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?

Bitcoin has given people the freedom to do whatever they want without exposing their identity. Yes people say that the Blockchain is open and you can see everything, but the real truth is that youre seeing nothing. Youre only seeing addresses showing how much that were transacted but youre not seeing who made the transactions, you dont even know their location not to talk of knowing who those people are. So this is not transparency in any way. Though I saw news recently that the government are going to make exchanges to start requiring ID from those exchanging up to $1000 worth of crypto, but I think this is only going to work if youre using centralized exchanges.

zergenyt09

Posts

Merits