The descending value of fiat will be passed on generation by generation. Good thing that we have choices and wisdom to survive in the current financial system. Bitcoin and cryptocurrencies are the future of money it only needs to stabilised before it will dethrone the fiat system.
It is only one of the minor causes. The main reason why countries do not accept bitcoin as a common currency is because they respect and want to keep the interests of their own country. Such as America, Japan, China. All three countries have a high value for money compared to the rest, and that certainly creates power for their country. Besides, the inflation rate is still quite good, so why use a common currency with other poor countries? This is the big problem that bitcoin can't solve.
Topic: Why Bitcoin is not that good as currency? - page 3. (Read 2231 times)
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capitalization plays the role of bitcoin prices, this is even though bitcoin cannot be controlled, but people who hold large capital are able to control it. whereas from the government such things are avoided, because they cannot control fluctuations unless they have a large supply of bitcoin
capitalization plays the role of bitcoin prices, this is even though bitcoin cannot be controlled, but people who hold large capital are able to control it. whereas from the government such things are avoided, because they cannot control fluctuations unless they have a large supply of bitcoin
How could one be "capitalized" if it's decentralized in the first place? It doesn't really matter if you have a lot of Bitcoin in your pocket, it does not work like other assets. What will you do to your mass amount of Bitcoin if you're not gonna use anyway? You're gonna hold it till it doesn't have value anymore? One of the reasons why Bitcoin has such a high value is because it never stops on moving, but some factors such as frequency (in terms of utilization, exchange) determine how valuable it could be. A monopoly doesn't mean anything in a decentralized platform.
I slighty disagree, it s not just black and white. Large pockets can move the market to a point that every new investor gets burned and never touches Bitcoin again. Yet in the long term, as long as there is still interest for a decentralized money system, Bitcoin should fight back while the coins move from the sellers pocket to the hodler.
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capitalization plays the role of bitcoin prices, this is even though bitcoin cannot be controlled, but people who hold large capital are able to control it. whereas from the government such things are avoided, because they cannot control fluctuations unless they have a large supply of bitcoin
capitalization plays the role of bitcoin prices, this is even though bitcoin cannot be controlled, but people who hold large capital are able to control it. whereas from the government such things are avoided, because they cannot control fluctuations unless they have a large supply of bitcoin
How could one be "capitalized" if it's decentralized in the first place? It doesn't really matter if you have a lot of Bitcoin in your pocket, it does not work like other assets. What will you do to your mass amount of Bitcoin if you're not gonna use it anyway? Hold it till it doesn't have value anymore? One of the reasons why Bitcoin is valuable is because it keeps on operating, but some factors such as frequency (in terms of utilization, exchange) determine how valuable it could be. A monopoly doesn't mean anything in a decentralized platform.
I know the benefits of bitcoin are immense and it has a lot of advantages, but it is still not as good as the currency because it has not been accepted in countries, the government has not accepted Bitcoin in delivery yet. In addition, bitcoin and gold are storage assets because it does not have as much amount as flat money, if that happens, you cannot use dollars, euros or any fiat, and only gold and bitcoin. And gold and bitcoin prices continue to rise because they are scarce. You can spend a little on absolute necessities - food, rent. But you won't spend on luxuries like going to the movies, or some of your hobbies, you're hoarding your bitcoins because the price is rising. In that case the economy will collapse because most of us use the money we make to spend and stimulate the economy.
When an investor buys Bitcoin and thereby stores Bitcoin in his cryptocurrency wallet, the investor is in a shared boat with everyone who has Bitcoin. Volatility is primarily a hindrance, or vice versa, causing the price to change. Bitcoin capitalization plays an important role.
I know the benefits of bitcoin are immense and it has a lot of advantages, but it is still not as good as the currency because it has not been accepted in countries, the government has not accepted Bitcoin in delivery yet. In addition, bitcoin and gold are storage assets because it does not have as much amount as flat money, if that happens, you cannot use dollars, euros or any fiat, and only gold and bitcoin. And gold and bitcoin prices continue to rise because they are scarce. You can spend a little on absolute necessities - food, rent. But you won't spend on luxuries like going to the movies, or some of your hobbies, you're hoarding your bitcoins because the price is rising. In that case the economy will collapse because most of us use the money we make to spend and stimulate the economy.
When an investor buys Bitcoin and thereby stores Bitcoin in his cryptocurrency wallet, the investor is in a shared boat with everyone who has Bitcoin. Volatility is primarily a hindrance, or vice versa, causing the price to change. Bitcoin capitalization plays an important role.
I know the benefits of bitcoin are immense and it has a lot of advantages, but it is still not as good as the currency because it has not been accepted in countries, the government has not accepted Bitcoin in delivery yet. In addition, bitcoin and gold are storage assets because it does not have as much amount as flat money, if that happens, you cannot use dollars, euros or any fiat, and only gold and bitcoin. And gold and bitcoin prices continue to rise because they are scarce. You can spend a little on absolute necessities - food, rent. But you won't spend on luxuries like going to the movies, or some of your hobbies, you're hoarding your bitcoins because the price is rising. In that case the economy will collapse because most of us use the money we make to spend and stimulate the economy.
When an investor buys Bitcoin and thereby stores Bitcoin in his cryptocurrency wallet, the investor is in a shared boat with everyone who has Bitcoin. Volatility is primarily a hindrance, or vice versa, causing the price to change. Bitcoin capitalization plays an important role.
I know the benefits of bitcoin are immense and it has a lot of advantages, but it is still not as good as the currency because it has not been accepted in countries, the government has not accepted Bitcoin in delivery yet. In addition, bitcoin and gold are storage assets because it does not have as much amount as flat money, if that happens, you cannot use dollars, euros or any fiat, and only gold and bitcoin. And gold and bitcoin prices continue to rise because they are scarce. You can spend a little on absolute necessities - food, rent. But you won't spend on luxuries like going to the movies, or some of your hobbies, you're hoarding your bitcoins because the price is rising. In that case the economy will collapse because most of us use the money we make to spend and stimulate the economy.
To serve as a currency in the surface web and other matters, bitcoin depends on governments certainly. In those areas where government cannot control anything like the deep web, bitcoin is already serving as the medium of exchange. So we can conclude that the public wants to use bitcoin as currency but governments wont let us do that. Anyway, this is just a matter of time before bitcoin goes mainstream.
I know the benefits of bitcoin are immense and it has a lot of advantages, but it is still not as good as the currency because it has not been accepted in countries, the government has not accepted Bitcoin in delivery yet. In addition, bitcoin and gold are storage assets because it does not have as much amount as flat money, if that happens, you cannot use dollars, euros or any fiat, and only gold and bitcoin. And gold and bitcoin prices continue to rise because they are scarce. You can spend a little on absolute necessities - food, rent. But you won't spend on luxuries like going to the movies, or some of your hobbies, you're hoarding your bitcoins because the price is rising. In that case the economy will collapse because most of us use the money we make to spend and stimulate the economy.
Money needs both inflation and deflation.
Economies always have deflationary and inflationary assets. People often overlook this. Gold, real estate, moat, competitive advantages are some examples of deflationary assets. Inflationary currencies serve as a medium of exchange. They are used for transactions. Bitcoin was created in response to the 2008 economic crisis. It exists and thrives because of quantitative easing, a type of inflating monetary policy.
Bitcoin wasn't created just because of the recession way back 2008, It was created to be a mean of payment taking advantage of emerging technology we also had back then. Bitcoin wasn't suppose to solve recession in a single place and was created to be a currency which we have now as investment coin seen by ordinary people as digital gold. However there are country who talked about their monetary policy in regards with cryptocurrency, Malaysia, whose government wants to limit cash transactions to make a stronger financial integrity.Economies always have deflationary and inflationary assets. People often overlook this. Gold, real estate, moat, competitive advantages are some examples of deflationary assets. Inflationary currencies serve as a medium of exchange. They are used for transactions. Bitcoin was created in response to the 2008 economic crisis. It exists and thrives because of quantitative easing, a type of inflating monetary policy.
Crypto just deletes the inflation side of money. That's why it is so dogmatic and doesn't make much sense.
No, cryptocurrency only lessen the inflation side of money. You cannot delete inflation, what happened after cryptocurrency was introduced is that it lowered, it just lowered the inflation.
It’s difficult for Bitcoin to be the currency that all people would use at the same time because of its technical problem called scalability, while it is used by a small part of our entire planet, it can be used as currency, but if 50% of our planet starts to use it sharply, the bitcoin blockchain will simply hang and commissions will skyrocket like the Bitcoin exchange rate. 
Money needs both inflation and deflation.
Economies always have deflationary and inflationary assets. People often overlook this. Gold, real estate, moat, competitive advantages are some examples of deflationary assets. Inflationary currencies serve as a medium of exchange. They are used for transactions. Bitcoin was created in response to the 2008 economic crisis. It exists and thrives because of quantitative easing, a type of inflating monetary policy.
Bitcoin wasn't created just because of the recession way back 2008, It was created to be a mean of payment taking advantage of emerging technology we also had back then. Bitcoin wasn't suppose to solve recession in a single place and was created to be a currency which we have now as investment coin seen by ordinary people as digital gold. However there are country who talked about their monetary policy in regards with cryptocurrency, Malaysia, whose government wants to limit cash transactions to make a stronger financial integrity.Economies always have deflationary and inflationary assets. People often overlook this. Gold, real estate, moat, competitive advantages are some examples of deflationary assets. Inflationary currencies serve as a medium of exchange. They are used for transactions. Bitcoin was created in response to the 2008 economic crisis. It exists and thrives because of quantitative easing, a type of inflating monetary policy.
Crypto just deletes the inflation side of money. That's why it is so dogmatic and doesn't make much sense.
No, cryptocurrency only lessen the inflation side of money. You cannot delete inflation, what happened after cryptocurrency was introduced is that it lowered, it just lowered the inflation.
Money needs both inflation and deflation.
Economies always have deflationary and inflationary assets. People often overlook this. Gold, real estate, moat, competitive advantages are some examples of deflationary assets. Inflationary currencies serve as a medium of exchange. They are used for transactions. Bitcoin was created in response to the 2008 economic crisis. It exists and thrives because of quantitative easing, a type of inflating monetary policy.
Crypto just deletes the inflation side of money. That's why it is so dogmatic and doesn't make much sense.
I wrote some thoughts about deflation and inflation in the below post.
https://bitflate.org/post/2019/10/10/the-next-big-thing-in-crypto-using-inflation-to-create-stablecoin.html
Let me fix this problem with Bitflate, a crypto with 7% constant inflation.
Economies always have deflationary and inflationary assets. People often overlook this. Gold, real estate, moat, competitive advantages are some examples of deflationary assets. Inflationary currencies serve as a medium of exchange. They are used for transactions. Bitcoin was created in response to the 2008 economic crisis. It exists and thrives because of quantitative easing, a type of inflating monetary policy.
Crypto just deletes the inflation side of money. That's why it is so dogmatic and doesn't make much sense.
I wrote some thoughts about deflation and inflation in the below post.
https://bitflate.org/post/2019/10/10/the-next-big-thing-in-crypto-using-inflation-to-create-stablecoin.html
Let me fix this problem with Bitflate, a crypto with 7% constant inflation.
Bitcoin still not support by many country so far and make not good using as legal currency payment, when bitcoin have been legal and adopt by many country I think bitcoin become friendly currency payment digital from other currency. Bitcoin can increase money value different with other digital currency have the same value although pass ten years later and fiat currency have inflation.
why Bitcoin will not be good as a currency?
because I think bitcoin users will be holding it rather than spending it.
It's the reality.
Not really. That is not the only case over here. Lets be honest over here. We all know that many of the crypto currencies out there are no way near perfect to be used as a regular form of currency to make transactions in our day to day life. There are still some flaws out there that needs to be fixed. Like, would you really be waiting for 10 mins for a confirmation of your transaction just to buy a cup of coffee? because I think bitcoin users will be holding it rather than spending it.
It's the reality.
why Bitcoin will not be good as a currency?
because I think bitcoin users will be holding it rather than spending it.
It's the reality.
because I think bitcoin users will be holding it rather than spending it.
It's the reality.
First bitcoin is not that good as currency because it is volatile which means the value is not stable and it is an opportunity for every people to earn. I think it will takes years or maybe not ,to become a currency like fiat. Second bitcoin is decentralized which is no single authority controlled it that people want.Third,the transaction fee is high and not stable.Also it needs internet connection unlike the fiat money that you can transact anytime,anywhere without internet.
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Supply of goods( Aggregate Supply) and supply of money are separate things
Demand of money and demand of goods( Aggregate Demand) are two separate things
Yeah, it is true that supply of goods and supply of money are two separate things, but they are closely related, specially aggregate supply and supply of money along with aggregate demand. You see, as the aggregate demands starts to rise, the price of the goods also starts to rise at the same time (talking about short run before reaching an equilibrium). Thus with the increase of the price of the goods, the amount of "money" needed to buy those goods will also increase. Thus the government follows the monetary policy. The fed buys and sells those government securities to control the supply of the market until a proper equilibrium has been reached. Supply of goods( Aggregate Supply) and supply of money are separate things
Demand of money and demand of goods( Aggregate Demand) are two separate things
Above these to reasons, volatility is considered. For bitcoin or any other digital asset to serve the purpose of a currency, stability is required. At the moment, bitcoin is looked at as an investment by common people and they intend to improve their financial status with bitcoin. It is just a matter of time before bitcoin becomes a currency. Actually, there are places where bitcoin is used as a medium of exchange.
People have taken this opportunity as this is not controlled by the government or by someone, so this volatility made people have the opportunity to earn, they are using this to hype and to make fud so they can buy more and sell more, so the government is not ready for this digital currency to make it as an official currency, unless they can control it. But so far although it won't make as a currency, it is still considered as one form of investment.
For me, bitcoin will never really be a standard currency like any fiat currency. Because it's more like an investment coin. For example, stocks, It has a limited supply and also has pumps and dumps, same with bitcoin. Again "For me," Blockchain is like an upgraded stock market in which every coin have good volatility and has a fast pumping and dumping of it. For stocks, it takes years to get a 10% pump; however, in bitcoin, it only takes days or even an hour.
Totally agree!Now bitcoin is more like investing tool rather currency:
https://www.financebrokerage.com/investing-cryptocurrency-forex-trading/
For me, bitcoin will never really be a standard currency like any fiat currency. Because it's more like an investment coin. For example, stocks, It has a limited supply and also has pumps and dumps, same with bitcoin. Again "For me," Blockchain is like an upgraded stock market in which every coin have good volatility and has a fast pumping and dumping of it. For stocks, it takes years to get a 10% pump; however, in bitcoin, it only takes days or even an hour.
Totally agree!Now bitcoin is more like investing tool rather currency:
https://www.financebrokerage.com/investing-cryptocurrency-forex-trading/
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