The economic function of Bitcoin

[Statedapps]

It also experiencing arbitrage in the bitcoin economy.
Especially with the tether crash
https://theblockchaintoday.com/bitcoin-arbitrage-across-countries/

[Douglasyukanov]

The beauty of bicoin is that there is no central bank and no central authority. This is probably why satoshi walked away because he doesn't to take control of what is intended to be a decentralised economy

but many world banks are interested in blockchain technology
but they only use and adopt the blockchain system,

[niko337]

In the early years, many hyped up people in the public used "deflation" as a form of argument.
Actually the utility of bitcoin or any other cryptos doesn't actually create a deflation, it follows inflation and "correct" it with new variables in the equations so the economy remain simple but more tech-influenced.

It is also a way to earn extras into a user's pocket as well. It has the ability to create a new economy by itself if adoption increast to about 10% world population. That is what banks and central banks are afraid of.

I agree. currently the data on bitcoin users is only about 1% of the world population. we can imagine if it increases by 10x, of course this should be anticipated by the government so that it does not cause turmoil

Meanwhile, governments are frantically coming up with regulations so that they will not to be "circumvented" and still have taxes to levy on. They should be seeing crypto as a great disruption to their reserves... since most of the reserves don't really have real money ever since the paper currencies are no longer backed by gold. 😅

[LieTOme]

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.

maybe what you say is true that bitcoin is an economic function that uses the times and of course the development of technology is also practically fast and efficient that is needed, someday in the future it will use digital facilities

[zoeylee]

I think it about the used of blockchain technology, With regards to the advancement of technology people are accessing over the internet to purchase product online with a transparent transaction.

[sambel90129]

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.

One of the added values of the bitcoin currency is to make it easier for business people, especially trade between countries that usually always use dollars, with bitcoin we don't need to exchange our money anymore this can avoid the possibility of inflation, the second bitcoin The advantage can make it easier for tourists to visit our country. we don't need to complicate with money that must be exchanged first, this makes it very easy for traveler to attract tourists, so that is a lot of added value for bitcoin for the country if the country facilitates crypto currencies ..

[Ranly123]

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?

Central bank you say? How could it be a bank if it's just a currency? Maybe we have different definition on Bitcoin but it would be easy to say that we use Bitcoin as a means of payment in online transactions and in an exchange of other cryptocurrencies.

[Indrawan77]

Bitcoin decentralised really gives the economic a change of system, we usually used centralised transactions system now we can choose when we make transaction, bitcoin and crypto actually can disrupt the economic if being used too much, crypto got value because of the supply and demand, not the same with fiat, fiat value is given and control by the government, bitcoin still affect economics in a small scale

[kokobaba880]

With crypto inflation can be minimized like people can keep their money in crypto and with this the fiat is also controlled so the extra money can not be printed so money devaluing is decreases ultimately the economic situation is good.

[Willarrmay]

The beauty of bicoin is that there is no central bank and no central authority. This is probably why satoshi walked away because he doesn't to take control of what is intended to be a decentralised economy

This is a good question and it has so many economic phenomenons revolving around it like the reduction of costs, the decline in the transaction costs and the up gradation of the existing banking system to the next level.

[shinharu10282016]

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?

> Talks about central bank and bitcoin. The very problem about central banks is centralization whereas bitcoin decentralizes all transaction, it cannot be manipulated like what the banks are doing and the number of bitcoins created is only up to 21million. The banks can do so much more but they won't because they know hyperinflation is a problem.

it is not deflation but correction. And most importantly, its the whales doing it for their Christmas shopping spree. LOL

[yitzjoe]

the limited supply of bitcoin will further alienate a country from inflation because there is no policy to make new money that can cause inflation with a smaller value each year. supplay remains bitcoin with the increasing number of requests from users this will increase the value of bitcoin, and this also applies to other altcoins.

[chrisculanag]

Bitcoin is very useful in economic because of the blockchain we can transact our bitcoins such as paying bills , trading assets  and most important of all is remittances.  If every countries still accepting and promoting bitcoin as a partner , i think bitcoin will go up again because of the investors and the good news of bitcoin in every countries.

[supermine]

Bitcoin is not like central bank,it is bank on our hand so we can make transaction if we want but its value only depends on about its acceptance and demand so it will have value until it been transacted and used by the people and as you said there are chance for that bitcoin go worthless even satoshi said that statement so use it at your own risk because it is decentralized and highly manipulated.

[fulmetal08larz]

The economic function of Bitcoin is the technology behind it whether the public will adapt and accept the innovation then utilize it for goods and services, and merchants to accept is as another option for mode of payment. I do not believe that what's happening is some kind of deflation. It actually showed its true value which was predicted at last year's price by end of 2017. Give it time to recover, slowly but surely.

[coingrave]

The reason I'm interested in bitcoin is that it's a marvelous medium of exchange, but a terrible store of value and an even worse unit of account.

One of the most revolutionary things about bitcoin is that it challenges some of our ideas about what is money.  For example, why *does* the medium of exchange have to be the unit of account or a store of value.

[darewaller]

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.

maybe what you say is true that bitcoin is an economic function that uses the times and of course the development of technology is also practically fast and efficient that is needed, someday in the future it will use digital facilities

The main function of bitcoin is to serve as a payment means which in this case a P2P payment without a third party and where you can be your own banks. We all know as a respect of that, a lot of people will have the freedom to do things without being hindered and the freedom to spend what they have.

Believe me, when it comes to using the banks, they have practically enslaved us over the years, tell us how much we can spend, change policies however they like, rip from us without any apology, have issues when it comes to making international transfers among many others and all these put together is what the crypto space is going to be solving and that is one great economic importance as far as I am concerned.

[PlusOne88]

There are so many ways bitcoin can be used aside from its main purpose of using it as a payment system. It can be used as a means to transfer money and or use it as if a real currency to buy food and other supplies. Yet even with all these functions bitcoin was unable to go up in value and started to move down. This is simply because the rise in value was almost artificial due to a sudden rise among investors holding the coin without a real purpose. Due to an unfavorable market people started dropping their interest as they are driven by too many FUDs and failure of bitcoin price to move up.

[wuvdoll]

Meanwhile, governments are frantically coming up with regulations so that they will not to be "circumvented" and still have taxes to levy on. They should be seeing crypto as a great disruption to their reserves... since most of the reserves don't really have real money ever since the paper currencies are no longer backed by gold. 😅

They have not even seen a thing yet, because I am sure as things are going, there is great possibility of seeing the market even grow bigger than this, and in that case obviously, they will feel even more threatened. Regulation as it is will be their main savior in the long run, but my hope is that they get to be lenient about it, most especially for the developed countries.

As the technology keeps developing and we get to start seeing real life usage the more, there is the obvious part of seeing the market serve a great function in the payment sector most especially when it comes to sidelining the banks for international transactions, which is already happening anyway.

[tadpole_bitfrog]

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?

I think like you. The value of the currency is depreciating but it is only a small influence. I think most of the time the whale wants to adjust the price of Bitcoin to make investors anxious and sell off.