Is Bitcoin good for the economy?

[ufaiz50]

Bitcoins have three useful qualities in a currency, according to The Economist in January 2015: they are "hard to earn, limited in supply and easy to verify". Economists define money as a store of value, a medium of exchange and a unit of account, and agree that bitcoin has some way to go to meet all these criteria.

Isn't it if limited supply will cause scarcity, I mean there must be a condition where some people lose their bitcoin. as far as I know in terms of the economy of bitcoin it's not very good and has different things than fiat. in the government economy there are also specific things that govern the amount of money and the economic conditions of the government.

I do not know about the quote and the source of the quote that you share it.

[Google+]

who is that economist and why only on the year 2015 ?  what about older than that year and newer than that  year  ?   .btc is not hard to earn but its easily obtainable  . limited supply yes 100 percent correct but easy to verify  ? no i dont think so  .  but i agree on the other three uses of bitcoin mentioned above  . bitcoin is  useful so yes it is good for the economy  but depends also on the country because some are against with this bitcoin  . why they cant wake up and accept the truth that bitcoin is good  .

maybe according to the OP when in 2015 the price of bitcoin was still very cheap and he was late to buy bitcoin and doubted the supply of bitcoin which was already valid was only 21 million pieces of bitcoin with high demand that could make the price very expensive.

well I am a little doubtful about good bitcoin for the world economy because in my opinion when the price has become expensive and when it is very difficult to get bitcoin then the price will be expensive and shipping costs will also increase so that it will make people think when they want to make transactions using bitcoin.

[mersal]

Bitcoins have three useful qualities in a currency, according to The Economist in January 2015: they are "hard to earn, limited in supply and easy to verify". Economists define money as a store of value, a medium of exchange and a unit of account, and agree that bitcoin has some way to go to meet all these criteria.

Making money depends on individuals,if one knows how to earn money then its easy for them to acquire bitcoin in matter of minutes so it all depends on their skills.And its easy to transfer as well,some say not every corner of this world has internet access so bitcoin is not the right thing to be accepted as currency.But to be honest before 10 years we now uses internet for everything and still getting adopted by people from remote corners so in few years internet availability won't be a problem.

Then the important one storage of value, which might lacks in bitcoin because its highly volatile but every currency in this sector broken their promise with inflation climb up every year.

[Naz_Meeds]

definitely yes,cryptocurrency is a secure easy and cost effective way to perform payment which is providing by a modern technologies,the process is suitable for trading and  investing digitally because of their potential investment programs,i guess the economy were grow by gathering information from a multiple networks which is considered as a legit and authentic profit way to earn secondary income

[deisik]

Bitcoins have three useful qualities in a currency, according to The Economist in January 2015: they are "hard to earn, limited in supply and easy to verify". Economists define money as a store of value, a medium of exchange and a unit of account, and agree that bitcoin has some way to go to meet all these criteria

A unit of account is the primary function of money

Conceptually, money itself can be defined as a dimensionless (i.e. with no physical measure assigned to it like length, weight, time, etc) valuation system. Then such functions as a store of value and a medium of exchange emerge when we are dealing with the instantiation of this system in its particular form (e.g. fiat money). In other words, they are derivative functions that come about as soon as money takes a concrete form   

But while Bitcoin can be used as money, we still can't consider it a full-fledged currency in and of itself for the simple reason it lacks the property of being used as a unit of account in real life. Till now, it is no more than a payment system and a proxy medium (token) for such currencies as the US dollar, Euro or whatever. And this is its current economic role, good or otherwise

[White Christmas]

Bitcoins have three useful qualities in a currency, according to The Economist in January 2015: they are "hard to earn, limited in supply and easy to verify". Economists define money as a store of value, a medium of exchange and a unit of account, and agree that bitcoin has some way to go to meet all these criteria.

Yes bitcoin has a long way run in order to meet those criteria which is those three, but the fact that bitcoin has the criteria of hard to earn in which it is very hard to earn 1 bitcoin because the value of it is kind of high and we also know that bitcoin is only have a limited supply meaning there is only a few of bitcoin that is revolving all over the world the thing is, bitcoin and other cryptocurrency are almost there we just need to wait in order to see what it can do to the economy of a country. And because of that we can say that bitcoin is really good for the economic growth of a said country.

[Lynfax]

Bitcoins have three useful qualities in a currency, according to The Economist in January 2015: they are "hard to earn, limited in supply and easy to verify". Economists define money as a store of value, a medium of exchange and a unit of account, and agree that bitcoin has some way to go to meet all these criteria.

Yes bitcoin has a long way run in order to meet those criteria which is those three, but the fact that bitcoin has the criteria of hard to earn in which it is very hard to earn 1 bitcoin because the value of it is kind of high and we also know that bitcoin is only have a limited supply meaning there is only a few of bitcoin that is revolving all over the world the thing is, bitcoin and other cryptocurrency are almost there we just need to wait in order to see what it can do to the economy of a country. And because of that we can say that bitcoin is really good for the economic growth of a said country.

Imo bitcoin lacks of 1 highly needed quality of currency is usability. At this point bitcoin is volatile and so is a thing to gamble around, so its not a good investment either

[FanEagle]

I believe there could be a space carved up for bitcoin, we could make the economy work with bitcoin helping close the gap as well.

Bitcoin is a technological improvement on what we already have right now, centralized currencies are giving only few people some power and we do not want that, nobody really wants that, however with bitcoin everyone has the power or at least we say it like that yet when you think about it if world powers get together they could completely destroy bitcoin as well.

If China and USA alone just decided to ruin bitcoin they have enough money and power to just spend billions of dollars into research and then attack bitcoin together in a coordinated way to destroy it, they may make some people very very rich along the way but at least they could destroy it. So, we have to learn to coexist or the future doesn't look bright.

[Stedsm]

I believe there could be a space carved up for bitcoin, we could make the economy work with bitcoin helping close the gap as well.

Bitcoin is a technological improvement on what we already have right now, centralized currencies are giving only few people some power and we do not want that, nobody really wants that, however with bitcoin everyone has the power or at least we say it like that yet when you think about it if world powers get together they could completely destroy bitcoin as well.

If China and USA alone just decided to ruin bitcoin they have enough money and power to just spend billions of dollars into research and then attack bitcoin together in a coordinated way to destroy it, they may make some people very very rich along the way but at least they could destroy it. So, we have to learn to coexist or the future doesn't look bright.

It isn't only in the hands those big anti-Bitcoin bodies to destroy BTC but those bigger wallets. Did you ever think what will happen when the day comes and Satoshi ever decides to dump all his BTC? Worst nightmare, eh?!? But that's not gonna happen because he loves BTC, same way everyone holding BTC and not dumping it have some specific reasons why they are not yet out of the game. Bitcoin is not just good for the economy, but it should also become a part of economics and should be taught as a subject that how something too small, became large to such an extent that even the destroyers are not willing to destroy it because they are reaping the real benefits of Bitcoins - that's the power of Satoshi's fantastic creation.

[hahay]

About 'hard to earn' I think it is something that might be wrong because bitcoin has become easy to earn in the current era because with its continued growth of course the ease to earn bitcoin can be proven now, the government in this case has indeed become an important part because with the regulations that he has made at least nowadays many countries have legalized bitcoin, so that bitcoin is good for the country's economic growth because bitcoin is very useful to be owned and used for transaction and investment purposes.

[airdnasxela]

I don't get the main point of this but bitcoin is indeed good for the economy if it's being used in a proper way. Having Bitcoin circulating in an economy is good enough but it's a subjective answer depending on the person if they find bitcoin useful. For me Bitcoin is useful and it's a good contribution to the economy. I also agree that Bitcoin have meet some criteria for it to be considered as a currency but one thing I've noticed is the statement about Bitcoin being hard to earn. If you will think of it, bitcoin isn't that hard to earn. You just need to invest or work for it and it's the same for paper money. But if you look on the other side, both bitcoin and paper money are hard to earn. You can't just gain it without putting efforts. However in general, Bitcoin itself isn't hard to acquire if you want to.

[redsun114]

Bitcoins have three useful qualities in a currency, according to The Economist in January 2015: they are "hard to earn, limited in supply and easy to verify". Economists define money as a store of value, a medium of exchange and a unit of account, and agree that bitcoin has some way to go to meet all these criteria.

Bitcoin is very good and we all love t due to how it is; from being easy for making transaction, not being manipulated by the government and also having to pay lesser fees for the transactions you carry, that’s really cool. But, I have once been in a conversation and the conclusion we came to was that Bitcoin becoming the world currency might be disastrous for the economy. Fiat might not be something we like due to several reasons from being controlled by the government and other reasons, but still it has features that makes it seem better.

According to a research, most of the Bitcoin transaction is by people who are using it for illegal purposes, and by doing so they are able to hide from the government. The Bitcoin system can’t be controlled by the Central bank as they do with fiat, that means there’s no way to deal with financial crisis, manage business cycle, etc.

[Shasha80]

It's true that bitcoin is good for helping the country's economy grow. Because bitcoin can be used to make money, then I don't agree if
bitcoin is hard to earn. Not only can it help to make money, bitcoin can also be used for payments like the function of currencies in general.
The current obstacle is that the government cannot control bitcoin so it is very difficult to make bitcoin is legal in some countries.
But I believe that sooner or later bitcoin will be legalized in all countries, if users it continues to grow.

[TheUltraElite]

Imo bitcoin lacks of 1 highly needed quality of currency is usability.

Bitcoin is usable as soon as it was created. What you speak of is lack of merchants accepting bitcoin and this will not increase unless something more lenient approach is done by governments. The fact that bigger companies dont like crypto is evident here. So it is better not dwell on that thought and use bitcoin as much as you can without hoping for more "uses" than speculation.

At this point bitcoin is volatile and so is a thing to gamble around, so its not a good investment either

Prices did not change much last 2months. It has been between 10k to 9k USD and is pretty stable if you consider buying something worth a 100$ price tag. The "too volatile" is a phrase used by nocoiners to take people away from crypto. A 5-10% swing in price will not have significant changes in your expenses provided you are not spending in the order of millions.

[elisabetheva]

It's true that bitcoin is good for helping the country's economy grow. Because bitcoin can be used to make money, then I don't agree if
bitcoin is hard to earn. Not only can it help to make money, bitcoin can also be used for payments like the function of currencies in general.
The current obstacle is that the government cannot control bitcoin so it is very difficult to make bitcoin is legal in some countries.
But I believe that sooner or later bitcoin will be legalized in all countries, if users it continues to grow.

agree, after the growth of bitcoin many countries that can accept bitcoin have positive impacts. because inevitably that bitcoin can help the economy that follows. and countries that have legalized will also get direct contributions from taxes and indirectly become foreign exchange earnings. indeed, the constraints of each country are different, therefore there must be regulations that must regulate it. obviously bitcoin really helps lift the economy.

[Janation]

I think it will not be the same as money.

As the Bitcoin that we have now, it is a store of value, well it depends on how that person look at it. A lot of investors are holding it thinking that it will be something good to sell in the future. If that will always be the case with it, I don't think it would be as good as you think of in the future. It will be expensive probably but not be something that could be used in the country regularly.

[bitbunnny]

This is hard to answer because Bitcoin isn't formaly part of any economy system in any country.
It's not regulated as such, it's not formaly used by businesses and industry so it's hard to estimate what is the actual effect on economy.
I can say that it can help on an individual level because persons who are involved in Bitcoin trading or any other Bitcoin business can definetely benefit from it.

[deisik]

This is hard to answer because Bitcoin isn't formaly part of any economy system in any country.
It's not regulated as such, it's not formaly used by businesses and industry so it's hard to estimate what is the actual effect on economy

But it doesn't make this effect less real, right?

I can say that it can help on an individual level because persons who are involved in Bitcoin trading or any other Bitcoin business can definetely benefit from it

And that's the exact reason why Bitcoin is necessarily part of any economy, formal or otherwise. The economy at a nation level is an abstract concept represented by the public sector, businesses, households, and individuals. So even if the public sector is not involved in cryptocurrencies, the fact that people can benefit from them is as important

And let's not forget that there are many ways Bitcoin and cryptocurrencies can affect the economy. These ways can be direct (should be self-explanatory) or mediated. For example, people who are going to collect as many bitcoins as possible are likely to have less fiat in their stashes, so more fiat ends up circulating

[sisule]

Bitcoin good for economy because can increase how many people get much profit from investing in bitcoin and altcoin, now how many people could manage profit with bitcoin and altcoin as their investment way.

[NavI_027]

Bitcoins have three useful qualities in a currency, according to The Economist in January 2015: they are "hard to earn, limited in supply and easy to verify". Economists define money as a store of value, a medium of exchange and a unit of account, and agree that bitcoin has some way to go to meet all these criteria.

Is it good to economy? For me it really is . In my perspective, since I can be able to uplift my financial status through the help of it then it only means that I am not a burden in our society. Since I'm not a burden thus I maybe considered as productive and healty part of our country; and if there will be many existing individuals who got the same story like me then it definitely means a good economy (I hope you got my point tho).

That's why I really wonder why some government (not ours, fortunately) really hate crypto. How sad that they just see the bad side and disregarding the bright side .