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?
> Talks about central bank and bitcoin. The very problem about central banks is centralization whereas bitcoin decentralizes all transaction, it cannot be manipulated like what the banks are doing and the number of bitcoins created is only up to 21million. The banks can do so much more but they won't because they know hyperinflation is a problem.
it is not deflation but correction. And most importantly, its the whales doing it for their Christmas shopping spree. LOL