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The Different Roles Of Those Participating In The Bitcoin Economy

bitcoin economyAlmost all Bitcoin users have assumed – simultaneously or successively – more than one role of importance in this new booming economy. Let’s see what some of them are:

Pioneers in the adoption of Bitcoin

The early adopters of Bitcoin joined the project when it was just a dream, giving the initial impulse to survive the early stages of its development. They placed their bets on Bitcoin, against all odds, and won. Today, many early adopters frequently engage in leading or financing various Bitcoin-related ventures.

Miners

In addition to being the part of the process by which bitcoins are created, i.e. mined, miners provide security to all Bitcoin users by verifying the legitimacy of their transactions. They put in their time (to maintain, adjust and keep up to date their equipment) and invest their money (to acquire the needed hardware and cover costs of electricity). They reward comes in the form of newly mined bitcoins.

Developers

The computing ecosystem that has been building itself naturally around Bitcoin requires the input from highly motivated programmers with skill at all levels. The speed at which they solve diverse problems and expand our possibilities is so amazing that any alternatives to Bitcoin seem to be increasingly retracting back into the prehistory of monetary systems.

Speculators

This is obviously an activity which is misunderstood unlike any other; contrary to the opinion held by the overwhelming majority currency speculation is the reason why the price of Bitcoin has remained in increasingly narrowing range. The more speculators there are in the market, the more expensive the currency manipulation is, and therefore, the more stable the price. Also, and perhaps more importantly, by offering their capital in foreign exchange markets, speculators provide liquidity for Bitcoin users worldwide.

Savers

This group has a great deal of faith in Bitcoin and shows this by saving a large part of bitcoins they acquire. The savers tend to increase the purchasing power of all Bitcoin holders (many of whom invest their capital in enterprises which in turn strengthen Bitcoin), and thus attract new users. By risking their own wealth in exchange for a future reward that is not guaranteed, savers bring some part of the future value predictions to the present.

Dealers

Everyone from most daring Bitcoin entrepreneurs to more traditional traders, all accept bitcoins in exchange for their products thereby expanding the use and spreading around the benefits of the new digital currency.

Consumers

They are those who largely lead decisions taken by entrepreneurs. Bitcoins used by the consumers for their primary purpose of acquiring goods and services is another way of strengthening the Bitcoin economy.

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