Bitcoin as a Currency

[Wonder_woman]

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.

Bitcoin as currency is good for me because there is no hassle anymore buying things on mall you can do it online and send money through internet without going out.

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[GregH37]

BITCOIN was made to co exist with the commodity currency and fiat currency.

To the point that the virtual currency was more convenient to use compare to the two.

Cryptocurrency (Virtual) is a modern currency that can have both characteristics of commodity and fiat which can use for trading and investments. With more of the commodity currency with no exact price and depends of the people on supply and demand and act as a alternate currency.

Yeah, and that is basically the idea which I believe that we will get to see eventually anyway. As time goes on and as the space keeps evolving and developing, I so much believe that bitcoin will get to be used in real life as a currency when it gets to buying groceries, buying, stuffs, paying for things, and so many more which would make it become a norm for most people and then get to see it as a means by which people can even still store value at the same time. However, it is something that will only be limited to some faction of people anyway, which is why I also believe in the whole coexistence thing right from the onset.

[Maricel2017]

Like other currencies, value of cryptocurrencies comes from their supporters. There so many people around the world who trust the idea of crytocurrencies and wish to use it as a payment tool.

if bitcoin is used as a payment instrument like fiat currency, I think it will have a good impact on the growth of bitcoin prices because more people will buy bitcoin to be used as an automatic payment tool that will make the price of bitcoin move up and skyrocket, but I also think that it will be difficult to realize this, since there are only a few countries that legalize the remaining bitcoin still cannot make decisions as if they don't know the presence of bitcoin

Currently here in my country we can used bitcoin to pay our bills or any other bills that our local wallet was tie up but it was automatically converted into fiat after sending the payment. And i think sooner some establishment will start to fully adopt the blockchain the direct received bitcoin from their customer.

[Bitcotalk]

I think it became a commodity way too quickly but I don't know if that's a bad thing or not. I mean it is bad that it is no longer used like a currency and the companies that tries to make debit cards of bitcoin which you can use everywhere in the world is not really getting too much attention whereas the price changes are getting too many attention everywhere.

Which means either we would have stick with the currency aspect of bitcoin and we wouldn't have this many people or we changed to a commodity and suddenly we are getting more interest into bitcoin. Do you really want to use bitcoin as a currency or do you want bitcoin to get more attention that's the question you need to ask yourself. If you want bitcoin to get bigger than you should be happy about this changes.

[oppasong]

Bitcoin is a digital currency that only revolves in the internet world, unlike the case with a country's currency that is only used as payment in the real world.

[AdamRay]

In my opinion, Bitcoin is hard to become a common currency. There are too many shortcomings, such as lack of stability, low supply, are being used to accomplish some bad intentions. So that really is not qualified to become a currency. I do not appreciate people always want to make bitcoin a currency. it absolutely can not afford!

[Renal]

in my opinion bitcoin is a digital currency that is becoming popular nowadays, if we use bitcoin as a transaction then security is guaranteed especially if we have bitcoin then this is our asset in the future.

[Shiversnow]

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.

[AlutBitcoin]

Like other currencies, value of cryptocurrencies comes from their supporters. There so many people around the world who trust the idea of crytocurrencies and wish to use it as a payment tool.

We would not be here in the first place if we do not believe in the long term usage of bitcoin, and imagining this scenario playing out, it makes us to put much of our focus on the long term, knowing that great stuff abound. That is some hard stuff which a lot of people who are so keen about the short term will never understand anyway, but the last time me checked; there are always two sides to every coin. I believe in the long run, for bitcoin and most of the altcoins with product, we will start getting to see them being used gradually as a payment tool.

[nur rochid]

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.

in accordance with economics, if demand rises, price also rises, that is what becomes an opportunity to make a profit. for the near term, i think if BTC is recognized as an alternative means of exchange it is good enough

[Evil eye]

Bitcoin is clearly a coin but it is an online currency. Although there is an online currency, it has a lot more value. Bitcoin can also be used for various purposes like real currency. Bitcoin can be used as exchange value for money. Although Bitcoin can not be touched by hands. Yet Bitcoin has a currency exchange value because of its price.

[yvesp110]

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.

in accordance with economics, if demand rises, price also rises, that is what becomes an opportunity to make a profit. for the near term, i think if BTC is recognized as an alternative means of exchange it is good enough

The price of bitcoin will be high when in a state more people will use it, the more users will keep on buying so bitcoin will rise high which is surely good for anyone, we are living in digital era so we feel good using digital currency than fiat, we can buy goods even if we are at home we can send money safely from one place to another safely in high amount so no worries now bitcoin is the best currency.

[avarnet]

Bitcoin is a digital currency that only revolves in the internet world, unlike the case with a country's currency that is only used as payment in the real world.

That's right because with Bitcoin we can make transactions easier and faster when we make online purchases and bitcoin will also not be able to be made into real world currencies such as paper currency

[proTECH77]

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.

Succumb, but in addition bitcoin is a digital asset intended to serve as a currency. The usability of this said digital currency has not yet be justified and adopted by the masses, unlike other currency like fiat etc.  This digital asset can be use to purchase goods and services online.

[Rena5]

Bitcoin is used for exchange for something like services or in form of commodity.A decentralized currency with a great value.It can be converted the value of it into fiat or commodity needs.Also, easy to used on onlines transactions less requirements.
Bitcoin is a great help to anyone who believes.

[ChandraGold]

Although the origin of bitcoin is defined curency but in practice many people use it as an investment or storage method.

[rickadone]

I think it became a commodity way too quickly but I don't know if that's a bad thing or not. I mean it is bad that it is no longer used like a currency and the companies that tries to make debit cards of bitcoin which you can use everywhere in the world is not really getting too much attention whereas the price changes are getting too many attention everywhere.

Which means either we would have stick with the currency aspect of bitcoin and we wouldn't have this many people or we changed to a commodity and suddenly we are getting more interest into bitcoin. Do you really want to use bitcoin as a currency or do you want bitcoin to get more attention that's the question you need to ask yourself. If you want bitcoin to get bigger than you should be happy about this changes.

Well, in a way, due to its deflationary characteristics, there is no way it cannot end up still retaining being an asset even though it ends up being used as a currency in the long run, but before we will get to see bitcoin hitting that stage where it gets to be used as a currency, a lot of development would have taken place, considering the fact that by then, we possibly would have hit the level of mainstream adoption, there possibly would have been some level of less volatility with bitcoin and there would also be development that would help in ushering in bitcoin as a currency into the real world, and with all this in place, we will get to see the currency aspect being in place.

[stellgod]

Like other currencies, value of cryptocurrencies comes from their supporters. There so many people around the world who trust the idea of crytocurrencies and wish to use it as a payment tool.

if bitcoin is used as a payment instrument like fiat currency, I think it will have a good impact on the growth of bitcoin prices because more people will buy bitcoin to be used as an automatic payment tool that will make the price of bitcoin move up and skyrocket, but I also think that it will be difficult to realize this, since there are only a few countries that legalize the remaining bitcoin still cannot make decisions as if they don't know the presence of bitcoin

And this started in some developed countries. Those who have accepted and legalized the crypto currency, business there started integrating bitcoin in their transactions. Most of them are dealing in bitcoin and other crypto currencies as well. Like McDonalds and other few food chain outlets were storied to accept bitcoin but I doing have any conformity about it.

[justspare]

In my opinion, Bitcoin is hard to become a common currency. There are too many shortcomings, such as lack of stability, low supply, are being used to accomplish some bad intentions. So that really is not qualified to become a currency. I do not appreciate people always want to make bitcoin a currency. it absolutely can not afford!

Obviously, we cannot expect it to just be a currency that will be used by everyone worldwide, as some would basically be limited to its usage, but at the same time, we still have to understand the fact that this is a very new market and there would still be a lot of development to come in the long run, which I believe will bring about real life usage.

We may not be seeing that now yet, because a lot of people believe we have not reached that stage yet and by the time we do eventually, we all know the value will not be the same which is one of the reasons a lot of people would prefer hoarding as an investment tool instead now than a currency, coupled with the fact that with respect to its volatility, it is still very hard to use in the real world.

[proTECH77]

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.

Also, it volatility made it not a currency either.
A currency is that which is accepted and adopted generally but Bitcoin is not accepted or adopted generally uptil  now.
Bitcoin is a digital asset and not yet a currency.