An economic BitCoin tasting sauce or what BitCoin and Lady Gaga have in common?

Hello! Recently, there were articles with the words of protection and criticism of the Bitcoin system. I believe that they do not fully disclose this phenomenon. After all, many people worry: Bitcoin is money or deception and farce? Or maybe something else? I propose to understand what kind of bitfrukt this is from an economic point of view. I will try to answer the questions why the system exists, how it fits into the economy, what it really is, and what does the world plot of the US Federal Reserve and Lady Gaga.

Other authors wrote about bitcoin in different ways, but it just so happened that from the point of view of different economic sciences it should be looked at a little differently.

Let's start with what everyone agrees with - first of all, Bitcoin is definitely a medium of exchange .
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Historically, mankind has developed two maxims of the medium of exchange: barter and money, well, you all know that perfectly. You also perfectly remember that barter was too inconvenient and at different times completely different things came out as money, but mostly gold.


Next, about the currency. For each currency is a certain state and the Central Bank (CB). The state is a semi-closed economic structure in which you can use this currency. Please note that without the state and the Central Bank currency does not exist.

On the other hand, there is a market for moderately active dressers (from the old Russian word commodities ): gold, oil, and even wooden sawdust. Their cost is determined by supply and demand. Including speculators.

So what is BitCoin? If you look, it is a moderately rare chest of drawers, which is essentially completely useless. Even in contrast to gold, which can even be used for electronics or Roma teeth to insert. Is it possible to consider it as a currency with a distributed emission center? Let's think. What will happen if bitcoins go to the masses in one closed, specifically taken country? Aruguayan Independent Republic. Inflation. In the country of money will be 2 times more, and the same amount of goods. How not to recall this classic (77:10) . Yes, take it, I'll draw myself. But this is only if the bitcoins will actually be money. Suppose if the Central Bank says that bitcoins are the same money as local tugriks. And if it is still more than a chest of drawers, in its essence, and there will be a lot of it, the Central Bank will keep silent, then it will itself indescribe itself - it will become too much and the price for it will fall. A lot of gold is cheap gold. This is how the world works.

Duality

In this case, we have a certain enigmatic duality of the nature of cryptocurrency. Marvelous money or some useful product created in the community? If there are a lot of bitcoins, then inflation or GDP growth will occur? Or something else?

It depends on how much this currency really costs. After all, even a level 99 ax in a warcraft online is worth something. On the one hand, someone spent the money on the development of this game, someone their hard-earned money, in a sweaty cam money, took Blizzard and now sits gets "pleasure" from the game.

Bitcoin system cost.

So what is the cost of bitcoin and why? Separate Bitcoin coins do not cost anything, but the whole system, as the integrity already has a certain value. Bitcoin is not a new currency, as its position, but a system of transfers. The cost of bitcoins is linearly dependent on the utility / cost of this system entirely. This is the so-called network effect . Like a phone. The more people he has, the more convenient it is. And if you are one of all your friends who has a phone (or an account on some facebook), then zero sense and the cost of the system tends to zero. The more a person is involved, the more convenient, tastier and healthier it is. This thought was groped by a sapp in circulation to distribute Bitcoin. Bitcoin Advocacy: Total.

Sorry, distracted. System cost How much does it cost? Well, let's say $ 10 million. And the more maynite bitcoins, the cheaper they will be, ceteris paribus . In other words, the total cost of bitcoins through different supply-demand transformations is the cost of the entire system. It can be said, in part, metaphorically, that bitcoins are shares / shares in the bitcoin system. How much is the system? See the network effect and popularity.

kreativf suggested the idea to add a little article. The cost of Bitcoin in the network is hidden in the fact that some convenient / like to transfer money in such an unusual way. Just as someone interesting to play in the Second World War. After all, you probably know that the most valuable currency on the planet is human attention.

Such is it, this bitcoin value. All the rest is speculation, seasonal deviations, fantasies or simply deception & provocation.

Total

So, the answer to the main question: what is Bitcoin? Today, this is not a new currency, but a new payment system, with its own blackjacks. Bitcoins are not money, but rather a liquid asset (chest of drawers) that people get with the help of video cards. The cost of this asset is directly dependent on the cost of the entire translation system. The cost of the system, like Lady Gaga, depends on its popularity.
That's all.

If you have questions , valuable additions, other points of view, or just playful thoughts, feel free to write.

% Username%, are you still a supporter or opponent of bitcoin? Tell me!

Ps. How much is this system really worth, 1M / 10M / 100M, this is a completely different question. Interesting, but off topic (:
Pps. About the global conspiracy of the US Federal Reserve - a delicate marketing move for lovers of conspiracy.
Pps. In the comments neponyatki. Explain. Bitcoins can be bought / sold on the stock exchange .

_{Discl: I respect the intelligence of readers and I will not talk with them as with first graders. Chew on everything - insult the reader's erudition. And I'm not going to do that.
I am not an express newspaper.}