The economic function of Bitcoin - page 3.

shinharu10282016

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Quote from: piepie.asean on October 25, 2018, 03:18:55 PM

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?

> Talks about central bank and bitcoin. The very problem about central banks is centralization whereas bitcoin decentralizes all transaction, it cannot be manipulated like what the banks are doing and the number of bitcoins created is only up to 21million. The banks can do so much more but they won't because they know hyperinflation is a problem.

it is not deflation but correction. And most importantly, its the whales doing it for their Christmas shopping spree. LOL

Willarrmay

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Quote from: KryptoKai on October 27, 2018, 07:53:55 AM

The beauty of bicoin is that there is no central bank and no central authority. This is probably why satoshi walked away because he doesn't to take control of what is intended to be a decentralised economy

This is a good question and it has so many economic phenomenons revolving around it like the reduction of costs, the decline in the transaction costs and the up gradation of the existing banking system to the next level.

kokobaba880

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With crypto inflation can be minimized like people can keep their money in crypto and with this the fiat is also controlled so the extra money can not be printed so money devaluing is decreases ultimately the economic situation is good.

Indrawan77

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Bitcoin decentralised really gives the economic a change of system, we usually used centralised transactions system now we can choose when we make transaction, bitcoin and crypto actually can disrupt the economic if being used too much, crypto got value because of the supply and demand, not the same with fiat, fiat value is given and control by the government, bitcoin still affect economics in a small scale

Ranly123

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Quote from: piepie.asean on October 25, 2018, 03:18:55 PM

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?

Central bank you say? How could it be a bank if it's just a currency? Maybe we have different definition on Bitcoin but it would be easy to say that we use Bitcoin as a means of payment in online transactions and in an exchange of other cryptocurrencies.

sambel90129

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Quote from: BagzMM on October 25, 2018, 07:13:04 PM

In my opinion, the economic function of bitcoin is opening the door to people to earn extra income. Then it connects people all though out the world in term s of purchasing item.

One of the added values of the bitcoin currency is to make it easier for business people, especially trade between countries that usually always use dollars, with bitcoin we don't need to exchange our money anymore this can avoid the possibility of inflation, the second bitcoin The advantage can make it easier for tourists to visit our country. we don't need to complicate with money that must be exchanged first, this makes it very easy for traveler to attract tourists, so that is a lot of added value for bitcoin for the country if the country facilitates crypto currencies ..

zoeylee

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Semi-Decentralized Exchange

I think it about the used of blockchain technology, With regards to the advancement of technology people are accessing over the internet to purchase product online with a transparent transaction.

LieTOme

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Quote from: triciaa478 on October 25, 2018, 06:35:06 PM

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 facilities

niko337

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Quote from: awik p on November 13, 2018, 03:12:39 AM

Quote from: niko337 on November 13, 2018, 01:46:43 AM

In the early years, many hyped up people in the public used "deflation" as a form of argument.
Actually the utility of bitcoin or any other cryptos doesn't actually create a deflation, it follows inflation and "correct" it with new variables in the equations so the economy remain simple but more tech-influenced.

It is also a way to earn extras into a user's pocket as well. It has the ability to create a new economy by itself if adoption increast to about 10% world population. That is what banks and central banks are afraid of.

I agree. currently the data on bitcoin users is only about 1% of the world population. we can imagine if it increases by 10x, of course this should be anticipated by the government so that it does not cause turmoil

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. 😅

Douglasyukanov

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Quote from: KryptoKai on October 27, 2018, 07:53:55 AM

The beauty of bicoin is that there is no central bank and no central authority. This is probably why satoshi walked away because he doesn't to take control of what is intended to be a decentralised economy

but many world banks are interested in blockchain technology
but they only use and adopt the blockchain system,

Statedapps

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It also experiencing arbitrage in the bitcoin economy.
Especially with the tether crash
https://theblockchaintoday.com/bitcoin-arbitrage-across-countries/

awik p

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Quote from: niko337 on November 13, 2018, 01:46:43 AM

In the early years, many hyped up people in the public used "deflation" as a form of argument.
Actually the utility of bitcoin or any other cryptos doesn't actually create a deflation, it follows inflation and "correct" it with new variables in the equations so the economy remain simple but more tech-influenced.

It is also a way to earn extras into a user's pocket as well. It has the ability to create a new economy by itself if adoption increast to about 10% world population. That is what banks and central banks are afraid of.

I agree. currently the data on bitcoin users is only about 1% of the world population. we can imagine if it increases by 10x, of course this should be anticipated by the government so that it does not cause turmoil

iTradeBit

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Quote from: triciaa478 on October 25, 2018, 06:35:06 PM

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.

Absolutely agree.

niko337

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In the early years, many hyped up people in the public used "deflation" as a form of argument.
Actually the utility of bitcoin or any other cryptos doesn't actually create a deflation, it follows inflation and "correct" it with new variables in the equations so the economy remain simple but more tech-influenced.

It is also a way to earn extras into a user's pocket as well. It has the ability to create a new economy by itself if adoption increast to about 10% world population. That is what banks and central banks are afraid of.

niko337

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Quote from: Heidi Farrell on October 27, 2018, 07:01:35 AM

Crypto is very novel technology. Might we see a central bank one day issue digital units of its currency in crypto form? Could happen. To put this in perspective though, crypto here is just a new kind of paper to print money on. Very clever, novel digital paper, but still just new paper.
Bitcoin as specific implementation of crypto has two basic use cases: a vehicle for speculation; a payments system for grey/black marekt participants looking to evade laws and taxes. As such it is and will always remain a niche item. Currencies are a creature of law, issuing forth from sovereign legal authority. Bitcoin can't challenge or displace them any more than a crowdsourced constitution could overturn established rule of law.

do check out "money vs currency" on youtube by Mike Maloney. It may appeal to you.
Paper money (currencies) was invented for debt. and subsequently widely used for fraud purposes.

Actually Central banks are creating their own cryptocurrencies as well. very soon we will dive into an era full of cryptos, just have to e careful which are the proper ones.

spongegar

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I don't think it is deflation per se, but it is more like a price correction for the ghastly spike. We experienced earlier this year. Next, Bitcoin and any crypto currency is not jist an algorithmic currency but the next currency. I think crypto currency and the blockchain technology could be big if allowed to be big.

Thoakin09

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I couldn't find the corelation between OP and the title. Anyway, by definition it is showing inflationary characteristic due to price decrease. But when you consider it has fixed asset, you would realize that bitcoin is invariable deflationary.

Zendania14

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Bitcoin can work as a medium of exchange. So it does act as an economic function. The feature of investment also help in this matter.

Haennon05

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There are many features of bitcoin which can act as a economic function. People can earn money through it and change their livelihood, there are many investment oppurtinities too and also it can be used in online shopping as a currency.

Froidda21

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Bitcoin has many economic functionalities. It can be be used as an investment scheme. It can also be used as a currency for trade in exchange of other currencies and goods.

Topic: The economic function of Bitcoin - page 3. (Read 1244 times)