of pizza for 10 thousand bitcoins and both of those people agreed that it was in fact a good deal at the time, the person that got 2 boxes of pizza and paid 10k bitcoins for it must be feeling bad right now but at the time he thought he was doing something easy and he was right, he just sent 10k bitcoin with a single click and got 2 boxes of pizza which is amazing. So long story short you can't look at bitcoin at what price it will be, you have to look at it how much it is, if you see it only as an investment deal then you can never spend it ever.
You are right, and this is the reason why we cannot continue to see bitcoin has an investment deal, we have to continue to see bitcoin for what it was created for, which is for payment and now that the market is still volatile, the best for both party would still be to work with fiat, I mean when a receiver receives payment for bitcoin, he has to convert it to fiat immediately so he does not lose the value when the price goes down.Pizza example comes in handy in these situations, someone sold 2 boxes of pizza for 10 thousand bitcoins and both of those people agreed that it was in fact a good deal at the time, the person that got 2 boxes of pizza and paid 10k bitcoins for it must be feeling bad right now but at the time he thought he was doing something easy and he was right, he just sent 10k bitcoin with a single click and got 2 boxes of pizza which is amazing. So long story short you can't look at bitcoin at what price it will be, you have to look at it how much it is, if you see it only as an investment deal then you can never spend it ever.
This brings me to the first part of your statement, we still need bitcoin to be stable in other for it to become fully useful for buy and sell. We have all been clamoring for global digital coin, and some even believe it could replace fiat, how would something you cannot keep in your wallet replace fiat? It is only when bitcoin is stable that a merchant can confidently store it in his or her wallet without the fear of getting a lower value in return the next day he wakes up to his wallet.
The basic economic function of bitcoins is the ability to be used as a remittance of money without the use of traditional banking system. The other function of it serving as a store of value and investment is not what bitcoin was created by satoshi to be but we made it so.
i agree and aside from it the fact that it gives profit to stay at home wives and jobless people that normally has nothing to contribute
to the financial aspect of their family , now being unemployed is now not a hindrance to contribute financially it has also made a contribution as well
i guess to the economy system.
You do not need bitcoin to be stable to actually buy or sell stuff, I mean the buyer and seller agrees on a price that is purely bitcoin worth or they peg it to dollar like most do and then both sides takes the risks and rewards.
Pizza example comes in handy in these situations, someone sold 2 boxes of pizza for 10 thousand bitcoins and both of those people agreed that it was in fact a good deal at the time, the person that got 2 boxes of pizza and paid 10k bitcoins for it must be feeling bad right now but at the time he thought he was doing something easy and he was right, he just sent 10k bitcoin with a single click and got 2 boxes of pizza which is amazing. So long story short you can't look at bitcoin at what price it will be, you have to look at it how much it is, if you see it only as an investment deal then you can never spend it ever.
Pizza example comes in handy in these situations, someone sold 2 boxes of pizza for 10 thousand bitcoins and both of those people agreed that it was in fact a good deal at the time, the person that got 2 boxes of pizza and paid 10k bitcoins for it must be feeling bad right now but at the time he thought he was doing something easy and he was right, he just sent 10k bitcoin with a single click and got 2 boxes of pizza which is amazing. So long story short you can't look at bitcoin at what price it will be, you have to look at it how much it is, if you see it only as an investment deal then you can never spend it ever.
Bitcoins have different economic functions. It acts as a central bank. Bitcoins are known as fixed quantities as stocks have limited supplies. The rapid rise in prices has given us many different questions. What is the economic function of this algorithmic currency?
Exchange function of Bitcoin
Anyone with a bitcoin address can use bitcoin. It is impossible to know who controls each address. Therefore bitcoin must be freely exchanged. This means "sacrifice" that bitcoin has created. This free flow of capital can be from any source. This allowed the bitcoin to become worthless a few years ago.
When this currency is rising in value over time. This is due to the limited provision of bitcoins. While there is increasing demand for them. This is similar to how you bought Apple stock in 1980 during your IPO. You will have to pay $ 22 per share. Due to the limited supply of Apple shares and the increase in demand. Today it is valued at $ 520 per share
At present, Bitcoin is going down continuously, so is it a deflation?
but it is not stable for long time that is the positive thing from the Bitcoin if we think that Bitcoin going down then suddenly it will grow up and the situation is happening many time so that we need to wait for the decision making if you take good decision then it will give loss in some timesExchange function of Bitcoin
Anyone with a bitcoin address can use bitcoin. It is impossible to know who controls each address. Therefore bitcoin must be freely exchanged. This means "sacrifice" that bitcoin has created. This free flow of capital can be from any source. This allowed the bitcoin to become worthless a few years ago.
When this currency is rising in value over time. This is due to the limited provision of bitcoins. While there is increasing demand for them. This is similar to how you bought Apple stock in 1980 during your IPO. You will have to pay $ 22 per share. Due to the limited supply of Apple shares and the increase in demand. Today it is valued at $ 520 per share
At present, Bitcoin is going down continuously, so is it a deflation?
I think it is stable enough though. My reason? Its because it doesn't favor those who have large amounts to take advantage of being rich in fiat money at all. Since people are occassionally going in the market, we can only see a part of the people who are having these Bitcoins get rich 'slowly' not entirely destroying the current wealth proportion of the world's economy especially in cryptocurrency.
Bitcoins have different economic functions. It acts as a central bank. Bitcoins are known as fixed quantities as stocks have limited supplies. The rapid rise in prices has given us many different questions. What is the economic function of this algorithmic currency?
Exchange function of Bitcoin
Anyone with a bitcoin address can use bitcoin. It is impossible to know who controls each address. Therefore bitcoin must be freely exchanged. This means "sacrifice" that bitcoin has created. This free flow of capital can be from any source. This allowed the bitcoin to become worthless a few years ago.
When this currency is rising in value over time. This is due to the limited provision of bitcoins. While there is increasing demand for them. This is similar to how you bought Apple stock in 1980 during your IPO. You will have to pay $ 22 per share. Due to the limited supply of Apple shares and the increase in demand. Today it is valued at $ 520 per share
At present, Bitcoin is going down continuously, so is it a deflation?
Bitcoin has given people the freedom to do whatever they want without exposing their identity. Yes people say that the Blockchain is open and you can see everything, but the real truth is that you’re seeing nothing. You’re only seeing addresses showing how much that were transacted but you’re not seeing who made the transactions, you don’t even know their location not to talk of knowing who those people are. So this is not transparency in any way. Though I saw news recently that the government are going to make exchanges to start requiring ID from those exchanging up to $1000 worth of crypto, but I think this is only going to work if you’re using centralized exchanges. Exchange function of Bitcoin
Anyone with a bitcoin address can use bitcoin. It is impossible to know who controls each address. Therefore bitcoin must be freely exchanged. This means "sacrifice" that bitcoin has created. This free flow of capital can be from any source. This allowed the bitcoin to become worthless a few years ago.
When this currency is rising in value over time. This is due to the limited provision of bitcoins. While there is increasing demand for them. This is similar to how you bought Apple stock in 1980 during your IPO. You will have to pay $ 22 per share. Due to the limited supply of Apple shares and the increase in demand. Today it is valued at $ 520 per share
At present, Bitcoin is going down continuously, so is it a deflation?
if Bitcoin will be used as a means of payment, at least its price should become stable. But all users of cryptocurrency today earn with the help of Bitcoin and Isaev volatility. There may be a conflict of interest and therefore the realization of all the hopes of many Bitcoin users are in a difficult situation.
Even with its current volatility, it is still partially very useful for payment for both receiver and sender. People still use it for payment, I still receive it as payment for salary, but the only thing is that once it is tied to salary, I quickly remove it because of its volatility. I could wake up tomorrow now and found out that the value had dropped, ad at the same time, it could be in my favor when the value increases more than what I was paid. It is still yet to achieve this goal completely though, because this is the major reason why satoshi set up this digital payment system, but its volatility is making it less use or its purpose, but we all know that it will surely get to a point where bitcoin will become a stable coin naturally and then, it will fully accomplish its mission or its creation.
Bitcoins have different economic functions. It acts as a central bank. Bitcoins are known as fixed quantities as stocks have limited supplies. The rapid rise in prices has given us many different questions. What is the economic function of this algorithmic currency?
Exchange function of Bitcoin
Anyone with a bitcoin address can use bitcoin. It is impossible to know who controls each address. Therefore bitcoin must be freely exchanged. This means "sacrifice" that bitcoin has created. This free flow of capital can be from any source. This allowed the bitcoin to become worthless a few years ago.
When this currency is rising in value over time. This is due to the limited provision of bitcoins. While there is increasing demand for them. This is similar to how you bought Apple stock in 1980 during your IPO. You will have to pay $ 22 per share. Due to the limited supply of Apple shares and the increase in demand. Today it is valued at $ 520 per share
At present, Bitcoin is going down continuously, so is it a deflation?
I don't really understand your last sentence. Bitcoin is going down constantly, are you talking about its price or its supply is getting more and more limited?Exchange function of Bitcoin
Anyone with a bitcoin address can use bitcoin. It is impossible to know who controls each address. Therefore bitcoin must be freely exchanged. This means "sacrifice" that bitcoin has created. This free flow of capital can be from any source. This allowed the bitcoin to become worthless a few years ago.
When this currency is rising in value over time. This is due to the limited provision of bitcoins. While there is increasing demand for them. This is similar to how you bought Apple stock in 1980 during your IPO. You will have to pay $ 22 per share. Due to the limited supply of Apple shares and the increase in demand. Today it is valued at $ 520 per share
At present, Bitcoin is going down continuously, so is it a deflation?
If you talk about supply, it is really a deflationary mechanism that Satoshi really desires when creating bitcoin.
For this reason, supply is limited so many countries are watching Bitcoin as a solution to inflation growth too quickly.
The economic function of bitcoin for each country it could help to decrease the unemployment people and they can earn money and fullfill their financial problem in the family through bitcoin, the economy of that country will grow with the help of bitcoin because they can work into bitcoin if you have an internet access.
I think bitcoin is not a full time job, so even though there are many people who produce from bitcoin but basically they don't have a permanent job which means they are unemployed, but with bitcoin they are able to earn income which of course will increase the economy of some residents who are aware of bitcoin. I don't think so. It is not deflation in that it is a normal movement. It is not really falling as falling. The rise and fall is not something that you should be treating in smaller time frames. It is unlike prices which are rising steadily the value of fiat currency which is also falling steadily. The price of Bitcoin is rising and falling depending on the demand. It may be low today but really high tomorrow and vice versa. But if you look at the bigger picture, the line is really going upward.
Right, this is not a deflation. Last year's bitcoin decline I think is because bitcoin has reached its saturation point so the price will bounce down and look for the lowest saturation point. This is normal when the price of bitcoin is high at the end of 2017 then everyone will sell it, of course there will be a massive dump.
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