in Economics, Society 339 Words

What The Hell Is Bitcoin?

How many old farts are sitting there listening to the news and hear that Bitcoin has settled at $1400 at the close?

How many know what Bitcoin is?

The truth until recently I had no idea what it was……so to help out all those people scratching their heads when the term “Bitcoin” is mentioned…..

Bitcoin has transformed from an idea that some treated with great enthusiasm to an asset of strikingly growing value. It is digital currency, of which there are many others, and its price has soared in recent weeks. I will admit to not understanding what bitcoins are in principle, to the extent that I have not even been able to define my own questions. But now that I have developed some basic level of understanding, my core question is this: Is bitcoin a currency designed to facilitate commerce, or is it a commodity that has intrinsic value, which rises and falls according to supply and demand?

A currency can be treated as a commodity, being bought and sold to take advantage of fluctuations in its value relative to other currencies and assets. But its primary purpose is to facilitate exchange within and between societies. The alternative exchange mechanism is bartering, in which the price of a pair of shoes is defined relative to myriad other unique items, from corn to books and beyond. The problem with this is that without a common currency that provides a common and understandable valuation of each item, the process of trade, from investment to purchasing food, slows with major consequences for the economy. Alternatively, a currency arises with an exchange value separate from its use value. One example is gold, whose use value is somewhat limited, while its exchange value has been much higher, providing a stable basis for commerce.

https://geopoliticalfutures.com/what-is-bitcoin/

Bitcoin may be the way of the future……so now you know what it is dealing with…….and you will not be caught off guard when the change comes……

I still like the feel of cash…….

41 thoughts on “What The Hell Is Bitcoin?”

  1. I became aware of Bitcoin some years ago, and wrote it off as a fad. Since then, I have read many stories about Bitcoin millionaires. Looks like I missed yet another boat!
    Best wishes, Pete.

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  4. I once had some commercial bank notes issued during the great depression of the 1930’s. They were worth next to nothing when issued and about the same 30 years later. So now, instead of “don’t take any wooden nickels!”, the saying should be: “Beware of byte coins!” People who live in the economy only will forever fall for the next ponzi scheme that promises much for nothing. I grew up in 1950s Southern California and everyone had a story about someone who bought property low and sold high for a killing. I also remember thousands of acres that sat and sat and sat because of failed housing bubbles. Been to a good many ghost towns out west too. Money for nothing – that’s Trump’s song.

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  6. In my opinion, Bitcoin will absolutely change the finance industry. But not in a good way.
    The Blockchain-technology behind Bitcoin (individual code processing with crypto-algorithm, if a had understand right) is not bad. Its good for verification of documents an their secure storage. But need we really a new payment system which is related to big data centers and the possibility generation such money by big data center power. I think this could force what we call neo-feudalism.

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      1. Thank you, Chuq! Yes, but in the other way what should we do against money laundry. Since some years i researching on money pools which should be used for annecting another state. When we look at the majority of people. They dont have own property, only rentals.Here in Germany small assets are combined to bigger assets, so nobody with a normal income is able to buy. By myself i am awaiting the next revolution like civil war in Europe. ;-( Michael
        And the GI’s have to help once more again.

      1. Thank you very much for this article, Chuq!
        This one shows the problems with Bitcoin. Hope our governments dont change to this. As printed on the 5$-note ? I only trust in God. Best wishes. Michael

  7. Dot forget what history can teach: Without electric power an electronic devices you cant use virtual money.
    Most people were only able to flee from dictators with the possibility of having silver coins, gold are something real like that.

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  11. Bitcoin and other Cryptocurrencies are certainly going to be around in the future. I’m not saying we will do away with the almighty dollar, but there will be more movement to having a global community.

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  20. Okay. So I understand that cryptocurrency is digital currency, but there’s so much more that I don’t get. Why are people so bonkers over it? Call me old fashioned, but I don’t trust anything I can’t hold in my hand. I mean, Musk decides not to accept Bitcoin for his Teslas and it’s tanking. And why if it’s digital, is it so bad for the environment? I just don’t get it.🤷🏻‍♀️

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