Monday, May 4, 2015

Using Bitcoin as currency or money


One reader  in bitlanders for which i am a member had said that "if bitcoin will be used all over the world it will go greater. The government should stop it because the people will no longer used money".   
I really do not understand  what  he wants to say  but analyzing the  comment it means that he is worried that  if  bitcoin be ever  used all over the world then people will no longer used money ( maybe the money that he was  referring was dollar  or local money.  It is presumed that bitcoin will be on the mainstream  and will be greater.,  so if it will be used as "Money" then people will no longer used " money", i dont know what money is the reader talking about.   
There is a need to clarify here what is "Money" and  can bitcoin  be used as money? .  And what will happened if  bitcoin goes on the mainstream?  The readers suggesstion was for the government to stop the bitcoin , because as to the reader says  it might take the place of "money". 

 Basically ,  what is "Money" ? from the internets definition  money is a medium of exchange in the form of coins and bank notes , coins and bank notes collectively.  It is also any item or verifiable record that is accepted as payment of goods and services and repayment of in a particular country or socio economic context.  
To further describe what is money , lets   look at the history when there is no money yet as we know it.  
Before  goods was exchange for another goods like a pig  is being exchange for three (3) chickens so there is no money involve in there but there is an exchange of value.  The value of one pig is being exchange for (3) chickens.  
That was the way to exchange value before , until they discovered  metals , like gold and silver. Since at that time and even now , these metals was hard to find so they discovered that they can exchange this for as a value in exchange for products and services even paying of wages.  Remember , Christ was being  framed up  for a few pieces of silver by Judas . This was the stage when a metal was given value for a product and services. Until they discovered to used  coins and paper money ( bank notes)  which we called now as "money" .   And the rest was history using the coins and bank notes as money. Since there was government  its the government that governs the used of these money or bank notes officially  declaring what money to use and  other than this would be not legal tender. 

Is Bitcoin money ?  


If we are to use the meaning of exchange of value  "bitcoin " should be considered as money because it can be given a value , depending on the number of people using it.  Much like in the history of  money there is  always value  in the exchange of  products or services. 
But  "bitcoin" is not tangible or physically present  ,  "bitcoin" is an invention , it is a script, a computer language , and it is also a ledger and can only be produced out of a computer. But for those who believes in these new invention , new technology  if used today and in the near future by people of the world then the value  would be given to it.  Just like the money it should have a value , but the difference with bitcoin the value comes from the people if many adopters   use it then the value would be great or high but if nobody use it then it has no value.  
Now with coins and paper money , this is only produced or equivalent to the value of gold stored by government of private person but not in the number of people using it. But if number of produced  coins and paper money  is not equivalent to the gold reserve then the coins and paper money has no value.  And that is happening the present paper money or coins has lower value or no value at all. 
The bitcoin technology is also decentralized  meaning there is no government control , no regulation , no central owner . It is the technology  itself that is making the regulation or its embedded on the nature of the new invention or new technology.  It is the people who owns it , it is the science of bitcoin to be decentralized , not centralized.  If the technology or bitcoin would be centralized then it will be corrupted then it would not serve its purpose as "bitcoin" , It is the nature of the bitcoin to be decentralized, no one controls  it is always a consensus .  If  anybody wants to control it  , it is not possible because all the people  who are on the ledger with there membership address will not permit it.  It is greatly hard to control a decentralized  stature. 

What lies ahead in the future of "bitcoin" ?


No one knows what will happened in the near future but for those who believes in the greatest nature and potential of these invention , they will pursue to raise the level of usage of bitcoin to the extreme.  Many will see the opportunities for these new technology and expoit it.  But you cannot control it, that is why "bitcoin" has a nature of displacing what is the old and corrupt system.  So in the near future the struggle for the change  and the struggle to maintain the status quo will continue.  But i am for the change..so bitcoin has a great future ..


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