Topic: The economic function of Bitcoin - page 4. (Read 1277 times)
Bitcoin opens up great economic opportunities. This is that increased security, global volume transactions, while the commission will be minimal. I think that the prospects are very good and therefore you just need time to see them.
"In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0%. Inflation reduces the value of currency over time, but deflation increases it. This allows one to buy more goods and services than before with the same amount of currency." - Source : https://en.wikipedia.org/wiki/Deflation
So based on this question - " At present, Bitcoin is going down continuously, so is it a deflation? " your assumption is wrong. The value of the currency must go up for deflation to happen.
The Bitcoin price has gone up, if you look at the long-term historic price history. 
So based on this question - " At present, Bitcoin is going down continuously, so is it a deflation? " your assumption is wrong. The value of the currency must go up for deflation to happen.
The Bitcoin price has gone up, if you look at the long-term historic price history.
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?
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?
this is one of the weaknesses of bitcoin, which is certainly the advantage of bitcoin, its price fluctuations. But most people interpret this to be too high, bitcoin, which like the end of last year experienced the hype and the market is sluggish so they blame the market
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?
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 would not consider bitcoin as the central bank or Apple stocks. Bitcoin, as an investment tool, is more like gold. Although it is more technologically advanced and differs in functionality.
Not deflation that occurs and this will not continue to go drop as your words,the economic function of BTC is similar to fiat but for the freedom of every person to make a transaction not high taxed.In the past it was too little to know BTC so human knowledge was not wide as its now.So it's not worthless like your words but it's the initial process made,Like a toddler who is still in the process of walking and then becoming a teenager.
Bitcoin does have many benefits and one of them is that the use of Bitcoin can avoid paying taxes. But this is also a negative thing because the government will get less income and this can be a big problem if someday Bitcoin is used globally.Bitcoin must be used wisely because it will provide positive value for the development of the use of Bitcoin in the future.
Not deflation that occurs and this will not continue to go drop as your words,the economic function of BTC is similar to fiat but for the freedom of every person to make a transaction not high taxed.In the past it was too little to know BTC so human knowledge was not wide as its now.So it's not worthless like your words but it's the initial process made,Like a toddler who is still in the process of walking and then becoming a teenager.
The function is bitcoin is almost as same as the fiat coins apart from that it's decentralised, that makes it an individual currency which is only used as an individual business product and it's purpose is to serve only the individual, nor any mass or country.
The economic functions of the bitcoin network causes it to behave like a central bank. This has a few effects: bitcoins (the payment unit) behave like stock due to the fixed, known supply of units being subject to open market operations. What happens when the market price of bitcoin changes is the velocity of bitcoin falls into disequilibrium until a new equilibrium is found.
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
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?
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?
How can it acts central bank? It is decentralized. So there is no need for central bank with Bitcoin. Only miners could be useful.
Maybe it meants the other way. When referring to central bank it meants that Bitcoin is the center of its own blockchain and no outsiders can change its system.
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?
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?
How can it acts central bank? It is decentralized. So there is no need for central bank with Bitcoin. Only miners could be useful.
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.
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.
I think that is not a phenomenon of deflation because if deflation the exchange rate will increase while the current exchange rate of Bitcoin continues to fall this may be a market adjustment due to the amount of competition that arises between BTCs with other coins .
The basic economic function of bitcoin is the ability to be used as a remittance of money without the use of traditional banking system. The economic function of bitcoin is opening the door to people to earn extra income. It connects people all through out the world in terms of purchasing items.
The function of bitcoin aside from being a payment tool, bitcoin also makes it easy to make transfers and can be used for long-term investments.
It is very odd when you say that bitcoin acts as central bank. Thats very misinterpreted statement about the bitcoin. It is decentralised one by nature and neither any trades, transactions, investments of any other currency (altcoins) depends on it or gets regulated via it. So I am pretty sure that its wrong statement about it and should be corrected. Bitcoin itself is a sphere who has its own economic characteristic. They change, adapt according to the investors, public use, limits, demand etc and thus creates its own economic outputs and inputs. May be there is no currency(ies) which are inter-related here for their economic function, at least I would think that way only.
Bitcoin is helping the economy since it was launched. I don't think bitcoin acts as a central bank. Yes bitcoin is facing a downfall but this trend will not continue as soon as we enter the bull run.
The basic function Bitcoin provides the economy is the ability to be used as remittance without the traditional system that is used by banking in the case. Let's not forget that it also functions as asset in which to store value. It wasn't made for something to invest in initially but we use it as such. Further along the lines this might change, who knows.
Due to the volatile nature of Bitcoin, the main economic function of this coin is to open a door to the general people with a chance to invest and earn. Bitcoin is a cryptocurrency which goes up and down on a regular basis. So, even though the price of BItcoin is low, it should not be considered as deflation.
In my understanding, I think that bitcoin has open many opportunity to the people who had supported bitcoin. Bitcoin has provided the people the chance to make payment transaction peer to peer and other payments in electrical bills, water bills, payments in goods and services online using the btc currency. Lastly, btc had helped any countries economic situation such as alleviation of unemployment and underemployment where people could be able to earn profit through their bounty campaign participation.
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