Bitcoin as a Currency

[uelque]

It surely is a curreny, the whole world curreny rather. Because it was not owned by any countries, institution or organization. It was made as a curreny from the first place, it is just us people, government, nations, who's blocking it's way to its destination. We should recognize bitcoin as currency, not an asset or either commodity because it is what it is. And no comment or statement or how is it use as of today would change that fact.  

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[Meowth05]

Bitcoin was initially created as a currency. The thing with currency is that it needs mass acceptance and that's the challenge with bitcoin. This is the reason behind bitcoin used as acommodity.

Bitcoin is made as a digital currency but unfortunitely it is difficult to apply because at this time it is in less acceptance in any companies. Althrough there is some companies accept but is not enough, that is one challenge of bitcoin. People considered bitcoin as an investment becuase it is high in terms of value.

I think aside from using it as digital currency, you can also use it as asset that will bring you a good income. As of now bitcoin already recognized as currency but not all the country. However, if we want to make it happen it will takes time to wait because there are many things that need to upgrade. But I think because of our modern era there is chance that bitcoin will become one of our legal currency.

Indeed, actually it depends upon us on how we will use it whether to be a currency or an asset. In my opinion bitcoin could be classsify based our action, it could be an asset and of course it could also be a currency. But for now it is more likely and asset which can be hold for a long time since we all know what situation we have now. Perhaps, in the future bitcoin could become legal curency which can be used whenever and wherever we are.

[loloos]

Yes bitcoin is a currency called, cryptocurrency. It is also the mother coin in the cryptocurrency world and it is having value from the demands in the exchange market.

[kripkiki12]

I rather see it that we will be talking about Bitcoin mainly because of the blockchain technology behind it 5-10 years from now. Although it was initially created to be a government-independent currency, there will be better solutions in terms of online currency

[Epimetheus]

Bitcoin is a heavily use online cryptocurrency. Although it is a virtual currency but still it is use more than that of real currency. Bitcoin has various benefits. Bitcoin is mostly use as a online money transaction tool. Bitcoin is good for online transactions because of its safe secure and fast transaction facility. Another thing is bitcoin is highly sustainable and because of this it is easily available and accept in many places. Because of this many people love to use it. It is a tax free currency. It use as currency exchanger and also use for many other thing.

[Escf4]

As bitcoin was launched years back , it was promoted and introduce as decentralized digital cryptocurrency in which it is circulating in the digital world , as a digital currency , it has also a functions as of fiat currency, that bitcoin can be used to pay anything that accepts digital currency and at the same time will function as investments and digital assets.

[Baofeng]

Bitcoin is a heavily use online cryptocurrency. Although it is a virtual currency but still it is use more than that of real currency. Bitcoin has various benefits. Bitcoin is mostly use as a online money transaction tool. Bitcoin is good for online transactions because of its safe secure and fast transaction facility. Another thing is bitcoin is highly sustainable and because of this it is easily available and accept in many places. Because of this many people love to use it. It is a tax free currency. It use as currency exchanger and also use for many other thing.

That's what we wanted to see from bitcoin, to be used as a global currency. It was designed by Satoshi to help people transact online without any third party. But it's slowly adopted by merchants because of its volatility, which is a major drawback not just for bitcoin but from people who wanted to see it grow as a online payment method. And now it is touted as a speculative assets by many of us, but I do hope that on day we will see it being used as how it was originally designed.

[stellgod]

Bitcoin as a currency will help the world to become more innovative. Those countries who have accepted bitcoin has developed their business tremendously. And now many countries looking forward to making cryptocurrency legalize. This thing gonna achieve a great achievement for the cryptocurrency.

We all are quite hopeful that one day bitcoin would become the super currency of world. This would be official currency to many countries. We could say the future is all about bitcoin. But yes, this is reality as well that when you have this currency as official one, you need to change the economical law and amend some changes. You must be sure what needs to change that will not affect your economics rather increase it.

[sleeplesman]

The volatility of bitcoin is one of the factors why it shouldn't be considered as a real life currency. Its price is derived from people who wants to buy it. Much like anyone who would like to buy some popular business shares of some sort of company out there. It will always and always going to be down and when it happens, you know it means something, for you and your dear money.

One Bitcoin will always be one Bitcoin. When world will use it as a price tag. There will be no need to look at it's volatility derived from the other fiat currencies, like your $ have masive volatility spikes against currencies that are in hyperinflation. The same way, one gold nugget will always stay one gold nugget. People and the whole nation would do way better buy using gold coins, but it's not practical. Way too many disadvantages comes with it. Bitcoin solved that, there comes it's one of many values. Also, the speed is easy to solve, and if you have been following the fundamentals for the past few months, you will find out, that there is a huge community working day and night to improve infrastructure of blockchain, not just coding but the legal and it's technological side. Remember, this will eventually grow into financial renaissance. It's about due. It will take time before all those old hordes will lose their money because of greed and the new blood will invest and build - hence people around will start to prosper. With time....

[daarul50]

Bitcoin is the parent of cryptocurrency worldwide. Nowadays, bitcoin is often referred to as a digital currency because it is used as an online transaction tool, people use bitcoin because of its ease, speed, and efficiency in making transactions so that bitcoin is an alternative to real money. Besides that, bitcoin is also used in the trading process where bitcoin can be sold and bought in various experts as an investment tool both long and short term.

[loopes]

Bitcoin is often referred to as a currency. And the general name 'cryptocurrency' giving to all digital assets presents them as currencies although having a deeper meaning, hence cryptic currencies

A currency is an object generally accepted in a certain region as a means of payment. Asides the Euro which is used by different countries, each state usually has its own accepted currencies.

Where do currencies get their value?

Currencies are legal tenders stipulated by governments of each nations. And there are financial institutions, usually banks which decides the value a currency has. This could be bank notes, coins, mobile money or codes on a debit card, these can all be classified as fiat money.

There is also Commodity Money. This includes commodities like, gold, silver, diamonds, coal, salt or any commodity which has a value based in its qualities and applications.
Unlike fiat money, these has intrinsic value and are not supported or directly controlled by any financial institution which dictates it's price.

So, is bitcoin classified as fiat money or commodity money?

The above question is better asked as, is bitcoin a currency whose value is determined by what people take it to be or is it based on its intrinsic value and practical applications.
I would say it is a little of both.
Bitcoin is a decentralized protocol with no central control system or official institution which would regulate and determine it's price. Although the bitcoin core and miners pool have a certain level of influence and control on its value. But the community can equally and more effectively affect it's value through demand and supply.

Bitcoin is also a digital asset built on a technology (blockchain) it is borderless and transactions are cheap. And it's value which seems to be consolidating with time, makes it an investment option as well.

What are the limitations of bitcoin?

Bitcoin as a payment option faces a huge problems in government restrictions, adoption limitations and scalability.
With its tps being in the range of 3.3 to 7 transactions per second it can hardly compete with government controlled forms of transactions like VISA with an average of 47,000 tps.
But bitcoin was not created to compete but rather serve as an alternative to fiat currencies (and maybe commodity money also) and give users total control over their assets. Though with such a growing community there has been lots of suggestions on how to tackle the scale limitations. And many propositions this far, such as hardforks and  Segregated witness, popularly called segwit https://en.bitcoinwiki.org/wiki/Amp/Segregated_Witness
Bitcoin Cash which was launched last year increased a blocksize to 7MB. There is still yet to be a consensus to approve Segwit.

Although there are some disadvantage/limitations of bitcoin but the certain thing is bitcoin can be the best investment ever and the value of fiat money will always decrease due to the inflation. That fact is explain that it is not only about how fast and how practical bitcoin is, but the main idea which is decentralized can taken into consideration.

[deppil]

It surely is a curreny, the whole world curreny rather. Because it was not owned by any countries, institution or organization. It was made as a curreny from the first place, it is just us people, government, nations, who's blocking it's way to its destination. We should recognize bitcoin as currency, not an asset or either commodity because it is what it is. And no comment or statement or how is it use as of today would change that fact.  

may be more inclined to currency. because bitcoin was originally introduced as an online currency. but the longer the price of bitcoin continues to rise because of mass adoption makes many people interested in investing so that their money grows in bitcoin. I think that is not a problem.

[selardkinley]

I think it is difficult for bitcoin to be a real currency, many governments of a country are afraid that bitcoin is used for aberrant transactions, such as buying and selling illegal weapons or drugs. Seeing the potential of bitcoin which is increasingly developing is not impossible that bitcoin will become a real currency someday.

Yes I know, It has a chance to become it a real currency or maybe a legal currency. Your also right about it migjt be used to an illegal activities because crypto world is very broad to discuss or to study its abilities or limitation. But as of now, I know it is in the discussion on how we used it because Bitcoin has many lacks so we need to find a way full that lacks of bitcoin to recognized it.

The point is not to get it to a high level of price to make money but there is a middle ground here between people who wants bitcoin to be a currency itself and people who wants bitcoin to rise in price so they can profit in fiat. Yes the reason bitcoin came out is not to put in fiat and take out more fiat, it is not intended to be an investment product that part is true but also the higher the price goes the more users we get, which means the closer we get to adoption globally.

So even though the reason bitcoin exists is not investment, if it means investors will come in and stay than I am fine with it, let the price go as high as possible because if that happens than people will flock to it and we will see increasing amount of stores that will start to accept bitcoin.

Conflict of interests are always observed in every field. Doesn’t matter if it is bitcoin or stock or corruption or anything. But the end happens as per majority or powerful intended it to end.

[yvesp110]

I think it is difficult for bitcoin to be a real currency, many governments of a country are afraid that bitcoin is used for aberrant transactions, such as buying and selling illegal weapons or drugs. Seeing the potential of bitcoin which is increasingly developing is not impossible that bitcoin will become a real currency someday.

Yes I know, It has a chance to become it a real currency or maybe a legal currency. Your also right about it migjt be used to an illegal activities because crypto world is very broad to discuss or to study its abilities or limitation. But as of now, I know it is in the discussion on how we used it because Bitcoin has many lacks so we need to find a way full that lacks of bitcoin to recognized it.

The point is not to get it to a high level of price to make money but there is a middle ground here between people who wants bitcoin to be a currency itself and people who wants bitcoin to rise in price so they can profit in fiat. Yes the reason bitcoin came out is not to put in fiat and take out more fiat, it is not intended to be an investment product that part is true but also the higher the price goes the more users we get, which means the closer we get to adoption globally.

So even though the reason bitcoin exists is not investment, if it means investors will come in and stay than I am fine with it, let the price go as high as possible because if that happens than people will flock to it and we will see increasing amount of stores that will start to accept bitcoin.

You points are not clear to me but all I get is you are right we can use fiat to get investment and we can save it to get fait again,  this is proper process and people shows good interest about crypto because of this issue, we should try to maintain this system by investing more, so the more we will buy crypto so the more price of bitcoin will rise in demand and value, even now it is being use as currency and markets are accepting it without any doubt as its famous enough.

[Yara1]

Bitcoin is define as a digital currency and bitcoin have it value from the demand and also note that bitcoin does not have any physical value but only exist on mathematical computer programming code, with high value in the world exchange market bitcoin is use to make payments online and can be send without any third party involvement.

[Oceat]

It is somewhat a currency but in a digital way like you don't have to reach your hands into your pocket just to pick those filthy banknotes who's different hands who held it. But if you think you can replace banknotes with bitcoin as a currency then the discussion won't end until someone accepts both fiat and bitcoin will be use together.

[Gabali126]

Nice details by the OP. Bitcoin is indeed a currency in all ramifications. It shares most typical characteristics of a currency, but occurs in digital forms.

[dupee419]

I can envision something in the future, wherein fiat would be less and crypto would be more, instant payments and everything that can be seamlessly done without hassle, and the OP was able to bring out the topic in a detailed manner.

[chrisculanag]

Bitcoin is very useful as online currencies because we can use this anytime in online. Many countries accepting bitcoin as money online or online currency also some online stores are keep supporting this coin because they trust the good purposes that bitcoin can do especially in tradings.

[Zalura]

even though the initial concept of bitcoin was called a currency, but now we see bitcoin more worthy of being called a commodity such as gold, silver, and others, which can be exchanged with fiat money,  USD, EURO and other currencies.

a shift in the original function of bitcoin because it is caused by the behavior of the owners and traders, because most owners seek the benefits of bitcoin by selling when prices go up,  and they use bitcoin unlike the function of the bitcoin currency not used for transactions and to buy goods,  so the change in the function of bitcoin is indeed influenced by market participants themselves.