The link between Bitcoin and the economy

Henrobakkara

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Quote from: BIT-BENDER on December 28, 2022, 03:33:09 PM

Bitcoin can play a part in the economy of the world if the world government actually let it, just like the US are against gold because they assume it’s threatening to their currency, that’s the same way the see Bitcoin

I think most of us forget that there is a corresponding number of people losing in one direction of the world in the situation of others making a profit in another direction of the world. so thinking only about the positive part of Bitcoin shouldn't be the case because there Is a corresponding Negative somewhere.

Quote from: BIT-BENDER on December 28, 2022, 03:33:09 PM

Nothing is wrong if a government work with the use of Bitcoin for the development of their economy, although It would still require time but bitcoin can make the transactions of finances more productive than what they used to be with fiat

Of course, it is and that is what the Government is fighting against, the decentralized nature of Bitcoin. How would the Government be able to track all transactions if they allow it to go decentralized and what will their monetary policy look like?

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Quote from: BIT-BENDER on December 28, 2022, 03:33:09 PM

Bitcoin can play a part in the economy of the world if the world government actually let it, just like the US are against gold because they assume it’s threatening to their currency, that’s the same way the see Bitcoin

The entire Crypto Community is largely inflated. Wallet counts not taken into consideration that 30% of all crypto testing tries several wallets. I've had about 10, still use 3.

Compare the Crypto number with Mastercard and Visa to touch reality.

BIT-BENDER

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Bitcoin can play a part in the economy of the world if the world government actually let it, just like the US are against gold because they assume it’s threatening to their currency, that’s the same way the see Bitcoin

Nothing is wrong if a government work with the use of Bitcoin for the development of their economy, although It would still require time but bitcoin can make the transactions of finances more productive than what they used to be with fiat

doomloop

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Quote from: Margaretv on December 25, 2022, 09:40:08 PM

Quote from: S A KHAIR on December 24, 2022, 06:35:54 PM

Bitcoin is part of the world economy so surely the two will be related. But bitcoin is too small and not widely used to say bitcoin will have an impact on the world economy. But in the opposite direction, certainly yes, the economy has a strong impact on the development of bitcoin.

The two are inseparable. In fact, Bitcoin provides a more convenient storage and payment tool for people who cannot use the centralized financial system for various reasons. Bitcoin is also subtly affecting the global economic order. After all, some countries have shown a very friendly attitude. Singapore has become the center of the global digital currency and crypto world. This is very surprising and surprising.

I think they can be separated. The world economy is already there even before but Bitcoins are only invented on 2008. Some cryptos are going down, one by one and what if BTC is next in the list? But, people can still live normally even after that. The pain is only at the beginning but they can surely moved on. BTC has its advantages other than the disadvantage and you already describe some of them.

We know centralized financial systems are too complicated and there are times where people experience a problem. BTC now has been their go-to alternative. It works like a charm. This people are glad that BTC have been invented. It's a game changer.

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Quote from: Gyfts on December 25, 2022, 02:54:17 AM

There isn't an actual direct link between a country's currency and the economy. They're theoretically suppose to be independent entities but usually the government is great at interrupting the natural tendencies of both how a currency and economy should operate.

Currency is just attributing value to goods and services. It doesn't necessarily promote economic activity but it can damage an economy if currency isn't stable. Bitcoin accomplishes the stability portion not in price, but with it's deflationary protocol.

The government may decide to increase the printing of new banknotes in order to stimulate the economy in this way, but in the end this will only have a short-term effect, in the end it will lead to an increase in inflation. The deflationary model of bitcoin allows it to avoid such a fate, and a lot of volatility makes its own adjustments, but in the long run it will work.

A strong economy will be distinguished by a low level of inflation, a weak economy must be constantly supported by monetary emission and this will contribute to inflation. Bitcoin as a long-term investment can help avoid this problem.

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Quote from: Tellek Garing on December 26, 2021, 01:34:50 AM

When we discussed the topic of Bitcoin and its decentralized nature and how it relates to the economy of the world, I lot of people seem to be confused about the place of Bitcoin in the economy.
First, we need to understand the nature of Bitcoin and also its legal tendency.
Bitcoin is a digital currency that is not controlled by any one individual or government that is why it is referred to as decentralized currency, secondly, Bitcoin is an asset just like gold that the reason most people adopt it for its economic benefits.

There is NO full-fledged connection between bitcoin and the economy. This is a kind of intangible asset in the form of MMM shares (read the story about S. Mavrodi and the MMM trust fund). It has no real value. there is only speculative, plus you can add to the cost price (with a "stretch", and then in order for this asset to have at least something real) - these are the costs of spent electricity and ASICs. Everything else is "pure water" speculative games.
Bitcoin, like 99.999% of other alternative currencies, has no implementation in the physical world. Cryptocurrency itself - used as a means of payment - thousandths of a percent or less, in the real world. It is used, without affecting the financial performance of the world economy, only blockchain technology. Therefore, in total - there is no connection, an absolutely speculative virtual asset

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Quote from: Margaretv on December 25, 2022, 09:40:08 PM

The two are inseparable.

I don't think the two are inseparable, the world economy doesn't depend on bitcoin so without bitcoin the economy won't be affected.

Quote from: Margaretv on December 25, 2022, 09:40:08 PM

In fact, Bitcoin provides a more convenient storage and payment tool for people who cannot use the centralized financial system for various reasons.

Bitcoin provides a store of assets, a means of payment, and an investment channel for us, but not everyone needs bitcoin, bitcoin has not yet reached such importance.

Quote from: Margaretv on December 25, 2022, 09:40:08 PM

Bitcoin is also subtly affecting the global economic order. After all, some countries have shown a very friendly attitude. Singapore has become the center of the global digital currency and crypto world. This is very surprising and surprising.

Again, bitcoin is still not big enough to impact the economy or the world order. Bitcoin is still very small and is in the development stage to be recognized, it is not fully recognized yet. I still have faith in bitcoin, but it may take longer for bitcoin to achieve what you say.

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Quote from: S A KHAIR on December 24, 2022, 06:35:54 PM

Bitcoin is part of the world economy so surely the two will be related. But bitcoin is too small and not widely used to say bitcoin will have an impact on the world economy. But in the opposite direction, certainly yes, the economy has a strong impact on the development of bitcoin.

The two are inseparable. In fact, Bitcoin provides a more convenient storage and payment tool for people who cannot use the centralized financial system for various reasons. Bitcoin is also subtly affecting the global economic order. After all, some countries have shown a very friendly attitude. Singapore has become the center of the global digital currency and crypto world. This is very surprising and surprising.

Gyfts

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There isn't an actual direct link between a country's currency and the economy. They're theoretically suppose to be independent entities but usually the government is great at interrupting the natural tendencies of both how a currency and economy should operate.

Economic theory is for a separate discussion, government structure (capitalism vs. socialism, tax rates, etc.) will generally dictate how an economy operates and it has little to do with Bitcoin. An economy can thrive without Bitcoin and it's probably a bad thing if an economy is completely decentralized (promotes monopolies and corruption).

Currency is just attributing value to goods and services. It doesn't necessarily promote economic activity but it can damage an economy if currency isn't stable. Bitcoin accomplishes the stability portion not in price, but with it's deflationary protocol.

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Bitcoin is part of the world economy so surely the two will be related. But bitcoin is too small and not widely used to say bitcoin will have an impact on the world economy. But in the opposite direction, certainly yes, the economy has a strong impact on the development of bitcoin.

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Quote from: Tellek Garing on December 26, 2021, 01:34:50 AM

First, we need to understand the nature of Bitcoin and also its legal tendency.

This is exactly what most people don't consider before investing in cryptocurrency. The heard money can be made in cryptocurrency and most therefore opt in.

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Quote from: Tellek Garing on December 26, 2021, 01:34:50 AM

Bitcoin is a digital currency that is not controlled by any one individual or government that is why it is referred to as decentralized currency

In general, we often say that Bitcoin is a digital currency that is not controlled by individuals or governments. Yes, that is also a valid argument, it is decentralized in principle. But in practice Bitcoin can also be controlled by individuals, and governments can do that too. Who controls Bitcoin? Of course this comes into question when we say that Bitcoin can be controlled by individuals. Those who control Bitcoin are the big whales scattered around the world and those who sit in groups. One control is in the field of price. If they say the price of Bitcoin will increase, then simultaneously the price of Bitcoin will increase. It's part of the control.

The advantage of Bitcoin is that it is a blockchain system that cannot be controlled institutionally or individually, it will work according to a block network. If we have Bitcoin, we can send it to any wallet address, and if we have a wallet address we can receive Bitcoin from anyone without having to wait for confirmation from certain parties.

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Quote from: Tellek Garing on December 26, 2021, 01:34:50 AM

Bitcoin is an asset just like gold that the reason most people adopt it for its economic benefits.

OP's post is wonderful, not talking about that but when you say that BTC is an asset like gold, you are comparing it to something which is totally different thing here. As long as we keep pairing BTC to other traditional assets or currency, BTC will never have its value and its purpose. You need to think of BTC as 1BTC = 1BTC. Nothing more than that. Only then we can see less panic in the economic market. Then people will only be willing to store more BTC rather than keeping what the value it suggests.

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Quote from: Tellek Garing on December 26, 2021, 01:34:50 AM

When we discussed the topic of Bitcoin and its decentralized nature and how it relates to the economy of the world, I lot of people seem to be confused about the place of Bitcoin in the economy.

Confusion occurs because people do not know the concept of bitcoin, both as long -term investment assets or can maintain investment value.

Quote

First, we need to understand the nature of Bitcoin and also its legal tendency.
Bitcoin is a digital currency that is not controlled by any one individual or government that is why it is referred to as decentralized currency

If you say Bitcoin's relationship with the world economy, then understanding the nature of Bitcoin in terms of government law will never be affiliated and find answers, because both do not go according to the rules that apply in each country. Except for El Salvador who has received fully bitcoin, I mean Bitcoin develops faster because it has a unique concept and the advantages contained in it (decentralization), so there is no securities that control the journey.

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secondly, Bitcoin is an asset just like gold that the reason most people adopt it for its economic benefits

It is closer, but different in the journey of both, gold moves slower at the sales price, while Bitcoin is speculative and can change the price in a certain period. Therefore Bitcoin can provide a very maximum profit in a certain period.

Bitcoin is referred to as the best investment asset because it is able to maintain value, where the tendency of other assets that impacts during the recession, while bitcoin can maintain its own value and be able to survive in a condition of decline in the world economy

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Quote from: alexandr1115 on December 23, 2022, 08:14:19 AM

It's hard to say for sure, but it seems to me that there is a connection! Does Bitcoin affect the economy?? I think it's the opposite! It seems to me that the economy has more influence on Bitcoin. It seems difficult to me to catch a direct connection, but definitely the cryptocurrency market is part of the economy.

That is for sure, bitcoin is part of the economy, and economics has a huge influence on the development of bitcoin. That is clearly shown through the last crisis when the economy was under pressure from the crisis, inflation and bitcoin were also not immune to the negative effects of the ailing economy.
There is a relationship between them, but in my opinion, there is only a one-way impact, meaning that bitcoin has not been able to affect the world economy as well as other countries. Bitcoin is still too small compared to other markets to make a macroeconomic impact.

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For now the relationship between bitcoin and the economy has not fully influenced our needs, because there are still many people who do not fully understand how to use bitcoin properly and correctly, although those of us who are already in the world of bitcoin crypto that we have today are very helpful in our needs, because bitcoin is a very meaningful asset to achieve a desire that we want to achieve in the future, If later the government has made regulations for how to use Bitcoin then this will help the economy in each country.

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Quote from: serjent05 on December 23, 2022, 04:43:39 PM

Aside from these, Bitcoin also triggers start-ups that provide new jobs in the economy. It is also a speculative asset that drives investors into pouring their wealth into the Bitcoin industry.

And this is the reason why the government (mostly) has not legalized Bitcoin as a currency and legal tender in several countries. Because of its decentralized nature, where the government cannot control Bitcoin, its circulation, transactions, and various other things. Included here, if most of the assets are Bitcoin, it will be difficult for the government to review how big a person's assets are and it is difficult to treat them as a tax reference.

We also know how many people have been able to change their life because of Bitcoin. Many people in the world have raised their economy and finances with Bitcoin much better. We also know how many people have lost their jobs during the pandemic and then getting better because of Bitcoin and cryptocurrency. Aside from some negative sides of Bitcoin and crypto, exactly, Bitcoin and cryptocurrency actually have given very important roles and influences to many people around the world in raising their finance and economy after the bad condition moreover during the pandemic. But, whatever Bitcoin has helped, all haters will always hate it.

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Quote from: Tellek Garing on December 26, 2021, 01:34:50 AM

When we discussed the topic of Bitcoin and its decentralized nature and how it relates to the economy of the world, I lot of people seem to be confused about the place of Bitcoin in the economy.
First, we need to understand the nature of Bitcoin and also its legal tendency.
Bitcoin is a digital currency that is not controlled by any one individual or government that is why it is referred to as decentralized currency, secondly, Bitcoin is an asset just like gold that the reason most people adopt it for its economic benefits.

Aside from these, Bitcoin also triggers start-ups that provide new jobs in the economy. It is also a speculative asset that drives investors into pouring their wealth into the Bitcoin industry.

Quote from: alexandr1115 on December 23, 2022, 08:14:19 AM

It's hard to say for sure, but it seems to me that there is a connection! Does Bitcoin affect the economy?? I think it's the opposite! It seems to me that the economy has more influence on Bitcoin. It seems difficult to me to catch a direct connection, but definitely the cryptocurrency market is part of the economy.

For sure there is a connection, anything that has the capability to affect a global to individual economy does have a connection and influence to it. Besides Bitcoin is actually created to meddle with the financial institution system so definitely it has a connection to the economy.

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It's hard to say for sure, but it seems to me that there is a connection! Does Bitcoin affect the economy?? I think it's the opposite! It seems to me that the economy has more influence on Bitcoin. It seems difficult to me to catch a direct connection, but definitely the cryptocurrency market is part of the economy.

doomloop

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Quote from: Lubang Bawah on December 22, 2022, 05:37:49 AM

Quote from: WillyAp on December 21, 2022, 08:43:30 AM

Quote from: Davian144 on December 20, 2022, 07:38:02 AM

A close example is people who are already successful and they know the crypto space and invest in it.

Most people succesful in BTC are the ones which started early. People who were able to see and buy at $10 + per coin. To start and gain you need to have a deep pocket to purchase at 12k a coin and have a meaningfull amount.

Unique facts occur when the price of Bitcoin is expensive then people who have kept bitcoin and lose the hard disk so they are looking for the hard disk, there are even collectors who have had around 5500 Bitcoin, at that time he told me that the price of Bitcoin was no more than $ 1 so that when he knew the price of Bitcoin skyrocketed more than $ 1000 in 2013 he tried to find the hard disk.

It's understandable to not have any high hopes about bitcoin on early stages, I do not remember the periods when it was under a dollar, but I do remember it broke over the "ath" and became over 100 dollars and then 200 dollars. I can tell you that people didn't believe it could crack over a thousand, and some even went as further as saying it would die before it could see over a grand.

Now we "dropped" under 20k and people are acting as if the whole economy is crashed. The reality is that for anyone who ever bought a bitcoin a decade ago, we are in huge profits and they made more than they could have in any other method of investment. That's why I love bitcoin and crypto world so much.

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