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?
but it is not stable for long time that is the positive thing from the Bitcoin if we think that Bitcoin going down then suddenly it will grow up and the situation is happening many time so that we need to wait for the decision making if you take good decision then it will give loss in some times
I think it is stable enough though. My reason? Its because it doesn't favor those who have large amounts to take advantage of being rich in fiat money at all. Since people are occassionally going in the market, we can only see a part of the people who are having these Bitcoins get rich 'slowly' not entirely destroying the current wealth proportion of the world's economy especially in cryptocurrency.