Is Bitcoin Worth To Be Currency?

[Phil315]

Yes definitely, Bitcoin is worth being a currency. It has all the attributes of what makes it a currency since it is an acceptable means of payment.

[DBronze98]

Bitcoin has a lot of reasons to become a currency.
1. Fixed supply will cause inflation not to happen.
2. Stable value if strictly controlled.
3. The number of investors knows and choose it very large.
4. The community accepts Bitcoin in every country.
5. Absolute security and do not worry about fraud, transparency.

[carlisle1]

Great post. I think the answer is in what you have stated .... the volatility. Based on that, the simple answer is NO. Bitcoin can never be currency as it currently is, no more than oil, gold, silver or pork bellies. Think about it,  buying something for 1 bitcoin 7 months ago equaled roughly $20,000. That same item would cost about 3 bitcoins now or $60,000 end of 2017 prices.. It fails on all 3 measures you mentioned, medium of exchange, store of value, unit of account.

Bitcoin is a means of wealth transfer, no more no less.

The only value Bitcoin has is still measured against real currency such as US dollars. Unless you expect the value of Bitcoin to drop vs USD no-one should be buying anything using bitcoin. Also, if I expected the value of bitcoin to rise, as a seller I would definitely accept Bitcoin as payment to take advantage of uninformed buyers. Seems the sellers are losing now, but that will change because this is still a young market and bitcoin has a long way to rise.

If all of the people here in this crypto community has an outview like you and OP then bitcoin will continue to fail being a currency because instead of posting encouraging topic to attract many users to support bitcoin to hold its value ,what are you doing is making negative issues towards this great coin

[Altf4]

We always think of positive in any part of crypto currency and we not say any negative things about cryptos , because that is true , thus making negatives discussions will drive away investors espevially now that yhe market is falling down , bitcoin is very worth as currency it is circulating in the net as digiral currency ansd serves as multiple uses to tbe people.

[Barbut]

Great post. I think the answer is in what you have stated .... the volatility. Based on that, the simple answer is NO. Bitcoin can never be currency as it currently is, no more than oil, gold, silver or pork bellies. Think about it,  buying something for 1 bitcoin 7 months ago equaled roughly $20,000. That same item would cost about 3 bitcoins now or $60,000 end of 2017 prices.. It fails on all 3 measures you mentioned, medium of exchange, store of value, unit of account.

Bitcoin is a means of wealth transfer, no more no less.

The only value Bitcoin has is still measured against real currency such as US dollars. Unless you expect the value of Bitcoin to drop vs USD no-one should be buying anything using bitcoin. Also, if I expected the value of bitcoin to rise, as a seller I would definitely accept Bitcoin as payment to take advantage of uninformed buyers. Seems the sellers are losing now, but that will change because this is still a young market and bitcoin has a long way to rise.

If all of the people here in this crypto community has an outview like you and OP then bitcoin will continue to fail being a currency because instead of posting encouraging topic to attract many users to support bitcoin to hold its value ,what are you doing is making negative issues towards this great coin

Currency refers to money in any form when in actual use or circulation as a medium of exchange. What is not clear here? You think its volatility, that sounds like a joke, right? Why Rohqit didn`t mention how much pizzas you could buy 8 years ago with 10k bitcoins, and how many pizzas you can buy now with same amount of bitcoins?
Even op and this guy says the same, means a wealth transfer, I give you my wealth in bitcoins you give me same amount of wealth in pork. That is currency my friend, look it at in any way you want, but it can be medium of exchange, its currency. What is so good about bitcoin it can be asset too, you choose what you want, it can be a lot for who knows to take benefits from it, for people like op and this guy are bitcoin can be nothing, they can live crypto world, anyway more bitcoins for us.

[Toraokun]

It's hard for Bitcoin to be currency like Fiat currency do. Like we all know, Bitcoin fluctuations made people will think hard when they want buy something use it, that's why most people utilize it for investment not for currency, even though Bitcoin created for currency

[gudrun]

Bitcoin is a valuable investition, it is like investing in gold or diamonds, so always wealth was an expensive currency.

That, of course, is reflected in recent times. Investors are like lottery winners and win special prizes.

Yes.With the market price of bitcoin it has today,i'm sure all people will be crazy over bitcoin just to have even a single of it.Bitcoin has so much advantages like making transactions in a fast and convenient way.And the fact that the sender remains to be anonymous unlike fiat currency transactions.

Yes, the purpose of the bitcoin generator is to trade, its applications are being used by coin developers. In my opinion it is safe, low risk, high security for trading and trade

[tinystone26]

Yes of course he has the good type of currency that could be use in any transactions and what only the problem I see is his value for being not stable in any moment that's why it is hard to make him a regular currency but many people were using them to some of their business just like me I use to buy and sell something using bitcoin.

[_jshsnts]

it is worth ti be currency because it saves a lot of time to have some transaction and just like others it gives you a good profit when you know how bitcoins work.

[hahay]

I don't think bitcoin will be worthy of being a currency, but it does not rule out the possibility that it will become a reality in the future, because everything in the future nobody knows. To make bitcoin a currency I think it's very difficult because we know that the currency in each country has the power of many circles, when compared to bitcoin now, that support is still very much different even though the bitcoin exchange rate is very high and it won't guarantee for bitcoin is easy to become a currency.

[brukva]

I think bitcoin is worthy of becoming a currency that can be paid.

[darklus123]

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.

Seriously? Is bitcoin not a medium of exchange?

A medium of exchange is an intermediary instrument used to facilitate the sale, purchase or trade of goods between parties. For an instrument to function as a medium of exchange, it must represent a standard of value accepted by all parties. In modern economies, the medium of exchange is currency.


Source:https://www.investopedia.com/terms/m/mediumofexchange.asp

Based on this meaning bitcoin directly meets the criteria of a currency. Bitcoin has been an instrument for trades of goods since it started. So how can that be that bitcoin is not a form of medium for exchange?


Furthermore the explanation for bitcoin as a store of value is very much clear that for now a lot of bitcoin user consider bitcoin as an asset that can be exchange later on when the value gets higher.

A store of value is the function of an asset that can be saved, retrieved and exchanged at a later time, and be predictably useful when retrieved.[citation needed] More generally, a store of value is anything that retains purchasing power into the future.

Source: https://en.wikipedia.org/wiki/Store_of_value

Lastly, how do you define the unit of account?

A unit of account in economics is a nominal monetary unit of measure or currency used to represent the real value (or cost) of any economic item; i.e. goods, services, assets, liabilities, income, expenses. It is one of three well-known functions of money.[1] It lends meaning to profits, losses, liability, or assets.

source: https://en.wikipedia.org/wiki/Unit_of_account

There are items such as miners or even services that has a real value rates on bitcoin.
It is obviously clear that bitcoin have meet not just one of the criteria but basically all of it. And yet how come that bitcoin is considered as a currency because of its volitality?

Does volitality a requirement for a currency?

In addition, there is no uniform or fixed market price associated with bitcoin.

It is because you are not looking the right price of bitcoin. Basically you are seeing values from the exchangers which is not a the real value of course because they included some fees.

The economic value of goods or services purchased in the future is expected to be equal to the money used or stored now.

Even if we do talk about the US dollar the value that dollar currently have may not have the same value for tomorrow since it still differs even if a single cent.

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.

Again you are seeing the other side of bitcoin users. Please take a look at the old users of bitcoins how they have fully understood it means. Most of them are using bitcoins as transactions. Forbiding it's used as payment in most of the world is not a strong reason to disqualify bitcoin as a currency.

[fishball]

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.

It is still one of the best things that could happen but still, it is not worthy at the present. Basically due to its nature having volatile price, hard to regulate and more. But, we have been using bitcoin for years now in different exchanges so why not consider it as a medium of transactions?

[radjie]

Bitcoin can be a currency that can be used throughout the world, most importantly all countries can legalize bitcoin to share transactions. bitcoin is a modern technology that is able to grow rapidly throughout the world, it is possible that bitcoin in the future will be used globally such as existing currencies

[Shabu-Shabu]

Yes, it is worthy to be a currency. Because it passed the criteria to be a currency according to the federation which incorporates currency. Also bitcoin is accompanied with a lot of companies accepting bitcoin so why not? It should be the top 1 currency in the world because it is a universal currency, means that anyone, everyone, and someone can use it anytime, anywhere.

Asking why it is the top currency? Bitcoin has the most number of investors. It is indeed the leading cryptocurrency with the most valuable goods are exchanged. So why not a worth currency? It is indeed more worthy than your worn brief underwear. Why? Because bitcoin can obviously rise its price and your worn brief cannot. Lol

But whatever anyone talks about BTC. The mere fact is, BTC is the best currency in the world!

[xuan87]

I think Bitcoin fit the criteria to become a currency, but the progress still being halt by the government, if the users could keep bring the positive usage of Bitcoin, I think the government will give the support, and from the beginning Bitcoin was a currency for global transactions

[Jamboo30]

Why not ? Bitcoin is currency because bitcoin transaction id really fast and cheap. It also allowed to pay in some countries

Where is the place accept Bitcoin payments? If so, I think it was not public, because now I know that only the Venezuelan government accepts Crypto payments and has issued ICO Petro. Transaction of bitcoin is slow compared to other platforms, it should be improved if want to become a currency.

[Cryptoworld4]

Bitcoin no doubt worth being called a currency. Apart from not being issued by a central government, there are no other attributes of a currency which Bitcoin does not have and as such, it is a currency.

[Impulseboy]

For now, the answer is no. However, cryptocurrency is still a bit new so perhaps if we all give it a few more years it will be worth it to be an official global currency that has a high value. Perhaps more country and more people will appreciate and start using it too.

[artichandra]

Of course bitcoin is worth to be currency, that's why bitcoin called cryptocurrency, but the problem for now i think bitcoin prices is too unstable, this is make one of the people doing the transaction gets a loss and the other gets a profit.