Topic: The economic function of Bitcoin - page 2. (Read 1277 times)
Bitcoin has got numerous economic functions. Among them includes the feature which makes Bitcoin to be considered as a store of value. With this, BTC can be transferred across the globe with ease in order to purchase goods and services in shops that accept it. Also, Bitcoin is considered as an asset, hence it can be bought, stored for years and transferred to younger generations to be inherited. Bitcoin also provides job opportunities such as crypto mining, crypto merchants, bounty hunting etc.
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.
It also experiencing arbitrage in the bitcoin economy.
Especially with the tether crash
https://theblockchaintoday.com/bitcoin-arbitrage-across-countries/
To me it has always been the ease of use. I have always supported the fact that bitcoin is a great way of paying someone. I try to pay people with bitcoin and I try to get paid in bitcoin whenever I work, that is my number one option to be paid in. That way it takes almost no time compared to bank payments. Now you may think bank payments are easy and you just click some bank app on your phone to send money to someone and you are done but you are thinking just local. Especially with the tether crash
https://theblockchaintoday.com/bitcoin-arbitrage-across-countries/
I mean bitcoin makes that happen on a huge global scale. Someone from USA can send money to someone in nigeria (probably a nigerian prince for example) and it will take just couple minutes at most to arrange that. Yes there are some other things that makes bitcoin amazing but the ease of use will always be my number one reason.
anyone. the function of bitcoin is very good for the economy, and maybe the role of bitcoin will be more vital in the future.
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.
If something needs to be called as currency then it have to act as perfect medium for transaction currently the Fiat money doing that but it is not a perfect system because the value of Fiat money keep losing due to inflation.so we have Bitcoin it also keep changing the value but depends on the market condition not based on the increase in the supply.
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 also experiencing arbitrage in the bitcoin economy.
Especially with the tether crash
https://theblockchaintoday.com/bitcoin-arbitrage-across-countries/
To me it has always been the ease of use. I have always supported the fact that bitcoin is a great way of paying someone. I try to pay people with bitcoin and I try to get paid in bitcoin whenever I work, that is my number one option to be paid in. That way it takes almost no time compared to bank payments. Now you may think bank payments are easy and you just click some bank app on your phone to send money to someone and you are done but you are thinking just local. Especially with the tether crash
https://theblockchaintoday.com/bitcoin-arbitrage-across-countries/
I mean bitcoin makes that happen on a huge global scale. Someone from USA can send money to someone in nigeria (probably a nigerian prince for example) and it will take just couple minutes at most to arrange that. Yes there are some other things that makes bitcoin amazing but the ease of use will always be my number one reason.
Of course this comes with a price, the function is amazing but people have been using crypto in a way that they can make money and profit from these moves instead of taking advantage of these functions. Bitcoin could have been a system for money transfer globally but instead since it is such a great project it turned into a commodity and have been like that for a while. Hence lost its function along the way since it is not used properly.
I think bitcoin cannot be equated with stock market activities because both have different forms and characteristics, if in the past the price of apple shares was only 2 $ and has now increased to several times because the products produced by Apple are in great demand by the public, moving the supply and demand balance and make prices move up, while bitcoin is not the case, there are no products produced because bitcoinlah the products produced are many factors that influence price movements besides supply and demand such as halving day and hardfork
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?
It also experiencing arbitrage in the bitcoin economy.
Especially with the tether crash
https://theblockchaintoday.com/bitcoin-arbitrage-across-countries/
To me it has always been the ease of use. I have always supported the fact that bitcoin is a great way of paying someone. I try to pay people with bitcoin and I try to get paid in bitcoin whenever I work, that is my number one option to be paid in. That way it takes almost no time compared to bank payments. Now you may think bank payments are easy and you just click some bank app on your phone to send money to someone and you are done but you are thinking just local. Especially with the tether crash
https://theblockchaintoday.com/bitcoin-arbitrage-across-countries/
I mean bitcoin makes that happen on a huge global scale. Someone from USA can send money to someone in nigeria (probably a nigerian prince for example) and it will take just couple minutes at most to arrange that. Yes there are some other things that makes bitcoin amazing but the ease of use will always be my number one reason.
It also experiencing arbitrage in the bitcoin economy.
Especially with the tether crash
https://theblockchaintoday.com/bitcoin-arbitrage-across-countries/
To me it has always been the ease of use. I have always supported the fact that bitcoin is a great way of paying someone. I try to pay people with bitcoin and I try to get paid in bitcoin whenever I work, that is my number one option to be paid in. That way it takes almost no time compared to bank payments. Now you may think bank payments are easy and you just click some bank app on your phone to send money to someone and you are done but you are thinking just local. Especially with the tether crash
https://theblockchaintoday.com/bitcoin-arbitrage-across-countries/
I mean bitcoin makes that happen on a huge global scale. Someone from USA can send money to someone in nigeria (probably a nigerian prince for example) and it will take just couple minutes at most to arrange that. Yes there are some other things that makes bitcoin amazing but the ease of use will always be my number one reason.
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?
Meanwhile, governments are frantically coming up with regulations so that they will not to be "circumvented" and still have taxes to levy on. They should be seeing crypto as a great disruption to their reserves... since most of the reserves don't really have real money ever since the paper currencies are no longer backed by gold. 😅
They have not even seen a thing yet, because I am sure as things are going, there is great possibility of seeing the market even grow bigger than this, and in that case obviously, they will feel even more threatened. Regulation as it is will be their main savior in the long run, but my hope is that they get to be lenient about it, most especially for the developed countries.As the technology keeps developing and we get to start seeing real life usage the more, there is the obvious part of seeing the market serve a great function in the payment sector most especially when it comes to sidelining the banks for international transactions, which is already happening anyway.
There are so many ways bitcoin can be used aside from its main purpose of using it as a payment system. It can be used as a means to transfer money and or use it as if a real currency to buy food and other supplies. Yet even with all these functions bitcoin was unable to go up in value and started to move down. This is simply because the rise in value was almost artificial due to a sudden rise among investors holding the coin without a real purpose. Due to an unfavorable market people started dropping their interest as they are driven by too many FUDs and failure of bitcoin price to move up.
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.
maybe what you say is true that bitcoin is an economic function that uses the times and of course the development of technology is also practically fast and efficient that is needed, someday in the future it will use digital facilitiesBelieve me, when it comes to using the banks, they have practically enslaved us over the years, tell us how much we can spend, change policies however they like, rip from us without any apology, have issues when it comes to making international transfers among many others and all these put together is what the crypto space is going to be solving and that is one great economic importance as far as I am concerned.
The reason I'm interested in bitcoin is that it's a marvelous medium of exchange, but a terrible store of value and an even worse unit of account.
One of the most revolutionary things about bitcoin is that it challenges some of our ideas about what is money. For example, why *does* the medium of exchange have to be the unit of account or a store of value.
One of the most revolutionary things about bitcoin is that it challenges some of our ideas about what is money. For example, why *does* the medium of exchange have to be the unit of account or a store of value.
The economic function of Bitcoin is the technology behind it whether the public will adapt and accept the innovation then utilize it for goods and services, and merchants to accept is as another option for mode of payment. I do not believe that what's happening is some kind of deflation. It actually showed its true value which was predicted at last year's price by end of 2017. Give it time to recover, slowly but surely.
Bitcoin is not like central bank,it is bank on our hand so we can make transaction if we want but its value only depends on about its acceptance and demand so it will have value until it been transacted and used by the people and as you said there are chance for that bitcoin go worthless even satoshi said that statement so use it at your own risk because it is decentralized and highly manipulated.
Bitcoin is very useful in economic because of the blockchain we can transact our bitcoins such as paying bills , trading assets and most important of all is remittances. If every countries still accepting and promoting bitcoin as a partner , i think bitcoin will go up again because of the investors and the good news of bitcoin in every countries.
the limited supply of bitcoin will further alienate a country from inflation because there is no policy to make new money that can cause inflation with a smaller value each year. supplay remains bitcoin with the increasing number of requests from users this will increase the value of bitcoin, and this also applies to other altcoins.
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