Topic: Bitcoin is basically a stock that allows you to purchase things (Read 379 times)

I think this is the biggest problem right now the people who are investing in it aren't interested in using Bitcoin itself but all about converting it back to fiat and treating it as an investment rather than the currency it is.

If something allows you to purchase thing, it's called money. Actually no other way to call it. Also, a stock usually pay dividends, while Bitcoin does not. Of course, I'm disappointed as you that people see Bitcoin more as a digital asset than a currency or payment system. But maybe in the future things will be better...don't forget we are still in an early stage and cryptocurrencies are still far from mainstream (apart few countries...)

with this way of thinking you should also continue to say:
cash is a useless piece of paper that allows you to purchase things.
and bank accounts, credit cards, and thing like that are just numbers on a computer screen that promise you to have a value.

If we use Bitcoin directly without converting to Fiat or paying through payment processors, then Bitcoin will be recognized

more as a currency. The speculative nature and the volatility has made this more of a commodity than a currency, which is

actually sad. The scaling problems and the high fees, did not help our cause to get Bitcoin recognized as a currency. 

May be bitcoin has the same speculative aspects and capital appreciation like a stock, but it doesn't seem to have any share holders nor do it have any products or paying any dividend. I think the biggest difference also lies in valuation, if you try to value bitcoin using some stock theory it will probably not going to worth anything

It seems to me that the main difference of bitcoin from the shares of enterprises lies in the fact that bitcoin does not stimulate the production. The only exception is enterprises that produce equipment for mining coins. Dividends are paid only on income of enterprises. Why can pay dividends bitcoin?

It is what we need to this modern world and yet cannot be accepted that truth or just dont want to.
A simple fact which could not be swallowed specially by our own government.
They may be scared of the change or just wont do anything for the new change because they wont profit from it.
I have thought about it too. The what if bitcoin is the currency of one country. It will be better but it will not be done just like that. It is the government that is needed to be pushed.

Some take this as a stock. Dont want o be little off but many try to invest like they do in stock exchange. So many consider bitcoin as some sort of stock cuz it has his ups and down, and many with this see opportunity to get some additional income or made profit depend how the person who invest look at this.

Many thing are consider a stock but, bitcoin is not. Simple answer is that many companies that have stock are paying dividends bitcoin do not.
This is main difference in this point of view.

I agree that bitcoin is a stock and a money at the same time. Bitcoin is a stock because it serves as an investment and because of bitcoin you can grow your money and because of being money of bitcoin you can also use it to buy things online or even offline, if the seller will be convinced to accept your payment.

I disagree and I dont think the crypto market and the stock market can be considered similiar at all, they have too many differences. Bitcoin is a currency and you may buy it in order to invest in it. This does not guarantee a profit, rather you must keep tabs on the market about when to sell it and thus make a profits. It like dividends given by shares and stocks, some crypto altcoins do have such features but mostly they made so that traders dont just pump and dump them.

Also you are the one who control bitcoin and not any central agency thus making it totally opposite to the stock market.

No. First of all, most stocks will give you dividends, and bitcoin does not. Bitcoin can be used as an investment, but it is primarily still a currency. Plus, stocks are issued by a company and it is backed by the assets of the company, whilst bitcoin is decentralized, not issued by any single entity.

Based on these points, bitcoins aren't stocks.

Plus, stocks aren't a good medium of exchange at all since they just aren't designed for that purpose from the first place. Bitcoin is a good medium of exchange.

quite the opposite. bitcoin is a currency that allows you to treat it like a stock

the similarities does not mean the dominating feature which is being a currency is overlooked. if some people overlook it doesn't mean it is any different. people can treat different things differently. they can use gold dust as their currency when they go grocery shopping but that doesn't make gold a currency of today.


then this is true for literary anything else in the world too.
what is a house really worth? $1 mil? $10 thousand? that is the same thing. the supply and demand determines the price of anything else.

I quite agree with you OP that Bitcoin (all cryptos inclusive) is a stock. Sadly, many people see it as a get rich quick scheme and this confuses a lot of things. Notably, Bitcoin can be categorized as a special kind of stock in the sense that it is used as a channel for payment and it is also decentralized.

But just like stocks, all cryptos are traded on a one-way pattern and that is BUY. One only buys to sell in order to make profit. You can't get into a bearish market to make profit with out having first bought earlier. But in a currency market (forex trading) one makes profit by entering a bullish trade and also a bearish trade. Bitcoin does not have this characteristics and this rules it out as a currency.

In some ways, there are some similarities in between Bitcoin and a stock of a certain company or business because just like Bitcoin once a stock can be traded in a stock exchange its value can also go down and go up...the only difference is that Bitcoin will not be giving off dividends out of the profits that a company can be making and a stock can never be used as a medium of exchange just like what Bitcoin is now.

With Bitcoin, we are taking a part of something really revolutionary something that will change or upgrade many facets of our daily lives...and we can see more and more applications of the technology behind Bitcoin in the coming years. There are many areas of different sectors of our society that blockchain will be touching. With Bitcoin, we are simply returning the power back to the people (that's us!) where it should really belong.

Long live, Bitcoin!

Both of them have some similarities to be compare but stocks is stocks, you claim a portion of company's or corporations asset and be a shareholder but bitcoin is different, yes they are similar in terms of the sudden price value and sudden high and low demand, but don't forget bitcoin is a currency over the computer, over the technology. You own your bitcoin and no one else unless your key got stolen or lost, in stock you just own smallest portion of the company (depends in your investment) bitcoin is like banking but you own it and it is decentralized.

Stocks, Real Estate, Gold, Checking accounts are examples of financial assets that are subservient and manipulated by the global fiat system. They can be confiscated at will and frozen by the authority of central banks and governments.

Bitcoin is not only not subservient to this system, but also (unlike the stocks, real estate, gold) Bitcoin transcends national/geopolitical borders.
You can take it with you to another country easily WITHOUT any third-party intervention with just knowing a few words. Stocks, Real Estate, Gold requires third parties or storing/transport costs.

Bitcoin has freed, continuing to free, and tomorrow will still free many people globally from the centrally controlled debt-based fiat system that confiscates your wealth with inflation and tax. Bitcoin is a TRUE savings vehicle. Buying Real Estate, Hospital healthcare, Global traveling, College Education gets cheaper as you hold Bitcoin.

Just a reminder to newbies:
Bitcoin CANNOT be controlled.

Bitcoin cannot be made legal. Governments may still attempt to do so.

Bitcoin cannot be made illegal. Governments may still attempt to do so.

Central banks already control and manipulate Stocks, Real Estate, Gold, Interest Rates.

Bitcoin reached escape velocity 4-years ago in 2013 which means it cannot be stopped - cannot make it illegal or legal - governments/banks do not matter.

On the opposite end of the spectrum the global fiat (US Dollars, Indian Rupees, Chinese Yuan, etc) bubble system broke a couple of decades ago.

Fiat around the world is forced to inflate issuance as its heavily infested, burdened and broken with:
-regulatory burden on fiat banks & system (incredibly costly)
-unemployment & other welfare costs
-inflating fiat to keep stock market rising and to keep house-prices from collapsing
-financing conflicts, bombs, and "aid"
-insurance fraud
-false claims and insurance loss-events
-stabilize regions after natural disasters
-keeping monopolies with internet access centralized and search engine crawlers centralized
-money laundering
-chargebacks
-frivolous legal costs (lawsuits bogging the system down)
-state-sponsored corruption and unofficial corruption (governments and gangs, banks and conartists)
-retirement obligations (debasement in value to keep up with payments from government or other retirement-obligations)
-fake credit (goods being transacted with credit-loss, replaced by inflation of monetary base rather than bringing perpetrators & source to justice)
-using enforcement labor to freeze accounts and assets and take away your money
-costs of auditors and budgetors and accountants to governments and businesses

Bitcoin, systemically, is free from these burdens.

Bitcoin is GLOBALLY held and sought after by people in almost every country - see global trade data by country or see this list:
https://bitcointalksearch.org/topic/which-country-are-you-from-here-list-thirty-popular-bitcoin-countries-for-trade-1853019

CAN SOMEONE PLEASE STOP BLOWING BUBBLES OF EXTRA FIAT MONEY AROUND THE WORLD? (PLEASE NO MORE USD, EUROS, JAPANESE YENS, INDIAN RUPEES, CHINESE YUAN, MEXICAN PESOS - PLEASE STOP INFLATING AND MAKING BITCOIN SO VALUABLE)...stop this pumping

https://macromon.wordpress.com/2017/04/26/the-chart-that-floats-overvaluation/

reverse everthing that you just said and i agree with it.

bitcoin is a currency which you can use for payment but also it can be used as an "investment" because its price is rising.

what you are missing is that that is the feature of anything else that rises. for example if you live in a country that is losing its local currency value the price of USD for example will be rising.

now imagine you buy USD with your local currency and 1 USD = 10 LC (local currency). then in a month it becomes 1 USD = 100 LC.
does this mean USD is a stock?

If you think about it. Bitcoin is basically just a stock. If you buy apple stock. That stock may go up in value due to high demand or it may go down due to low demand. The stock itself, doesn't do anything. If you own the majority of a stock then you have control of the company, but for most stock holders all it really is, is a certificate that says you own something. Well, since most people trade on computers now, just a number on a computer screen saying "you own x amount of shares".

So what can you do with this apple stock? You can't eat it, you can't use it as shelter. It really isn't anything. It has no concrete value. Sure, you "own a portion" of the apple company, but what does that even mean? If you walked into apple headquarters you would be considered trespassing and rightfully so. Owning that portion of apple stock does not affect your life in any way on a physical level. The only way it can be of value to you is if someone else buys it from you later at a higher price. If everyone tomorrow decided to dump apple stock, the price would drop down super low regardless to how the company is performing. Even if apple released an iphone9 that is super revolutionary and has made the company tons and tons of money, it still would not effect the price of the stock. Well indirectly it would. In a direct sense, it wouldn't because the true value of the apple stock is determined by what traders/investors decide it is worth on the market. Stocks aren't backed by anything other than the perceived notion that it will mimic the performance of the company that it represents.

I think of bitcoin in a similar light. The only thing that sets it apart is that bitcoin is also a medium of exchange. Though not wide scale yet. Even if it wont become wide scale it still would be similar to that of a stock. It is backed by the belief that a new system for money will exist or by the belief that bitcoin is a store of value (electronic gold).

What is bitcoin really worth? $4000? $3000? $10,000? $1,000,000, $0.01?, nothing?

What is apple stock really worth? $150? $300? $7,000? $0?

The answer is simple. It is whatever the world collectively agrees it is worth.

(Okay, apple stock may not have been the best example since it is a stock that pays dividends. However, for stocks that don't pay dividends this is absolutely true).

Thoughts?