Topic: The future of Bitcoin as a sustainable currency. - page 2. (Read 843 times)

Bitcoin has become a cultural and financial phenomenon.Is Bitcoin Money? Traditionally, currency is produced by a nation's government money  serves as a store of value  with a stability value But volatility damages Bitcoin's store of value credibility.

In the future the bitcoins will rule the financial markets and the price of bitcoins will be 2000% more than the current price or more of bitcoins current  price. If you are a bitcoin investor your golden era is coming  as there are more likely chances for the price of bitcoins will start to boom before the next halving of bitcoins in the crypto currency market. Due to high potential more entrants are entering the bitcoin market causing for the increase in demand for bitcoins, which causes for the shooting of the prices of bitcoins up and there will be mass adoption of bitcoins world wide as it has the ability to improve the economic standards of the country.

If the demands of bitcoin keep increasing, then in the future bitcoin may become the main currency for global.
But there are another factors restraining bitcoin from become a sustainable currency, one of them is the security.
There were many crypto exchanges hacked in the past, which makes investors lost their coins. The security of bitcoin and cryptocurrency will be the main priority to improve.

Whatever obstacles faced by bitcoin today, in the process of adoption globally. I believe that it will not last long. Because as we have seen, many countries have prepared themselves to accept bitcoin

I don't think volatility as such has anything to do with the legality of cryptocurrencies (or lack thereof). If this logic and reasoning had anything to do with reality, then crude oil should have been banned long ago for its sometimes severe price fluctuations on the order of dozen percentages daily (though not everyday, obviously). If anything, legalization of bitcoin may be hindered by market manipulation as this is one of the reasons why Bitcoin ETF's are being constantly declined by the SEC

But that's a different matter

If we don't start at this point, we will never reach that phase. now we must be able to push bitcoin as a currency. bitcoin must be able to have good stability because it is true that when the price of bitcoin is still fluctuating, it will never be able to make bitcoin as a legitimate financial medium. Make bitcoin prices more stable and then we will get a new era of legalization of bitcoin and digital currency.

And how is that going to prevent manipulation?

The only way to prevent exchanges from manipulating the Bitcoin price is to dry their orderbooks completely. It is possible only in one case (if we discard the possibility of an exchange itself delisiting a coin) when Bitcoin adoption is so high that most bitcoins leave exchanges essentially leaving them with nothing to dance on. You would likely have higher prices then, but just high prices on their own are not a guarantee of any kind in this regard

That's because our market still under the observation, only we have speculations and predictions but we can't assured of having it due of its volatility in form. I know this is not for a lifetime currency and it came the time that others will discover another technology which could be more potential than of this. 

And I would happily advertise it if some genius came in and create something that will really change the bitcoin's way of being used.

ICO's became one of the good merchant but in a bad way. They let investors buy their tokens using BTC but sold in an instant taking away the value of BTC little by little. Same does happen with Ethereum with ERC20 tokens.

Up until now I can see that is what is happening. They should have just used USD as means of payment or by now there is Tether. Just so to avoid the demands going down by them selling BTC to continue their peojects.

Indeed, bitcoin still has too many risks in use and that is really a wall that prevents the connection between it and its users, people really don't have the courage to use it, in addition, the value of bitcoin is as you say, it is not fixed, even its fluctuation is greater than we imagine. And with such problems, the government cannot allow bitcoin to become a legal currency, it is still not eligible, and I also don't want it to be a sustainable currency, I just want it to be a sustainable investment and profitable, which is better

IMO , bitcoin can't be legal as currency because the value too volatile.
Also remember that bitcoin is an asset just like gold so there is no way for bitcoin can be legalize into legit currency.
So far cryptocurrency still hackable so are you dare to use something risky ?

This is just another problem with bitcoin if you agree with the bitcoin payment tool. So what must be done is to make bitcoin stable or increase prices based on mining difficulties. So there is no more price manipulation by the exchange. Currently, the position of bitcoin is only used as an investment model that is not real, meaning that bitcoin has no intrinsic or material value because there are not many companies that support bitcoin for payments that are global in nature. Moreover traders make speculations that are not rational, thus creating a bull market. I think allowing bitcoin to grow based on market demand will be fairer if it has to be used as a payment tool. because there are altcoins that can answer the difficulties of bitcoin as payment. Finally, bitcoin will become an invaluable digital asset.

Its a big quest for everyone and I know people were expecting more for this market. The current situation isn't making us to be hopeless and disappointment, we are still depending on the communities demand which could really its stability. Yet, we are looking this market to grow old and be matured enough to gain trust from the crowd and their huge support, then finally speculate for its sustainability.

If Bitcoin does become consistent throughout the years then that I am sure of that it will become a currency that will sustain a lot of people, its sustainability is a priority, if BT  continues to progress this way, if the price becomes stable as well then I think in the future would be better for all of us, hopefully all things would go better for Bitcoin.

Indeed cryptocurrency is a sustainable and a reliable measure for a reliable economy in a worldwide setting. When cryptocurrency is adapted in the entire economic industry there will be a decrease in a controlled economy made by printing too much paper money. Anyway this will be possible soon in the future and might be not in our generation remember the history of money it evolves since the start of the human civilization history. We might see it to the evolution of cryptocurrency that would might take thousand of years before it would really be hundred percent adapted.

Bitcoin is currently being used by many people and this is a good capital because then Bitcoin has gotten a place in the community. I feel this is a positive value and can be used as a reference in the future. I am optimistic that bitcoin can be a currency that is used safely, is stable and easily accessible to people in the future.

We believe it as a sustainable currency cause we saw its future and we believe that it have capability but for the others, they'll look this a joke or another form of scams. We know that they are wrong and we can't push them to believe and be a part of crypto family, letting them to discover of its greatness and contribution to the community will make them amaze.

the key point is in the second paragraph.
people always forget that regulations are not the same everywhere. it is not black and white either. as a result they always fall off the roof with their opinions about regulation. it doesn't have to be bad or good. it can be either or even both! there are times that we see regulations that actually help the growth but sometimes they even prevent it to the point that some license laws and tax laws has forced companies to move headquarters.

Bitcoin is different from other currencies in the past. It relies entirely on the Internet to create and trade. Bitcoin's unique technical attributes derive its economic and cultural attributes beyond the current currency. Bitcoin is an electronic currency produced by open source P2P software. Compared with the current banknotes, the biggest characteristics of Bitcoin are decentralization and global circulation in the network world, followed by high security and high confidentiality. These technical attributes further extend the attributes of non-inflation, non-freezing in economy and non-artificial operation in supply. In culture, Bitcoin is popular among anarchists and liberals. The advantages of Bitcoin have been artificially exaggerated, and its anti-inflation and anti-inflation functions can not withstand scrutiny. In the long run, Bit's prospects are difficult to match gold. In the most optimistic case, Bit's prospects are to become a means of payment in local areas. But in the short and medium term, Bit still has room for speculation and imagination. In addition, the use of Bitcoin in some sensitive areas highlights the increasingly prominent role of information in national security.

1. The advantages of Bitcoin are exaggerated: on decentralization, no transaction costs and inflation prevention

Admittedly, Bitcoin has various advantages over paper money, but these advantages have been over-interpreted. First of all, Bitcoin is a kind of de-centralized currency. It does not have the risk of central bank controlling money supply affecting market value as paper money is a conditional advantage. Bitcoin is mainly held in the hands of big customers, and the market is not deep enough. At present, the buying and selling behavior of big customers is very easy to affect the price of Bitcoin, even when the de-centralization is regarded as a property when Bitcoin is fully mature. Advantages, then, should be added to the prerequisite of holding decentralization. In addition, the degree and type of financial risks exposed by centralized and decentralized online payment systems differ greatly.

Secondly, the low transaction costs of Bitcoin are not without transaction costs. On the contrary, due to the increasing difficulty of Bitcoin mining and the further stability of the currency value, the relevant trading platforms will increase their dependence on transaction costs, which will certainly increase transaction costs. Finally, the confidentiality of the Bitcoin transaction remains to be discussed. The principle of the Bitcoin transaction enables all the processes of each Bitcoin transaction to be stored in each machine. If someone can determine the real background of a transaction, all transactions can be found downward through the data.

Compared with other advantages, the advertised advantages of anti-inflation or anti-inflation attributes can hardly stand scrutiny. Although its supply is stable and the upper limit of supply is locked according to its algorithm, unless the global unification is achieved and all countries use bits as their currency, it can only serve as a means of payment or a store of value, which can not prevent currency oversupply, just as the current existence of gold can not restrain the growth of National currencies. If bits can only be used as a means of payment in local areas (e.g. networks), global or some countries'inflation will still be transmitted to the areas where bits are used. Therefore, the use of bits to prevent inflation is basically not valid or has strong assumptions. As for inflation prevention, that is, to have value storage function, it needs to have gold-like attributes, but in reality, the essential attributes and prospects of bits are still difficult to match gold, as detailed below.
2. Bitcoin has too high foreground

The market's expectations of Bitcoin's prospects are generally higher than those of gold and the dollar. The recognition of gold is not only due to its natural physical properties, but also due to its official acceptance as a reserve currency (or an important allocation of foreign exchange assets). In theory, as an electronic currency, Bitcoin does not have the status of uniqueness and exclusiveness, and it is more difficult to become the official reserve of central banks like gold. Therefore, it is not appropriate to expect too much from Peter. As an electronic currency, bits have the advantage of first-mover. If it can be guaranteed in terms of security, the most optimistic prospect of bits is to be used as a means of payment in local areas.

3. The speculation and speculative demand caused by event factors are the main reasons for the rise of Bitcoin in this round.

Under the credit monetary system, people's lack of confidence in the currencies of various countries and their pessimistic economic prospects are the general environment for the rise of Bitcoin. The market's major traders and Bitcoin derivatives market speculation and participants'speculative psychology further accelerated its rise. Incidents such as BTCChina's $5 million investment and Bernanke's announcement are the main drivers of the recent surge.

However, many big crocodiles began to enter the market and buy a lot, which promoted the price of bits to rise and also increased market risk. Chamath, a former Facebook executive, has spent $5 million on Bitcoin and plans to spend another $10 million. Bitcoin Investment Trust also overfulfilled its target in four weeks, raising $15 million. These investments make Bitcoin rise further while concentrating Bitcoin holdings, which strengthens the impact of individuals and institutions on the price of Bitcoin and increases market risks.

4. Short and medium term bits still have strong speculation space.

Although our previous analysis is not optimistic about the future of Bit, it is likely that Bit will still have strong speculative space in a short to medium term period of one year. As in the previous analysis, Bitcoin creators advocate that the creation of Bitcoin is not manipulated by human factors, which is very different from the credit currencies of various countries. We anticipate that next year the major countries'monetary policies may be divided, and Bitcoin will have better speculation and imagination when economic risks are released and traditional asset markets are severely damaged.

5. The use of Bitcoin in some sensitive areas highlights the increasingly prominent role of information in national security.

The U.S. government seized the drug-trading website SilkRoad early last month. A crowdsourcing network called "Assassination Market" has even marked the sale of murderers with bitcoins. The founder of the assassination market, named Kuwabatake Sanjuro, is an extreme anarchist. Whether the prism gate incident or the use of Bitcoin in the relevant sensitive areas, all highlight the increasingly prominent position of the information field in national security. The Third Plenary Session of the CPC Central Committee proposed the establishment of the National Security Committee, which will play an important role in China's security strategy and expand from traditional national defense, stability/urban security to new areas such as information security.

Unlike many here I think that regulation and KYC could really help Bitcoin and cryptocurrencies in general. It would give it legitimacy, legal security and framework that would make it more acceptable for businesses and economy. It's true that scams are always present and everywhere money and profit is involved, scams are also. KYC can't fully prevent and protect from scam but still it can help.
Of course with regulation and KYC rules should be done very carefuly respecting the very essence of Bitcoin and its main idea but I beleive that with some efforts and good will it could be done properly on benefit of all.