How does bitcoin become a currency?

[Durugista]

I believe that we owe the credit to the early adopters who have decided to use their Bitcoins as a payment instrument instead of just hodling. Bitcoin is a payment system at its core and we should use it in that way in the first place. Everything else is a secondary, the price will fluctuating as per the law of demand and supply but utility value will remain constant in the market. From this point, it is our responsibility to use it as a payment system instead of just speculating.

I think bitcoin become a currency because of the people behind its success, and it is the most used currency in this forum and even in the market.

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[liuziwenfree]

The price of BTC is still not stable enough. The main role of currency is the value scale. This is the main reason why BTC is difficult to become a currency!
Moreover, there are too few BTC merchants, and BTC has a small distribution area!

[Bakemat]

In the beginning, BTC could be used to exchange of low value of virtual items, such as buying web sites or game points, virtual items, etc., afterwards, some people in order to get these virtual items, items may be in online auction own reality for BTC, others want to buy the real goods, but no BTC at hand, and then use real money to exchange BTC, as a result, BTC begin to flow, and have a "value".


In other words, bitcoin is inherently valuable as a means of payment; If it loses its function as a means of payment, it becomes worthless.

The value of money: it exists because of payment.

Bitcoin become a currency because there are different people who are using it for their online transactions like amazon is allowing cryptocurrency to be used in order to buy products in their store and that is when cryptocurrency started to become a normal currency like fiat.

[BurakTurk]

bitcoin can be a currency because bitcoin has a very high demand that makes bitcoin has a price and bitcoin can be money because bitcoin can be used to do payment when you buy something.

[fishball]

In the beginning, BTC could be used to exchange of low value of virtual items, such as buying web sites or game points, virtual items, etc., afterwards, some people in order to get these virtual items, items may be in online auction own reality for BTC, others want to buy the real goods, but no BTC at hand, and then use real money to exchange BTC, as a result, BTC begin to flow, and have a "value".


In other words, bitcoin is inherently valuable as a means of payment; If it loses its function as a means of payment, it becomes worthless.

The value of money: it exists because of payment.

Way back thousands of years ago, like Spanish era, barter trade is a common thing everytime there is new galleon or trading ship. And bitcoin was originally created like what you have stated. But now, bitcoin becomes popular when it is being used as currency as payment in cryptoworld.

[denisaardelean]

In the beginning, BTC could be used to exchange of low value of virtual items, such as buying web sites or game points, virtual items, etc., afterwards, some people in order to get these virtual items, items may be in online auction own reality for BTC, others want to buy the real goods, but no BTC at hand, and then use real money to exchange BTC, as a result, BTC begin to flow, and have a "value".


In other words, bitcoin is inherently valuable as a means of payment; If it loses its function as a means of payment, it becomes worthless.

The value of money: it exists because of payment.

You can see that with the great utility and utility of bitcoin, bitcoin is being recognized by many countries as a currency and for legal circulation. There are also countries that are indirectly recognizing the laws of electronic money and bitcoin, suggesting that a society is progressing and developing.

[LuciferEveningStar]

In the beginning, BTC could be used to exchange of low value of virtual items, such as buying web sites or game points, virtual items, etc., afterwards, some people in order to get these virtual items, items may be in online auction own reality for BTC, others want to buy the real goods, but no BTC at hand, and then use real money to exchange BTC, as a result, BTC begin to flow, and have a "value".


In other words, bitcoin is inherently valuable as a means of payment; If it loses its function as a means of payment, it becomes worthless.

The value of money: it exists because of payment.

You can see that with the great utility and utility of bitcoin, bitcoin is being recognized by many countries as a currency and for legal circulation. There are also countries that are indirectly recognizing the laws of electronic money and bitcoin, suggesting that a society is progressing and developing.

yes you are right, cryptocurrency has been recognized because most of the people are interested on investing in it and the price grow even more so large companies like amazon became interested on cryptocurrency and started to accept bitcoins on their own online store which leads bitcoin to become a normal digital currency.

[sangungaji]

In the beginning, BTC could be used to exchange of low value of virtual items, such as buying web sites or game points, virtual items, etc., afterwards, some people in order to get these virtual items, items may be in online auction own reality for BTC, others want to buy the real goods, but no BTC at hand, and then use real money to exchange BTC, as a result, BTC begin to flow, and have a "value".


In other words, bitcoin is inherently valuable as a means of payment; If it loses its function as a means of payment, it becomes worthless.

The value of money: it exists because of payment.

I think bitcoin not only has value because bitcoin can also be used as a payment method. Bitcoin will be the currency if bitcoin is more stable.

[AK47-]

With the inclusion of lightening network, the way for Bitcoin becoming a currency have become more easy. With more lightening nodes, we will see a significant drop in fees and a decrease in tx time. This will help in smooth tx with low fees and hence, merchants can easily accept Bitcoin as a means of payment. Moreover, with a such low fees, Bitcoin saves a lot in remittance fees and is a fastest way for country to country transactions. Many people argue that Bitcoin doesn't have any intrinsic value and is a bubble, but so does fiat. Bitcoin can gain utility as a currency and will be adopted by many in future.

[Dmitry.Vastov]

Stability is very important for a currency to have a strong economy.
Bitcoin however is very volatile. For it to become a currency, it will have to gain some stability in the coming time. Also, as the coin is banned in some countries, the coin has to gain complete acceptance in the financial market to head towards being a mainstream currency.

[jaysabi]

Three basic features of money:

Value scale: the price of bitcoin fluctuates greatly and is not appropriate

Payment: too few businesses accept bitcoin

Store value means: the broad masses do not have enough recognition

Therefore, at this stage, bitcoin is not suitable for use as money.

Recognition is not what store of value means. It has to do with stability of price and being able to have the confidence that it will be the same or very roughly the same years from now as it was when you bought it. Without the stable store of value, it's useless as a currency because it allows for no economic confidence in savings and no ability to plan long term because you don't know what the value of your wealth is going to be. Constantly appreciating value is as much of an economic problem as a constantly depreciating value because it discourages economic activity (spending) which results in lower overall economic activity and a poorer overall economy.

[crypteris]

And what about common money? They also exist and used as a method of payment, and nothing more. Maybe I just don't get the point, can you please explain more precisely what you're trying find out?

[jojowar]

Bitcoin actually developed as a currency, a digital currency. The difference is the other currencies has its physical form like fiat but there are both made as a mode of payment.

[supercanada1]

Bitcoin actually developed as a currency, a digital currency. The difference is the other currencies has its physical form like fiat but there are both made as a mode of payment.

Well to some extent both of them are same but if we look a the benefit than bitcoin has more benefits  than fiat, as we can invest our money in bitcoin t make it more than double and we can also use it as payment resource, buy some bitcoin right now so later on you will get it as double but having fiat saved for years to years will give you nothing as profit, so buy some bitcoin instead of saving your fiat at home or bank, so bitcoin is the currency now almost everywhere in the world bitcoin is really acceptable.

[abruchifid]

bitcoin serves as a store of value,it derives its value from the what the community of user rates it to be,by way of trade,unlike fiats whose value are set by government without anything backing it.

[Maame Esi Sergio]

Bitcoin has gone beyond what we call currency. As at now, it can only be used as a virtual asset for investment. It is too volatile to be called a currency just like the fiat. Adopting bitcoin as a means of exchange will make you run a lost when ever the price goes down

[Dancobit]

Gold can't be used as a currency but it still holds value. I don't think the two are mutually exclusive. Bitcoin is the first ever digitally scarce entity. I think its easy to imagine a new generation used to technology placing value on this. As for it being a currency well once the volatility stop why not

If I have my own method to teach bitcoin to beginners, namely: by presenting it using PowerPoint, the explanation should be informative and efficient and accompanied by practice. After the presentation is over I will give the bitcoin materials to the beginners so they will relearn.

[crazymelons12]

Due to bitcoins usefulness it has been made a currency. Without its utility bitcoin will be useless. No matter what history it holds in the past, it would still be the same useless coin had it happened that people didn't value or use it.

[ordeath]

In the beginning, BTC could be used to exchange of low value of virtual items, such as buying web sites or game points, virtual items, etc., afterwards, some people in order to get these virtual items, items may be in online auction own reality for BTC, others want to buy the real goods, but no BTC at hand, and then use real money to exchange BTC, as a result, BTC begin to flow, and have a "value".


In other words, bitcoin is inherently valuable as a means of payment; If it loses its function as a means of payment, it becomes worthless.

The value of money: it exists because of payment.

I am fan not an expert in this area, but for me it's logic that bitcoin needs to be regulated for being more stable, then it needs to became a worthy payment method, and only after those steps it can became a currency like we had a dollar right now.

[19spawnfeed]

In the beginning, BTC could be used to exchange of low value of virtual items, such as buying web sites or game points, virtual items, etc., afterwards, some people in order to get these virtual items, items may be in online auction own reality for BTC, others want to buy the real goods, but no BTC at hand, and then use real money to exchange BTC, as a result, BTC begin to flow, and have a "value".


In other words, bitcoin is inherently valuable as a means of payment; If it loses its function as a means of payment, it becomes worthless.

The value of money: it exists because of payment.

I am fan not an expert in this area, but for me it's logic that bitcoin needs to be regulated for being more stable, then it needs to became a worthy payment method, and only after those steps it can became a currency like we had a dollar right now.

For the most part, they are exchanged for dollars or other currencies at exchanges like Mt. Gox in Japan. PrivCo estimates that 80 percent of bitcoins are turned into U.S. dollars. And 20 percent are held in inventory by processors and recirculated as bitcoins. The processors charge a fee like brokers to buy and sell bitcoins on the speculative marketplace, which fluctuates wildly at times.