Is Bitcoin Worth To Be Currency?

[bohr]

Are all overprinted, unfairly distributed, centralized fiat currencies "worthy" of being a currency?

No they are not worthy, but they have the characteristics needed to be a currency, and if even fiat currencies can be said to have those characteristics then we need to accept that bitcoin has those characteristics and more to be considered to be a form of money, what it happens is that they do not want accept it because they know that if they do it, people will put fiat currencies and cryptocurrencies at the same level and governments do not want that.

[jabrix]

bitcoin has carried out its role as a crypto currency with smooth and proportional smoothness, but the characteristics of this coin do not match the real currency system and have the potential to make inflation on fiat if implemented together.

for public businesses, it is better if bitcoin is only designated as a commodity asset and still considers fiat as the only viable currency to be traded to various groups of people, but bitcoin will remain feasible in its own business world. So there will be two balanced economic patterns.

[TheClownSong]

My opinion about cryptocurrency is store of value or digital gold. Cryptocurrency should be not controlled by a person or a group because its decentralized.
Bitcoin is different with digital money, most digital money right now controlled by central banks and its just fiat money with digital form. I am believe bitcoin worth to be currency and will become a global curerncy

[lelahkenabanned]

yes, of course, bitcoin is very worth it to become a currency, because the total supply is very limited and may also be due to the influence of very high demand so that the price of bitcoin has a very clear and valuable influence.

[Captain Sneeze]

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.

I think for now bitcoin is not yet worth to be a main currency because bitcoin is not stable in terms of its market price, so I think bitcoin is not yet ready or worth for no to be a currency.

[Sarastiche]

Yes Bitcoin is worth to be a currency, it is the currency of the moment and the future, mostly for online and global transaction Bitcoin is the real answer to the cashless policy advocacy, but for this to come to reality government must have an influence and stake in the circulation and regulation of Bitcoin as a currency

[Flor1982]

Bitcoin as currency already proven its worth as it was already used successfully in direct spending, payments and even as salary payment for the workers like in Japan therefore no doubt it act as a currency and all that we need is to improve the development of the transactions in the block chain that it may use instantly like the fiat currency.

[kumala_abi]

Bitcoin as currency already proven its worth as it was already used successfully in direct spending, payments and even as salary payment for the workers like in Japan therefore no doubt it act as a currency and all that we need is to improve the development of the transactions in the block chain that it may use instantly like the fiat currency.

maybe if bitcoin used as payment at international trade and for exportir or importir, its demand and price will rise sharply.bitcoin will give them less fee if compare with conventional payment

[nicster551]

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.

Yes, it is truly worth it to make Bitcoin as a currency, but they need to improve it more to make the price of it in a stable price and would make it a good thing to make it a currency in the future.

[greeklogos]

Stable price?! The fact that bitcoin's price is not stable is the thing that attract so many people and investors.
I do not understand the question 's Bitcoin Worth To Be Currency?' bitcoin is already currency and it deserves to be on all exchangers, in banks as well.

[BagzMM]

For us which is already in crypto world perhaps yes ,because we already all knows how useful bitcoin is and it's a big help in our daily basis. However even though it is still impossible to become real currencry it's still worth it because of being friendly used.

It really is a huge help for everyone. As we all know the usage of bitcoin help us to do things instantly which is the characteristics that the current generation is looking for. Therefore sooner or later the People will.love using bitcoin in daily basis. And this will be the start of bitcoin slowly being a currency. Bitcoin is the future currency.

People will only use bitcoin as commodity for digital assets as they think that this will become more expensive in the future. That's why they buy and hold for the best price to come. Adoption has not being practice due to price volatility and manipulation with some bigger investors that own huge amount of bitcoin.

[erikoy]

Yes bitcoin is definitely a good currency already but not for the centralized currency rather it is good for the decentralized system. Bitcoin is used to invest from ICO projects to payments, and other decentralized transaction where bitcoin is being involved. However, if it is all about centralized currency then there could a conflict and most likely bitcoin would not fit on centralized currency.

[Yamifoud]

I believe Bitcoin will be considered as a legal form of digital currency worldwide and may small establishment will accept these. As we look into its concept and platform, we saw its potentiality around but some government authorities still doubt of these and some thinking of huge money laundering happen. And some worries that, crypto won't stay long for us and causes only economic threats to us.

[centimentalking]

More than anything. Crypto currency's weakness as a means of exchanging goods and services is its volatility. A volatile currency won't be adopted by merchants in their businesses. But tthe same volatility is the advantage of crypto currency as an investment. I just hope it becomes stable soon so we can see adoption.

Volatility is not a weakness because in this way the price can grow even more depending on the supply and demand so we can expect higher prices in the future since the statistics in the market is increasing in a fibbonacci sequence.

Since the price of bitcoin is to much high plus there transaction speed getting slow bitcoin is highly volatile which can not be wroth to be currency.

[geberger]

More than anything. Crypto currency's weakness as a means of exchanging goods and services is its volatility. A volatile currency won't be adopted by merchants in their businesses. But tthe same volatility is the advantage of crypto currency as an investment. I just hope it becomes stable soon so we can see adoption.

Volatility is not a weakness because in this way the price can grow even more depending on the supply and demand so we can expect higher prices in the future since the statistics in the market is increasing in a fibbonacci sequence.

It can be consider as online banks or the place where we can store our money. Maybe in future when the price stop increasing and become stable not only people but government also accept it as currency and use it in our daily basis.

[Pamadar]

I believe Bitcoin will be considered as a legal form of digital currency worldwide and may small establishment will accept these. As we look into its concept and platform, we saw its potentiality around but some government authorities still doubt of these and some thinking of huge money laundering happen. And some worries that, crypto won't stay long for us and causes only economic threats to us.

Those bad impressions still keeping bitcoin being accepted as a payments options, its a digital  currency indeed but there's less end users who use it instead they are keeping bitcoin as an assets to invest their spare money, for me it's good to have an alternative like bitcoin especially inside this digital era, being a currency to advance payment process can be a good sign of innovations, bitcoin just need to resolve issues that still in questions.

[vasilev456]

Alas.  It would not be desirable to finally see the digital currency as a means of payment, but the opinion that Bitcoin can cope with this erroneously, because of the volatility!

[tonyvo2017]

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.

I think it is worth it. It deserves to represent a certain value. It is capable of trading well and can help a lot for the economy later. It should be guaranteed and used more. It can contribute to the economy and it deserves more trust. Hopefully in 3 to 4 years it will have more noticeable changes.

[sinkfish]

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.

agreed, you have explained very well.

[adpinbr]

You have stated it very well my friend, and in my own opinion, I for myself think that Bitcoin is worth to be a CRYLTOcurrency, and as for being a currency, I don't think that the people are ready for it, and as for BTC I think it can somewhat be ready, but not yet fully ready, It needs moe development if you'd ask me.