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Sled
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October 07, 2017, 01:35:53 AM |
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It increase the value of bitcoin because as long as the people are keep coming in bitcoin and using it then it means that the demand is growing and in the future it will help bitcoin to grow its value because the demand is the main reason why the price of bitcoin is moving and if using bitcoin will continue then it will make the price higher based on the law of supply and demand.
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According to NIST and ECRYPT II, the cryptographic algorithms used in
Bitcoin are expected to be strong until at least 2030. (After that, it
will not be too difficult to transition to different algorithms.)
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iram1011
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October 07, 2017, 01:54:16 AM
Last edit: October 07, 2017, 03:34:34 AM by iram1011 |
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Bitcoin derives its value both from its use as a medium of exchange and as a store of value. Bitcoin price is highly dependent upon its utility. By using Bitcoin as a medium of exchange for buying things will only gonna increase the price because of higher utility. That is why Bitcoin community always stresses upon the widespread adoption of Bitcoin among vendors and merchants to increase its utility which in turn will increase its demand and so does the price.
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Clairvoyance
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Perceiving events in the future and beyond
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October 07, 2017, 01:59:47 AM |
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I'm new to the Bitcoin / Cryptocurrency world, and the economics are pretty interesting.. My question is more of a large-scale economics question.
Would using Bitcoins, to purchase goods (not on this forum) or services, increase its perceived value due to wider exposure or level-out/decrease its perceived value by establishing an accepted value of it?
I hope that was clear enough. Just looking for ideas and thoughts.
Definitely increase its value. As adoption increases, the network effect starts kicking in. One of the reasons for the explosion in price today is that more and more people know about Bitcoin. That is true. Currently, bitcoin's and digital currency's increasing price trend is the effect of more people using. Like any good and services if it does become so widespread and people what to get aboard on it as quick as they can then we can expect prices to skyrocket. More people using means higher value of circulating token not only limited to bitcoin but all digital currency. |
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hairballin (OP)
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October 07, 2017, 04:15:14 AM |
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I'm new to the Bitcoin / Cryptocurrency world, and the economics are pretty interesting.. My  ;)question is more of a large-scale economics question. Would using Bitcoins, to purchase goods (not on this forum) or services, increase its perceived value due to wider exposure or level-out/decrease its perceived value by establishing an accepted value of it? I hope that was clear enough. Just looking for ideas and thoughts. Hi hairballin! I'm just a bit confused with your introduction. You said you're new to the bitcoin and cryptocuurency world, yet you stated in your quote below your activity count that you're "an experienced technical writer, altcoin trader." Quite contradictory...lol! Anyways, as far as I know, the general rule in the market value of things is, the higher the demand, the higher will be the value..simply put. Just like a professional who offers his service, when he gets recommended or referred to others more often, then he could partially increase his fee due to the trust that is being built. Same thing with bitcoin, the more people use it-the higher the demand-the value rises. Quite similar to a popularity contest so to speak.. Thanks for the insight! And I am new. But I have technical writing experience and I just started trading altcoins. Diving in the deep end to learn as much as I can I suppose. |
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ekoice
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October 10, 2017, 05:55:06 PM |
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Definitely,using bitcoin more would give more exposure to it and it would attract the attention of many companies and retailers to start accepting bitcoin payments.So,more we use,the demand for bitcoins would increase and it would in turn increase its value.Even more people who don't even know about bitcoin would come to know actually what bitcoin is.By using bitcoins more,merchants would be pressured to accept bitcoin as a payment to face the competition.All these factors would directly or directly help bitcoin to increase in its value.
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kryptqnick
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October 10, 2017, 06:12:30 PM |
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I totally agree with the others! It will increase its value, because it will show to the world, that Bitcoin is real - and can be used as a normal currency, which many - unfortunately - don't think.
Perhaps it will increase as more people come get acquainted with it and consider it as an investment. Demand will make the price grow just like you say. And this is probably what will happen, because btc isn't really appropriate for everyday life due to varying but mostly expensive transactions. Yet if it was possible for btc to be actually used, the price would probably decrease, because it would adjust to real goods people can buy for it and effort they make to get the money. |
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Theb
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October 10, 2017, 06:12:39 PM |
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Neither. Simply using Bitcoin as a mode of payment won't affect its price. What affects its price is of course the demand and supply of it. The demand of Bitcoin comes from us when we determine what is the fair market value of Bitcoin, it is also affected by other factors which cause a stronger buyer side or a stronger seller side. Think about it this way if Fiat currency is being used daily in your country why does it not increase in price over time? Because the demand and supply still remains the same.
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hairballin (OP)
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October 11, 2017, 04:26:26 PM |
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Neither. Simply using Bitcoin as a mode of payment won't affect its price. What affects its price is of course the demand and supply of it. The demand of Bitcoin comes from us when we determine what is the fair market value of Bitcoin, it is also affected by other factors which cause a stronger buyer side or a stronger seller side. Think about it this way if Fiat currency is being used daily in your country why does it not increase in price over time? Because the demand and supply still remains the same.
That makes sense. I'd ask though when it comes to Fiat currencies, they're subject to inflation due to either an increase in supply (printing more money -smh Zimbabwe) or legislation increasing minimum wage, forced price floors/ceilings on surplus/shortage commodities. But as Bitcoin isn't Fiat, it isn't subject to those factors (regulation, legislation, increased volume). So can it really be analogous in that way? It seems like it would obey different economic principles. |
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Creepings
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October 11, 2017, 04:37:53 PM |
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I totally agree with the others! It will increase its value, because it will show to the world, that Bitcoin is real - and can be used as a normal currency, which many - unfortunately - don't think.
Perhaps it will increase as more people come get acquainted with it and consider it as an investment. Demand will make the price grow just like you say. And this is probably what will happen, because btc isn't really appropriate for everyday life due to varying but mostly expensive transactions. Yet if it was possible for btc to be actually used, the price would probably decrease, because it would adjust to real goods people can buy for it and effort they make to get the money. That is right, even there are a lot of people who holds or get "acquainted" to this currency, there is no certain that the price will pump or increase in value. What if many people will be holding to this digital currency but just let it stay in their wallets and not join the circulation? It will not be staying at the good price. |
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xbl1008
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October 11, 2017, 04:46:48 PM |
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yes this can be one factor i think you are asking for the reason for the increase and decrease of its value, i think when the value increase good news are being on the way of the grow of bitcoin and when it decrease some fear, uncertainty and doubt is on the process.
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carlfebz2
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October 11, 2017, 05:17:53 PM |
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I totally agree with the others! It will increase its value, because it will show to the world, that Bitcoin is real - and can be used as a normal currency, which many - unfortunately - don't think.
Perhaps it will increase as more people come get acquainted with it and consider it as an investment. Demand will make the price grow just like you say. And this is probably what will happen, because btc isn't really appropriate for everyday life due to varying but mostly expensive transactions. Yet if it was possible for btc to be actually used, the price would probably decrease, because it would adjust to real goods people can buy for it and effort they make to get the money. That is right, even there are a lot of people who holds or get "acquainted" to this currency, there is no certain that the price will pump or increase in value. What if many people will be holding to this digital currency but just let it stay in their wallets and not join the circulation? It will not be staying at the good price. Which means anything should really be in circulation for further development or progress into bitcoin. Usually people think off that bitcoins price would tend to go up if people would tend to buy more bitcoin but not thinking off into the possibility for people on totally holding it up for the sake of future profits which means it would really lessen the circulation.I cant say it would majorly affect but would be one of the factor. |
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rb26
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October 11, 2017, 05:20:27 PM |
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I'm new to the Bitcoin / Cryptocurrency world, and the economics are pretty interesting.. My question is more of a large-scale economics question.
Would using Bitcoins, to purchase goods (not on this forum) or services, increase its perceived value due to wider exposure or level-out/decrease its perceived value by establishing an accepted value of it?
I hope that was clear enough. Just looking for ideas and thoughts.
If the usage itself is the basis, using Bitcoin in a peer-to-peer transaction won't affect the price since you did not sold nor buy Bitcoins. However, if we are to talk about the impact for the awareness, it could contribute to Bitcoin's demand. If a merchant declares that he is accepting Bitcoin as payment, some people might get aware what Bitcoin is. From the contribution for the increase in demand, the price will follow. |
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majeed
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October 11, 2017, 06:26:04 PM |
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In my opinion, using bitcoin will decrease its value for a short time but help to improve its platform and many other things. Spenging bitcoin also will make bitcoin more popular and people will pay attention to bitcoin. Moreover, developers can find bugs and fix bitcoin right. However, at the moment, people tend to hold bitcoin instead of spending it and this action has made the price of bitcoin extremely high. It is not good at all. When the price of bitcoin keeps increasing like this, people will no longer consider bitcoin as a currency. They will see bitcoin as a digital gold, a form of investment and invest their money in bitcoin.
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MMA
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October 11, 2017, 11:01:47 PM |
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Neither. Simply using Bitcoin as a mode of payment won't affect its price. What affects its price is of course the demand and supply of it. The demand of Bitcoin comes from us when we determine what is the fair market value of Bitcoin, it is also affected by other factors which cause a stronger buyer side or a stronger seller side. Think about it this way if Fiat currency is being used daily in your country why does it not increase in price over time? Because the demand and supply still remains the same.
Definitely using bitcoin cause increase in the value of bitcoin, because when more and more bitcoin circulate in the market more and more people will touch with bitcoin and thus the demand for bitcoin will increase and so is the value. Decrease here is out of sense because I think the value of anything will increase only when I use it and if I ignore something the value for that thing will decrease. |
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Saifher
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October 11, 2017, 11:02:56 PM |
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More usage = price increase. If the day comes when no one is using bitcoin the it will be worthless. Currencies need to be used to be worth anything.
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Gameroid
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October 11, 2017, 11:03:04 PM |
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I totally agree with the others! It will increase its value, because it will show to the world, that Bitcoin is real - and can be used as a normal currency, which many - unfortunately - don't think.
Perhaps it will increase as more people come get acquainted with it and consider it as an investment. Demand will make the price grow just like you say. And this is probably what will happen, because btc isn't really appropriate for everyday life due to varying but mostly expensive transactions. Yet if it was possible for btc to be actually used, the price would probably decrease, because it would adjust to real goods people can buy for it and effort they make to get the money. The more people use bitcoin the high will be the value. When all the people in the world will start using bitcoin then no doubt other currencies of the world will disappear or of less value than bitcoin. Now you can better understand that the use of bitcoin will increase its value or decrease? Decrease is only in that situation when bitcoin will out of the market and people leave using bitcoin. |
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dead_m92
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October 11, 2017, 11:05:51 PM |
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It is obvious  if there is more people using cryptocurrencies, then the price would be higher, because its market capitalization is growing, doesnt matter if someone invest $10 or $1m, the price will increase because it means that we have more cap. so yes, the price will be higher everytime that someone buys, and it applies to bitcoins and altcoins |
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andylowe
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October 13, 2017, 09:15:17 AM |
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I'm new to the Bitcoin / Cryptocurrency world, and the economics are pretty interesting.. My question is more of a large-scale economics question.
Would using Bitcoins, to purchase goods (not on this forum) or services, increase its perceived value due to wider exposure or level-out/decrease its perceived value by establishing an accepted value of it?
I hope that was clear enough. Just looking for ideas and thoughts.
Using bitcoin will increase its value. The Law of supply and demand will always be followed. If more people chase and use bitcoin, it means the demand is high. If the demand is high, the price will rise too. Now if tooamu people will dump their bitcoins, that's the time bitcoin's price will go low. So,let's encourage everyone to use bitcoin! |
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rasyiqul1505
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October 29, 2017, 02:25:28 PM |
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it's possible the bitcoin will decrease if we spend continuously the coins we have.
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ged00u
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October 29, 2017, 03:33:33 PM |
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Using bitcoin will not make the price of bitcoin change significantly but I do believe that in a long process, the price of bitcoin will slowly increase. Using bitcoin will make bitcoin more popular and force the government as well as banks to accept bitcoin. Holding bitcoin is also a great way to make money, but it will make bitcoin hard to be accepted and use widely by the people. Therefore, its price will not stable but fluctuate strongly
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