Topic: Bitcoin is just a speculative asset, not money? - page 2. (Read 505 times)
that's right, but I have other thoughts about bitcoin and currency relationships, is it true that the purpose of creating bitcoin is to become currency ?, I think it is 50:50, but if we look at the real facts of bitcoin, whether it's about price, existence, or other things, it seems my thinking is more likely to "bitcoin is an asset, just like gold and other valuable things"
money and currency are 2 different things
think of currency as a umbrella term for anything people want to trade.
married couple, exchange sexual favours for gifts at valentine/birthdays is a currency.. yes sex is a currency
prisoners, exchange cigarettes or chocolate pudding between inmates.. yep cigarettes and desserts are currency
friends, exchange a bottle of beer for having a friend help them with fixing their car or doing a bit of DIY. yep favours and alcohol are currency
anything can be a currency. and yes bitcoin is a currency.
now that part is sorted.
..
"money" is a sub category of currency with specific limitations, definitions and utility.
for instance its just a widely known and accepted medium of exchange usually accepted nationally by that nation wrote on the banknote.
(yes some retailers dont do cash transactions and only want credit cards so even bank notes are not 100% accepted everywhere)
(yes some retailers dont do credit cards and only want cash transactions so even credit cards are not 100% accepted everywhere)
an asset is another sub category of currency. with its own definitions and utility, this is more of a value store with only the occassional use as a medium of exchange
antique furniture/art
gold coins/jewellery
company shares
bitcoin
bitcoin is essentially an asset currency
think of currency as a umbrella term for anything people want to trade.
married couple, exchange sexual favours for gifts at valentine/birthdays is a currency.. yes sex is a currency
prisoners, exchange cigarettes or chocolate pudding between inmates.. yep cigarettes and desserts are currency
friends, exchange a bottle of beer for having a friend help them with fixing their car or doing a bit of DIY. yep favours and alcohol are currency
anything can be a currency. and yes bitcoin is a currency.
now that part is sorted.
..
"money" is a sub category of currency with specific limitations, definitions and utility.
for instance its just a widely known and accepted medium of exchange usually accepted nationally by that nation wrote on the banknote.
(yes some retailers dont do cash transactions and only want credit cards so even bank notes are not 100% accepted everywhere)
(yes some retailers dont do credit cards and only want cash transactions so even credit cards are not 100% accepted everywhere)
an asset is another sub category of currency. with its own definitions and utility, this is more of a value store with only the occassional use as a medium of exchange
antique furniture/art
gold coins/jewellery
company shares
bitcoin
bitcoin is essentially an asset currency
Which makes it uncertain how some of the government regulators should move forward in regulating Bitcoin and altcoins. Regulating it as a commodity might make void the law on "operating as an illegal money transmitter" which has imprisoned some Localbitcoin traders in America.
Regulating it like a paper currency within the definition of the law makes it not so because Bitcoin is not legal tender, leaving some judges confused.
Satoshi has brought so many legal headaches. Hahaha.
if I think the bitcoin as an investment container. if to make currency like I can not. if as Asset value may be really. let's just say that for now bitcoin becomes an investment value that one time can be taken and made into the country's currency
Bitcoin is not money per se but it can be exchange into a fiat currency or a money that's why we called it as virtual currency. And how did you define currency?
Dictionary
currency
cur·ren·cy
ˈkərənsē/Submit
noun
1.
a system of money in general use in a particular country.
"the dollar was a strong currency"
synonyms: money, legal tender, cash, banknotes, bills, notes, coins, coinage, specie
"foreign currency"
2.
the fact or quality of being generally accepted or in use.
"the term gained currency during the second half of the 20th century"
synonyms: prevalence, circulation, exposure
So, it is not a physical money but it is also money in virtual form. It's value might be unstable but still, it's money.
Dictionary
currency
cur·ren·cy
ˈkərənsē/Submit
noun
1.
a system of money in general use in a particular country.
"the dollar was a strong currency"
synonyms: money, legal tender, cash, banknotes, bills, notes, coins, coinage, specie
"foreign currency"
2.
the fact or quality of being generally accepted or in use.
"the term gained currency during the second half of the 20th century"
synonyms: prevalence, circulation, exposure
So, it is not a physical money but it is also money in virtual form. It's value might be unstable but still, it's money.
The change in price does not make bitcoin a reasonable currency.
Bitcoin can not become a currency for two main reasons: its value is unstable and trading time is too slow.
Bitcoin can not become a currency for two main reasons: its value is unstable and trading time is too slow.
Improvements are being done and we will see change in both. The fees has already got reduced as per the responses made by members here. I am still hopeful about bitcoins being used as a payment medium.
It can be called money because it has value , Bitcoin is just like gold. The value of it is because of the trust that people puts in it.
Its susceptibility to manipulation makes it unstable.But it is money since it can be used to exchange goods and services. All currencies are volatile, those in forex will tell you so. Also the resistance from the big corporations make it even harder for btc to become stable. But let's face it, btc is only 9 years old. This is just the beginning. I'm calling all this instability teething pains.
Yes, these are probably the reason why people have alot of speculations against bitcoin and other crypto currency. We don’t exactly know what is the real purpose why these cryptos have been discovered. But currently this serves as one of the assets that one may have since it has a value that fluctuates over time.
Ongoing debate but for me it doesn't matter how to classify BTC. It brings me real money and I am happy in the same manner as others who think other way.
Well, I agree that Bitcoin is mainly famous as a speculative instrument as of now but the core concept of Bitcoin states that it is a payment system. However, there are some issues like price volatility and transaction cost/time in making ground level use of it as a payment system. Since, it is growing day by day in terms of userbase and price, it will take at least a decade to inculcate it as a payment system.
Lol nice way to put it!
Our currency is also unstable just like bitcoin, the only difference is, it doesn't undergo the same rise and fall as Bitcoin does. If money is an asset, bitcoin is an asset, then why not consider bitcoin as money? Simple logic. Everything that has a value money in their different way.
Even when bitcoin's price is $ 0.1 is still considered as money. However, it's not ready for payment method as we can see the fees are too high and it takes a long time for a transaction to get confirmed unless you pay a higher fee.It's true that bitcoin is a speculative asset where there is no fixed value, frequent movement of price can be expected. However I don't believe it's ending soon. It can still stand for a long time, and can be consider for long term investment that in anytime can be converted into money.
I might say that it's a speculative asset, but we can't deny that it's also money or currency. The point is when people still use it for transaction or purchase anything it'll be mentioned as money, you know what the reason why my government couldn't ban bitcoin where transaction using other than our official currency is against the rules? Yes, because of the speculative asset, everyone has their own right to holding something precious like bitcoin.
Money should not appreciate in value. The purpose of money is to be spent, to circulate, not to be "hodled". Why would you use as a medium of exchange something that appreciates up to 1000% a year?
"Hodling" is the exact opposite of money.
Another issue with bitcoin is it is not a unit of account, people when transact in bitcoin they refer to $ and other fiat currencies, they don't have a clue what 1btc is unless it's not converted and expressed in fiat. There's not a country in a world that prices goods and services in btc. There's no reference point, it's not a legal tender anywhere either. Only way btc's value can be known is when it's paired to $.
"Hodling" is the exact opposite of money.
Another issue with bitcoin is it is not a unit of account, people when transact in bitcoin they refer to $ and other fiat currencies, they don't have a clue what 1btc is unless it's not converted and expressed in fiat. There's not a country in a world that prices goods and services in btc. There's no reference point, it's not a legal tender anywhere either. Only way btc's value can be known is when it's paired to $.
How are you going to deliver it? To explain bitcoin to people who are really blind about cryptocurrency do have to be extra patient, because they do not know the basic ground, so they refuse to know.
Bitcoin is not speculative but quite the opposite of real digital currency tested and proven.
Fiat currencies are also prone to volatility but central banks try to execute measures of control to price of their currencies by issuing treasury notes or buying the excess currencies in the forex market. The Zimbabwean dollar is a scary example of high volatility in fiat currency. Bitcoin on the hand is a fairly new creation and as such has no central authority to cushion the sharp rise or drop in price.
Bitcoin is still in its infancy stage so give it time.
Bitcoin is still in its infancy stage so give it time.
Yes, I think bitcoin is more the asset, like a gold or oil, then money though you can still pay with it for something
and the main problem of course, high price's fluctuation.
I agree, bitcoin is not money, we cannot hold bitcoin physically like any other money. Bitcoin is just useful online and if we don't have an internet, bitcoin will be useless at all. Bitcoin is just an asset for me.and the main problem of course, high price's fluctuation.
Our currency is also unstable just like bitcoin, the only difference is, it doesn't undergo the same rise and fall as Bitcoin does. If money is an asset, bitcoin is an asset, then why not consider bitcoin as money? Simple logic. Everything that has a value money in their different way.
So if the U.S. Dollar became too volatile or unstable it will not be considered as money by their own people? Will it also be called as an speculative asset just like what you said? Its volatility does not affect its functions as a currency, the sad thing about it is Bitcoin being decentralized a lot of people are taking advantage to take profit from it and is overshadowing its use as a currency. But now all things are looking good for Bitcoin lately I can have high and reliable transaction speeds with just 14,000 Satoshis of network fees which is really cheap. Now it is more appealing to use Bitcoin as a currency hopefully this will be a start to businesses to accept Bitcoin again.
The change in price does not make bitcoin a reasonable currency.
Bitcoin can not become a currency for two main reasons: its value is unstable and trading time is too slow.
Bitcoin can not become a currency for two main reasons: its value is unstable and trading time is too slow.
You are true to some extent. But for items in the range of $1000 or above can still be transacted with bitcoins. The seller is also in advantage when prices increase in future.
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