Quote from: semes on October 27, 2018, 11:10:39 AM

Quote from: piepie.asean on October 25, 2018, 07:18:55 PM

Bitcoins have different economic functions. It acts as a central bank. Bitcoins are known as fixed quantities as stocks have limited supplies. The rapid rise in prices has given us many different questions. What is the economic function of this algorithmic currency?

Exchange function of Bitcoin

Anyone with a bitcoin address can use bitcoin. It is impossible to know who controls each address. Therefore bitcoin must be freely exchanged. This means "sacrifice" that bitcoin has created. This free flow of capital can be from any source. This allowed the bitcoin to become worthless a few years ago.

When this currency is rising in value over time. This is due to the limited provision of bitcoins. While there is increasing demand for them. This is similar to how you bought Apple stock in 1980 during your IPO. You will have to pay $ 22 per share. Due to the limited supply of Apple shares and the increase in demand. Today it is valued at $ 520 per share

At present, Bitcoin is going down continuously, so is it a deflation?

How can it acts central bank? It is decentralized. So there is no need for central bank with Bitcoin. Only miners could be useful.

Maybe it meants the other way. When referring to central bank it meants that Bitcoin is the center of its own blockchain and no outsiders can change its system.