BTC financial logic can no longer be called a currency or a substitute for money in its role, this is all because of the value that BTC has.
and we try to collect and store it because of the possibility of a very high value occurring in the future and this is what makes everyone invest in it, even altcoins and stabilcoins still cannot become fully digital currencies because it can be said that 80% of them run as transaction tools in an exchange market
Topic: Are we hodling BTC or we are hodling Fiat?? - page 5. (Read 769 times)
a pretty good history and reasoning about btc, those 2 elements do apply to all instruments and anything that can be traded (bartered).
only 2 choices, use transactions or save in the future. that's absolute.
indeed very, very far (profit value,) from traders that open and buy when Dca is below the current price, maybe what you say is true. Assume that Dca has been several years ago from the time since the beginning of btc appearing until now, of course it has more than enough for the profit that d can. I also divide 50% btc and 50% fiat. that's my choice
only 2 choices, use transactions or save in the future. that's absolute.
indeed very, very far (profit value,) from traders that open and buy when Dca is below the current price, maybe what you say is true. Assume that Dca has been several years ago from the time since the beginning of btc appearing until now, of course it has more than enough for the profit that d can. I also divide 50% btc and 50% fiat. that's my choice
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I prefer to hold bitcoin and hold fiat because by holding bitcoin, we can sell it anytime we want, especially if the price of bitcoin increases rapidly and reaches a high price. We also hold fiat to buy more bitcoins, especially if the price can drop drastically to the lowest level and then hold it back until the price recovers and increases to higher prices.
Volatility does make the price go up and down because of the demand and supply made by traders in the market. Bitcoin has not been able to become a legal tender in many countries but it seems that bitcoin is still getting there. Maybe Satoshi's idea hasn't materialized yet, but it could materialize in the future. So before that happens, we can collect more bitcoins and fiat to help us buy more bitcoins.
Volatility does make the price go up and down because of the demand and supply made by traders in the market. Bitcoin has not been able to become a legal tender in many countries but it seems that bitcoin is still getting there. Maybe Satoshi's idea hasn't materialized yet, but it could materialize in the future. So before that happens, we can collect more bitcoins and fiat to help us buy more bitcoins.
Can we realistically expect a country or even a community of average people to use Bitcoin as the daily driver? If you work for one month to afford to buy two breads and all of a sudden one month of work is going to get you only half a bread, it sucks. Sounds awesome when you get Bitcoin in the middle of a bull run, but how long do bull runs last?
Realistically, there is no way Bitcoin can be the daily driver currency for average humans unless you want them to be fully wrecked by volatility. It is sometimes difficult for families even when there is a slight increase in monthly costs, let alone if every day brings you less or more money in your pockets. So for me, while Bitcoin provides all the financial freedom I ever wanted, it is not yet the currency of choice due to its constantly changing value.
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Regards,
PrivacyG
Realistically, there is no way Bitcoin can be the daily driver currency for average humans unless you want them to be fully wrecked by volatility. It is sometimes difficult for families even when there is a slight increase in monthly costs, let alone if every day brings you less or more money in your pockets. So for me, while Bitcoin provides all the financial freedom I ever wanted, it is not yet the currency of choice due to its constantly changing value.
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Regards,
PrivacyG
“Been that Bitcoin is not backed by any centralized authority, community or asset, it is therefore wise first as a currency and not as a store of value; especially for salary earners in developing countries, low income earners and those who live on wages.
Because to be profitable in BTC investment, one must be a high salary earner who invests with money that has no future need, with reasons that volatility will always be a key player as long as BTC exists”.
I agree with your first part here that bitcoin should be viewed as a currency, and that’s something I’ve felt firmly about for some time, but your second part here I don’t agree with. You don’t have to be a high earner to buy bitcoin, even if it’s a little part of one’s net worth, if bitcoin goes up in value, it doesn’t matter if you’ve got a million dollars worth or 100 dollars, either way the % gain will be the same.
Because to be profitable in BTC investment, one must be a high salary earner who invests with money that has no future need, with reasons that volatility will always be a key player as long as BTC exists”.
I agree with your first part here that bitcoin should be viewed as a currency, and that’s something I’ve felt firmly about for some time, but your second part here I don’t agree with. You don’t have to be a high earner to buy bitcoin, even if it’s a little part of one’s net worth, if bitcoin goes up in value, it doesn’t matter if you’ve got a million dollars worth or 100 dollars, either way the % gain will be the same.
This is upto the user, and bitcoin have got multiple usage. Satoshi innovated as a medium of exchange eliminating the third party involvement. Further this has evolved to be more of a investment due to its profiting out of volatility. Even the countries that have regulated cryptocurrency usage haven't given access to cryptocurrency as legal tender. This is all because of its technology backing, which creates massive variation in value out of volatility. Maybe in the long term this can change.
Let's be a little realistic and put our feet on the ground. We can't get rid of fiat money, no matter what prestige bitcoin has. Even if you keep great savings of bitcoin, you have to convert it into regular money every time you want to use it or use part of it, unless you intend to buy something from someone who accepts payment in bitcoin, but in the best cases he will evaluate the good or service he will provide you with fiat money.
On the other hand, we must not forget the huge number of people from around the world who do not have access to banking services, but at the same time have phones connected to the Internet. Bitcoin represents one of the best options for them and they can create a framework based on crypto only without having to link it to the fiat money system that is currently leading the world.
On the other hand, we must not forget the huge number of people from around the world who do not have access to banking services, but at the same time have phones connected to the Internet. Bitcoin represents one of the best options for them and they can create a framework based on crypto only without having to link it to the fiat money system that is currently leading the world.
Been that Bitcoin is not backed by any centralized authority, community or asset, it is therefore wise first as a currency and not as a store of value; especially for salary earners in developing countries, low income earners and those who live on wages.
Because to be profitable in BTC investment, one must be a high salary earner who invests with money that has no future need, with reasons that volatility will always be a key player as long as BTC exists.
Btc did actually started first as a currency but later on people think it's also good to use it like an asset due to its volatility and the ability for its price to grow higher the longer you hodl it. For someone that is living on a well developed country or those who earns huge, then maybe they can use their btc mainly as a currency to send and receive money but for those who are low income earners, they are finding ways on how to improve their lives and this is where they discovered btc and use it as an investment asset. Low or high salary earner, both can invest and earn a profit in btc. It only boils down on how they handle their btc investment.Because to be profitable in BTC investment, one must be a high salary earner who invests with money that has no future need, with reasons that volatility will always be a key player as long as BTC exists.
Actually it had been created for the sole purpose of new payment system and its decentralization but it turns out that it does have other opportunities that it do gives despite of its actual utility which do really end up
on making it as an asset or something that been holding for several years and earn income through it but of course it wont really be giving out assurance when it comes to this but it does really have that potential.
Speaking of holding then people do always mind off about holding or accumulating fiat as much as we could which is typical but some people do think up about diversifying things and so on.
So its a personal choice on what you would gonna do.
Been that Bitcoin is not backed by any centralized authority, community or asset, it is therefore wise first as a currency and not as a store of value; especially for salary earners in developing countries, low income earners and those who live on wages.
Because to be profitable in BTC investment, one must be a high salary earner who invests with money that has no future need, with reasons that volatility will always be a key player as long as BTC exists.
Btc did actually started first as a currency but later on people think it's also good to use it like an asset due to its volatility and the ability for its price to grow higher the longer you hodl it. For someone that is living on a well developed country or those who earns huge, then maybe they can use their btc mainly as a currency to send and receive money but for those who are low income earners, they are finding ways on how to improve their lives and this is where they discovered btc and use it as an investment asset. Low or high salary earner, both can invest and earn a profit in btc. It only boils down on how they handle their btc investment. Because to be profitable in BTC investment, one must be a high salary earner who invests with money that has no future need, with reasons that volatility will always be a key player as long as BTC exists.
This may look weird, but follow closely while I drive my point home. In 2009, Satoshi developed Bitcoin with the intention of building a digital peer-2-peer currency that has no centralized authority, right?
Yeah, but as volatility of prices kept fluctuating, BTC enthusiasts started deviating from the initial idea of a digital currency to seeing it as an investment option.
Bitcoin price, after it's ATH of $69.045, there has been series of panic as prices kept devaluing against fiat, causing investors more concerns about the BTC value compared to fiat, as against it's initial aim of being a peer-2-peer network.
Been that Bitcoin is not backed by any centralized authority, community or asset, it is therefore wise first as a currency and not as a store of value; especially for salary earners in developing countries, low income earners and those who live on wages.
Because to be profitable in BTC investment, one must be a high salary earner who invests with money that has no future need, with reasons that volatility will always be a key player as long as BTC exists.
In my opinion, BTC volatility is a powerful market wave that should keep investors in profit especially with DCA method. because if price is the major concern over the amount of BTC an investor is able to gather as prices keep fluctuating, it invariably means it is fiat he is holding and not BTC.
It will only be regarded as BTC holding if every price wave adds to it.
Yeah, but as volatility of prices kept fluctuating, BTC enthusiasts started deviating from the initial idea of a digital currency to seeing it as an investment option.
Bitcoin price, after it's ATH of $69.045, there has been series of panic as prices kept devaluing against fiat, causing investors more concerns about the BTC value compared to fiat, as against it's initial aim of being a peer-2-peer network.
Been that Bitcoin is not backed by any centralized authority, community or asset, it is therefore wise first as a currency and not as a store of value; especially for salary earners in developing countries, low income earners and those who live on wages.
Because to be profitable in BTC investment, one must be a high salary earner who invests with money that has no future need, with reasons that volatility will always be a key player as long as BTC exists.
In my opinion, BTC volatility is a powerful market wave that should keep investors in profit especially with DCA method. because if price is the major concern over the amount of BTC an investor is able to gather as prices keep fluctuating, it invariably means it is fiat he is holding and not BTC.
It will only be regarded as BTC holding if every price wave adds to it.
People use bitcoin in many different ways and it's hard to really pin down the current primary motive. It's actually better when the price is down low and suppressed because it means more people are likely to use it for it's original purpose, as a functional universal currency outside of central banks for trading across borders. Speculators can actually be detrimental to the health of cryptocurrency, because they disrupt the price and make it majorly unstable - scaring away regular functional users. Speculators are also just the type of people who like taking short cuts or finding get rich quick schemes, so they'll quickly abandon it if something new comes along.
After reading to the end of the post expecting to see that point you want to drive home! I didn't see anyhting, in your opinion, btc suddenly becomes fiat because the price is highly volatile, that doesn't make any sense to me. High volatility doesn't stop btc from being a digital currency or being the peer-2-peer currency that it was designed to be. Price is a major concern for some and it is not for others. If you had the opportunity to DCA, as a result of price decrease, would you consider yourself DCA fiat?
Volatility accompanies price swing. For ever move prices make it can be seen as a good time to add to the total hodlings. Bitcoin has become more of an asset lately due to how volatile it is. No one controls bitcoin market and how it moves towards fiat even the whales can't decide what direction prices should go this why i rather care about how many Bitcoin i am able to gather in every trend other than how much it worth because if i am holding on a long term i should be able to buy more with every wave the market makes
In today's world, we are still enslaved by fiat that's for sure, hence why a lot of people are still concerned about bitcoin's price volatility against it. Personally, I don't really care whatever usage people see fit on their bitcoins. It gives them options then it's good for them. At the least, they are seeing that fiat is not the only way to go for your transactions and traditional assets that they offer mainstream aren't the only ones that you can invest in.
For me, it's the freedom that bitcoin gives to the unbanked that matters most, and not the use-case that each individual see on bitcoin.
For me, it's the freedom that bitcoin gives to the unbanked that matters most, and not the use-case that each individual see on bitcoin.
Let's just think of the possibility if we hold unto both fiat and Bitcoin and compare the pros and cons. Holding BTC which is a decentralized digital asset where no one is in control of your funds while the value is volatile which is either good or bad for investors as it might fluctuate up or down. Holding Fiat which is a centralized currency where the government can control your fund however the value isn't as volatile as Bitcoin. As we can see, security, control, and value are the upper hand for holding BTC.
However, we must also think about the use case of fiat and BTC as not every establishment will accept bitcoin or any crypto payments unlike Fiat where you can use it to buy anything and anytime.
However, we must also think about the use case of fiat and BTC as not every establishment will accept bitcoin or any crypto payments unlike Fiat where you can use it to buy anything and anytime.
There is a 4 billion unbanked demographic who cannot qualify for a bank account. They lack digital payment options aside from bitcoin. No matter what happens, a large segment of the population will always HODL BTC due to them lacking any other option.
I don't think anyone is HODL'ing fiat. Everyone is in crypto, commodities, real estate or precious metals. US stock and bond markets are having their worst year in 50 years. The US dollar isn't doing well versus inflation, even if FOREX exchange rates are good.
Loans are another good option. As long as the inflation rate remains higher than the loan APR. Financial and economic circumstances make loans a more attractive option versus inflation.
I don't think anyone is HODL'ing fiat. Everyone is in crypto, commodities, real estate or precious metals. US stock and bond markets are having their worst year in 50 years. The US dollar isn't doing well versus inflation, even if FOREX exchange rates are good.
Loans are another good option. As long as the inflation rate remains higher than the loan APR. Financial and economic circumstances make loans a more attractive option versus inflation.
There has to be an unit of measurement for cryptocurrencies like bitcoin. Because bitcoin has not yet matured to such a level where it can derive the price of service or goods using the unit of bitcoin. It has to be derived on the fiat value. So bitcoin is on its right track.
What Satoshi did is phenomenal. But when it comes to free market dynamics, a lot can change. That's exactly what happened to bitcoin. People preferred it as an investment than a currency. So be it!
What Satoshi did is phenomenal. But when it comes to free market dynamics, a lot can change. That's exactly what happened to bitcoin. People preferred it as an investment than a currency. So be it!
It will only be regarded as BTC holding if every price wave adds to it.
Above all that you said, having known with understanding of what bitcoin is and that it privacy and decentralised system is a greater advantage, it also has to be taken into cognizance on it volatility. If we say that when it adds up (that is when there is increase in value) then it is bitcoin and reduction by inference to what you are saying means it will be fiat, no it is not to be taken as that. The volatility of bitcoin is what makes it different and when the value goes bear, it also bitcoin that is why people are having it as store of value and buy more when the price drops.
It won't be regarded as fiat if it drops because at that point it still retains the characteristics that makes it bitcoin especially that it is not controlled or regulated and whatever will make the value increase is independent of any government control .
In my perspective, the most important thing is that the holder knows the transaction mechanism, maintains privacy, accumulates it in the right place (noncustodial), then they are actually holding bitcoin.
Unless they are stored in a place not under control like an exchange, then they really only care about the value (price) rather than any technical advantage of bitcoin. I don't think they can do much with it other than increase or exchange bsaed in fiat value (trade).
Unless they are stored in a place not under control like an exchange, then they really only care about the value (price) rather than any technical advantage of bitcoin. I don't think they can do much with it other than increase or exchange bsaed in fiat value (trade).
You actually keep bitcoin as an asset and when you sell, you get real currency in return and buying it will also take currency like Gold but in case of bitcoin, it is a little different because in this market bitcoin price keeps going up and down and have risk even more. Many investors are ready to take this risk and if their luck is right then they become rich too.
Honestly as a student suffering from war, all I had was around 200 GBP which I decided to not hold in bank but rather in the form of BTC, I have suffered a loss and it's now around 190 GBP but still I have decided to hold it in and didn't even sell it when the price went up like 6% because I do believe that during the months of September and October we see immense growth which is ultimately amazing to see, am not a good trader but at the end of the day am a calm holder, so hopefully, the price will go up and would be able to do some trades or two. Bitcoins is far safer, gives better results but all you need is patience.
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