Bitcoin Forum

Bitcoin was initially created as a currency. The thing with currency is that it needs mass acceptance and that's the challenge with bitcoin. This is the reason behind bitcoin used as acommodity.

Bitcoin is often referred to as a currency. And the general name 'cryptocurrency' giving to all digital assets presents them as currencies although having a deeper meaning, hence cryptic currencies

A currency is an object generally accepted in a certain region as a means of payment. Asides the Euro which is used by different countries, each state usually has its own accepted currencies.

Where do currencies get their value?

Currencies are legal tenders stipulated by governments of each nations. And there are financial institutions, usually banks which decides the value a currency has. This could be bank notes, coins, mobile money or codes on a debit card, these can all be classified as fiat money.

There is also Commodity Money. This includes commodities like, gold, silver, diamonds, coal, salt or any commodity which has a value based in its qualities and applications.
Unlike fiat money, these has intrinsic value and are not supported or directly controlled by any financial institution which dictates it's price.

So, is bitcoin classified as fiat money or commodity money?

The above question is better asked as, is bitcoin a currency whose value is determined by what people take it to be or is it based on its intrinsic value and practical applications.
I would say it is a little of both.
Bitcoin is a decentralized protocol with no central control system or official institution which would regulate and determine it's price. Although the bitcoin core and miners pool have a certain level of influence and control on its value. But the community can equally and more effectively affect it's value through demand and supply.

Bitcoin is also a digital asset built on a technology (blockchain) it is borderless and transactions are cheap. And it's value which seems to be consolidating with time, makes it an investment option as well.

What are the limitations of bitcoin?

Bitcoin as a payment option faces a huge problems in government restrictions, adoption limitations and scalability.
With its tps being in the range of 3.3 to 7 transactions per second it can hardly compete with government controlled forms of transactions like VISA with an average of 47,000 tps.
But bitcoin was not created to compete but rather serve as an alternative to fiat currencies (and maybe commodity money also) and give users total control over their assets. Though with such a growing community there has been lots of suggestions on how to tackle the scale limitations. And many propositions this far, such as hardforks and  Segregated witness, popularly called segwit https://en.bitcoinwiki.org/wiki/Amp/Segregated_Witness
Bitcoin Cash which was launched last year increased a blocksize to 7MB. T here is still yet to be a consensus to approve Segwit.

Like other currencies, value of cryptocurrencies comes from their supporters. There so many people around the world who trust the idea of crytocurrencies and wish to use it as a payment tool.

Bitcoin is often referred to as a currency. And the general name 'cryptocurrency' giving to all digital assets presents them as currencies although having a deeper meaning, hence cryptic currencies

A currency is an object generally accepted in a certain region as a means of payment. Asides the Euro which is used by different countries, each state usually has its own accepted currencies.

Where do currencies get their value?

Currencies are legal tenders stipulated by governments of each nations. And there are financial institutions, usually banks which decides the value a currency has. This could be bank notes, coins, mobile money or codes on a debit card, these can all be classified as fiat money.

There is also Commodity Money. This includes commodities like, gold, silver, diamonds, coal, salt or any commodity which has a value based in its qualities and applications.
Unlike fiat money, these has intrinsic value and are not supported or directly controlled by any financial institution which dictates it's price.

So, is bitcoin classified as fiat money or commodity money?

The above question is better asked as, is bitcoin a currency whose value is determined by what people take it to be or is it based on its intrinsic value and practical applications.
I would say it is a little of both.
Bitcoin is a decentralized protocol with no central control system or official institution which would regulate and determine it's price. Although the bitcoin core and miners pool have a certain level of influence and control on its value. But the community can equally and more effectively affect it's value through demand and supply.

Bitcoin is also a digital asset built on a technology (blockchain) it is borderless and transactions are cheap. And it's value which seems to be consolidating with time, makes it an investment option as well.

What are the limitations of bitcoin?

Bitcoin as a payment option faces a huge problems in government restrictions, adoption limitations and scalability.
With its tps being in the range of 3.3 to 7 transactions per second it can hardly compete with government controlled forms of transactions like VISA with an average of 47,000 tps.
But bitcoin was not created to compete but rather serve as an alternative to fiat currencies (and maybe commodity money also) and give users total control over their assets. Though with such a growing community there has been lots of suggestions on how to tackle the scale limitations. And many propositions this far, such as hardforks and  Segregated witness, popularly called segwit https://en.bitcoinwiki.org/wiki/Amp/Segregated_Witness
Bitcoin Cash which was launched last year increased a blocksize to 7MB. There is still yet to be a consensus to approve Segwit.

BITCOIN was made to co exist with the commodity currency and fiat currency.

To the point that the virtual currency was more convenient to use compare to the two.

Cryptocurrency (Virtual) is a modern currency that can have both characteristics of commodity and fiat which can use for trading and investments. With more of the commodity currency with no exact price and depends of the people on supply and demand and act as a alternate currency.

if bitcoin is used as a payment instrument like fiat currency, I think it will have a good impact on the growth of bitcoin prices because more people will buy bitcoin to be used as an automatic payment tool that will make the price of bitcoin move up and skyrocket, but I also think that it will be difficult to realize this, since there are only a few countries that legalize the remaining bitcoin still cannot make decisions as if they don't know the presence of bitcoin

Bitcoin is made as a digital currency but unfortunitely it is difficult to apply because at this time it is in less acceptance in any companies. Althrough there is some companies accept but is not enough, that is one challenge of bitcoin. People considered bitcoin as an investment becuase it is high in terms of value.

Like other currencies, value of cryptocurrencies comes from their supporters. There so many people around the world who trust the idea of crytocurrencies and wish to use it as a payment tool.

I think aside from using it as digital currency, you can also use it as asset that will bring you a good income. As of now bitcoin already recognized as currency but not all the country. However, if we want to make it happen it will takes time to wait because there are many things that need to upgrade. But I think because of our modern era there is chance that bitcoin will become one of our legal currency.

in accordance with economics, if demand rises, price also rises, that is what becomes an opportunity to make a profit. for the near term, i think if BTC is recognized as an alternative means of exchange it is good enough

Bitcoin is a digital currency that only revolves in the internet world, unlike the case with a country's currency that is only used as payment in the real world.

Bitcoin is made as a digital currency but unfortunitely it is difficult to apply because at this time it is in less acceptance in any companies.

I think it became a commodity way too quickly but I don't know if that's a bad thing or not. I mean it is bad that it is no longer used like a currency and the companies that tries to make debit cards of bitcoin which you can use everywhere in the world is not really getting too much attention whereas the price changes are getting too many attention everywhere.

Which means either we would have stick with the currency aspect of bitcoin and we wouldn't have this many people or we changed to a commodity and suddenly we are getting more interest into bitcoin. Do you really want to use bitcoin as a currency or do you want bitcoin to get more attention that's the question you need to ask yourself. If you want bitcoin to get bigger than you should be happy about this changes.

if bitcoin is used as a payment instrument like fiat currency, I think it will have a good impact on the growth of bitcoin prices because more people will buy bitcoin to be used as an automatic payment tool that will make the price of bitcoin move up and skyrocket, but I also think that it will be difficult to realize this, since there are only a few countries that legalize the remaining bitcoin still cannot make decisions as if they don't know the presence of bitcoin

In my opinion, Bitcoin is hard to become a common currency. There are too many shortcomings, such as lack of stability, low supply, are being used to accomplish some bad intentions. So that really is not qualified to become a currency. I do not appreciate people always want to make bitcoin a currency. it absolutely can not afford!

Bitcoin is made as a digital currency but unfortunitely it is difficult to apply because at this time it is in less acceptance in any companies.

I think it is difficult for bitcoin to be a real currency, many governments of a country are afraid that bitcoin is used for aberrant transactions, such as buying and selling illegal weapons or drugs. Seeing the potential of bitcoin which is increasingly developing is not impossible that bitcoin will become a real currency someday.

The biggest requirement for anything to be a currency is for a population or society of people to accept that the medium is in fact valid for exchange, that it should be and will be used as a currency.

The challenge we're seeing with Bitcoin is low adoption from merchants to accept it as currency.
Currently the market is utilizing bitcoin as an asset class, an investment, a store of value rather than a medium of exchange.

I think that's fine. It's an asset class that is uncorrelated to any other investment in the world, therefore it's a good one to have in your portfolio.

Also, it volatility made it not a currency either.
A currency is that which is accepted and adopted generally but Bitcoin is not accepted or adopted generally uptil  now.
Bitcoin is a digital asset and not yet a currency.

even though the initial concept of bitcoin was called a currency, but now we see bitcoin more worthy of being called a commodity such as gold, silver, and others, which can be exchanged with fiat money,  USD, EURO and other currencies.

I agree. We can say that instead of it being currency, it became aj investment in which people used this as an exchange amd such. But then people using cryptocurrency must look forward in seeing that bitcoin will be a currency and not just some mere market uses in trading and such.

Bitcoin was created as an alternative payment system to the existing payment systems, but in this state it has not been massively used yet. The states are not in a hurry to legalize cryptocurrency, and without such legalization, the infrastructure under its circulation will not be created. Therefore, bitcoin is still used mainly as a means of accumulating value, which is interesting to people because it makes a good profit.

Yes bitcoin can be classified as currency as one of the virtues of why bitcoin was built in the first place, that is for payment for financial transactions. Actually, bitcoin can be used already in payment only if people would use it as payment. However, if you are a bitcoin holder, would you prefer to use bitcoin for payment knowing that its value is low? Of course not. So, at this time it is not used as intended because of the volatility issue that is why investors treat bitcoin as assets.

And this started in some developed countries. Those who have accepted and legalized the crypto currency, business there started integrating bitcoin in their transactions. Most of them are dealing in bitcoin and other crypto currencies as well. Like McDonalds and other few food chain outlets were storied to accept bitcoin but I doing have any conformity about it.

Bitcoin does have intrinsic value by virtue of the computing power required to mine it.
It is a digital asset and as such functions on the blockchain and has no physical properties.

Nothing has intrinsic value and that includes bitcoin as well, just to give an example people think that gold has intrinsic value but that is not true, what happens is that gold is valuable because there is a very limited quantity of it around the world, not only that the characteristics of gold make out of it the best candidate for a world currency for thousands of years and when you add the fact that it was very difficult to get then you had in your hands something that people knew was valuable.

The same happens with bitcoin, bitcoin is valuable because it is difficult to get, there is a very limited quantity of it and people recognize that its ability to be transferred without any third party between two people makes it an incredible currency.

This same topic 'BTC as a currency or an asset' will keep surfacing every year until the governments takes final decision on it. But to say the fact, BTC lacks some basic property of what a currency should have and also if BTC should price up to $1B, this means 1sats is gonna be like $1 which may not be practical for products less than $1. I think BTC is better off as an assets rather than a currency.

With the restrictions you give, I do not think it qualifies as an official currency. In my opinion, it really is a great fit for a money transfer tool. It can not afford to become a formal currency.

Yes I know, It has a chance to become it a real currency or maybe a legal currency. Your also right about it migjt be used to an illegal activities because crypto world is very broad to discuss or to study its abilities or limitation. But as of now, I know it is in the discussion on how we used it because Bitcoin has many lacks so we need to find a way full that lacks of bitcoin to recognized it.

I think aside from using it as digital currency, you can also use it as asset that will bring you a good income. As of now bitcoin already recognized as currency but not all the country. However, if we want to make it happen it will takes time to wait because there are many things that need to upgrade. But I think because of our modern era there is chance that bitcoin will become one of our legal currency.

Bitcoin is a heavily use online cryptocurrency. Although it is a virtual currency but still it is use more than that of real currency. Bitcoin has various benefits. Bitcoin is mostly use as a online money transaction tool. Bitcoin is good for online transactions because of its safe secure and fast transaction facility. Another thing is bitcoin is highly sustainable and because of this it is easily available and accept in many places. Because of this many people love to use it. It is a tax free currency. It use as currency exchanger and also use for many other thing.

Bitcoin as a currency will help the world to become more innovative. Those countries who have accepted bitcoin has developed their business tremendously. And now many countries looking forward to making cryptocurrency legalize. This thing gonna achieve a great achievement for the cryptocurrency.

The volatility of bitcoin is one of the factors why it shouldn't be considered as a real life currency. Its price is derived from people who wants to buy it. Much like anyone who would like to buy some popular business shares of some sort of company out there. It will always and always going to be down and when it happens, you know it means something, for you and your dear money.

Bitcoin is often referred to as a currency. And the general name 'cryptocurrency' giving to all digital assets presents them as currencies although having a deeper meaning, hence cryptic currencies

A currency is an object generally accepted in a certain region as a means of payment. Asides the Euro which is used by different countries, each state usually has its own accepted currencies.

Where do currencies get their value?

Currencies are legal tenders stipulated by governments of each nations. And there are financial institutions, usually banks which decides the value a currency has. This could be bank notes, coins, mobile money or codes on a debit card, these can all be classified as fiat money.

There is also Commodity Money. This includes commodities like, gold, silver, diamonds, coal, salt or any commodity which has a value based in its qualities and applications.
Unlike fiat money, these has intrinsic value and are not supported or directly controlled by any financial institution which dictates it's price.

So, is bitcoin classified as fiat money or commodity money?

The above question is better asked as, is bitcoin a currency whose value is determined by what people take it to be or is it based on its intrinsic value and practical applications.
I would say it is a little of both.
Bitcoin is a decentralized protocol with no central control system or official institution which would regulate and determine it's price. Although the bitcoin core and miners pool have a certain level of influence and control on its value. But the community can equally and more effectively affect it's value through demand and supply.

Bitcoin is also a digital asset built on a technology (blockchain) it is borderless and transactions are cheap. And it's value which seems to be consolidating with time, makes it an investment option as well.

What are the limitations of bitcoin?

Bitcoin as a payment option faces a huge problems in government restrictions, adoption limitations and scalability.
With its tps being in the range of 3.3 to 7 transactions per second it can hardly compete with government controlled forms of transactions like VISA with an average of 47,000 tps.
But bitcoin was not created to compete but rather serve as an alternative to fiat currencies (and maybe commodity money also) and give users total control over their assets. Though with such a growing community there has been lots of suggestions on how to tackle the scale limitations. And many propositions this far, such as hardforks and  Segregated witness, popularly called segwit https://en.bitcoinwiki.org/wiki/Amp/Segregated_Witness
Bitcoin Cash which was launched last year increased a blocksize to 7MB. There is still yet to be a consensus to approve Segwit.

It surely is a curreny, the whole world curreny rather. Because it was not owned by any countries, institution or organization. It was made as a curreny from the first place, it is just us people, government, nations, who's blocking it's way to its destination. We should recognize bitcoin as currency, not an asset or either commodity because it is what it is. And no comment or statement or how is it use as of today would change that fact.  

The point is not to get it to a high level of price to make money but there is a middle ground here between people who wants bitcoin to be a currency itself and people who wants bitcoin to rise in price so they can profit in fiat. Yes the reason bitcoin came out is not to put in fiat and take out more fiat, it is not intended to be an investment product that part is true but also the higher the price goes the more users we get, which means the closer we get to adoption globally.

So even though the reason bitcoin exists is not investment, if it means investors will come in and stay than I am fine with it, let the price go as high as possible because if that happens than people will flock to it and we will see increasing amount of stores that will start to accept bitcoin.

The point is not to get it to a high level of price to make money but there is a middle ground here between people who wants bitcoin to be a currency itself and people who wants bitcoin to rise in price so they can profit in fiat. Yes the reason bitcoin came out is not to put in fiat and take out more fiat, it is not intended to be an investment product that part is true but also the higher the price goes the more users we get, which means the closer we get to adoption globally.

So even though the reason bitcoin exists is not investment, if it means investors will come in and stay than I am fine with it, let the price go as high as possible because if that happens than people will flock to it and we will see increasing amount of stores that will start to accept bitcoin.

even though the initial concept of bitcoin was called a currency, but now we see bitcoin more worthy of being called a commodity such as gold, silver, and others, which can be exchanged with fiat money,  USD, EURO and other currencies.

We all are quite hopeful that one day bitcoin would become the super currency of world. This would be official currency to many countries. We could say the future is all about bitcoin. But yes, this is reality as well that when you have this currency as official one, you need to change the economical law and amend some changes. You must be sure what needs to change that will not affect your economics rather increase it.

Bitcoin was initially created as a currency. The thing with currency is that it needs mass acceptance and that's the challenge with bitcoin. This is the reason behind bitcoin used as acommodity.

It surely is a curreny, the whole world curreny rather. Because it was not owned by any countries, institution or organization. It was made as a curreny from the first place, it is just us people, government, nations, who's blocking it's way to its destination. We should recognize bitcoin as currency, not an asset or either commodity because it is what it is. And no comment or statement or how is it use as of today would change that fact.  

a shift in the original function of bitcoin because it is caused by the behavior of the owners and traders, because most owners seek the benefits of bitcoin by selling when prices go up,  and they use bitcoin unlike the function of the bitcoin currency not used for transactions and to buy goods,  so the change in the function of bitcoin is indeed influenced by market participants themselves.

I can envision something in the future, wherein fiat would be less and crypto would be more, instant payments and everything that can be seamlessly done without hassle, and the OP was able to bring out the topic in a detailed manner.

That is not actually a very bad vision as far as I am concerned, it is the crypto space and the rate at which it is growing, I would not be surprised it taking the world by storm, but at the same time, we should still understand that government will never want to give up control no matter what and in every way they will want to make sure that fiat stays relevant. Nonetheless, as this space grows further, and people tend to realize they can have their own freedom, the more they simply discard fiat, but I do not think we are even close at all to seeing that happening any time soon.

Bitcoin can be use as currency but can also use as  investment or an asset. I would like to add some challenges why bitcoin is not yet accepted in our society. The main reason is all government do not support cryptocurrency and I think it is the big challenge that we need to overcome. And, I hope in the near future government will accept so the society will recognize it as currency.

Bitcoin does have intrinsic value by virtue of the computing power required to mine it.
It is a digital asset and as such functions on the blockchain and has no physical properties.

Very hopeful and that is what we are all looking forward to as the main potential of bitcoin in the long run and basically, one of the main reasons why we are here. Without bitcoin being used as a currency, its value will not really come out pretty well, and for that reason we just keep seeing the market getting a lot more speculative over time.

Speculation is a normal thing for now, for the fact that the market is still very young, which I believe as time goes on, a lot of things will change in that aspect with mainstream adoption, and in that case, volatility reduces, and of course, we get to see more people seeing the need to use it than just hoard.

Bitcoin is often referred to as a currency. And the general name 'cryptocurrency' giving to all digital assets presents them as currencies although having a deeper meaning, hence cryptic currencies

A currency is an object generally accepted in a certain region as a means of payment. Asides the Euro which is used by different countries, each state usually has its own accepted currencies.

Where do currencies get their value?

Currencies are legal tenders stipulated by governments of each nations. And there are financial institutions, usually banks which decides the value a currency has. This could be bank notes, coins, mobile money or codes on a debit card, these can all be classified as fiat money.

There is also Commodity Money. This includes commodities like, gold, silver, diamonds, coal, salt or any commodity which has a value based in its qualities and applications.
Unlike fiat money, these has intrinsic value and are not supported or directly controlled by any financial institution which dictates it's price.

So, is bitcoin classified as fiat money or commodity money?

The above question is better asked as, is bitcoin a currency whose value is determined by what people take it to be or is it based on its intrinsic value and practical applications.
I would say it is a little of both.
Bitcoin is a decentralized protocol with no central control system or official institution which would regulate and determine it's price. Although the bitcoin core and miners pool have a certain level of influence and control on its value. But the community can equally and more effectively affect it's value through demand and supply.

Bitcoin is also a digital asset built on a technology (blockchain) it is borderless and transactions are cheap. And it's value which seems to be consolidating with time, makes it an investment option as well.

What are the limitations of bitcoin?

Bitcoin as a payment option faces a huge problems in government restrictions, adoption limitations and scalability.
With its tps being in the range of 3.3 to 7 transactions per second it can hardly compete with government controlled forms of transactions like VISA with an average of 47,000 tps.
But bitcoin was not created to compete but rather serve as an alternative to fiat currencies (and maybe commodity money also) and give users total control over their assets. Though with such a growing community there has been lots of suggestions on how to tackle the scale limitations. And many propositions this far, such as hardforks and  Segregated witness, popularly called segwit https://en.bitcoinwiki.org/wiki/Amp/Segregated_Witness
Bitcoin Cash which was launched last year increased a blocksize to 7MB. There is still yet to be a consensus to approve Segwit.

Bitcoin for me was not just a currency but also a form of business that can give me  savings in the future. In short, it can be a form of investment, and use as a form of payment online whether it is a kind of online shopping, monthly bills such as electricity, phone, water and tuition fee as well in the universities who accepted bitcoin.

Bitcoin can be use as currency but can also use as  investment or an asset. I would like to add some challenges why bitcoin is not yet accepted in our society. The main reason is all government do not support cryptocurrency and I think it is the big challenge that we need to overcome. And, I hope in the near future government will accept so the society will recognize it as currency.

Now, most of the guys that spent their money to buy Bitcoin, take it as the best long-term investment. I am sure that in 5-6 years at least BTC will be also popular as the currency.

Bitcoin can be use as currency but can also use as  investment or an asset. I would like to add some challenges why bitcoin is not yet accepted in our society. The main reason is all government do not support cryptocurrency and I think it is the big challenge that we need to overcome. And, I hope in the near future government will accept so the society will recognize it as currency.

Very hopeful and that is what we are all looking forward to as the main potential of bitcoin in the long run and basically, one of the main reasons why we are here. Without bitcoin being used as a currency, its value will not really come out pretty well, and for that reason we just keep seeing the market getting a lot more speculative over time.

Speculation is a normal thing for now, for the fact that the market is still very young, which I believe as time goes on, a lot of things will change in that aspect with mainstream adoption, and in that case, volatility reduces, and of course, we get to see more people seeing the need to use it than just hoard.