The link between Bitcoin and the economy

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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.

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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

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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.

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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.

Quote

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.

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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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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.

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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.

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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.

Frankly, the link between Bitcoin and the economy is tiny, the coin would be more of a centralized asset before the link would be strong. Don't let anyone deceive you, a lot of BTC is being held in the decentralized wallet, so such could not be accounted for any country's economy. What a waste!

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

This lack of control is one of the reasons why it's not adding to the economy, except for the ones with centralized wallets and exchanges.

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

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

Truly, Bitcoin is an asset, but not an asset like gold. Gold is centralized and acts just like fiats in some cases. Gold's transactions are transparent and are accounted for per country and with cross-border, unlike BTC. Therefore, what gold would add to the economy, the decentralized Bitcoin will not.

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Quote from: Godday on December 21, 2022, 01:21:07 AM

For now the relationship between bitcoin and the economy in a country has not been fully influential in meeting their needs, although currently the popularity of bitcoin is very large but some people still have doubts about the future of bitcoin that will be accepted throughout the country legally, although those of us in this forum already consider bitcoin a very good future asset besides investing with gold but to affect the economy as a whole certainly not We can be sure.

If it is to be influenced into economic relations around the world, maybe Bitcoin still needs more time to be affected in all sectors of the economy. Because this sector of the economy has a certain amount of money circulating through demand and supply, the connection is clear, that profits and losses are always closer to the buyer or holder of the Bitcoin itself.

Now, in this case, of course, everyone doesn't need to doubt Bitcoin because there really is nothing to doubt about Bitcoin. If for example talking about advantages and disadvantages, I think almost all sectors of the economy also experience this and it's not only in Bitcoin.

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Many people underestimate the influence of Bitcoin on the economy, they think that bitcoin is only speculative so that it does not have a positive impact on the economy, if we look at the facts in the market, of course this is wrong, the fact that the increasing number of new rich people from the Bitcoin business is a fact that cannot be denied, A few years ago people worked at Mining but now many work as traders.

The impact of bitcoin like you said here is helpful to individual and that adds up to the economic investment that would have been missing if bitcoin was not in existence. Bitcoin hodlers have more advantage to multiple their finances through hodling for longer time to catch up with volatility. Now that halving is around the corner, it is another time to double what you have and it proceed goes back to the economy through real investment with families that get financial help from hodlers

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For now the relationship between bitcoin and the economy in a country has not been fully influential in meeting their needs, although currently the popularity of bitcoin is very large but some people still have doubts about the future of bitcoin that will be accepted throughout the country legally, although those of us in this forum already consider bitcoin a very good future asset besides investing with gold but to affect the economy as a whole certainly not We can be sure.

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Quote from: hyudien on December 26, 2021, 10:48:13 AM

When it comes to Bitcoin relationship to the economy, there is only one answer, which is to be richer than anyone else and Bitcoin has it all to offer. I don't really care much about the concept, but the reality is now this is what's happening. Regardless of the main concept and purpose of Bitcoin. You can only see it in terms of increasing wealth. I'm not going to be too hypocritical about this.

Yep, Bitcoin is used by people for investment. It is intended for an increase in people's income. So, it is expected that Bitcoin can improve people's economic level. But, I disagree that Bitcoin is only for increasing income/wealth, in fact it is also applied to achieve its main purpose (as a currency). For me, BTC is still on track for digital currency purpose (main goal). But it has another goal/purpose now, it is for improving people's economic level.

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Quote from: DrBeer on January 07, 2022, 10:34:17 AM

Bankruptcies will most likely affect not such a large volume - about half of the market, this is 1 trillion dollars, especially for partially insured, partially working with large restrictions on obligations to investors, which means that a classic bankruptcy will most likely not even begin for many companies. And everything will end there. there will remain the owners of digital kits that cost nothing, millions of gaming video cards will enter the market at a ridiculous price, and bankruptcies of video card manufacturers will begin

))

I have to say it would probably impact the world as a whole if there was a big crash happened without the regular market crashing. This time for the past 1 year we have been dropping and that's bad there is no questions about that but we crashed in the regular market as well so it was understandable and nobody bat an eye about it.

If stock market and the world economy crashes, then we would be dropping in the crypto world as well which would make sense. However, in a world where dollar gains value, inflation is low, stocks are up, but crypto is still going lower that means we are going to end up with something quite horrible and many people will be effected by it.

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if the total bitcoin marketcap is currently around $340 billion, of course this is a great value, even equivalent to 3x of my country's foreign exchange reserves, of course this has a big impact on the economy, it has been proven that many things are useful after the presence of bitcoin, especially being able to reduce unemployment.

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Quote from: WillyAp on December 20, 2022, 06:52:06 AM

As a currency its a little too expensive and there are other coins which are most cost efficient. LTC as the prime example.
I think most people fell in love with the price hike BTC experiences every year.

Judging from the title of the topic that asks about the relationship between Bitcoin and the economy, it means that there is no need to discuss LTC into this matter, because this is about the connection between Bitcoin and the economy which in general has a clear relationship with the economy because Bitcoin has a clear market and lots of enthusiasts.

A close example is people who are already successful and they know the crypto space and invest in it. Among so many currencies, surely they will choose Bitcoin to make their assets increase when an increase occurs, meaning that this is an effort to boost the economy of every individual who already believes in Bitcoin even though there are risks.

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Quote from: adzino on January 03, 2022, 05:07:43 PM

Most people use it as an asset, while others use it as a currency.

As a currency its a little too expensive and there are other coins which are most cost efficient. LTC as the prime example.
I think most people fell in love with the price hike BTC experiences every year.

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Quote from: RILWAN on January 02, 2022, 04:48:18 PM

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.

Bankruptcies will most likely affect not such a large volume - about half of the market, this is 1 trillion dollars, especially for partially insured, partially working with large restrictions on obligations to investors, which means that a classic bankruptcy will most likely not even begin for many companies. And everything will end there. there will remain the owners of digital kits that cost nothing, millions of gaming video cards will enter the market at a ridiculous price, and bankruptcies of video card manufacturers will begin

))

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Quote from: adzino on January 03, 2022, 05:07:43 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.

Different people use bitcoin for different purposes. Most people use it as an asset, while others use it as a currency. There are people out there that uses bitcoin to send money home as it is easier and cheaper for them to remit those money. Instant cross border transactions with very small fee with no extra hassles or paper work is a dream for all those foreign workers. I wouldn't say bitcoin is an asset like a gold. I don't think you can purchase (or anyone would want to accept) regular things with gold. And the reason most people adopt bitcoin is for the "financial benefits" that in return indirectly helps the economy.

Your last sentence is key, people are never going to adopt something just out of ideology alone, after all even if you can deceive them in order to do that eventually they are going to understand something is off and then will try their best to drop whatever you forced them to adopt, bitcoin in the other hand is being adopted basically for the financial benefits it can bring, and while this may seem like the wrong reason to adopt something like bitcoin, the truth is that as long as you have some bitcoin in your wallet then you have the ability to resist the current centralized system, even if that was not your intention at all when you got that bitcoin.

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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,

Yes this was the original idea behind bitcoin creation, to eliminate government control and grant users a certain level of Flexibility and freedom.

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

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

Bitcoin only became an asset because people have and are taking advantage and making profit of it's high volatility, maybe in the future when it is now more stable, the original idea of it as a digital currency will now be dominant.

However in line with the topic -"The link between bitcoin and the economy", I'd say the fact people are taking advantage of the volatility at the moment and making profit for themselves, it is a booster to the economy, because people have more money to spend, criminal activities will experience a drastic reduction as there will be more opportunities for many.

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Quote from: oHnK on January 03, 2022, 12:54:56 PM

We talk about BTC in the economy and the benefit of it, but We dont talk about the basic concept of economic which is inflation as the indicator of growth. So, in here BTC and the economy have opposite relationships. Because the media of today's economy is fiat. How can unstable BTC become a country's legal tender, this would be very difficult for economists to accept at this time.

I understand this point of view and people are always talking about like this is end of the day type of situation. First of all there are so many fiat currencies out there which has volatility as well. Look at the decade all joke of Zimbabwe dollars, if they turned into bitcoin, even with volatility, they would be better.

Secondly, the legal tender is not there to be alone, just like El Salvador did, you could have your own national currency for those who want stability, and you could put Bitcoin alongside it, just make it a thing of official money that is accepted, a legal situation for regulations, not that you need to remove the fiat you already have. And lastly, this is not for nations like the USA or the UK or France, Italy or whatever, this is for those poor third world nations to have an alternative, which would grow the size of bitcoin holdership, and make the nation economically better, even if slightly.

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Quote from: adzino on January 03, 2022, 05:07:43 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.

Different people use bitcoin for different purposes. Most people use it as an asset, while others use it as a currency. There are people out there that uses bitcoin to send money home as it is easier and cheaper for them to remit those money. Instant cross border transactions with very small fee with no extra hassles or paper work is a dream for all those foreign workers. I wouldn't say bitcoin is an asset like a gold. I don't think you can purchase (or anyone would want to accept) regular things with gold. And the reason most people adopt bitcoin is for the "financial benefits" that in return indirectly helps the economy.

It's true that everyone has a different purpose when using Bitcoin, and it's everyone's right to use Bitcoin for what. But most people are
interested because Bitcoin can make a lot of money. When compared to other assets, it seems that Bitcoin has a better performance.
We can see the development of Bitcoin increasing very drastically. Especially when in a pandemic situation like now, many people improve
their economy, because they managed to profit from Bitcoin. Therefore the government of El Salvador dared to adopt Bitcoin with a bold
decision to legalize Bitcoin as a legal tender. Governments of other countries should also immediately follow in the footsteps of El Salvador,
so that the country's economy can be helped. But unfortunately many countries are too afraid to legalize Bitcoin as a legal tender, even though
their fears may not necessarily come true.

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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.

Different people use bitcoin for different purposes. Most people use it as an asset, while others use it as a currency. There are people out there that uses bitcoin to send money home as it is easier and cheaper for them to remit those money. Instant cross border transactions with very small fee with no extra hassles or paper work is a dream for all those foreign workers. I wouldn't say bitcoin is an asset like a gold. I don't think you can purchase (or anyone would want to accept) regular things with gold. And the reason most people adopt bitcoin is for the "financial benefits" that in return indirectly helps the economy.

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Quote from: LUCKMCFLY on January 02, 2022, 08:11:16 PM

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.

Right from the first time when I started hearing about Bitcoin, there has been good news about Bitcoin and those who were able to make huge profit from it, and even those that were said to become millionaires by investing in Bitcoin.That never made some people to stop saying that Bitcoin and cryptocurrency in general is a scam.

I believe that there has been enough stories of people’s success through cryptocurrency that should have convinced a lot of people by now to know that cryptocurrency is not a scam, but there are still those that thinks otherwise. You can’t force them to believe what they don’t want to believe, everyone has the freedom to make their own choice, and it’s not a must that we all are going to be making use of cryptocurrency or investing in it. Whatever you feel is right for you then you just do it.All of us can’t be making use of cryptocurrency.

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Quote from: Leviathan.007 on January 03, 2022, 08:13:06 AM

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.

We talk about BTC in the economy and the benefit of it, but We dont talk about the basic concept of economic which is inflation as the indicator of growth. So, in here BTC and the economy have opposite relationships. Because the media of today's economy is fiat. How can unstable BTC become a country's legal tender, this would be very difficult for economists to accept at this time.

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Quote from: Japinat on January 03, 2022, 08:53:10 AM

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.

And so it becomes an asset because of that intervention.
We can buy it at ease but they will stop us when we want it out/withdrawal. Local and online merchants having doubts to use it because of the regulation. How much price they will have to pay after accepting Bitcoin as an option for payment or in short as a currency? Yes, customers will have the privilege to use it and be like a normal currency but what about those merchants who will need new supplies for their store? I doubt after them there will be big businesses that will do the same accepting Bitcoin as payment. It will all be in fiat or thru bank account.
I already exempted the volatility issues here.

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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.

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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.

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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.

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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?

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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.

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real trust in bitcoin ,making bitcoin very influential in the economy of individuals and governments ,the story of people who invest in bitcoin getting rich means their economy is getting better and Connect with the local government that used to be hard to pay taxes ,to become tax compliant for the government because of bitcoin ,I heard news about the taxation of a crypto exchange that really plays a role in helping the government in the economy too ,regardless of the perception between currency or digital assets ,bitcoin a very important role in the economy !

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Money goes into wealth storage.
The longer BTC climbs and has wealth stored over the years the more trust will Bitcoin get, same with other coins who have perdured. Notably LTC, Litecoin has better features in regards to transaction speed, count and is about 10 Years younger.

Due to btc's volatility its not suitable as a payment. Not even Satoshies are good for that. Also there LTC is better.

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Bitcoin can be an asset, it can be a currency, and it can also be like gold. It depends on us to see it in terms of the benefits taken. If it is an asset, it is a place to store value, which will increase in price from year to year, it will be very effective as an asset. If it is a currency, of course, other countries have used Bitcoin as a legal means of payment and can be used for any payment, such as in El Salvador. As for gold, that also doesn't matter as the scarcity nature of Bitcoin increases. The rarer the more expensive, that's how it is. There won't be too much fuss about Bitcoin's function in the eyes of all speculators, as long as it can improve financially.

Quote from: teosanru on December 26, 2021, 01:56:56 PM

Bitcoin is an asset like gold? Who said this? Bitcoin is a currency and in that way, you can refer to it as an asset but you can't really say that its an asset like gold

Because of the different points of view on Bitcoin we are used to finding. Is this your point of view? and that's the OP's point of view. All have the same functions and benefits as well as the same goal, namely as a financial solution.

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Quote from: teosanru on December 26, 2021, 01:56:56 PM

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

Bitcoin is an asset like gold? Who said this? Bitcoin is a currency and in that way, you can refer to it as an asset but you can't really say that its an asset like gold, in fact, I feel the asset mentality behind bitcoin is one of the prime reasons why bitcoin is not able to go mainstream as a currency is because of the price behavior it has, one simply doesn't want to spend it as a currency because they know it's value would definitely increase tomorrow. Talking about the economic benefits it has, I see only one prime economic benefit which is that it won't cause any inflation unlike the other fiat currencies and it's decentralized which means, the folks who use it control it.

Well I believe the major reason why Bitcoin has not gone mainstream is because of its decentralized nature and not to asset image, if the asset doesn't go mainstream how about gold which is an asset and not a currency but has gone mainstream because gold is a government-backed asset.

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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 an asset like gold? Who said this? Bitcoin is a currency and in that way, you can refer to it as an asset but you can't really say that its an asset like gold, in fact, I feel the asset mentality behind bitcoin is one of the prime reasons why bitcoin is not able to go mainstream as a currency is because of the price behavior it has, one simply doesn't want to spend it as a currency because they know it's value would definitely increase tomorrow. Talking about the economic benefits it has, I see only one prime economic benefit which is that it won't cause any inflation unlike the other fiat currencies and it's decentralized which means, the folks who use it control it.

fiulpro

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I do think that it is very important to put bitcoins and cryptocurrencies in the perspective order and draw a demarcation line between the centralized and the decentali systems since at the end it's integrated: for sure but it's not essentially a part of it making it very resistance to the future ups and downs that might happen in the economy, if the US government collapses the bitcoins would be affected for sure but it would not just be able to bounce back up soon but it would not be affected that drastically as well, profits made using cryptocurrencies can definately benefit the government, taxes from the crypto gambling sites online are for sure generating good revenues, but I think the link is not that strong.

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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)

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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.

I think Bitcoin is decentralized, but the people who stored bitcoin in the early days and are now called whales became the center of bitcoin. When leveraged transactions are involved, they sometimes take bitcoin up and down and play like a toy.

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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.

You are only looking at bitcoin as an investment which is why you think there is such a risk but bitcoin is also going to help poor people as well, in many instances bitcoin is cheaper than remittance services and bank transfers, this means that family members which moved to other countries with better job prospects can send their family money for way cheaper fees, while at the same time it will give poor people the ability to receive payments for their products and services from all over the world as well, so as you can see everyone can benefit from bitcoin, which will make it relevant for the foreseeable future.

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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.

When it comes to Bitcoin relationship to the economy, there is only one answer, which is to be richer than anyone else and Bitcoin has it all to offer. I don't really care much about the concept, but the reality is now this is what's happening. Regardless of the main concept and purpose of Bitcoin. You can only see it in terms of increasing wealth. I'm not going to be too hypocritical about this.

Is not it? no matter how idealistic the concept is, in the end, it only wants to foster portfolio value.

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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.

Somehow, I agree and disagree with you. It is true that usually the rich are the ones who are enjoying the benefits being mentioned, but there are also common people who happen to get themselves the opportunity to have and hold alt coins then bitcoin. I think that my point here is that, when people start to acknowledge bitcoin as beneficial, and thereby for there survival and of the economy, they work they way to get it. And so, bitcoin will most probably be kept alive as long as there are dreamers.

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Whether Bitcoin is an asset depends on who you ask. And while it's largely used as an asset, it also has potential as a currency (unlike gold nowadays). There's also quite a big difference, IMO, between gold and Bitcoin in terms of what's expected from them. Gold is more of a store of value. It means that you already have wealth which you don't want to lose, and so you put it in gold and expect it to remain the same or perhaps increase a little. Bitcoin is very volatile, so putting wealth into it and expecting it to remain the same is probably not what most people do. Instead, they invest money, expecting some high profits, to become wealthier rather than remain wealthy.

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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.

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There is a correlation obviously. It is mostly about the loose FED policy. The FED is too afraid to increase the interest rates to an appropriate level so there is too much cheap money. Cheap money is the bullets of a monkey with a machine gun. The monkey shoots everywhere. The money goes to stonkz, the money goes to commodities, it goes to real estate, to casinos and some of them inevitably goes to crypto.

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Bitcoin is not directly linked with the economy but it effect shows in the economy. Bitcoin is highly volatile and it convertion brings multiple fiat in the hands of hodlers and I think this increase investment and production. This creates good standard of living and increase liquidity in the system and a rise in GDP.

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When it comes to Fiat money we all know there is a direct link between the economy of a country and its strength of the currency. A strong economy will also result in a strong currency, the local people can use their money to buy goods and international investors have confidence in the currency. But when the economy is falling than so is the currency. The government is likely issuing debt and printing money in an effort to help the economy which will weaken the currency even more.
When it comes to bitcoins we could argue that bitcoins are kind of a global currency, but not all countries in the world have the same effect on the world economy. Industrial nations have a much stronger influence, if the 3 largest economies would go into recession than so would the world economy. This doesn't necessary mean that bitcoins would crash too like the local fiat money. I believe that bitcoins have some independence atleast from the 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.

Not only some people, even some governments are confused. Some organizations are still even making research about it. What I can say is that bitcoin has made wealth possible for some people and I believe it will have good impact on the economy if the government regulate it appropriately.

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

Bitcoin was created in a way it can not be controlled by any centralized body but many people are using custodial wallets and custodial exchanges. In this regard, people that owns the centralized wallet or exchange will have the private key of the addresses given to users, they have the full control and they can control and overide the control of their users.

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.

Bitcoin and gold are both assets but bitcoin has limited supply which is only 21 million, the reason it is more deflationary.

Quote from: Upgrade00 on December 26, 2021, 01:46:30 AM

In the general concept of an economy, Bitcoin is not significant now, and cannot affect that of a Nation besides being used by some individuals as a hedge. Maybe in a couple of years with now adoption, it would play a more significant role, for now however, it is simply a currency of the people without any intermediary.

I do not know how significant bitcoin can help in this, but this can be indirectly linked to GDP. For example, I have some bitcoin some years ago, now it made me wealthy, I channel some of the money for business, like having a centralized exchange that the government are even benefitting from taxing my organization. There are many other ways bitcoin would have impacted on GDP.

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

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

Most people adopt it for its speculative value and not economic benefits.

Bitcoin is a decentralized asset which is still at a very early stage in adoption,
Economy of any nation is; "the state of a country or region in terms of the production and consumption of goods and services and the supply of money." - Oxford dictionary. And it is determined by so many factors including government efficiency, fiscal policies, corruption, availability of resources (human and natural), nation's waelth etc.

In the general concept of an economy, Bitcoin is not significant now, and cannot affect that of a Nation besides being used by some individuals as a hedge. Maybe in a couple of years with now adoption, it would play a more significant role, for now however, it is simply a currency of the people without any intermediary.

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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,

That's all well and good but I think all of us who have been on the forum for a while know that. If you were posting on another forum other than Bitcoin you would be informing them, here you are just telling us again what we already know.

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

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

Yes, it is an asset, but there are people in the forum who defend that it is mainly a currency and that it is an asset is secondary, pooya87 for example is a fervent defender of it.

I for my part would say that although today most people who buy it do it as an asset, if you look at the number of transactions it is clear that it is used as a currency.

Tellek Garing

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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.

Topic: The link between Bitcoin and the economy (Read 863 times)