The link between Bitcoin and the economy - page 3.

Japinat

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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.

These are supposed to be the real meaning of bitcoin but eventually, as the government intervenes on its regulation, it will become controllable as we cannot enjoy bitcoin without a 3rd party since not everyone is accepting bitcoin, in the end, most of us will still convert our bitcoin into fiat and that's where regulation intervenes through their KYC requirement and AML Law.

Leviathan.007

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There can be many links depending on the people's perspective and the government reactions to bitcoin, In my own idea bitcoin can be good for the economy of any country if they really understand it and use it in a good place, for example, I can see some governments are trying to suspend it while they do not understand it because if they did understand bitcoin they could understand bitcoin is something that can be suspended by a single governments and this can just make the bitcoiners unhappy and make them leave their country and surly with this migration they will also take thier money with themself while leaving which is not good for the economy of the country.

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Quote from: Wiwo on December 26, 2021, 06:10:28 PM

The role of Bitcoin in an economy can not be overemphasized as it is important for both individual users of the overall economy is very vital. Bitcoin as a decentralized currency serves as a stabilizer of the economy its role may not be outlined in the economic policy but again no nation can deny it a positive impact on the overall economy.

Yes, although it is not very bad that many people give news and speak well of BTC, because it is something that remarkably falls well with the internal economy, although people know more about BTC, the good news quickly reaches those who They are the least believers, and who have doubts, I particularly know many people who believe that BTC is a scam, who believe that whoever puts money into BTC is going to lose everything, but it is because of the wrong news that appears on TV and because of the huge FUD of the big chains like CNN and other traditional economists.

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Quote from: DrBeer on January 02, 2022, 01:18:39 PM

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.

First, let's assess the real situation. Bitcoin is not a currency. Bitcoin is a virtual, speculative asset. Although high-tech, I agree. What is the relation to the economy? Yes, perhaps none, even though the capitalization is 2 trillion dollars, this is not much and not much, depending on how you use it. It is quite simple to assess the impact and value - let's write what happens if we take and remove bitcoin and crypt from our lives. The whole world wakes up - and the crypt is all gone? AND ? What will change in the world? As for me - Nothing but a few bankruptcies and after a while, everyone will forget about it. Although no - Hollywood will shoot 1-2 films on this topic

Right if cryptocurrency disappears a lot of bankruptcy cases will arise and I don't think investors will be able to get over that for a long time and a lot is going to change and so many cryptocurrency activities will stop.
But with bitcoin on our bucket list, we are going to see more development and growth for both individuals and society.

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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.

First, let's assess the real situation. Bitcoin is not a currency. Bitcoin is a virtual, speculative asset. Although high-tech, I agree. What is the relation to the economy? Yes, perhaps none, even though the capitalization is 2 trillion dollars, this is not much and not much, depending on how you use it. It is quite simple to assess the impact and value - let's write what happens if we take and remove bitcoin and crypt from our lives. The whole world wakes up - and the crypt is all gone? AND ? What will change in the world? As for me - Nothing but a few bankruptcies and after a while everyone will forget about it. Although no - Hollywood will shoot 1-2 films on this topic

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Quote from: GeorgeJohn on January 01, 2022, 11:27:29 PM

Is very obvious that bitcoin can't be controlled by any other person, what makes Bitcoin to be decentralized is the ability of handling it's condition without involvements of second and third party as usual, the link between bitcoin and economy, it's correlated but not openly correlated, i believe that bitcoin can support economy for more uplifting and others, let us know that investing in bitcoin via government can bring another level of development to the country, this is measure some people lack in cryptocurrency.

It is obvious this is the case as bitcoin was designed with that in mind, however governments are so desperate that they are going to try anyway, governments are finally realizing the threat that bitcoin entails for them, until recently they just thought of bitcoin as an asset some enthusiasts were using among themselves and that sooner or later it will crash, but instead they are seeing that it is becoming an asset people are using as a store of value and they are not liking this one bit.

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There has been a great change in economy when people invested in Bitcoin. This change has come in last few years since 2017 since there was a first BTC ATH. Those who invested earlier and waited, might have gained more profits and by now the number of rich people might be more. I am sure crypto is the only one platform yielding more profits when invested. The turn over is really huge and there where the confidence came in.

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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.

Economy of a country is highly proportional to individuals' economy and basically bitcoin is highly focused on enhancing individuals' finance in multiple ways; it means there would be no need to consider bitcoin as a special thing in our economy but it is just another option for what we have been traditionally using for years to centuries.

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

Bitcoin is a digital currency

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

Bitcoin is an asset just like gold

These are the the two basic currently available utilities on which bitcoin is linking to our day to day economy. Moreover, I am not seeing there would be any confusion on this regard but people who are aware of these better benefits of bitcoin must be choosing it against traditional alternates.

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Quote from: batang_bitcoin on December 29, 2021, 06:34:13 PM

Quote from: Wiwo on December 26, 2021, 06:10:28 PM

The role of Bitcoin in an economy can not be overemphasized as it is important for both individual users of the overall economy is very vital. Bitcoin as a decentralized currency serves as a stabilizer of the economy its role may not be outlined in the economic policy but again no nation can deny it a positive impact on the overall economy.

I don't think that it's a stabilizer if it's too volatile at all. But it's a fact that countries and governments that sees the value of bitcoin, they're all aware of the impact that it can give to them and that's why the starter of making it as a legal tender, El Salvador has done it. And we shall see the impact of it for the next years to come and if the president's decision did it well for his country. Although there are countries that have became crypto friendly, there's also impact from deciding to be a crypto friendly country without any need to declare bitcoin as what El Salvador did.

I think he mean stabilizer is no inflation like fiat have, but in terms of price Bitcoin is risky than fiat.

To be honest Bitcoin doesn't really need to be accepted as legal tender since it's very risky to hold if you don't like it, but it's only need all countries shouldn't ban Bitcoin at all... this will make Bitcoin will be widely accepted and anyone can have without faced any barrier. No one will be forced to buy Bitcoin, also no one will be forced to not own Bitcoin. There're many citizens live in unfriendly countries about Bitcoin but want to own Bitcoin, they could be jailed or his bank account could be frozen by bank.

GeorgeJohn

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Is very obvious that bitcoin can't be controlled by any other person, what makes Bitcoin to be decentralized is the ability of handling it's condition without involvements of second and third party as usual, the link between bitcoin and economy, it's correlated but not openly correlated, i believe that bitcoin can support economy for more uplifting and others, let us know that investing in bitcoin via government can bring another level of development to the country, this is measure some people lack in cryptocurrency.

qwertyup23

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Quote from: kaya11 on December 26, 2021, 09:02:36 AM

But the problem is the benefits you are talking for the common people that you are talking is only applicable to the rich people. Poor ones can't even afford a quarter of Bitcoin. Rich people buy it believing it would give back more to them. It's fundamentals is slowly losing and one day bitcoin might be just another story to be told.

I doubt that its fundamental is slowly losing in today's market. The fact that more and more people have been using BTC in the market proves that they impliedly accept and see its value on the market. Albeit it is primarily used as a form of alternative currency since most merchants accept it nowadays, it can also function as a long-term asset due to its significant value in the market.

Personally, BTC should be viewed both as an asset and as a currency depending on the individual's usage and view. It can function both so why not exercise its maximum potential?

batang_bitcoin

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Quote from: Wiwo on December 26, 2021, 06:10:28 PM

The role of Bitcoin in an economy can not be overemphasized as it is important for both individual users of the overall economy is very vital. Bitcoin as a decentralized currency serves as a stabilizer of the economy its role may not be outlined in the economic policy but again no nation can deny it a positive impact on the overall economy.

I don't think that it's a stabilizer if it's too volatile at all. But it's a fact that countries and governments that sees the value of bitcoin, they're all aware of the impact that it can give to them and that's why the starter of making it as a legal tender, El Salvador has done it. And we shall see the impact of it for the next years to come and if the president's decision did it well for his country. Although there are countries that have became crypto friendly, there's also impact from deciding to be a crypto friendly country without any need to declare bitcoin as what El Salvador did.

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Quote from: laredo7mm on December 28, 2021, 05:34:22 PM

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.

Bitcoin is a decentralized currency and it gives us financial freedom that all I can say now. Most of us deposit our savings in the bank and banks use them as they want to. Govt has great influence over it and sometimes it actually not your money because banks can seize it under govt influence. So where we can store our money where no one will be able to influence it?

It's in bitcoin. Your funds will be in your control as long as you are the owner of your private key. It stores value and no one can use it except you. It connects us with our ultimate goal of financial freedom.

however, we need to accept the fact that some of our financial transactions still need the traditional banking services. this is why, even if you are a long-time crypto user here, it is understandable if you are still maintaining at least 1 bank acct. unless, you found a way not to use the banking system anymore.
but i do agree that you have all your freedom when it comes to crypto. it is on your hands how you will manage your portfolio. right now, the impact of bitcoin or crypto to the economy i believe is still not big to greatly influence in the economy of a country.
but maybe, we will see that in the coming months when you talk about el salvador, making btc as their legal tender.

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Adopting Bitcoin for it's economic benefits is beyond the value. If we limit it to its value we will come to realize that not all Bitcoin investors are holders as many turned to Bitcoin because it's more secure and guarantees data privacy making it anonymous and and temper proof. The decentralized nature of Bitcoin happen to be one of the reasons most people are turning more into digital assets and paying less attention to fiat

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

It is because of Bitcoins decentralized status and the inability of the government to control it that many govts do not like it and want to regulate/sanction it every given time, thus Bitcoin can't be said to have a direct influence/effect on national economy, for the individual who's prolly trying to escape fiat inflation and wants to personally control their funds, then Bitcoin can come in very handy. Having said that, I'm not really of the view that there should be a particular way people should use their Bitcoin, the way they use it doesn't really matter, so long as they do and contribute to its mass adoption, growth and of course development.

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Quote from: Kakmakr on December 26, 2021, 12:08:35 PM

Bitcoin is a currency, but it is not "legal tender" in a lot of countries, because some countries want to protect their own Fiat currencies from any competition. So these countries defined Bitcoin as a Commodity to prevent it from being used as legal tender.

We have some countries like El Salvador that are open-minded and they see the potential benefits from using Bitcoin as a currency and legal tender. (Example : Remittance from other countries to their country at a fraction of the cost that companies like MoneyGram and Western Union are charging their citizens)

Correct, however we also know that during difficult economic times people have the tendency to disregard what the government say and just do what it is on their best interest, in the past when bitcoin did not existed if a country faced an economic crisis and their fiat was suffering from high inflation people began to use the dollar as a currency in the country even if the government forbid the practice, and it is to be expected that something similar happens to bitcoin, even if the governments of the world want to avoid that scenario.

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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.

Bitcoin is a decentralized currency and it gives us financial freedom that all I can say now. Most of us deposit our savings in the bank and banks use them as they want to. Govt has great influence over it and sometimes it actually not your money because banks can seize it under govt influence. So where we can store our money where no one will be able to influence it?

It's in bitcoin. Your funds will be in your control as long as you are the owner of your private key. It stores value and no one can use it except you. It connects us with our ultimate goal of financial freedom.

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The role of Bitcoin in an economy can not be overemphasized as it is important for both individual users of the overall economy is very vital. Bitcoin as a decentralized currency serves as a stabilizer of the economy its role may not be outlined in the economic policy but again no nation can deny it a positive impact on the overall economy.

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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.

Personally, I like to think bitcoin is a parallel economy to the world economy on its on, but lately it seems to be highly influenced by the politics which are suppose to affect fiat and not digital currencies.

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.

legal or not bitcoin will forever continue to exist as there isn't a boundary for which bitcoin can and can not go.

Quote

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.

Bitcoin is an asset with many uses and people use it for different reasons,someone could use it as a medium of payment, another could use it as a store of value and on a different day its simply an investment waiting to grow in value.

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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.

Also gold is a bit of controlled by the government as well. Most of the gold owners are the nations and not retail people, when you look at how nations care and value their gold, you will realize that they are the ones that make it valuable so much since they care about it. The day governments of the world come out and say they are selling their gold because it doesn't mean anything to them anymore, we would see a huge crash and that is the main reason why it is still risky.

Not saying that they will do it, but the fact that they "might" is good enough for me to say gold is not valuable at all. This is why we should be focusing on decentralization a lot more than how we care about it right now.

Topic: The link between Bitcoin and the economy - page 3. (Read 879 times)