What’s the nature of currency?

[King Khaizan]

now the use of cryptocurrencies is still prohibited as a means of payment.

However, seeing the demand for it is getting bigger as an investment instrument.

High prices and the volatility of its value which tends to rise is one of the attractions.

and in the future it is not impossible, if everyone reaches a consensus, then bitcoin will be transformed into a legal medium of exchange throughout the world.

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[yhiaali3]

Now you'll find that the essence of currency is still consensus, and its value is given by consensus as well. The collective consensus will gradually render Bitcoin a world currency. No one can resist this trend but adapt to it.

Yes, this is a really deep idea that summarizes the whole article. You wrote more than one article about consensus and I disagree with you about human consensus, but I completely agree with you here. It is the consensus that gives the currency its value. Without consensus, no currency or metal, even gold, can have a value, for example. If there is a global consensus that gold has no value, then gold will become worthless and become like any other metal. On the other hand, if there is a consensus that copper, for example, is more expensive than gold, then the value of copper will become more expensive than gold, and people will store copper instead of gold.
Now what happens if there is a global consensus that the dollar is worthless and the bitcoin has a high value, then the dollar will become a worthless pile of papers and the real value will become in bitcoin. I believe this will happen in the near future.

[terrorJR]

basically currency to make it easier to value an item, and this is on the basis of control from the government, but the problem is that printing money that is carried out continuously will reduce the value of the money, so that inflation cannot be avoided. indeed this is more advantageous to the rich because they can control the vital objects that

and here the management of currency printing carried out by the government must really be carried out professionally and as much as possible there must be transparency and should not be covered up because if money printing is in large and uncontrollable quantities this may not be a good thing because it is fast. or later inflation will strike.
and even if this happens, it still cannot be done directly because there are regulations made by the government itself that regulate and cannot be violated arbitrarily

[LUCKMCFLY]

The nature of the currency will always be freedom, it implies Financial Freedom, no taxes, no third party intervention, that is, no governments, no banks, as governments and banks know that this is what their greatest intention is looking for. It is to speak very badly of BTC, to make it an enemy of people, with the fact of being BTC of a volatile nature it is enough to enter there.
Countries are studying how to participate in the BTC economy, that is why El Salvador is the pioneer in adopting BTC, however most countries refuse BTC.

For me, BTC represents deflationary economy, zero debt and financial freedom where you are the one who manages your own money and the amount you want without the need to request withdrawal permits from banks or the like, and now currently to move very large amounts of money a certificate of origin of the funds must be made.

[magneto]

Now you'll find that the essence of currency is still consensus, and its value is given by consensus as well. The collective consensus will gradually render Bitcoin a world currency. No one can resist this trend but adapt to it.

Very interesting and thought provoking.

I actually completely agree - no single currency has "intrinsic value" in that nature has deemed it money, but rather the value is derived from adopters who deem it to be valuable. This is true of fiat, bitcoin, gold, you name it.

But what separates bitcoin/gold from fiat is that people's beliefs are justified, as there is no centralised entity that is overseeable the supply of the currency. So that is another dimension to the question.

[Hippocrypto]

The nature of currency on my own perspectives, it has its specific character pertaining to digital currency because it's volatile and not regulated by government.
Unlike with fiat currency, authority and economic impact of a country depends on how the inflation works for them.
Cryptocurrency can be used in different ways, it can spend on goods and online payment and other spending needs. Also the most common experience that people usually do for it right now is online trading, it can be stocks or cryptocurrency.

[RainbowKun]

Now you'll find that the essence of currency is still consensus, and its value is given by consensus as well. The collective consensus will gradually render Bitcoin a world currency. No one can resist this trend but adapt to it.

Very interesting and thought provoking.

I actually completely agree - no single currency has "intrinsic value" in that nature has deemed it money, but rather the value is derived from adopters who deem it to be valuable. This is true of fiat, bitcoin, gold, you name it.

But what separates bitcoin/gold from fiat is that people's beliefs are justified, as there is no centralised entity that is overseeable the supply of the currency. So that is another dimension to the question.

Yes, the value of everything comes from its adopters, from the recognition of users. If no one recognizes this thing, it will have no value. This is what I call collective consensus conferring value. This law applies to everything in our daily lives. In history, the reason why we used gold, silver, etc. as currency was also because everyone collectively recognized its currency attributes. Why is Bitcoin valuable now? It is also because more and more people have truly recognized it and endowed it with value with collective consensus.

[bocyaj]

The nature of currency on my own perspectives, it has its specific character pertaining to digital currency because it's volatile and not regulated by government.
Unlike with fiat currency, authority and economic impact of a country depends on how the inflation works for them.
Cryptocurrency can be used in different ways, it can spend on goods and online payment and other spending needs. Also the most common experience that people usually do for it right now is online trading, it can be stocks or cryptocurrency.

Volatile is important features of crypto and it was regulated by the market. When their is huge demand, we can expected to see some good rate for bitcoin and other currency. When the coin is listed in some good exchange, you can inverse without fear. Fear make a major role in the price of bitcoin

[Wong Gendheng]

now the use of cryptocurrencies is still prohibited as a means of payment.

However, seeing the demand for it is getting bigger as an investment instrument.

High prices and the volatility of its value which tends to rise is one of the attractions.

and in the future it is not impossible, if everyone reaches a consensus, then bitcoin will be transformed into a legal medium of exchange throughout the world.

If bitcoin users and communities continue to grow, without being legalized automatically bitcoin has become a legal currency, the small thing we can do is continue to invite other users to use bitcoin then one day any country will automatically legalize bitcoin.

[semobo]

The nature of currency on my own perspectives, it has its specific character pertaining to digital currency because it's volatile and not regulated by government.
Unlike with fiat currency, authority and economic impact of a country depends on how the inflation works for them.
Cryptocurrency can be used in different ways, it can spend on goods and online payment and other spending needs. Also the most common experience that people usually do for it right now is online trading, it can be stocks or cryptocurrency.

Can be used as an assets is not the basic nature of the currency and not needed as well but cryptos giving us that opportunity so we can use them for it. The main two nature is it should have a stable value and accepted in the region while bitcoin mastered the acceptance since its accepted worldwide while the consistency in the price has put some barrier towards it.

[DarkIT]

The nature of currency on my own perspectives, it has its specific character pertaining to digital currency because it's volatile and not regulated by government.
Unlike with fiat currency, authority and economic impact of a country depends on how the inflation works for them.
Cryptocurrency can be used in different ways, it can spend on goods and online payment and other spending needs. Also the most common experience that people usually do for it right now is online trading, it can be stocks or cryptocurrency.

Can be used as an assets is not the basic nature of the currency and not needed as well but cryptos giving us that opportunity so we can use them for it. The main two nature is it should have a stable value and accepted in the region while bitcoin mastered the acceptance since its accepted worldwide while the consistency in the price has put some barrier towards it.

Bitcoin can be used as Fiat in my county. But unfortunately it's not possible to many countries. In additional here, I am using bitcoin and crypto as assets also. Most of my saving are in crypto currency. I know crypto currency will send it back with 10 times profit. Only think need to done is, just hold till good price.

[Baihaki Khaizan]

Money is an object that is agreed upon by its users as (means of exchange), even if it is made of a piece of stone or wood.

Likewise with the presence of bitcoin which is predicted to be a currency (means of exchange) and will be accepted throughout the world if an agreement is born to use it.

[Baihaki Khaizan]

Now you'll find that the essence of currency is still consensus, and its value is given by consensus as well. The collective consensus will gradually render Bitcoin a world currency. No one can resist this trend but adapt to it.

Yes, this is a really deep idea that summarizes the whole article. You wrote more than one article about consensus and I disagree with you about human consensus, but I completely agree with you here. It is the consensus that gives the currency its value. Without consensus, no currency or metal, even gold, can have a value, for example. If there is a global consensus that gold has no value, then gold will become worthless and become like any other metal. On the other hand, if there is a consensus that copper, for example, is more expensive than gold, then the value of copper will become more expensive than gold, and people will store copper instead of gold.
Now what happens if there is a global consensus that the dollar is worthless and the bitcoin has a high value, then the dollar will become a worthless pile of papers and the real value will become in bitcoin. I believe this will happen in the near future.

The nature of gold and silver whose value is more permanent as currency from time to time is due to their value which is based on their substance, and not on the recognition of groups of people or countries. This makes the gold and silver currency stable in value, anytime and anywhere, almost never changes. This property is suitable for currency criteria as a measure of the price of goods and services, because the standard size must be stable and not fluctuating.

[palle11]

Money is an object that is agreed upon by its users as (means of exchange), even if it is made of a piece of stone or wood.

Likewise with the presence of bitcoin which is predicted to be a currency (means of exchange) and will be accepted throughout the world if an agreement is born to use it.

So for now about bitcoin, it is still an issue to have that kind of acceptance that Fiat money has. I think that is the nature of money that every country creates an acceptability for their own currency and bitcoin's nature is that it is decentralized and uncontrollable unlike Fiat legal tender.

[jaysabi]

Bitcoin has already achieved consensus. It's users are in agreement that the POW-based technology has its use case and can be utilized to transfer value from point A to point B. As the time goes by, this agreement between people will either increase or decrease based on whether or not a new and better payment system will be created in the future. What the government thinks about the consensus that was reached between Bitcoin enthusiasts doesn't really matter. If people come to an agreement that Britney Spears posters can be used in exchange for goods and services, a government agency doesn't have a say in that matter.     

Do you think that since Bitcoin can be issued without a central bank, cryptocurrency can bypass the state, replace the current legal currency, and achieve denationalization.

I don't think Bitcoin will ever become the ultimate replacement asset for fiat currencies. At least not one that will be private and help people to not pay taxes. But I do believe that the two worlds can coexist and affect each other in a way to iron out their flaws and shortcomings.

Bitcoin doesn't exactly have an efficient way to measure "consensus" and further, there's a major difference between what bitcoin users might think versus a consensus by miners, the vote of which is significantly concentrated the hands of very few relative to the number of bitcoin users as a whole.  Plus, the frequent splits off the main bitcoin chain are instances where there have been major disagreements concerning the "consensus" about the proper protocols bitcoin should use.  All this is a long way of saying that there's no credible "consensus" about bitcoin.  There's a status quo which, for reasons that have nothing to do with consensus, is very difficult to change.

[RealMalatesta]

People discovered the underlying technology of Bitcoin and approved it. They also recognized Bitcoin's status as gold in digital world. Bitcoin's global consensus is expanding:

• firstly, consensus is reached among Bitcoin believers,
• and then step by step this consensus penetrates different countries and central banks,
• and finally it'll be accepted by everyone.

Now you'll find that the essence of currency is still consensus, and its value is given by consensus as well. The collective consensus will gradually render Bitcoin a world currency. No one can resist this trend but adapt to it.

Yeah, a currency is something which needs to be accepted by everyone; otherwise it may not serve the purpose of transaction intermediary. So, what is winning in consensus might be sustaining and others may get outdated. This may not be the nature of currency but this is how a currency should be developed. This kind of development is easier for governments but creating something for transaction intermediary without power to enforce to adopt must be a challenging one still bitcoin is winning in consensus due to its characteristics.

[Pmalek]

Bitcoin doesn't exactly have an efficient way to measure "consensus" and further, there's a major difference between what bitcoin users might think versus a consensus by miners,

Full nodes are responsible for overseeing and verifying that consensus rules are being respected. Miners create blocks and include transactions whose validity is again controlled by the full nodes.   

There's a status quo which, for reasons that have nothing to do with consensus, is very difficult to change.

It's difficult to change because you need a huge majority of the community to agree to the change. It's not like when you vote for a new president and the person with 52% comes to power. You need much more than that in Bitcoin.

It's also difficult to change because interested parties will never vote on something that decreases the decentralization or network security of Bitcoin.

[RainbowKun]

Bitcoin doesn't exactly have an efficient way to measure "consensus" and further, there's a major difference between what bitcoin users might think versus a consensus by miners,

Full nodes are responsible for overseeing and verifying that consensus rules are being respected. Miners create blocks and include transactions whose validity is again controlled by the full nodes.   

There's a status quo which, for reasons that have nothing to do with consensus, is very difficult to change.

It's difficult to change because you need a huge majority of the community to agree to the change. It's not like when you vote for a new president and the person with 52% comes to power. You need much more than that in Bitcoin.

It's also difficult to change because interested parties will never vote on something that decreases the decentralization or network security of Bitcoin.

Yes, there are always two most important things in the Bitcoin network. The first is decentralization, and the second is security. This is the basis of Bitcoin's value and the basis of Bitcoin's consensus. If these two points are lost, Bitcoin will no longer be valuable. At present, the Bitcoin technology itself has proven its value, and there is currently no force that can tamper with the data of Bitcoin and crack the private key of Bitcoin. On the other hand, Bitcoin is also becoming more and more decentralized, because Bitcoin is currently being dispersed in the hands of more people.

[beerlover]

there are always two most important things in the Bitcoin network. The first is decentralization, and the second is security. This is the basis of Bitcoin's value and the basis of Bitcoin's consensus. If these two points are lost, Bitcoin will no longer be valuable. At present, the Bitcoin technology itself has proven its value, and there is currently no force that can tamper with the data of Bitcoin and crack the private key of Bitcoin. On the other hand, Bitcoin is also becoming more and more decentralized, because Bitcoin is currently being dispersed in the hands of more people.

I would believe that just like how we moved to segwit chain, we could give a consensus that way as well. It is not always miners that get to decide on things, in fact miners were the ones that didn't want to move to segwit and they created their own BCH coin as well just to show you what the real bitcoin should be like, but all of us decided that segwit is a lot better because it is at least that much cheaper and then some.

This is why I believe that if we want to "use" a chain, we use it and then it becomes the real chain that bitcoin is used, right now 90%+ of people all around the world use the segwit chain of bitcoin and that is why it is the consensus and that is how it was decided.

[adzino]

-snip-
People discovered the underlying technology of Bitcoin and approved it. They also recognized Bitcoin's status as gold in digital world. Bitcoin's global consensus is expanding:
-snip-

I don't think people should be considering bitcoin as a gold in "digital world". This will just encourage people to use bitcoin as a store of value that will appreciate overtime. If this happens, we will never be seeing bitcoin used as a regular mainstream currency.

• firstly, consensus is reached among Bitcoin believers,
• and then step by step this consensus penetrates different countries and central banks,
• and finally it'll be accepted by everyone.

I think the second and the third points should be swapped. At first people should start accepting/adopting crypto currencies. This will then force the government and the central banks to make crypto currencies a legal tender.