Is Bitcoin the future of the global economy or just another commodity like Gold?

[efiminzer]

So lately I've been thinking about the global financial economy and the way it works. 

During my BA, I had a course with a professor that played a very high role in the central bank of Israel.
I asked him "Is the bank preferring for the day after the economy will collapse?" the answer he gave me was not clear. I saw him struggling to answer that.

But when I examine Bitcoin and other crypto coins, I see it not as a replacement of money, but just as a replacement of the central bank money printing. Because eventually, we'll all look for a place to keep our money safe (a bank) and someone to give us a loan on occasion.

So my question is, is it really the future of the economy? or just the "new gold"? 

[Upgrade00]

So my question is, is it really the future of the economy? or just the "new gold"?  

It is a digital asset, built on a P2P platform, giving holders autonomy over their funds and bypasses the need for a 3rd party. What it has shaped to be at the moment and what it would be in the future depends on lots of factors. Bitcoin is not regulated; so there's no road map or set agenda planned for it. We have Bitcoin improvement proposals which are proposals aimed at improving the network to keep it running efficiently, but not a plan of what it would be in the future.
Whether it would be used as a store of value or a (global) staple currency is yet to be seen and we cannot predict it.
I would suggest you move this thread to the economics board. You can find the option at the bottom left hand of this page.

[BIT-BENDER]

. Because eventually, we'll all look for a place to keep our money safe (a bank) and someone to give us a loan on occasion.

Bitcoin is different. With printed money there is need for storing your money in the bank, but you can store your bitcoin in your bitcoin wallet. And you can seek loan in bitcoin from those in that service.

bitcoin and crytocurrency has greater use economically than printed money

[efiminzer]

So my question is, is it really the future of the economy? or just the "new gold"?  

 and bypasses the need for a 3rd party

but will it really bypass the need? I mean, the need for 3rd party is not a part of any structural need, but a psychological need (fear). People started using 3rd parties as a way to keep their money safe crossing bridges etc in the old days. It wasn't a government need until the public "demanded" that (with actions). Won't it be the same with Bitcoin? people will need to find a way to protect their wallets, and 3rd parties will jump on the opportunity.

BTW, I couldn't find where to move the topic to "economy". Is it possible that you'll screenshot it for me?

[Upgrade00]

but will it really bypass the need?

That's the reason I put that part in italics.
The Bitcoin network is primarily designed to connect individuals and enable then transact directly. But with the growth of Bitcoin and the inclusion of other factors, we have seen a growing number of platforms intended to connect buyers to sellers, streamline the transaction and protect both parties, such as; centralized exchanges, escrows, payment processors etc. If you use any of these, it's no longer a trust less exchange as one needs to rely on the trustworthiness of the exchange, or the escrow provider. 3rd parties have jumped on this opportunity already.

If you want to bypass this, you can use direct OTC (Over The Counter) trades and decentralized exchanges.

[gantez]

But when I examine Bitcoin and other crypto coins, I see it not as a replacement of money, but just as a replacement of the central bank money printing. Because eventually, we'll all look for a place to keep our money safe (a bank) and someone to give us a loan on occasion.

This is really deep and requires a deep reasoning. As for the replacement of the central bank money printing, I will say to that , that blockchain can do that role as one key factor of blockchain is data preservation. But if whether there will be a replacement of central bank money printing, I believe at some point money need to be printed is it is still being in use.

On loan too, bitcoin can be given as loan to be returned for same value as at when received by the borrower and maybe interest too could be added in bitcoin.

[hatshepsut93]

Bitcoin can never be a commodity, commodities by definition have some sort of industrial utility, and Bitcoin was created to be digital money. So, you are comparing very different things when you ask about Bitcoin being a future of global economy, because it has nothing to do with definition of Bitcoin.

As for the first part of your question, it's very unlikely that Bitcoin will become "the future of the global economy", the adoption rate is extremely slow, and governments can easily reduce adoption if they will feel threatened by Bitcoin. But this doesn't mean that Bitcoin is losing or that it is useless, millions of people find it useful.

[DoublerHunter]

^ I definitely agreed to the idea that bitcoin will replace the central bank and not the printed money since cryptocurrency has its own regulations that manage everyone's assets. We may find it decentralized because it is not being controlled nor affiliated to any government institution, having own rules, and implementing regulations already shows that we are already being governed. It also belongs to our instinct that we look for security not only for ourselves but also in all our properties rest assure if printed money will be replaced by bitcoins or any cryptocurrency still people will soon look for an institution that will protect what or how much they own in the crypto world.

[fabiorem]

It was, some years ago. Today its just a commodity.
The correlation with the stock market shows it is just another speculative asset.

This happened after futures contracts were implemented for bitcoin, "legitimizing" it for the legacy (ie, fiat) system. Some people loves this "legitimation" idea, because they gamble in the derivatives markets.

The idea of a digital currency still exists, though, so some other asset might replace it as a coin for daily use. Which one will be, we dont know. Right now there is Bill Gates wanting to implement a global cryptocurrency, using vaccines with nanotransmitters, nanosensors and enzymes for proof-of-work (where the human body will be used for mining), and 5G tracking (including a satellite network).

[hugeblack]

When you hear the word "new gold," this does not mean that it will replace the current gold, but rather it will be a store of value next to gold or a new way to save money, which I do not think will happen unless Bitcoin has gained high market capacities.
The intrinsic value demonstrated by BTC is the possibility of issuing funds away from the central bank’s authorities, and therefore there is no need for the entire “bank-based” financial system to issue, print, and guarantee money.

[carter34]

This kind of question looks like it always show up. Replacing central bank isn't an easy goal. Central bank is an institution that has different role to play in a country and one of them is printing of the country's money. Some other role is regulating the commercial banks and the country's financial system. So if bitcoin replaces printing of money, what about other duties of central bank

[Twentyonepaylots]

When you hear the word "new gold," this does not mean that it will replace the current gold, but rather it will be a store of value next to gold or a new way to save money, which I do not think will happen unless Bitcoin has gained high market capacities.
The intrinsic value demonstrated by BTC is the possibility of issuing funds away from the central bank’s authorities, and therefore there is no need for the entire “bank-based” financial system to issue, print, and guarantee money.

Well the word new does not really mean to replace, it just mean a contemporary thing for another just like bitcoin who is for some considered as the "new gold". But still for me bitcoin is not going to be the new gold or at least a safe haven for storing values simply because it is decentralized, this fact about bitcoin is worth considering by most people who is only here for in and out investment. And I find nothing intrinsic with bitcoin's value whose price is moving over supply and demand. What the governments should think for now is how they are going to attain a bitcoin like centralized asset, it's just easy coz they got almost everything they need.

[Ucy]

Guess you mean "preparing" instead of preferring.
Well, there are couple of bank-like Bitcoin exchanges you could use if you think that bank is safer for you. Bitcoins are better held by their owners. It's good for the network by the way...it helps keep it more decentralized.

[avikz]

So lately I've been thinking about the global financial economy and the way it works. 

During my BA, I had a course with a professor that played a very high role in the central bank of Israel.
I asked him "Is the bank preferring for the day after the economy will collapse?" the answer he gave me was not clear. I saw him struggling to answer that.

But when I examine Bitcoin and other crypto coins, I see it not as a replacement of money, but just as a replacement of the central bank money printing. Because eventually, we'll all look for a place to keep our money safe (a bank) and someone to give us a loan on occasion.

So my question is, is it really the future of the economy? or just the "new gold"? 

"Future of Economy" is too heavy for bitcoin to carry. It doesn't have the power to carry such title and it is absolutely not possible for bitcoin to become the future of economy. Bitcoin simply can't be scaled to that level.

It is great if you see it as an asset/commodity only. It makes it easier for bitcoin to carry and makes sense too!

[silversurfer1958]

I believe that cryptocurrencies are widely accepted in the future by the following advantages. Firstly, cryptocurrencies contribute to the development of cashless payments like the online shopping application at famous companies in the world such as Amazon or Alibaba. Second, cryptocurrencies will help governments save a lot of money on printing out new money and the cost of replacing damaged or old cash.

[mu_enrico]

Let's see the property of Bitcoin:
* Fixed supply;
* Can be used to transfer from A to B without a trusted 3rd party;
* Secure.

That's about it! The system won't lend you money, so you still need lending services that accept deposits, giving interest for such deposits (because of credit default risk), and giving credit score. Oh, it is essentially a bank.

[vaultman]

Bitcoin is not the cryptocurrency of the future, because Bitcoin has too high fees and very long transfers. Today, almost all cryptocurrencies are ahead of Bitcoin in terms of convenience. So, cryptocurrencies are money of future, but not bitcoin.

[bearexin]

Loans are also possible when it comes to the cryptocurrency space, you can take loans from platforms such as Nexo.
The difference is that they are not really the ones that will be offering the loan, I think it comes from people and you will have to give your crypto assets as a collateral for the loans you're taking.

There is really not much difference between the way banks give loans and how it's being done in cryptocurrency. Although recently I have been seeing banks that are rolling out some loans without collateral, it's kind of a mini loan where you start from the lower level and keep increasing.

[exstasie]

Bitcoin can never be a commodity, commodities by definition have some sort of industrial utility, and Bitcoin was created to be digital money.

That's not the definition of a commodity. It doesn't matter why Bitcoin was created. A commodity is simply an economic good that has fungibility. https://en.wikipedia.org/wiki/Commodity

Bitcoin is a commodity. That's why BTC can have futures markets, and it's why the CFTC claims jurisdiction over them.

So my question is, is it really the future of the economy? or just the "new gold"? 

That's difficult to say. It's very much a gold-like asset in terms of its hard money characteristics and it's likely to keep being speculated on as such by the markets. Whether central banks will adopt BTC as a reserve asset is another matter.

[PaySpace]

So lately I've been thinking about the global financial economy and the way it works. 

During my BA, I had a course with a professor that played a very high role in the central bank of Israel.
I asked him "Is the bank preferring for the day after the economy will collapse?" the answer he gave me was not clear. I saw him struggling to answer that.

But when I examine Bitcoin and other crypto coins, I see it not as a replacement of money, but just as a replacement of the central bank money printing. Because eventually, we'll all look for a place to keep our money safe (a bank) and someone to give us a loan on occasion.

So my question is, is it really the future of the economy? or just the "new gold"? 

Bitcoin is a scarce currency and has a fixed supply volume of 21 million. Therefore, cryptocurrencies will remain the means of speculation and nothing more, until a better economical breakthrough occurs.