The free Market and Bitcoin

[Harlot]

Its hard to say that we are in a free market even in Bitcoin because everything can influence anything. At first I thought that Bitcoin cannot be influenced by any government or whatsoever but when the news came out about China supporting the shut down of all Chinese Bitcoin Miners the price of Bitcoin plumetted from 1200$ back to 700$ per Bitcoin. So even Bitcoin can be influenced outside of the supply and demand system.  It is safe to say that Bitcoin is not always controlled by Whales of the market but also the econony as a whole.

[PokerFace3]

When the definition of free market concerns about lesser regulations, I believe bitcoin will help free markets to boom because basically bitcoin will support peer to peer business model so that it can avoid many government's regulations.

When people will prefer transacting with their neighbors/friends, I believe free trading will come into more effect like we can do business without any hesitations in free market way.

[jaysabi]

I never really thought of it that way because when you grow up in a society where prices are always going up because more money is being printed you tend to automatically not think outside of the box.

Technically it's still a free market although because you're using fiat it's a grey area where you feel free, but your currency is actually causing you to lose out.

The currency is your choice though.  The government only declares what the legal tender is in the system (the fiat currency) but this is not oppressive.  In Northern Ireland, I'm told that the old pound coin is technically out of circulation, but shops routinely accept it - anyone could use anything as a currency.  In fact, if I said "I'll give you some magic beans for that cow" an you accepted the deal, we could equally view magic beans as a currency.

My point is that what the government declares about currency only restricts the free market if trading with anything except the legal tender was illegal.  Even if they restricted the use of Bitcoin or any other specific currency, even that would not affect the free market any more than restricting the sale of currently illegal products does.

In the US, people were prosecuted for hoarding gold during the Great Depression. The public was ordered to surrender excess gold, and seizures and prosecution was authorized for those who didn't comply. In the 1970s, Nixon abandoned the last vestiges of the gold standard by signing an order that disallowed the exchange of fiat for gold. While that may not affect private deals, the legal authority to require creditors to accept certain currency in payment of debts is what determines how the government establishes what the official currency is.

[topesis]

The is no ideal free market in the world, absolute free market only exit in theory, even that has come into play in Bitcoin with some people looking to be the President and secretary of Bitcoin.

[magneto]

Hi,

Today I was preparing something for my bitcoin workshop when I came to the following observation.

If we are in a free market society with the principals of capitalism how can it be that the money we use (fiat) isn't part of that same system. And isn't it so that to have a truly free market system that money also have to be denationalized and uses the same principals like the free market itself ?

Can there be a free market with fiat currency ?

And if so isn't bitcoin and it's competition not the ultimate form of payment in this free market.

I'm no expert in economics, I read al little bit of Hayek's works this afternoon, but it would be great of anyone can help me with this question.

Thx

Technically, no.

A perfect free market should be a market where the prices of goods are not intervened by anyone.

The government is indirectly and directly manipulating the price of goods and services, by putting on regulations on certain industries as well as rigging the fiat currencies of their country. Basically if you look at China, they devalue their currency so that they can export more goods. When they devalue they stay competitive in a world where the biggest countries have the cheapest labour costs.

So a free market technically can only be achieved by a decentralised currency, such as bitcoin.

[Xester]

The is no ideal free market in the world, absolute free market only exit in theory, even that has come into play in Bitcoin with some people looking to be the President and secretary of Bitcoin.

Free market is actually an idea that dwells only in mind. But even though we can not have that ideal market but at least we are making some models based on that idea. Hopefully if we cannot attain such ideology at least we can make our market better by using the patter of free market. Soon if the world is accepting bitcoin then we can integrate bitcoin into that idea of a free market using bitcoin.

[Viscore]

First, we are not in a free market. Everything's price is being regulated by someone or some government or some central bank. (mostly central banks)

So, yes, there can't be a free market with FIAT because FIAT is being regulated and we buy bitcoins with FIAT, getting what i'm sayin?

It is not free because we are not fully free, everything is set to comply with the government standard rules and regulations, this is just a payment system and not a real money. I don't thing it can ever compete with fiat because we just want to see the increasing adoption and see the price growing, in the end it's still base on fiat. Without exchanges it would not be possible for us to withdraw our funds and enjoy what we have.

[bajing]

Were all in free market, that's mean anyone can transact with people of any country in the world of internet and bitcoin is as a means of payment that can be accepted by some people but im sure one days bitcoin can grab at least 10% of the population in the world.