The economic function of Bitcoin

[guoyu78]

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

To me it has always been the ease of use. I have always supported the fact that bitcoin is a great way of paying someone. I try to pay people with bitcoin and I try to get paid in bitcoin whenever I work, that is my number one option to be paid in. That way it takes almost no time compared to bank payments. Now you may think bank payments are easy and you just click some bank app on your phone to send money to someone and you are done but you are thinking just local.

I mean bitcoin makes that happen on a huge global scale. Someone from USA can send money to someone in nigeria (probably a nigerian prince for example) and it will take just couple minutes at most to arrange that. Yes there are some other things that makes bitcoin amazing but the ease of use will always be my number one reason.

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[forked human]

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

To me it has always been the ease of use. I have always supported the fact that bitcoin is a great way of paying someone. I try to pay people with bitcoin and I try to get paid in bitcoin whenever I work, that is my number one option to be paid in. That way it takes almost no time compared to bank payments. Now you may think bank payments are easy and you just click some bank app on your phone to send money to someone and you are done but you are thinking just local.

I mean bitcoin makes that happen on a huge global scale. Someone from USA can send money to someone in nigeria (probably a nigerian prince for example) and it will take just couple minutes at most to arrange that. Yes there are some other things that makes bitcoin amazing but the ease of use will always be my number one reason.

I do agree with the economic importance of Bitcoin and that it has been one great coins in the market do far but economists who formulate policies call it a poison for the economy of any nation and that is the reason this is banned in my country.

[NoobyIntellecutual]

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.

Whales always have an idea and plan to earn more profits. They usually don’t care about what would happen with others’ profit. Since they have control over market, they can do much.

[yusupjatigumilar]

I think bitcoin cannot be equated with stock market activities because both have different forms and characteristics, if in the past the price of apple shares was only 2 $ and has now increased to several times because the products produced by Apple are in great demand by the public, moving the supply and demand balance and make prices move up, while bitcoin is not the case, there are no products produced because bitcoinlah the products produced are many factors that influence price movements besides supply and demand such as halving day and hardfork

[fasdorcas]

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

To me it has always been the ease of use. I have always supported the fact that bitcoin is a great way of paying someone. I try to pay people with bitcoin and I try to get paid in bitcoin whenever I work, that is my number one option to be paid in. That way it takes almost no time compared to bank payments. Now you may think bank payments are easy and you just click some bank app on your phone to send money to someone and you are done but you are thinking just local.

I mean bitcoin makes that happen on a huge global scale. Someone from USA can send money to someone in nigeria (probably a nigerian prince for example) and it will take just couple minutes at most to arrange that. Yes there are some other things that makes bitcoin amazing but the ease of use will always be my number one reason.

The biggest help is always known easy money transfer. You can transfer millions of dollars for pennies and still have a more trustworthy blockchain behind it compared to any other method we have right now. There are even loans written on blockchain in order to make it more permenant and easily checkable right now because bitcoin and blockchain is amazingly easy to use even at a scale.

Of course this comes with a price, the function is amazing but people have been using crypto in a way that they can make money and profit from these moves instead of taking advantage of these functions. Bitcoin could have been a system for money transfer globally but instead since it is such a great project it turned into a commodity and have been like that for a while. Hence lost its function along the way since it is not used properly.

[yitzjoe]

the bitcoin that you have is your own bank and at that time there was no need for third parties to make transactions, exchanges and others, you only need a wallet and internet connection to do that. bitcoin and most crypto have a fixed amount of supply and this will be interesting when demand increases and automatically the price of bitcoin will increase because it is indeed like economic law.

[mersal]

If something needs to be called as currency then it have to act as perfect medium for transaction currently the Fiat money doing that but it is not a perfect system because the value of Fiat money keep losing due to inflation.so we have Bitcoin it also keep changing the value but depends on the market condition not based on the increase in the supply.

[HELLOFF]

if Bitcoin will be used as a means of payment, at least its price should become stable.  But all users of cryptocurrency today earn with the help of Bitcoin and Isaev volatility.  There may be a conflict of interest and therefore the realization of all the hopes of many Bitcoin users are in a difficult situation.

[iMark]

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

To me it has always been the ease of use. I have always supported the fact that bitcoin is a great way of paying someone. I try to pay people with bitcoin and I try to get paid in bitcoin whenever I work, that is my number one option to be paid in. That way it takes almost no time compared to bank payments. Now you may think bank payments are easy and you just click some bank app on your phone to send money to someone and you are done but you are thinking just local.

I mean bitcoin makes that happen on a huge global scale. Someone from USA can send money to someone in nigeria (probably a nigerian prince for example) and it will take just couple minutes at most to arrange that. Yes there are some other things that makes bitcoin amazing but the ease of use will always be my number one reason.

I do agree with the economic importance of Bitcoin and that it has been one great coins in the market do far but economists who formulate policies call it a poison for the economy of any nation and that is the reason this is banned in my country.

Bitcoin is like giving a very simple option for financial transactions, reducing large transaction costs, can be used anywhere and
anyone. the function of bitcoin is very good for the economy, and maybe the role of bitcoin will be more vital in the future.

[NathanJB]

I don't think so. It is not deflation in that it is a normal movement. It is not really falling as falling. The rise and fall is not something that you should be treating in smaller time frames. It is unlike prices which are rising steadily the value of fiat currency which is also falling steadily. The price of Bitcoin is rising and falling depending on the demand. It may be low today but really high tomorrow and vice versa. But if you look at the bigger picture, the line is really going upward.

[BennyK]

Bitcoin has got numerous economic functions. Among them includes the feature which makes Bitcoin to be considered as a store of value. With this, BTC can be transferred across the globe with ease in order to purchase goods and services in shops that accept it. Also, Bitcoin is considered as an asset, hence it can be bought, stored for years and transferred to younger generations to be inherited. Bitcoin also provides job opportunities such as crypto mining, crypto merchants, bounty hunting etc.

[MadeinCoin]

I don't think so. It is not deflation in that it is a normal movement. It is not really falling as falling. The rise and fall is not something that you should be treating in smaller time frames. It is unlike prices which are rising steadily the value of fiat currency which is also falling steadily. The price of Bitcoin is rising and falling depending on the demand. It may be low today but really high tomorrow and vice versa. But if you look at the bigger picture, the line is really going upward.

Right, this is not a deflation. Last year's bitcoin decline I think is because bitcoin has reached its saturation point so the price will bounce down and look for the lowest saturation point. This is normal when the price of bitcoin is high at the end of 2017 then everyone will sell it, of course there will be a massive dump.

[hahay]

The economic function of bitcoin for each country it could help to decrease the unemployment people and they can earn money and fullfill their financial problem in the family through bitcoin, the economy of that country will grow with the help of bitcoin because they can work into bitcoin if you have an internet access.

I think bitcoin is not a full time job, so even though there are many people who produce from bitcoin but basically they don't have a permanent job which means they are unemployed, but with bitcoin they are able to earn income which of course will increase the economy of some residents who are aware of bitcoin.

[cosmofly]

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 don't really understand your last sentence. Bitcoin is going down constantly, are you talking about its price or its supply is getting more and more limited?
If you talk about supply, it is really a deflationary mechanism that Satoshi really desires when creating bitcoin.
For this reason, supply is limited so many countries are watching Bitcoin as a solution to inflation growth too quickly.

[sana54210]

if Bitcoin will be used as a means of payment, at least its price should become stable.  But all users of cryptocurrency today earn with the help of Bitcoin and Isaev volatility.  There may be a conflict of interest and therefore the realization of all the hopes of many Bitcoin users are in a difficult situation.

Even with its current volatility, it is still partially very useful for payment for both receiver and sender. People still use it for payment, I still receive it as payment for salary, but the only thing is that once it is tied to salary, I quickly remove it because of its volatility. I could wake up tomorrow now and found out that the value had dropped, ad at the same time, it could be in my favor when the value increases more than what I was paid.

It is still yet to achieve this goal completely though, because this is the major reason why satoshi set up this digital payment system, but its volatility is making it less use or its purpose, but we all know that it will surely get to a point where bitcoin will become a stable coin naturally and then, it will fully accomplish its mission or its creation.

[zergenyt09]

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?

Bitcoin has given people the freedom to do whatever they want without exposing their identity. Yes people say that the Blockchain is open and you can see everything, but the real truth is that you’re seeing nothing. You’re only seeing addresses showing how much that were transacted but you’re not seeing who made the transactions, you don’t even know their location not to talk of knowing who those people are. So this is not transparency in any way. Though I saw news recently that the government are going to make exchanges to start requiring ID from those exchanging up to $1000 worth of crypto, but I think this is only going to work if you’re using centralized exchanges.

[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?

but it is not stable for long time that is the positive thing from the Bitcoin if we think that Bitcoin going down then suddenly it will grow up and the situation is happening many time so that we need to wait for the decision making if you take good decision then it will give loss in some times

I think it is stable enough though. My reason? Its because it doesn't favor those who have large amounts to take advantage of being rich in fiat money at all. Since people are occassionally going in the market, we can only see a part of the people who are having these Bitcoins get rich 'slowly' not entirely destroying the current wealth proportion of the world's economy especially in cryptocurrency.

[beerlover]

You do not need bitcoin to be stable to actually buy or sell stuff, I mean the buyer and seller agrees on a price that is purely bitcoin worth or they peg it to dollar like most do and then both sides takes the risks and rewards.

Pizza example comes in handy in these situations, someone sold 2 boxes of pizza for 10 thousand bitcoins and both of those people agreed that it was in fact a good deal at the time, the person that got 2 boxes of pizza and paid 10k bitcoins for it must be feeling bad right now but at the time he thought he was doing something easy and he was right, he just sent 10k bitcoin with a single click and got 2 boxes of pizza which is amazing. So long story short you can't look at bitcoin at what price it will be, you have to look at it how much it is, if you see it only as an investment deal then you can never spend it ever.

[Genamant]

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.

i agree and aside from it the fact that it gives profit to stay at home wives and jobless people that normally has nothing to contribute
to the financial aspect of their family , now being unemployed is now not a hindrance to contribute financially it has also made a contribution as well
i guess to the economy system.

[fullhdpixel]

You do not need bitcoin to be stable to actually buy or sell stuff, I mean the buyer and seller agrees on a price that is purely bitcoin worth or they peg it to dollar like most do and then both sides takes the risks and rewards.

Pizza example comes in handy in these situations, someone sold 2 boxes of pizza for 10 thousand bitcoins and both of those people agreed that it was in fact a good deal at the time, the person that got 2 boxes of pizza and paid 10k bitcoins for it must be feeling bad right now but at the time he thought he was doing something easy and he was right, he just sent 10k bitcoin with a single click and got 2 boxes of pizza which is amazing. So long story short you can't look at bitcoin at what price it will be, you have to look at it how much it is, if you see it only as an investment deal then you can never spend it ever.

You are right, and this is the reason why we cannot continue to see bitcoin has an investment deal, we have to continue to see bitcoin for what it was created for, which is for payment and now that the market is still volatile, the best for both party would still be to work with fiat, I mean when a receiver receives payment for bitcoin, he has to convert it to fiat immediately so he does not lose the value when the price goes down.

This brings me to the first part of your statement, we still need bitcoin to be stable in other for it to become fully useful for buy and sell. We have all been clamoring for global digital coin, and some even believe it could replace fiat, how would something you cannot keep in your wallet replace fiat? It is only when bitcoin is stable that a merchant can confidently store it in his or her wallet without the fear of getting a lower value in return the next day he wakes up to his wallet.