Are all cryptocurrencies destined to be store of value in the end? - page 6.

dothebeats

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Quote from: shiroocrypto on April 18, 2018, 02:44:25 AM

So I've been thinking about the use of cryptocurrency in the real world. Because of it's current volatility, nobody seems to be willing to spend any crypto now other than for purposes of ICOs it seems?

Nobody is even ready to accept bitcoin as a form of payment in exchange to their goods and services either, so there's that. For an economy to prosper or be stimulated, it needs merchants willing to sell and buyers willing to pay; you can't have an incomplete set of ingredients in order to make an acceptable recipe that would work, so the blame shouldn't always be on the holders but also on the merchants. But yeah, since the volatility is acting crazy every time, no one would really want to accept payments as it has a high tendency to decrease minutes after they've received the payment. Most people right now are inclined to use bitcoin as an investment vehicle, so yeah, store of value would likely be the main use-case for bitcoin and cryptocurrencies in the next coming years until the volatility subsides.

aoluain

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Im not sure about the 'store of value' term being applied to crypto, I do think
though that it is becoming speculative, people are only getting in for the
possible return of investment.

In the case of bitcoin I do think there is a degree of hedging against future
financial troubles. It has been talked about before on the forum.

Harlot

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It cannot even be counted as a store of value in the first place. Why? Because if you want to store your money on something you are expecting at least to have its facial value in the future, with Bitcoin and other cryptocurrencies being this volatile you don't expect your 100$ to be 100$ in the future, it can be 150$, 80$, or even 10$ in the future. But when you look at it you will see that Bitcoin is now being used as a payment method on select business establishments and judging by how governments want to regulate it the idea of Bitcoin as a currency is still there.

boyptc

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Quote from: shiroocrypto on April 18, 2018, 02:44:25 AM

How do we expect cryptocurrencies to be adopted as valid payment methods when everyone is really using them as investment stocks?

When you say cryptocurrencies, you are referring to all coins. You should stick to your concern about bitcoin only being used as a store of value. Not all coins are destined to be a store value, you can see many traders that are disseminate their holdings to different alts for the purpose of trading. This shouldn't be a problem anymore as crypto's can be use with different purposes depending on the holders.

Quote from: shiroocrypto on April 18, 2018, 02:44:25 AM

Will we only see proper adoption once the current greed and "quick buck" mentality subsides?

The adoption has started due to the support of decentralization though the mentality of what you mentioned was there.

Quote from: shiroocrypto on April 18, 2018, 02:44:25 AM

If things continue the way they are, then cryptocurrency will always and forever be destined as store of value assets and not really a currency that can be used in the real world?

Not literally all, few will be used as currency while others will be used as store of value especially bitcoin. Try to see some updates on Japan, it's an example where people are using bitcoin as currency.

frowsiter

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Quote from: shiroocrypto on April 18, 2018, 02:44:25 AM

So I've been thinking about the use of cryptocurrency in the real world. Because of it's current volatility, nobody seems to be willing to spend any crypto now other than for purposes of ICOs it seems?

Before BTC boomed, we hear the story of the guy spending 10000BTC on 2 pizzas. This was BTC being used in it's intended form.

Currently, BTC is only used as a store of value, which leaves other alts. From what I see in other alts, ethereum is spent on ICOs where the trade is one coin to another type of coin. Other than that, nobody advertises accepting payments in other currencies NOR do people seem to want to spend their cryptocurrencies on anything other than something that yields a profit.

So, the question is really about adoption. How do we expect cryptocurrencies to be adopted as valid payment methods when everyone is really using them as investment stocks? Will we only see proper adoption once the current greed and "quick buck" mentality subsides?

If things continue the way they are, then cryptocurrency will always and forever be destined as store of value assets and not really a currency that can be used in the real world?

I dont think that we are on that path really! Lets see what we have got today. BTC which can be used to transfer the funds with fees as low as 10-50 cents per transaction. Max couple of dollars if its big one. The confirmation time has also increased a lot and hence no problem with the time issue.

Many merchandise are getting involved with the payment processor that are dependent upon the crypto itself. So its good sing of utility use.

Recently, PornHub.com has started using the verge coin for their payments and off course others will follow the same as well. I dont think we re lagging anything here.

We wont end up using the cryptos as store value thats my conclusion.

Austin Alexis

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I think the majority of all cryptos will disappear over the next 5 years. What we will be left with I think is a store of value coin, an anonymous currency and a non anonymous currency coin and a smart contract token. The rest will fall to the wayside

resty

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Quote from: shiroocrypto on April 18, 2018, 02:44:25 AM

So I've been thinking about the use of cryptocurrency in the real world. Because of it's current volatility, nobody seems to be willing to spend any crypto now other than for purposes of ICOs it seems?

Before BTC boomed, we hear the story of the guy spending 10000BTC on 2 pizzas. This was BTC being used in it's intended form.

Currently, BTC is only used as a store of value, which leaves other alts. From what I see in other alts, ethereum is spent on ICOs where the trade is one coin to another type of coin. Other than that, nobody advertises accepting payments in other currencies NOR do people seem to want to spend their cryptocurrencies on anything other than something that yields a profit.

So, the question is really about adoption. How do we expect cryptocurrencies to be adopted as valid payment methods when everyone is really using them as investment stocks? Will we only see proper adoption once the current greed and "quick buck" mentality subsides?

If things continue the way they are, then cryptocurrency will always and forever be destined as store of value assets and not really a currency that can be used in the real world?

That's true! Seems like only the leading cryptos are the only expose to be an alternative currency in the real world. But so what? I don't see any negative outcomes if those and will always be a store of value, let's give it to Bitcoin. Actually, some alts doesn't really have the goal of becoming a currency, they are running in different ways. For example, Ether was developed to facilitate and monetize the working of Ethereum to let the developers run and build distributed applications (ĐApps).

fiulpro

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Intended form?
I don't think that investors would agree on that .
I don't think that using them as a fiat system is intended form at all because if they were going to be used as payment gateway then again they need to be stable !
And they aren't at all..
Well only some payments would be beneficial when we talk about Bitcoins, everyday ones are something that I don't think they will work with .
The price of veggie was 0.000009 BTC and the instant you paid.. the price rose to 0.000010 😐 are you gonna pay more or less ? It's very complicated.

Dudeperfect

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It is true that the price never remains constant for a comparatively higher time but we must understand the fact that Bitcoin, crypto/blockchain technology is still in the early phase and there are valid reasons why the price keeps fluctuating. Yes, the core principle of Bitcoin states that it is a payment system and we should give first priority to using it in that way. Things will improve down the road but till then we have to deal with the current disadvantages.

jseverson

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I would hope not. I can't deny the possibility of things ending up that way though.

The way I see it, there are only really two major practical barriers as to why Bitcoin isn't perfectly suited for daily payments:

Scalability - The network can only handle so many transactions. Bitcoin can't be a serious alternative over other modes of payment if it can only handle a small fraction of what other options are capable of. If this isn't solved, it literally can't even handle mass adoption even if all other problems were somehow remedied. Everything else pretty much hedges on this.
Volatility - Bitcoin's price moves so much that it's hard to actually spend it. On one hand, it may be worth more tomorrow, and on the other, it may be worth less tomorrow. The former makes you not want to spend, and the former makes it so that you absolutely have to spend now. This is a byproduct of speculation in my opinion, and could probably be slowly solved through increased adoption.

Scalability is the more pressing issue, one which people are racing to solve, so it's clear that there are a lot of people who want Bitcoin to be something more. Of course, there are also people who believe it's perfect as it is now because of its storage of value properties, but even they may change their minds once they can spend it as easily as money in their pocket.

alyssa85

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Quote from: shiroocrypto on April 18, 2018, 02:44:25 AM

So, the question is really about adoption. How do we expect cryptocurrencies to be adopted as valid payment methods when everyone is really using them as investment stocks? Will we only see proper adoption once the current greed and "quick buck" mentality subsides?

It goes back to volume. Even if crypto is used for speculation, as the volume of trade increases, the volatility will decrease. When trading volumes are about 100 times what they are now, the volatility will be depressed enough for crypto to be used as actual currencies.

Coffee135

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Quote from: shiroocrypto on April 18, 2018, 02:44:25 AM

So I've been thinking about the use of cryptocurrency in the real world. Because of it's current volatility, nobody seems to be willing to spend any crypto now other than for purposes of ICOs it seems?

Before BTC boomed, we hear the story of the guy spending 10000BTC on 2 pizzas. This was BTC being used in it's intended form.

Currently, BTC is only used as a store of value, which leaves other alts. From what I see in other alts, ethereum is spent on ICOs where the trade is one coin to another type of coin. Other than that, nobody advertises accepting payments in other currencies NOR do people seem to want to spend their cryptocurrencies on anything other than something that yields a profit.

So, the question is really about adoption. How do we expect cryptocurrencies to be adopted as valid payment methods when everyone is really using them as investment stocks? Will we only see proper adoption once the current greed and "quick buck" mentality subsides?

If things continue the way they are, then cryptocurrency will always and forever be destined as store of value assets and not really a currency that can be used in the real world?

Pizza is a textbook example. But then the price of bitcoin was low and mining coins was easier. Bitcoin will gradually increase in price and maybe in 10 years bitcoin will cost 1 million. You will never spend your coins? Then why do you need them? Never look back. You need to go ahead and constantly spend and buy new coins.

amishmanish

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People who have joined in during the later half of 2017 were blinded by the ICO craze. Some by the greed of kickass return, some dazzled by the amazing promises. It looks like both of these benefits were hyped beyond sustainability.

As the market consolidates and leaves majority of the ICO token holders disappointed (Exit-scams, unviable products etc etc.), A lot of people will be left holding token bags while developers will have low liquidity ETH to take care of. The time for hype based growth is gone for good now.

Only a few of these will survive and those too which have actual use cases, working product and user base. Most others will just crumble. Those that remain will then become products in their own right. Those won't really be store of value but will be more like commodities to be traded depending on their uses.
Bitcoin is the only one that can maintain the confidence with people about it's value. The rest will have to prove their worth in terms of BTC.

TLDR; Cryptocurrencies aren't meant to be "Stores of Value". They have been mistaken to be so by the HODL phenomena propagated by dishonest developers to pump the value. They are supposed to be utility tokens to be used as Gas in the real product.

hugeblack

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Quote from: shiroocrypto on April 18, 2018, 02:44:25 AM

Currently, BTC is only used as a store of value,

No, Store of value is "the function of an asset that can be saved, retrieved and exchanged at a later time, and be predictably useful when retrieved. More generally, a store of value is anything that retains purchasing power into the future."[1]
This leads us to the following qualities: durable, easy to transport and have a stable price.
cryptocurrencies fail to be stable coins because of random fluctuations in their price(Decentralization).
its Store-Of-Value

Quote from: shiroocrypto on April 18, 2018, 02:44:25 AM

How do we expect cryptocurrencies to be adopted as valid payment methods when everyone is really using them as investment stocks?

The mistake of saying that these currencies are tools to invest(investment stocks)

Source:
#1 https://en.wikipedia.org/wiki/Store_of_value

Thanasis

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Still the adoption might happen by people greed itself like what happened in 2017,people will get attracted by the prices of crypto currencies and the percentage of people increasing crypto currency keeps increasing every year.The price rise will stop at one point when all the people started to use it after that it can be used as currency.

EdenHazard

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Quote from: shiroocrypto on April 18, 2018, 02:44:25 AM

So, the question is really about adoption. How do we expect cryptocurrencies to be adopted as valid payment methods when everyone is really using them as investment stocks? Will we only see proper adoption once the current greed and "quick buck" mentality subsides?

For me, it will be difficult for cryptocurrency pure in use as a payment system. In fact it will never happen, the first reason is that the price of cryptocurrency is very volatile, secondly depending on the government, we live. I do not see them as greedy investors against profits in cryptocurrency because it's perfectly natural.

Quote from: shiroocrypto on April 18, 2018, 02:44:25 AM

If things continue the way they are, then cryptocurrency will always and forever be destined as store of value assets and not really a currency that can be used in the real world?

We cannot decide forever cryptocurrency only serves as an asset. As I have said depending on the country we live in, we will definitely use cryptocurrency as a means of payment on condition that the government allows it, and it depends on people. If cryptocurrency has become legal in some countries the company can set for payment system can only be used with cryptocurrency.

XinXan

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Quote from: Slava79 on April 18, 2018, 03:09:00 AM

Quote

Are all cryptocurrencies destined to be store of value in the end?

You say it the way like it's a bad thing. Gold also isn't used for daily transactions, but can we build a phrase like this "Gold destined to be store of value in the end", with this pessimistic tone?

I think cryptocurrencies is just a first wave of the blockchain applications in real life. And in my opinion, blockchain is not "destined to be store of value in the end".

The blockchain itself isn't, bitcoin is. At this point everyone knows that bitcoin will never become a normal currency unless some new technology is discovered and can be applied to bitcoin. When we hit 20k the fees were huge not to mention the extreme volatility. Even as a store of value that volatility is way too high.

I know most of these coins are just garbage, real serious companies are just starting to get in, we will see real serious cryptocurrencies this year and next year when big players start to join in.

Slava79

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Quote

Are all cryptocurrencies destined to be store of value in the end?

You say it the way like it's a bad thing. Gold also isn't used for daily transactions, but can we build a phrase like this "Gold destined to be store of value in the end", with this pessimistic tone?

I think cryptocurrencies is just a first wave of the blockchain applications in real life. And in my opinion, blockchain is not "destined to be store of value in the end".

chris200x9

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Quote from: shiroocrypto on April 18, 2018, 02:44:25 AM

If things continue the way they are, then cryptocurrency will always and forever be destined as store of value assets and not really a currency that can be used in the real world?

Currently most of the people including me investing money in cryptos for future profit purpose not for buying things on a daily basis. If at all if I want to buy something but I can't do that as of now in my country because no one is accepting cryptos to buy directly. This is a real fact so everyone is investing only to make a profit when prices go up. It has become like another commondity to invest our money for future profits.

What I know is only in Japan people can use Bitcoin to buy many things directly without converting into fiat but if I want to buy then first I need to convert to fiat. So instead of currency, I use bitcoin as an investment product.

shiroocrypto

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So I've been thinking about the use of cryptocurrency in the real world. Because of it's current volatility, nobody seems to be willing to spend any crypto now other than for purposes of ICOs it seems?

Before BTC boomed, we hear the story of the guy spending 10000BTC on 2 pizzas. This was BTC being used in it's intended form.

Currently, BTC is only used as a store of value, which leaves other alts. From what I see in other alts, ethereum is spent on ICOs where the trade is one coin to another type of coin. Other than that, nobody advertises accepting payments in other currencies NOR do people seem to want to spend their cryptocurrencies on anything other than something that yields a profit.

So, the question is really about adoption. How do we expect cryptocurrencies to be adopted as valid payment methods when everyone is really using them as investment stocks? Will we only see proper adoption once the current greed and "quick buck" mentality subsides?

If things continue the way they are, then cryptocurrency will always and forever be destined as store of value assets and not really a currency that can be used in the real world?

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