The link between Bitcoin and the economy

[Reid]

When we discussed the topic of Bitcoin and its decentralized nature and how it relates to the economy of the world, I lot of people seem to be confused about the place of Bitcoin in the economy.
First, we need to understand the nature of Bitcoin and also its legal tendency.
Bitcoin is a digital currency that is not controlled by any one individual or government that is why it is referred to as decentralized currency, secondly, Bitcoin is an asset just like gold that the reason most people adopt it for its economic benefits.

These are supposed to be the real meaning of bitcoin but eventually, as the government intervenes on its regulation, it will become controllable as we cannot enjoy bitcoin without a 3rd party since not everyone is accepting bitcoin, in the end, most of us will still convert our bitcoin into fiat and that's where regulation intervenes through their KYC requirement and AML Law.

And so it becomes an asset because of that intervention.
We can buy it at ease but they will stop us when we want it out/withdrawal. Local and online merchants having doubts to use it because of the regulation. How much price they will have to pay after accepting Bitcoin as an option for payment or in short as a currency? Yes, customers will have the privilege to use it and be like a normal currency but what about those merchants who will need new supplies for their store? I doubt after them there will be big businesses that will do the same accepting Bitcoin as payment. It will all be in fiat or thru bank account.
I already exempted the volatility issues here.

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[oHnK]

There can be many links depending on the people's perspective and the government reactions to bitcoin, In my own idea bitcoin can be good for the economy of any country if they really understand it and use it in a good place, for example, I can see some governments are trying to suspend it while they do not understand it because if they did understand bitcoin they could understand bitcoin is something that can be suspended by a single governments and this can just make the bitcoiners unhappy and make them leave their country and surly with this migration they will also take thier money with themself while leaving which is not good for the economy of the country.

We talk about BTC in the economy and the benefit of it, but We dont talk about the basic concept of economic which is inflation as the indicator of growth. So, in here BTC and the economy have opposite relationships.  Because the media of today's economy is fiat.  How can unstable BTC become a country's legal tender, this would be very difficult for economists to accept at this time.

[RealMalatesta]

although it is not very bad that many people give news and speak well of BTC, because it is something that remarkably falls well with the internal economy, although people know more about BTC, the good news quickly reaches those who They are the least believers, and who have doubts, I particularly know many people who believe that BTC is a scam, who believe that whoever puts money into BTC is going to lose everything, but it is because of the wrong news that appears on TV and because of the huge FUD of the big chains like CNN and other traditional economists.

Right from the first time when I started hearing about Bitcoin, there has been good news about Bitcoin and those who were able to make huge profit from it, and even those that were said to become millionaires by investing in Bitcoin.That never made some people to stop saying that Bitcoin and cryptocurrency in general is a scam.

I believe that there has been enough stories of people’s success through cryptocurrency that should have convinced a lot of people by now to know that cryptocurrency is not a scam, but there are still those that thinks otherwise. You can’t force them to believe what they don’t want to believe, everyone has the freedom to make their own choice, and it’s not a must that we all are going to be making use of cryptocurrency or investing in it. Whatever you feel is right for you then you just do it.All of us can’t be making use of cryptocurrency.

[adzino]

When we discussed the topic of Bitcoin and its decentralized nature and how it relates to the economy of the world, I lot of people seem to be confused about the place of Bitcoin in the economy.
First, we need to understand the nature of Bitcoin and also its legal tendency.
Bitcoin is a digital currency that is not controlled by any one individual or government that is why it is referred to as decentralized currency, secondly, Bitcoin is an asset just like gold that the reason most people adopt it for its economic benefits.

Different people use bitcoin for different purposes. Most people use it as an asset, while others use it as a currency. There are people out there that uses bitcoin to send money home as it is easier and cheaper for them to remit those money. Instant cross border transactions with very small fee with no extra hassles or paper work is a dream for all those foreign workers. I wouldn't say bitcoin is an asset like a gold. I don't think you can purchase (or anyone would want to accept) regular things with gold. And the reason most people adopt bitcoin is for the "financial benefits" that in return indirectly helps the economy.

[BuNga_cute]

When we discussed the topic of Bitcoin and its decentralized nature and how it relates to the economy of the world, I lot of people seem to be confused about the place of Bitcoin in the economy.
First, we need to understand the nature of Bitcoin and also its legal tendency.
Bitcoin is a digital currency that is not controlled by any one individual or government that is why it is referred to as decentralized currency, secondly, Bitcoin is an asset just like gold that the reason most people adopt it for its economic benefits.

Different people use bitcoin for different purposes. Most people use it as an asset, while others use it as a currency. There are people out there that uses bitcoin to send money home as it is easier and cheaper for them to remit those money. Instant cross border transactions with very small fee with no extra hassles or paper work is a dream for all those foreign workers. I wouldn't say bitcoin is an asset like a gold. I don't think you can purchase (or anyone would want to accept) regular things with gold. And the reason most people adopt bitcoin is for the "financial benefits" that in return indirectly helps the economy.

It's true that everyone has a different purpose when using Bitcoin, and it's everyone's right to use Bitcoin for what. But most people are
interested because Bitcoin can make a lot of money. When compared to other assets, it seems that Bitcoin has a better performance.
We can see the development of Bitcoin increasing very drastically. Especially when in a pandemic situation like now, many people improve
their economy, because they managed to profit from Bitcoin. Therefore the government of El Salvador dared to adopt Bitcoin with a bold
decision to legalize Bitcoin as a legal tender. Governments of other countries should also immediately follow in the footsteps of El Salvador,
so that the country's economy can be helped. But unfortunately many countries are too afraid to legalize Bitcoin as a legal tender, even though
their fears may not necessarily come true.

[jostorres]

We talk about BTC in the economy and the benefit of it, but We dont talk about the basic concept of economic which is inflation as the indicator of growth. So, in here BTC and the economy have opposite relationships.  Because the media of today's economy is fiat.  How can unstable BTC become a country's legal tender, this would be very difficult for economists to accept at this time.

I understand this point of view and people are always talking about like this is end of the day type of situation. First of all there are so many fiat currencies out there which has volatility as well. Look at the decade all joke of Zimbabwe dollars, if they turned into bitcoin, even with volatility, they would be better.

Secondly, the legal tender is not there to be alone, just like El Salvador did, you could have your own national currency for those who want stability, and you could put Bitcoin alongside it, just make it a thing of official money that is accepted, a legal situation for regulations, not that you need to remove the fiat you already have. And lastly, this is not for nations like the USA or the UK or France, Italy or whatever, this is for those poor third world nations to have an alternative, which would grow the size of bitcoin holdership, and make the nation economically better, even if slightly.

[Rruchi man]

Bitcoin is a digital currency that is not controlled by any one individual or government that is why it is referred to as decentralized currency,

Yes this was the original idea behind bitcoin creation, to eliminate government control and grant users a certain level of Flexibility and freedom.

secondly, Bitcoin is an asset just like gold that the reason most people adopt it for its economic benefits.

Bitcoin only became an asset because people have and are taking advantage and making profit of it's high volatility, maybe in the future when it is now more stable, the original idea of it as a digital currency will now be dominant.

However in line with the topic -"The link between bitcoin and the economy", I'd say the fact people are taking advantage of the volatility at the moment and making profit for themselves, it is a booster to the economy, because people have more money to spend, criminal activities will experience a drastic reduction as there will be more opportunities for many.

[Silberman]

When we discussed the topic of Bitcoin and its decentralized nature and how it relates to the economy of the world, I lot of people seem to be confused about the place of Bitcoin in the economy.
First, we need to understand the nature of Bitcoin and also its legal tendency.
Bitcoin is a digital currency that is not controlled by any one individual or government that is why it is referred to as decentralized currency, secondly, Bitcoin is an asset just like gold that the reason most people adopt it for its economic benefits.

Different people use bitcoin for different purposes. Most people use it as an asset, while others use it as a currency. There are people out there that uses bitcoin to send money home as it is easier and cheaper for them to remit those money. Instant cross border transactions with very small fee with no extra hassles or paper work is a dream for all those foreign workers. I wouldn't say bitcoin is an asset like a gold. I don't think you can purchase (or anyone would want to accept) regular things with gold. And the reason most people adopt bitcoin is for the "financial benefits" that in return indirectly helps the economy.

Your last sentence is key, people are never going to adopt something just out of ideology alone, after all even if you can deceive them in order to do that eventually they are going to understand something is off and then will try their best to drop whatever you forced them to adopt, bitcoin in the other hand is being adopted basically for the financial benefits it can bring, and while this may seem like the wrong reason to adopt something like bitcoin, the truth is that as long as you have some bitcoin in your wallet then you have the ability to resist the current centralized system, even if that was not your intention at all when you got that bitcoin.

[DrBeer]

When we discussed the topic of Bitcoin and its decentralized nature and how it relates to the economy of the world, I lot of people seem to be confused about the place of Bitcoin in the economy.
First, we need to understand the nature of Bitcoin and also its legal tendency.
Bitcoin is a digital currency that is not controlled by any one individual or government that is why it is referred to as decentralized currency, secondly, Bitcoin is an asset just like gold that the reason most people adopt it for its economic benefits.

First, let's assess the real situation. Bitcoin is not a currency. Bitcoin is a virtual, speculative asset. Although high-tech, I agree. What is the relation to the economy? Yes, perhaps none, even though the capitalization is 2 trillion dollars, this is not much and not much, depending on how you use it. It is quite simple to assess the impact and value - let's write what happens if we take and remove bitcoin and crypt from our lives. The whole world wakes up - and the crypt is all gone? AND ? What will change in the world? As for me - Nothing but a few bankruptcies and after a while, everyone will forget about it. Although no - Hollywood will shoot 1-2 films on this topic

Right if cryptocurrency disappears a lot of bankruptcy cases will arise and I don't think investors will be able to get over that for a long time and a lot is going to change and so many cryptocurrency activities will stop.
But with bitcoin on our bucket list, we are going to see more development and growth for both individuals and society.

Bankruptcies will most likely affect not such a large volume - about half of the market, this is 1 trillion dollars, especially for partially insured, partially working with large restrictions on obligations to investors, which means that a classic bankruptcy will most likely not even begin for many companies. And everything will end there. there will remain the owners of digital kits that cost nothing, millions of gaming video cards will enter the market at a ridiculous price, and bankruptcies of video card manufacturers will begin ))

[WillyAp]

Most people use it as an asset, while others use it as a currency.

As a currency its a little too expensive and there are other coins which are most cost efficient. LTC as the prime example.
I think most people fell in love with the price hike BTC experiences every year.

[Davian144]

As a currency its a little too expensive and there are other coins which are most cost efficient. LTC as the prime example.
I think most people fell in love with the price hike BTC experiences every year.

Judging from the title of the topic that asks about the relationship between Bitcoin and the economy, it means that there is no need to discuss LTC into this matter, because this is about the connection between Bitcoin and the economy which in general has a clear relationship with the economy because Bitcoin has a clear market and lots of enthusiasts.

A close example is people who are already successful and they know the crypto space and invest in it. Among so many currencies, surely they will choose Bitcoin to make their assets increase when an increase occurs, meaning that this is an effort to boost the economy of every individual who already believes in Bitcoin even though there are risks.

[Punakawan]

if the total bitcoin marketcap is currently around $340 billion, of course this is a great value, even equivalent to 3x of my country's foreign exchange reserves, of course this has a big impact on the economy, it has been proven that many things are useful after the presence of bitcoin, especially being able to reduce unemployment.

[bitgolden]

Bankruptcies will most likely affect not such a large volume - about half of the market, this is 1 trillion dollars, especially for partially insured, partially working with large restrictions on obligations to investors, which means that a classic bankruptcy will most likely not even begin for many companies. And everything will end there. there will remain the owners of digital kits that cost nothing, millions of gaming video cards will enter the market at a ridiculous price, and bankruptcies of video card manufacturers will begin ))

I have to say it would probably impact the world as a whole if there was a big crash happened without the regular market crashing. This time for the past 1 year we have been dropping and that's bad there is no questions about that but we crashed in the regular market as well so it was understandable and nobody bat an eye about it.

If stock market and the world economy crashes, then we would be dropping in the crypto world as well which would make sense. However, in a world where dollar gains value, inflation is low, stocks are up, but crypto is still going lower that means we are going to end up with something quite horrible and many people will be effected by it.

[kawetsriyanto]

When it comes to Bitcoin relationship to the economy, there is only one answer, which is to be richer than anyone else and Bitcoin has it all to offer. I don't really care much about the concept, but the reality is now this is what's happening. Regardless of the main concept and purpose of Bitcoin. You can only see it in terms of increasing wealth. I'm not going to be too hypocritical about this.

Yep, Bitcoin is used by people for investment. It is intended for an increase in people's income. So, it is expected that Bitcoin can improve people's economic level. But, I disagree that Bitcoin is only for increasing income/wealth, in fact it is also applied to achieve its main purpose (as a currency). For me, BTC is still on track for digital currency purpose (main goal). But it has another goal/purpose now, it is for improving people's economic level.

CMIIW

[Godday]

For now the relationship between bitcoin and the economy in a country has not been fully influential in meeting their needs, although currently the popularity of bitcoin is very large but some people still have doubts about the future of bitcoin that will be accepted throughout the country legally, although those of us in this forum already consider bitcoin a very good future asset besides investing with gold but to affect the economy as a whole certainly not  We can be sure.

[Gozie51]

Many people underestimate the influence of Bitcoin on the economy, they think that bitcoin is only speculative so that it does not have a positive impact on the economy, if we look at the facts in the market, of course this is wrong, the fact that the increasing number of new rich people from the Bitcoin business is a fact that cannot be denied, A few years ago people worked at Mining but now many work as traders.

The impact of bitcoin like you said here is helpful to individual and that adds up to the economic investment that would have been missing if bitcoin was not in existence. Bitcoin hodlers have more advantage to multiple their finances through hodling for longer time to catch up with volatility. Now that halving is around the corner, it is another time to double what you have and it proceed goes back to the economy through real investment with families that get financial help from hodlers

[iamsange]

For now the relationship between bitcoin and the economy in a country has not been fully influential in meeting their needs, although currently the popularity of bitcoin is very large but some people still have doubts about the future of bitcoin that will be accepted throughout the country legally, although those of us in this forum already consider bitcoin a very good future asset besides investing with gold but to affect the economy as a whole certainly not  We can be sure.

If it is to be influenced into economic relations around the world, maybe Bitcoin still needs more time to be affected in all sectors of the economy. Because this sector of the economy has a certain amount of money circulating through demand and supply, the connection is clear, that profits and losses are always closer to the buyer or holder of the Bitcoin itself.

Now, in this case, of course, everyone doesn't need to doubt Bitcoin because there really is nothing to doubt about Bitcoin. If for example talking about advantages and disadvantages, I think almost all sectors of the economy also experience this and it's not only in Bitcoin.

[EarnOnVictor]

First, we need to understand the nature of Bitcoin and also its legal tendency.

Frankly, the link between Bitcoin and the economy is tiny, the coin would be more of a centralized asset before the link would be strong. Don't let anyone deceive you, a lot of BTC is being held in the decentralized wallet, so such could not be accounted for any country's economy. What a waste!

Bitcoin is a digital currency that is not controlled by any one individual or government that is why it is referred to as decentralized currency

This lack of control is one of the reasons why it's not adding to the economy, except for the ones with centralized wallets and exchanges.

secondly, Bitcoin is an asset just like gold that the reason most people adopt it for its economic benefits.

Truly, Bitcoin is an asset, but not an asset like gold. Gold is centralized and acts just like fiats in some cases. Gold's transactions are transparent and are accounted for per country and with cross-border, unlike BTC. Therefore, what gold would add to the economy, the decentralized Bitcoin will not.

[WillyAp]

A close example is people who are already successful and they know the crypto space and invest in it.

Most people succesful in BTC are the ones which started early. People who were able to see and buy at $10 + per coin. To start and gain you need to have a deep pocket to purchase at 12k a coin and have a meaningfull amount.

[Lubang Bawah]

A close example is people who are already successful and they know the crypto space and invest in it.

Most people succesful in BTC are the ones which started early. People who were able to see and buy at $10 + per coin. To start and gain you need to have a deep pocket to purchase at 12k a coin and have a meaningfull amount.

Unique facts occur when the price of Bitcoin is expensive then people who have kept bitcoin and lose the hard disk so they are looking for the hard disk, there are even collectors who have had around 5500 Bitcoin, at that time he told me that the price of Bitcoin was no more than $ 1 so that when he knew the price of Bitcoin skyrocketed more than $ 1000 in 2013 he tried to find the hard disk.