Is Bitcoin Worth To Be Currency?

[Romanlevi1980]

of course, bitcoin is a currency now. It is used for payment nowadays.

[nikki4]

For my own experience in using Bitcoin as a crypto currency, I can say that Bitcoin is worth to be called as a currency. I have a trust on the potential and great capabilities of the Bitcoin that works as a currency in this digital era we are living into. More opportunities are given us by the Bitcoin and prove that they are worth to support and trust as a crypto currency for payment method.

[Arne9131]

David Yermack argument is not fair and shows his bias towards fiat money. There is hardly anything that hasn’t been used as money, rock salt in Ethiopia, brass rings in West Africa, cowrie shells in Uganda; anything can be used as money. Bitcoin can be used as money provided a community agrees on its perceived value. Today, the bitcoin value is determined by market speculation, hence there is volatility. Bitcoin is similar to gold, its a commodity. Bitcoin's real price would gravitate towards the cost of bitcoin production. For example; average cost to produce a bitcoin is 5800$ for miners, hence price would be around 6000$ in absence of speculation.

As a thought experiment consider, there was a community who lived in isolation on the internet. They never heard about dollars. The services and goods they offer would be denominated in bitcoin. Due to the limited supply model of Bitcoin, the community would have a deflationary economic system. When we bring dollar in the picture, we perceive bitcoin store of value in dollars, rather than in bitcoins. Thereby arguing about volatility. Gold has existed and traded in society for so many years, if Bitcoin is artificial gold, then it only existed for 10years. It is unwise to rebuke such an infant system, with current monetary models.

[KimmyF]

For me, I am agree to this that the Bitcoin is worth to be a currency since it really have so many advantages and good features as well as opportunities for the people that Bitcoin is keep on giving us. As its features being a decentralized crypto currency, being anonymous, secure and convenient in being a currency for payment method, I will not against being Bitcoin to be called as a currency.

[arthotdog]

thanks so much for you sharing. For me, Bitcoin will always be a currency because it's really useful and it can give me control over my money

Yeah thats the best thing we can have about cryptocurrency and because of bitcoin we have full control on our money and this cant be offered by banks

So far i dont see any profiteering online that can be compared on what crypto can provide to us,thats why for sure in five to ten years we will be mainstream and cryptocurrency will be on top with bitcoin dominance

[kr105]

Of course the bitcoin is now the currency and in the future it will the currency of the world. Bitcoin is worth it. As the number of people who believe and use Bitcoin increases, if these people already use bitcoin for shopping, bitcoin is already  currency.

[Max_fee]

why not ? bitcoin is becoming more and more popular and it is used by almost everyone worldwide.

[bjmpoker001]

As you can see now bitcoin is very worth in the market, the most expensive coin. Bitcoin not only worth to become a currency, but become an asset is worth too. As a holders, we can agree that bitcoin is a long term hold coin, it is shown by the price history.

[koukoba]

I believe in 5 or 10 more years,bitcoin will be number two currency in world, because now many are using bitcoin as an investment and using it like money. Well I just hope for the best for bitcoin.

[rajkr]

There are some issue due to which btc is not getting popular as currency.
1. Fluctuations in its value is too much .
2. Accessibility to all person is not possible due to its technical nature.

[Vineeta2october]

As of now Bitcoin is moving upward and the faith in it needs to be restored first. After a big crash most of the population have had lost faith in BTC and resulting countries had banned it. We need to give more time to judge.

[Bara420]

Nowadays btc is very popular in the world and its already replacing the currency in some places. I think in near future it will worth to be currency.

[TradeParty]

I think bitcoin is worth to be a flat currency as huge people now using it for trading and others purposes too.

[InboundMercury]

In many shops and markets even trading is on with this digital currency. so one day it will use in a bulk amount as a currency.

[MaxApple147]

Bitcoin is already a currency. it is using allover the world for some purposes but it will be used in every sectors of transaction one day. It will be expanding its kingdom beside normal currencies.

[Leadership58]

Btc is the highest market capital holder of all crypto currency. It has a very high tech maintenance facility with lower risk.  I am sure btc will definitely replace the currency in future.

[AfterRealLife87]

Btc is so popular crypto currency.ATM booth are installed in some places. Many company replaces currency into Btc.

[Heartland76]

With huge amount of market capital it will certainly worth to be currency.

[people12345]

Discuss about bitcoin and cryptocurrency. For me, this is an interesting topic because bitcoin issues are often the talk, including confusion in many quarters. What is cryptocurrency? What is bitcoin? How does the regulator respond to the development of the current crypto currency? And how is the bitcoin phenomenon going forward?

In its purest form, cryptocurrency or crypto currency is a kind of electronic cash that can be sent directly from person to person (peer-to-peer) without going through financial institutions, or banks. Generally if we are currently sending funds or money to other parties, of course, must be processed through the bank. In this case, the bank serves as an intermediary. Well in this crypto technology, the payment is made directly without an intermediary. Transactions conducted between two parties in a network are then verified through a specific encoding process or cryptography. Well, Bitcoin is one of the existing cryptocurrency types, and is popular. In addition to Bitcoin there are more than a few crypto currencies similar to various names, such as ethereum, litecoin, etc. Many of these crypto currencies are short of devotees until they die one by one. In Bitcoin, if there are transactions of two persons, the other party in the network that can decode or verify the occurrence of the transaction, will be rewarded with bitcoin. This step is known as mining bitcoin (mining).

From what I've learned before, that David Yermack, researcher at the Bureau of Economic Research, New York University (2016) that bitcoin still fails to meet the criteria as a currency. It cites the basic functions of a currency, the medium of exchange, the a store of value, and the unit of account. Of the three criteria, bitcoin does not qualify as money. Yermack doubts that bitcoin can be a currency or means of payment acceptable to today's audiences. I agree with the analysis. If we look at bitcoin volatility in recent years is very high, much higher than the existing currency. This has an impact on the difficulty of calculating the short-term risks of bitcoin. In addition, the exchange rate of bitcoin in the day to day does not correlate at all with any currency in the world, nor with commodities such as gold for example. This makes bitcoin useless in risk management and difficult for the owner to hedge.

Let's look at one by one the money function on bitcoin for more details. First, as a medium of exchange. Bitcoin has no intrinsic value, so its value will depend largely on its usefulness in the economy or consumption. But in reality, today is still very small parties who use bitcoin in everyday life to make various payments. Few traders (merchants) are willing to accept bitcoin. Some countries such as Japan, for example, allow bitcoin to be used as a means of payment (not as legal tender or legal currency). But if we go to Japan, just a few, not to say very little, the store is willing to accept payment with bitcoin. Especially in other countries, including Indonesia. In other words, payments using bitcoins are currently very rare.

Second, as a unit of account. For users or buyers, we certainly look for ease in buying goods. For example, a bowl of chicken noodles cost Rp 25 thousand, a cup of coffee costs Rp 15 thousand. This will make it easy to calculate. But in the use of bitcoin, various problems arise, mainly due to its extreme volatility. The value of bitcoin can vary drastically from minute to minute. This makes it difficult for the seller to determine the price of an item. In addition, there is no uniform or fixed market price associated with bitcoin. I also tried to check on some bitcoin markets around the world, and the prices vary. This disparity, in the theory of market value, violates the law of one price for a currency. Why breaking? Because it is open most likely people to do arbitrage in the same market (buy cheap and sell high in commodities and the same time).

Third, as a store of value. When a currency serves as a store of value, the owner certainly has the expectation that the currency he holds can be obtained easily and can be redeemed for future goods or services as needed. The economic value of goods or services purchased in the future is expected to be equal to the money used or stored now.

From the above analysis it can be seen that Bitcoin, according to Yarmeck (2016), still can not meet the criteria as money because it has the deficiencies as above. Generally people currently hold bitcoin instead of being used as a means of payment, but rather to speculative investment. Bitcoin is also increasingly difficult to accept because it is disconnected with the payment system and banking in many countries, because most authorities in the world forbid it to be used as a means of payment.

A money something that is traded for products and enterprises by an extensive gathering of individuals. As the quantity of individuals having confidence in Bitcoin is expanding, its confirmation as a cash is likewise expanding. I concur that Bitcoin is exceedingly unpredictable now making it troublesome for the microtransactions to happen in the market however there is an explanation behind it. We are still in the fundamental period of advancement and this development is as yet advancing. Things will show signs of improvement not far off and we will see practical development in the cost and with the expansion in mass mindfulness among the clients, we will see less instability in the cost.

[bitterdog]

Discuss about bitcoin and cryptocurrency. For me, this is an interesting topic because bitcoin issues are often the talk, including confusion in many quarters. What is cryptocurrency? What is bitcoin? How does the regulator respond to the development of the current crypto currency? And how is the bitcoin phenomenon going forward?

In its purest form, cryptocurrency or crypto currency is a kind of electronic cash that can be sent directly from person to person (peer-to-peer) without going through financial institutions, or banks. Generally if we are currently sending funds or money to other parties, of course, must be processed through the bank. In this case, the bank serves as an intermediary. Well in this crypto technology, the payment is made directly without an intermediary. Transactions conducted between two parties in a network are then verified through a specific encoding process or cryptography. Well, Bitcoin is one of the existing cryptocurrency types, and is popular. In addition to Bitcoin there are more than a few crypto currencies similar to various names, such as ethereum, litecoin, etc. Many of these crypto currencies are short of devotees until they die one by one. In Bitcoin, if there are transactions of two persons, the other party in the network that can decode or verify the occurrence of the transaction, will be rewarded with bitcoin. This step is known as mining bitcoin (mining).

From what I've learned before, that David Yermack, researcher at the Bureau of Economic Research, New York University (2016) that bitcoin still fails to meet the criteria as a currency. It cites the basic functions of a currency, the medium of exchange, the a store of value, and the unit of account. Of the three criteria, bitcoin does not qualify as money. Yermack doubts that bitcoin can be a currency or means of payment acceptable to today's audiences. I agree with the analysis. If we look at bitcoin volatility in recent years is very high, much higher than the existing currency. This has an impact on the difficulty of calculating the short-term risks of bitcoin. In addition, the exchange rate of bitcoin in the day to day does not correlate at all with any currency in the world, nor with commodities such as gold for example. This makes bitcoin useless in risk management and difficult for the owner to hedge.

Let's look at one by one the money function on bitcoin for more details. First, as a medium of exchange. Bitcoin has no intrinsic value, so its value will depend largely on its usefulness in the economy or consumption. But in reality, today is still very small parties who use bitcoin in everyday life to make various payments. Few traders (merchants) are willing to accept bitcoin. Some countries such as Japan, for example, allow bitcoin to be used as a means of payment (not as legal tender or legal currency). But if we go to Japan, just a few, not to say very little, the store is willing to accept payment with bitcoin. Especially in other countries, including Indonesia. In other words, payments using bitcoins are currently very rare.

Second, as a unit of account. For users or buyers, we certainly look for ease in buying goods. For example, a bowl of chicken noodles cost Rp 25 thousand, a cup of coffee costs Rp 15 thousand. This will make it easy to calculate. But in the use of bitcoin, various problems arise, mainly due to its extreme volatility. The value of bitcoin can vary drastically from minute to minute. This makes it difficult for the seller to determine the price of an item. In addition, there is no uniform or fixed market price associated with bitcoin. I also tried to check on some bitcoin markets around the world, and the prices vary. This disparity, in the theory of market value, violates the law of one price for a currency. Why breaking? Because it is open most likely people to do arbitrage in the same market (buy cheap and sell high in commodities and the same time).

Third, as a store of value. When a currency serves as a store of value, the owner certainly has the expectation that the currency he holds can be obtained easily and can be redeemed for future goods or services as needed. The economic value of goods or services purchased in the future is expected to be equal to the money used or stored now.

From the above analysis it can be seen that Bitcoin, according to Yarmeck (2016), still can not meet the criteria as money because it has the deficiencies as above. Generally people currently hold bitcoin instead of being used as a means of payment, but rather to speculative investment. Bitcoin is also increasingly difficult to accept because it is disconnected with the payment system and banking in many countries, because most authorities in the world forbid it to be used as a means of payment.

Its a great perception, and i really appreciate your opinion about this. But, i think if we are talking about how worth bitcoin is to be a currency, i think its not easy answer. Because, like we all already know that in some aspect, bitcoin really helps our financial transaction, but also in the other hand, there are many country that is still banned bitcoin. I think bitcoin as currency, still not get its maximum role, because theres still many obstacle that holding bitcoin for that role. But, we can not close every possibility that might be come, i hope in the future, bitcoin can be a world wide currency.