The economic function of Bitcoin

[piepie.asean]

Bitcoins have different economic functions. It acts as a central bank. Bitcoins are known as fixed quantities as stocks have limited supplies. The rapid rise in prices has given us many different questions. What is the economic function of this algorithmic currency?

Exchange function of Bitcoin

Anyone with a bitcoin address can use bitcoin. It is impossible to know who controls each address. Therefore bitcoin must be freely exchanged. This means "sacrifice" that bitcoin has created. This free flow of capital can be from any source. This allowed the bitcoin to become worthless a few years ago.

When this currency is rising in value over time. This is due to the limited provision of bitcoins. While there is increasing demand for them. This is similar to how you bought Apple stock in 1980 during your IPO. You will have to pay $ 22 per share. Due to the limited supply of Apple shares and the increase in demand. Today it is valued at $ 520 per share

At present, Bitcoin is going down continuously, so is it a deflation?

[kingpin4321]

I was attracted to this post by your topic "the economic function of bitcoin" but on reading your post it really doesn't reflect in fact the general idea behind this post is blurred.

 Not with standing I would not necessary agree with you that bitcoin act as a central bank there are two worlds apart
And  yes you correct about the price increasing according to demand some yes passed 10,000btc was used to purchase 2box of pizza but right with the Same amount of BTC those particular pizza are the world most expensive pizza.

[triciaa478]

The basic economic function of bitcoins is the ability to be used as a remittance of money without the use of traditional banking system. The other function of it serving as a store of value and investment is not what bitcoin was created by satoshi to be but we made it so.

[BagzMM]

In my opinion, the economic function of bitcoin is opening the door to people to earn extra income. Then it connects people all though out the world in term s of purchasing item.

[Danna Haisy]

Exchange function of Bitcoin
Anyone with a bitcoin address can use bitcoin. It is impossible to know who controls each address. Therefore bitcoin must be freely exchanged. This means "sacrifice" that bitcoin has created. This free flow of capital can be from any source

[Epimetheus]

Bitcoin put both positive and negative effects on world economy. Some time it help many people or country to improve their country economy or sometime it is put negative effect. In countries like middle Africa it help their people to solve their economy related problems and also help their government to solve their unemployment issues. In some countries it also put negative affect on their country economy by affecting their country national currency value at international market. Due to its digital in nature its user does not pay tax and Ultimately it affects their country economy.

[131tc01n]

Bitcoin is a digital currency that is fluctuating, sometimes bitcoin has a high value and sometimes low. Bitcoin is the same as we trade in the real world, bitcoin has an economic function that is sometimes profitable and sometimes detrimental, because just like people trade, they are not always profitable sometimes they have to feel losses

[cizatext]

Bitcoin as a decentralized asset has a great function in an economy, bitcoin have serve as a currency with a great value on the exchange market due to it high price against other exchange commodities and currencies such as the euro and U S dollars. And bitcoin also offer us the total financial freedom and help the Economy to grow greatly with it unique function as a secondary currency in the society.

[palle11]

At present, Bitcoin is going down continuously, so is it a deflation?

When bitcoin falls, it doesn't say or means deflation. Deflation is even a term that is strange in the world of bitcoin rather it is used for paper money. However, bitcoin was not created because of the economy but to better individual lives, so I do not see the economy affecting it.

[VivianJacob]

Firstly, bitcoin can be seen as a investment  which is attractive chance for whom want to be rich , secondly,  bitcoin is also a currency , many big company has accepted their customers to pay with it, or some universities allow student to pay fee with bitcoin , That's so cool

[Nhor1011]

    I think the primary function of bitcoin is to give freedom to everyone to earn extra income without control of the government and banks. Also it could help us to have an easy and quick payment system through cryptocurrency. You don't need to go anywhere to pay your bills or buy some goods if you have bitcoin yoy can always use it even you just setting on your chair at your house.

[antonhuda]

    I think the primary function of bitcoin is to give freedom to everyone to earn extra income without control of the government and banks. Also it could help us to have an easy and quick payment system through cryptocurrency. You don't need to go anywhere to pay your bills or buy some goods if you have bitcoin yoy can always use it even you just setting on your chair at your house.

Indeed, what you say is true, the function of bitcoin gives the freedom of every user, without the control of the government and the bank. This makes time and costs more efficient and fast. Bitcoin deserves to be maintained because it has superior and fast-developing functions.

[louie69]

In my understanding, I think that bitcoin has open many opportunity to the people who had supported bitcoin. Bitcoin has provided the people the chance to make payment transaction peer to peer and other payments in electrical bills, water bills, payments in goods and services online using the btc currency. Lastly, btc had helped any countries economic situation such as alleviation of unemployment and underemployment where people could be able to earn profit through their bounty campaign participation.

[Asger223]

Due to the volatile nature of Bitcoin, the main economic function of this coin is to open a door to the general people with a chance to invest and earn. Bitcoin is a cryptocurrency which goes up and down on a regular basis. So, even though the price of BItcoin is low, it should not be considered as deflation.

[ChadHuerta]

Bitcoin is helping the economy since it was launched. I don't think bitcoin acts as a central bank. Yes bitcoin is facing a downfall but this trend will not continue as soon as we enter the bull run.

[boyshx]

It is very odd when you say that bitcoin acts as central bank. Thats very misinterpreted statement about the bitcoin. It is decentralised one by nature and neither any trades, transactions, investments of any other currency (altcoins) depends on it or gets regulated via it. So I am pretty sure that its wrong statement about it and should be corrected. Bitcoin itself is a sphere who has its own economic characteristic. They change, adapt according to the investors, public use, limits, demand etc and thus creates its own economic outputs and inputs. May be there is no currency(ies) which are inter-related here for their economic function, at least I would think that way only.

[agatha90]

The function of bitcoin aside from being a payment tool, bitcoin also makes it easy to make transfers and can be used for long-term investments.

[Jacey Barnett]

The basic economic function of bitcoin is the ability to be used as a remittance of money without the use of traditional banking system. The economic function of bitcoin is opening the door to people to earn extra income. It connects people all through out the world in terms of purchasing items.

[karmapala]

I think that is not a phenomenon of deflation because if deflation the exchange rate will increase while the current exchange rate of Bitcoin continues to fall this may be a market adjustment due to the amount of competition that arises between BTCs with other coins .

[Heidi Farrell]

Crypto is very novel technology. Might we see a central bank one day issue digital units of its currency in crypto form? Could happen. To put this in perspective though, crypto here is just a new kind of paper to print money on. Very clever, novel digital paper, but still just new paper.
Bitcoin as specific implementation of crypto has two basic use cases: a vehicle for speculation; a payments system for grey/black marekt participants looking to evade laws and taxes. As such it is and will always remain a niche item. Currencies are a creature of law, issuing forth from sovereign legal authority. Bitcoin can't challenge or displace them any more than a crowdsourced constitution could overturn established rule of law.