Topic: Bitcoin is neither a currency nor a store of value ! - page 2. (Read 1837 times)

Bitcoin is not a currency.

It’s too volatile to be used as a currency. Nobody will use it to trade if it can gain/lose 10% in just one day! And it’s not just a question of maturity, it’s a design issue. The quantity of money flowing needs to be in line with economic growth. It cannot be constant or follow a predictable function because economic growth is more complex than that. You need some form of intelligence, human or artificial to calibrate the quantity of money. You need some sort of feedback loop to offset unpredictable human behaviour storing currency. Ok central bank gurus have been screwing us but we have to admit that they have maintained inflation within boundary.

Bitcoin is not a store of value.

Like god, silver or any currency Bitcoin is not a store a value because it doesn’t pay any dividend! Don’t make that mistake. And actually it’s worse because it’s actually an asset with negative interest rate! It has a very high burning rate with miners burning millions every day just to maintain the consensus! This is pure value destruction and I’m not even speaking about the environmental cost. You have to see mining fee as a powerful gravity force, the higher Bitcoin is the stronger the force to bring it back to ground level! And ICOs are another form of burning fee. Most ICOs are scams and you will never see back the money they are burning.

So what is Bitcoin?

It looks like a scam, it smells like a scam, it’s definitively a pyramid scam. Given human appetite for gambling it could still rise much much higher at some point it will collapse with or without regulatory help. At the end Bitcoin is a great experiment but a failed experiment. Yes we need an alternative to central bank but Bitcoin is not that alternative.

Well, you are wrong, because anything that can be exchanged for goods or services is a currency. This could be sea shells, as it has been in the past.

The sales on my website tell a different story, as people are indeed using BTC as a currency, and purchasing tangible goods with it.

As in regard to a store of value, this is also incorrect, as it has certainty been a store of value for many. I have been around on these forums, since before the times of $1 BTC. I think to these people, it has been an amazing store of value.

I don’t believe that bitcoin is not a currency because if is not then why can it be use in exchange of goods and commodities? In some part of  the world bitcoin is more preferred in doing payments online. And definitely bitcoin is not a scam although some evil people will find a way to make easy money and use the bitcoin name to victimize others.

It is a type of currencies with different value from the other currency especially in the other countries with crypto currency trading.

I agree with one of your points but even if bitcoin is volatile, it is still a currency. Why say that bitcoin is not a currency if it is tradeable to real money? It can also be used to buy some items online so it is still a currency. Also you can't call something as scam just because of it being volatile.  Stock market is volatile too so I think it is quite normal for btc to be volatile considering it is still in it's early ages.

The Oxford dictionary definition of a currency

Wikipedia definition of "store of value"

Bitcoin seems to fit the bill on both counts.

There's no actual value. Bitcoin's price rises because people expect it to become an alternative for traditional currencies. But in real life you won't pay with BTC unless you need to stay anonymous.

A system of money in general use in a particular country.

A 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.

To be honest, I do not understand the value of Bitcoin at all. Today, the Crypto-currency is almost the best opportunity for earning and starting capital for your business. Well, that's the future of Bitcoin, because of its uncertain values, it is doubtful.

I think bitcoin is both a currency and a scam. It's a new asset and with that comes extreme volatility. One bitcoin discovers its value which will be way higher in my opinion only then will the volatility subside and with that will come the ability to use as a currency. Fungability will be realised

Bitcoin is not a currency.

It’s too volatile to be used as a currency. Nobody will use it to trade if it can gain/lose 10% in just one day! And it’s not just a question of maturity, it’s a design issue. The quantity of money flowing needs to be in line with economic growth. It cannot be constant or follow a predictable function because economic growth is more complex than that. You need some form of intelligence, human or artificial to calibrate the quantity of money. You need some sort of feedback loop to offset unpredictable human behaviour storing currency. Ok central bank gurus have been screwing us but we have to admit that they have maintained inflation within boundary.

Bitcoin is not a store of value.

Like god, silver or any currency Bitcoin is not a store a value because it doesn’t pay any dividend! Don’t make that mistake. And actually it’s worse because it’s actually an asset with negative interest rate! It has a very high burning rate with miners burning millions every day just to maintain the consensus! This is pure value destruction and I’m not even speaking about the environmental cost. You have to see mining fee as a powerful gravity force, the higher Bitcoin is the stronger the force to bring it back to ground level! And ICOs are another form of burning fee. Most ICOs are scams and you will never see back the money they are burning.

So what is Bitcoin?

It looks like a scam, it smells like a scam, it’s definitively a pyramid scam. Given human appetite for gambling it could still rise much much higher at some point it will collapse with or without regulatory help. At the end Bitcoin is a great experiment but a failed experiment. Yes we need an alternative to central bank but Bitcoin is not that alternative.