Post by Admin
2018-12-10 06:48:29

Is Bitcoin worthy role of a currency

Bitcoin is not as competitive as a payment system, so its value can be in the role as a currency, but a disastrous currency.
In the last article, Bloomberg addressed the question of whether Bitcoin will replace payment systems exist and concluded that no. So Bitcoin currency can become good?
Money is an extremely complex concept, although it seems simple when using 5 USD to buy a meal. However, the majority of economists agree with two of the core functions of money: It is the intermediate material exchange and the storage value.
Function Vectors exchange value of location transactions
A vector of exchange means people will take the goods to you in exchange for money. And available places are available to exchange goods and services take Bitcoin, but not many places like that. To compete with the currency Bitcoin global, need a place to store almost priced in Bitcoin.
If a trader, would you hold a coin extreme volatility in the next 6 months can buy a car or brand Freedent gum package? Only 6 hours can make a huge difference in the price of this currency.
Overall, merchants do not like to accept payments with basic values more or less than the price of goods at the time they deposit money into a bank account. If accepted, they will ask for a fee to offset the risk. This will make Bitcoin less attractive in the eyes of consumers.
When selling people something, that they are buying a consumer choice in the future, and they want to know that option will be worth how much before they seek labor force actually, values and principles materials for it. In other words, while the buyers want a medium of exchange, sellers want a store of value.
Function stored value
Lot material stored value will fluctuate.  Stocks and bonds volatile than cash. Gold, too, in the long term, gold is money in most Western nations. Gold remains a preferred investment for many people when the local economy and the global recession.
Against inflation
Many people wrote about Bitcoin sucked into limited numbers of 21 million Bitcoins. If you're worried the government will cause inflationary your savings account, it is quite rare Bitcoin value.
But for the West, where most of the money circulating in the world, how many people worried about issues such as inflation remained low. Moreover, and more important, most people no longer keep their savings in another account, where their savings easily lost by inflation risks.
Bitcoin compared to real property and securities
For most Americans, their biggest asset is the house, can fight inflation, that house prices will rise along with the general price level. Assets in private pension funds (401 (k)) also provide similar protection capacity.
Riskier bonds, but did you have to get at the money out of dollar bonds and put into asset classes such as Bitcoin fluctuation risks, whereas mutual funds can buy shares? The mutual fund will invest in companies creating and selling products, the service, rather than a solution to a problem encryption abstract.
It is now, even after what? The concept of a gold standard is no government which could cause a currency inflation to solve a political problem. When inflation occurs, there should be something that can keep the value of the currency, if not the government will push the economy into recession monetary system. With Bitcoin, there is no government control it, so there is no government which could cause inflation it.
This makes many people will think Bitcoin really good: hide your money from the government.
Bitcoin really has advantages compared with gold if you try to bring money out of the country with the tight control the transfer of money abroad. Will easily hide one USB hard drive than a truck full of gold bullion, or even one foreign account with full money smuggling.
But there are also disadvantages Bitcoin true: A USB hard drive more easily stolen, or easily lose more than a truck full of gold bullion. Moreover, gold has actually worth using as jewelry or industrial applications. Mean value never drops to 0, while Bitcoin can. On the other hand, the value of Bitcoin is also more volatile than gold in a short time.
Conflicts with the government
Perhaps the biggest weakness is that if Bitcoin really becomes the way that the government can not control the economy and the citizenry, so the government will destroy it.
When putting this issue out, the fans Bitcoin assert that this can not happen. But in reality, special Bitcoin currency in cash hidden account, by blockchain a ledger of all transactions; if you can timeout 1 to 1 real account, you will know exactly what they are buying. Moreover, in 30 years, the authorities demonstrate that they have the ability to crush any threat to power control and taxation.
The tax haven once thought to be unable to be harmed, are increasingly experiencing pressure from rich governments. These countries make it difficult to transfer funds from developed countries.
Online gambling in the US was closed in the same way as the government does not allow the payment service transactions with online casinos. The government can do the same for Bitcoin, close all contact points with the real economy, where Bitcoin turned into cash.
Black market deals
Will the transaction takes place at the boundaries of the gray economy? Sure. But it will be marginal, similar things as opium illegal or black market transactions to be carried away and spend every sale. Whether you will pay 18,000 USD or more for 1 Bitcoin only good in business deals like this? "Transactions black market" is an interesting business model, but the model is not necessarily profitable.
The price of Bitcoin seems to be led by those who think that black market trading cannot occur. However, with the Government will only whispering control financial system, analysts on Bloomberg that believers are wrong Bitcoin.
"Why Bitcoin is good?" The answer given is Bitcoin experts not good enough compared to any such valuation on. There are many applications for digital money and blockchain. Unless it becomes a global currency or global payment system, there is no reason in the next 50 years we again are willing to pay thousands of dollars to buy 1 contract Bitcoin.