The Role Of Bitcoin Growth To Economic Development And Inflation.

[Issa56]

Bitcoin has been in existence since 2009, with only a few holders. At that time, few people knew about bitcoin and had no idea what the future held for it. However, as more people learn about bitcoin and adopt it, the price gradually rises. Bitcoin is currently the most popular digital currency. Bitcoin has altered the lives of many people; it has made many people wealthy, and it has helped to abolish poverty to some extent.
These, I feel, are some of the characteristics that distinguish bitcoin:
1. Bitcoin is a digital currency, which means it is stored online. You don't need a room or a bag to store your wallet; you can easily store it online and recover it using your private key.
2. Portable. Bitcoin is not like fiat money in that you can carry any quantity of bitcoin with you anywhere you go without anybody knowing, however if you have fiat money, people will easily notice.
3. Payment method: Bitcoin is presently accepted as a payment method in some parts of the world, and some businesses are already using it to pay their employees.

Bitcoin's growth have benefited most countries since investors are increasingly turning to cryptocurrencies. Currently, investors regard bitcoin as a form of inflation protection.
- Bitcoin encourages international transactions while also making them simple. You can send bitcoin to anyone in the world using only your mobile phone.
- Unlike fiat currency, where transactions must first be accepted in a bank, bitcoin transactions do not require the involvement of a middleman. As a result, most banks are hostile to bitcoin, which is attempting to eliminate bank services.

- Financial investment alternatives Bitcoin has aided the economy's growth because most people and investors have switched to cryptocurrencies as a form of alternative investment.

Inflation is defined as an increase in the price of products that occurs when there is an excess of currency in circulation.
Currently, the government prints an excessive amount of money, resulting in a large amount of currency in circulation, which can lead to a decline in currency value, which can lead to inflation in a country. Bitcoin can withstand inflation because of its limited quantity; there are only 21 million bitcoins in circulation, which is quite constrained.
Over the years, as inflation grows, so does demand of bitcoin grows with corresponding increase in price of bitcoin as a result of limited supply. Bitcoin price growth has an impact on inflation. If you store currency in your bank and the price of products rises, your money remains stable and does not rise; however, if you own bitcoin and inflation rises, the price of bitcoin rises as well.

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[Ucy]

Ofcourse, its anti inflation feature makes it a better store of value considering that value can debased by excessively/unnecessarily printing like what  happens in fiat currency world. So it works like a good currency should and helps preserve value rather than reduce it. That's probably what decentralized scarce/hard-monies did in the old time.

[Hydrogen]

All things being equal. A person can look at the chart for an inflationary currency like the US dollar. Trace the line of its declining purchasing power. And perhaps reasonably expect deflationary assets like bitcoin to follow the inverse opposite trend.



Of course these observations apply only to natural market mechanics and do not include political narratives or agendas, which can also exert an influence on price.

I don't remember there being many experiments or pilot programs involving deflationary assets. The closest thing we have to compare them to could be limited edition collectibles, which have followed a natural trend of price appreciation over time. Limited edition collectibles and artwork like the Mona Lisa or Mickey Mantle baseball cards generally do appreciate in value over time as deflationary assets. Perhaps we can expect deflationary assets in crypto to maintain the same trend.

[Trojane]

Many countries are already against bitcoin..
But in turns,it is enriching others and its citizens
It is slowly taking over the world's economy and needs the world's recommendation and solidarity
Trojane💎

[magneto]

I genuinely think that in the long run, there should be a causative relationship going from inflation to bitcoin price.

Fact of the matter is that bitcoin is a store of value for the long run, as proven by its explosive growth over the last decade. And given its fixed supply, and its status as a global store of value now, there is no doubt in my mind that it will act as a hedge.

And when development in the fiat economy stops, keep an eye on for these exciting crypto projects that are popping up right now that are shielded from the effects of the fallout.

[Princejebs]

Many countries are already against bitcoin..
But in turns,it is enriching others and its citizens
It is slowly taking over the world's economy and needs the world's recommendation and solidarity
Trojane💎

Your first statement use to be then, not now. The only countries that is still against bitcoin are the little countries who has no or little knowledge about it or those that are govern by tyrant. It's very unfair to bias to people about what they choose to invest in, it is not by force to be constrain in a traditional finance, I know they always claimed that are protecting their citizens against activities that will protect them from investment that will harm them but are always over doing it.
Bitcoin has always prove to be the best form of investment that doesn't need too much lecture and protocols.

[CryptoBuds]

At that time, few people knew about bitcoin and had no idea what the future held for it.

If you consider it as Blockchain network then it wasn't new, and purpose is also known to all IT people. it will take time to adopt new things when you have a strong rival.

Bitcoin is currently the most popular digital currency. Bitcoin has altered the lives of many people; it has made many people wealthy, and it has helped to abolish poverty to some extent.

It was from the beginning, it is in present and as well it will more popular and life dependent asset in future.

These, I feel, are some of the characteristics that distinguish bitcoin:
1. Bitcoin is a digital currency, which means it is stored online. You don't need a room or a bag to store your wallet; you can easily store it online and recover it using your private key.
2. Portable. Bitcoin is not like fiat money in that you can carry any quantity of bitcoin with you anywhere you go without anybody knowing, however if you have fiat money, people will easily notice.
3. Payment method: Bitcoin is presently accepted as a payment method in some parts of the world, and some businesses are already using it to pay their employees.

You just missed the principal one, Bitcoin is Decentralised you don't have to rely upon any 3rd party to control/regulate your funds. Your keys, your funds, and only you are the controller, Just F**K the banking system.

Inflation is defined as an increase in the price of products that occurs when there is an excess of currency in circulation.

Inflation may also occur when the demand for products exceeds the production capacity, when production cost increased higher, and when your buying capability decreases.

Bitcoin can withstand inflation because of its limited quantity; there are only 21 million bitcoins in circulation, which is quite constrained.

21 million limited supply is also a matter of concern. what will happen when all 21 million circulating supply will be mined? Will supply increase Or will the miners be rewarded in a new way!

If you store currency in your bank and the price of products rises, your money remains stable and does not rise.

Actually not work like this, People are searching for a safe haven asset to store their funds cause the purchasing power of the US dollar is decreasing day by day, It doesn't remain stable. Nowadays everyone is very concerned about it.

[Darker45]

I share with you that Bitcoin is somehow treated as a refuge from the inflationary fiat. But we also have to take note that inflation is intentionally integrated into the current economic system because it provides the impetus for demand and therefore drives up the economy.

With the current status of Bitcoin, I highly doubt it could support a country's economy. People might end up spending the least amount of Bitcoin possible. They would rather hoard it than spend it. With that, consumption could be reduced to the bare minimum.

With that being said, Bitcoin is good for saving. Saving is no good for the economy.

[semobo]

Bitcoin is helping the individuals to change their standard of life from the returns they are making if they invested in the right time and it is actually giving uncomparable returns over any others assets meanwhile the fiat power keep decreasing and its expected to decrease a lot in the next few years due to the pandemic situation and it will take decades to revive the economy from the pandemic and get back to their previous growth rate.

As of now, bitcoin is one of the assets available to use as the store of value and easily liquifiable so more and more people starts to accept and treat it as investment but its against the nature of currency as well.

[defi-Dany]

There are still people who are still wondering whether Bitcoin is inflationary or deflationary? This is also a controversial topic in the digital currency field. In my opinion, Bitcoin has a relatively constant continuous supply, so it cannot be regarded as a real deflation.

In the financial field, deflation and inflation are relative. Inflation refers to the increase of currency in the market. Compared with limited commodities, the purchase of a unit of commodity requires more currency, which is simply an increase in prices; deflation is the opposite, with insufficient money supply and prices tending to decline.

The total supply of Bitcoin continues to increase, but almost every 4 years, the supply will be reduced by half, until all 21 million are mined in 2140. In the long run, Bitcoin is neither inflation nor deflation, it is only programmed to lock the upper limit of supply and eventually become a constant amount of currency.

[AicecreaME]

Ofcourse, its anti inflation feature makes it a better store of value considering that value can debased by excessively/unnecessarily printing like what  happens in fiat currency world. So it works like a good currency should and helps preserve value rather than reduce it. That's probably what decentralized scarce/hard-monies did in the old time.

I agree. Bitcoin being lesser prone to inflation entices and encourages more investors to invest in it because it makes them feel more secured on their funds. Bitcoin is one of the most nicest options on where to store your funds without its value deflating over a period of time. Hence, a lot of people are eyeing bitcoin to become their store of value compared with central organizations such as banks. Because aside from being safer from inflation, bitcoin doesn't require maintaining balance and it doesn't go dormant whenever you don't touch your funds. It's just there, having higher value as time passes by b

Although of course, you still need to consider the volatility rate of bitcoin because the value of it will determine whether you gained profit or otherwise depending on the timing of your withdrawal (position of bitcoin, high/low).

[Obito]

Bitcoin is helping the individuals to change their standard of life from the returns they are making if they invested in the right time and it is actually giving uncomparable returns over any others assets meanwhile the fiat power keep decreasing and its expected to decrease a lot in the next few years due to the pandemic situation and it will take decades to revive the economy from the pandemic and get back to their previous growth rate.

This is true in some degree at the present because with the current prices, it's really hard to say that your life turns 180 after investing bitcoin for some time, maybe in the past when 1 bitcoin is like a mote of dust that some people give away to other people that wants to own bitcoin.

[kryptqnick]

The characteristics you've mentioned are all true, but they leave room for a definition of Bitcoin that is too wide. Bitcoin is stored online, but the same can be said about online banking (there's no need for room to store that money, and sometimes even the card itself is digital). Fiat can also be very portable, but what you're talking about in #2 is actually pseudonymity, not portability, and that's indeed specific to Bitcoin (and a bunch of other cryptos, but still). As for a payment method, it's very unpopular as a payment method compared to other non-crypto methods. Also, you're saying Bitcoin was beneficial for most countries, but I'm not sure what you mean there, as people often don't pay taxes for their BTC. As for inflation, it's not something that fiat can merely succumb to, but it's instead something fiat is committed to, as stable inflation is considered healthy to incentivize spending.

[Kiley33]

Inflation is defined as an increase in the price of products that occurs when there is an excess of currency in circulation.
Currently, the government prints an excessive amount of money, resulting in a large amount of currency in circulation, which can lead to a decline in currency value, which can lead to inflation in a country. Bitcoin can withstand inflation because of its limited quantity; there are only 21 million bitcoins in circulation, which is quite constrained.
Over the years, as inflation grows, so does demand of bitcoin grows with corresponding increase in price of bitcoin as a result of limited supply. Bitcoin price growth has an impact on inflation. If you store currency in your bank and the price of products rises, your money remains stable and does not rise; however, if you own bitcoin and inflation rises, the price of bitcoin rises as well.

Bitcoin, as an electronically payable currency in circulation, has a maximum issuance of 21 million. So the final total is 21 million.
This certain amount of Bitcoin is exchanged with ordinary currency, so in general, Bitcoin will not inflate, but will cause deflation because of its small amount.
Fortunately, Bitcoin flash can be divided into 0.001btc or smaller.

[Baihaki Khaizan]

When the global economy has the potential to fall into the trap of inflation and zero or even negative interest rates, many people view Bitcoin as a tool like gold.

So, when central banks add money supply to the economy, Bitcoin does the opposite. In other words, if ordinary money is “pro inflation”, then Bitcoin is “pro deflation”.

Bitcoin could theoretically serve as a protection against inflation and the great depression, just like gold. simple, because it is digital, easily accessible, speculative, fairly liquid, scarce and in limited supply.

At some point, if there is less Bitcoin available than demanded, then in terms of value the price per unit of BTC should increase.

So, in terms of potential inflation, hyperinflation and depression, Bitcoin at least acts as a balancing force, apart from gold.

[jostorres]

Bitcoin is helping the individuals to change their standard of life from the returns they are making if they invested in the right time and it is actually giving uncomparable returns over any others assets meanwhile the fiat power keep decreasing and its expected to decrease a lot in the next few years due to the pandemic situation and it will take decades to revive the economy from the pandemic and get back to their previous growth rate.

This is true in some degree at the present because with the current prices, it's really hard to say that your life turns 180 after investing bitcoin for some time, maybe in the past when 1 bitcoin is like a mote of dust that some people give away to other people that wants to own bitcoin.

Yeah, the growth can't be the same for a decade so obviously, the kind of growth we saw in past cannot be replicated. But still, I feel that Bitcoin has helped inflation a lot because it's possible that you buy Bitcoins with your fiat and the value of Bitcoins is dominantly considered in USD so you can avoid inflation happening in your own country.

For example, you buy 1 BTC @500 local currency then you can rest assured that no matter what happens to your local currency, you can always cash BTC at market price and actually the price of BTC itself goes up.

[dezoel]

When the global economy has the potential to fall into the trap of inflation and zero or even negative interest rates, many people view Bitcoin as a tool like gold.

Sounds good but I feel like if BTC is regulated and used as a currency, then even BTC will face inflation because it's inevitable.

when central banks add money supply to the economy, Bitcoin does the opposite. In other words, if ordinary money is “pro inflation”, then Bitcoin is “pro deflation”.

Holds true only until BTC is unregulated and not taxed.

At some point, if there is less Bitcoin available than demanded, then in terms of value the price per unit of BTC should increase.

That's the main point. Why is BTC in demand so much? Because it is anonymous and not regulated. Once those things are taken out of BTC, it becomes just like fiat. Anything is only deflationary in nature as long as there's demand, while demand is directly proportional to the usefulness.

[fiulpro]

Not only that but you know the value of Bitcoins holds more potential since the Volatility makes people either use it well or either loose everything, therefore it's actually on you, how well you are able to take care of it. There are wallets which are providing the people with chance to even lend bitcoins to other people and these options provides people with not just a chance to hold but also secure some interest. At the same time I do think that when we talk about inflation, it's for sure something that is integrated in the traditional society but the cryptocurrencies are way far apart from them, but at the same time we are seeing a pattern around here, which is more integration with the economic situation of the particular country therefore it's hard to predict but it might as well work as a buffer system in +/- situations.

[Alisha-k]

Bitcoin through blockchain technology has made people understand that transperancy can actually happen between transactions without necessarily involving a centralized party  it has also proven that the issue of individuals data for trust sake can actually be dealt with using open source blockchain technology. Bitcoin has made lots of tremendous progress towards the lively hood of this very era not just for the transactions alone but also the speed at which technology has evolved

[paxmao]

...
Of course these observations apply only to natural market mechanics and do not include political narratives or agendas, which can also exert an influence on price.

I don't remember there being many experiments or pilot programs involving deflationary assets. The closest thing we have to compare them to could be limited edition collectibles, which have followed a natural trend of price appreciation over time. Limited edition collectibles and artwork like the Mona Lisa or Mickey Mantle baseball cards generally do appreciate in value over time as deflationary assets. Perhaps we can expect deflationary assets in crypto to maintain the same trend.

This is quite the best contribution to economy, the ability to thrive piggy-backing on the irresponsibility of governments, both elected and non-elected. If you think about it, it is short of the surest bet you can make on the behaviour of markets, which on the end are people: they are greedy, they are irresponsible, they are corrupt and they try to kick the problems and take them on only when too late.

I guess that what I mean is that the innovation in coding and programming is modest in comparison with the innovation and achievement in translating psychology into technology.