Is Bitcoin Worth To Be Currency?

[Himanshu111]

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.

Yes definitely Bitcoin is very worthy to be a currency. Bitcoin is the top most cryptocurrency in the market and it is the most expensive and valuable one.It is the oldest cryptocurrency and has the highest number of users.The demand of Bitcoin is also very high above all the altcoins and cryptocurrencies.Bitcoin is the easiest way through which one can earn a lot of money and that too in a short period of time.It is a money making machine and we should definitely take advantage of it.

[maxim000]

Bitcoin can be an alternative to fiat. It definitely can't replace it. But can be a medium to make transactions and play globally. But there will be a lot of resistance to this from all over the world because in this centralized world, a decentralized monetary payment structure that too globally won't be accepted by the governments and banks of many countries.

[Violettochka]

Those are great arguments but the definition of currency may be different. There is no absolutely right definition. If anything, it may even change over time.

[Escan0r]

Of course. I Bitcoin is not worth in crypto currency. Maybe cryto currencies will not be famous like this. Because Bitcoin more and more people know the crypto currency and use it too. Therefore Bitcoin is very valuable.

[marine4u]

Bitcoin was created to be the currency and assets used worldwide so it is perfectly deserving of becoming a common currency. Bitcoin can become a widely used currency because of its fast and secure trading. In addition, ETH and XRP are also coins that are likely to become very large currencies.

[WUUEX79]

It's possible, along with the existence of developments which until now continue to be carried out, maybe we will see that bitcoin can be used as a currency in the years to come because he has had its own value during its development both as selling points, payment instruments, and investment media.

[Cloak1]

I think at best, Bitcoin is currently a store of value and at worst a speculative asset. It is barely used as medium of exchange, as it is as of yet not widely accepted as a means of payment. Most transactions are of a speculative nature. Moreover, Bitcoin’s value is currently way too volatile to function as money, as it is not a reliable store of value.

[deppil]

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.

maybe there will be pros and cons regarding fluctuations can be used as a currency or not? some say it could be because it can also benefit to you. some others are contra because it will make a loss to the buyer or seller. for myself as long as the seller is ready with all the risks. then bitcoin can be used as a currency

[reality18]

Bitcoin worth more than even a currency. Bitcoin is dynamic and offers several benefits which includes the feature of a currency. Bitcoin is considered a currency because it offers security in the transactions, speed, low costs and owner control of transactions.

[andriw]

I don't think it's worthy of being a currency, not because of the technology, but because of its volatility. need a low level of volatility to be used as a currency. currently bitcoin is an investment asset, and it is not time to be used as a currency.

[gambitcoin53]

Due to the volatility of bitcoin's value as of now it will never be worthy to be a currency. For me personally I find bitcoin more as a store of value rather than use it as a currency for the fees are so high and sometimes slow transactions speed. Maybe few years from now when its value will be more stable then we could say that bitcoin is really worthy to be come a currency and use it in our everyday transactions.

that is why bitcoin became more like an investment rather than just a currency, with the conversion of bitcoin to fiats has high fees and now it does became a great medium for investment like forex, as volatility is high, bitcoin being a currency to be used like fiats seem have a gray area, meaning as we speak, it will definitely not gonna replace fiats nor co exist on an equal value as dollars or local currencies.

[Rosesie]

we must accept that bitcoin is functioned as a currency but it is a digital currency. Bitcoin is now accepted for payment in some countrties

[tbterryboy]

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.

Ofcourse, Bitcoin is a currency but is in digital form which has brought many cheap uses and we have benefits everywhere. We should not fall in this discussion because it will waste our time, I am saying this because Germany is a developed country of wise government and people as they showed quick actions towards Bitcoin. They recognized it yesterday and tomorrow it is their payment mode as well as banks are using it as payment of loans.

[entar pasar]

I think bitcoin can be categorized as money because bitcoin has fulfilled some requirements to be money in economics, such as having value on other goods, can be used as store of value, generally accepted, etc.

[Ekimzjames20]

I think bitcoin can be categorized as money because bitcoin has fulfilled some requirements to be money in economics, such as having value on other goods, can be used as store of value, generally accepted, etc.

I think yes, it is worth to be a currency even if the price is rollercoaster in the start up to now. Because it is generate in the internet and it is the king of all crypto world, cryptocurrency is known because of bitcoin.

[Gabali126]

Bitcoin has whatever that qualifies an entity to be a currency. It can be used just as normal fiat currencies. It is only a decentralized and digital currency.

[bohr]

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.

It is interesting that you mention this because governments are the ones that are making the media to spread false information about bitcoin being mainly used as a way to launder money, and then other politicians begins to be influenced by that information and suddenly you have a cycled that feeds itself in which the media spreads false information and the government believing them takes actions against bitcoin and then the media reacts creating an eternal cycle

[krishnaverma]

Due to the volatility of bitcoin's value as of now it will never be worthy to be a currency. For me personally I find bitcoin more as a store of value rather than use it as a currency for the fees are so high and sometimes slow transactions speed. Maybe few years from now when its value will be more stable then we could say that bitcoin is really worthy to be come a currency and use it in our everyday transactions.

That can be possible in next few years. When most of the coins are mined, the price will get stable as well. This is because most of the people would not like to sell their bitcoins at that time as it will become very precious and get accumulated to limited people only.

[imstillthebest]

Due to the volatility of bitcoin's value as of now it will never be worthy to be a currency. For me personally I find bitcoin more as a store of value rather than use it as a currency for the fees are so high and sometimes slow transactions speed. Maybe few years from now when its value will be more stable then we could say that bitcoin is really worthy to be come a currency and use it in our everyday transactions.

That can be possible in next few years. When most of the coins are mined, the price will get stable as well. This is because most of the people would not like to sell their bitcoins at that time as it will become very precious and get accumulated to limited people only.

when most coins are mined  , the value of bitcoin will possibly rise and that can lead to dumping again because majority of the people will now sell thier coins in which it can cause for the price to become unstable due to severe fluctuations . bitcoin will remain this way , thats why i think it isnt really worth it to become a currency .

most of us will permanently treat bitcoin as an asset only . while other cryptos such as altcoins can also be used for a currency purposes .

[fakegurutu]

Bitcoin should be and is more than just a currency. With all the currencies in the world, bitcoin was able to be the most versatile and flexible in everything that currencies should be. It meets the important criteria that many currencies both in real and digital world lacks in their system or the way they are being used.