Post
Topic
Board Economics
Re: The economic function of Bitcoin
by
piterpie
on 27/10/2018, 12:00:53 UTC
The economic functions of the bitcoin network causes it to behave like a central bank. This has a few effects: bitcoins (the payment unit) behave like stock due to the fixed, known supply of units being subject to open market operations. What happens when the market price of bitcoin changes is the velocity of bitcoin falls into disequilibrium until a new equilibrium is found.