As long as bitcoin is widely accepted, it will be the main trading currency for exchanges. If the item is needed by a seller, it may be accepted as a currency for trading. This is similar to using items for trading rather than gold (example: seller accept wheat as payment from a buyer and sell some cloths). Bitcoin is an item that provides unique features. Buyers wanted the features and sellers sold the features. This demand increased the value of bitcoin.
As for bitcoin, it is starting to show its weakness and it doesn't seem to be bright from where I'm sitting. High fees and slow transactions that are not private are two major aging factor of bitcoin. When the traders are fed up, they will slowly switch to another coin. This is when bitcoin may slowly lose its value.
As long as there is demand, sellers will increase the price. This is what happened when bitcoin reached new heights as sellers were testing the limits of bitcoin. At some point at the peak, I'm sure there were a lot of sellers increasing the price but they found that no one is buying so the price rebounds back and the value dropped.
Topic: Bitcoin is not a store of value (Read 115 times)
First of all I am pro-Bitcoin and pro-Crypto-Currency, so let me get that out of the way first.
But the idea that Bitcoin serves as "a store of value" is so absurd and full of logical fallacies that I think it deserves to be explored.
First, in order for something to be "a store" of anything... it needs to exist in the present moment first. Bitcoin's value comes (or came) from the fact that it is a usable network to send payments efficiently and cost-effectively. Bitcoin's value in the present is totally dependent on network-effect, upon the fact that people are actually using the network (today, right now).
Now the idea that everyone else on Earth is going to buy 0.1 BTC, 0.05 BTC or 0.001 BTC and simply sit on it forever (HODL) for your benefit is ridiculous.
BTC Bitcoin in its current state is only a semi-functioning network plauged by high fees and long transaction times. In theory, if BTC Bitcoin was the only digital payment and remittance system on Earth, and was guaranteed to remain the only digital payment and remittance system on Earth... yes... then BTC Bitcoin *could* serve as a store of value. But of course this is not the reality of the world we live in where ideas are copied and improved upon and people gravitate towards newer products.
From the vantage point of someone who is entering cryptos for the first time in 2017/2018 it is far better to be an alt-coiner and have fast, secure payments. As opposed to buy a slow moving coin to further enrich yourselves.
But the idea that Bitcoin serves as "a store of value" is so absurd and full of logical fallacies that I think it deserves to be explored.
First, in order for something to be "a store" of anything... it needs to exist in the present moment first. Bitcoin's value comes (or came) from the fact that it is a usable network to send payments efficiently and cost-effectively. Bitcoin's value in the present is totally dependent on network-effect, upon the fact that people are actually using the network (today, right now).
Now the idea that everyone else on Earth is going to buy 0.1 BTC, 0.05 BTC or 0.001 BTC and simply sit on it forever (HODL) for your benefit is ridiculous.
BTC Bitcoin in its current state is only a semi-functioning network plauged by high fees and long transaction times. In theory, if BTC Bitcoin was the only digital payment and remittance system on Earth, and was guaranteed to remain the only digital payment and remittance system on Earth... yes... then BTC Bitcoin *could* serve as a store of value. But of course this is not the reality of the world we live in where ideas are copied and improved upon and people gravitate towards newer products.
From the vantage point of someone who is entering cryptos for the first time in 2017/2018 it is far better to be an alt-coiner and have fast, secure payments. As opposed to buy a slow moving coin to further enrich yourselves.
I don't think your arguments make much sense. Look at gold - noon would doubt that this metal is used as store of value. As you using it for transactions? Is it easy to make payments with it or transfer between people?
Most people with bitcoins can no longer use them for transactions. That means that if Bitcoin is a store of value, then it is a store of value in the same way that collectibles are a store of value.
Like a painting, the value of your bitcoins is no more than the value of having them and the value of being able to show others that you have them.
Like a painting, the value of your bitcoins is no more than the value of having them and the value of being able to show others that you have them.
....
BTC Bitcoin in its current state is only a semi-functioning network plauged by high fees and long transaction times. ...
BTC Bitcoin in its current state is only a semi-functioning network plauged by high fees and long transaction times. ...
You are focusing on only a few aspects of the Bitcoin network.
Irrespective of high fees, Bitcoin provides:
-irreversible settlement
-a public ledger that is stored for eternity
-an immutable ledger that is stored for eternity
-99.99 % uptime in the last nearly 10 years since its inception
-no centralized entity that can inflate the supply or change the rules to their benefit
...
Currently, bitcoin serves as a measure of value, a repository of value and a means of payment. If we consider its function as a repository of value, it is that bitcoin retains for its user that value in bitcoins and Satoshi, which is defined as the ratio between supply and demand in the market. Therefore, to assert that bitcoin is not a repository of value would be wrong.
But the idea that Bitcoin serves as "a store of value" is so absurd and full of logical fallacies that I think it deserves to be explored.
First, in order for something to be "a store" of anything... it needs to exist in the present moment first. Bitcoin's value comes (or came) from the fact that it is a usable network to send payments efficiently and cost-effectively. Bitcoin's value in the present is totally dependent on network-effect, upon the fact that people are actually using the network (today, right now).
Now the idea that everyone else on Earth is going to buy 0.1 BTC, 0.05 BTC or 0.001 BTC and simply sit on it forever (HODL) for your benefit is ridiculous.
First, in order for something to be "a store" of anything... it needs to exist in the present moment first. Bitcoin's value comes (or came) from the fact that it is a usable network to send payments efficiently and cost-effectively. Bitcoin's value in the present is totally dependent on network-effect, upon the fact that people are actually using the network (today, right now).
Now the idea that everyone else on Earth is going to buy 0.1 BTC, 0.05 BTC or 0.001 BTC and simply sit on it forever (HODL) for your benefit is ridiculous.
You'r stuck in the past. You can keep believing whatever you want to happen...hoping it will happen...but the reality is that the market will decide what Bitcoin's utility will be: currency of exchange or store of value.
And right now, Bitcoin's values is being driven by the buy and hold mentality.
Bitcoin's value came at first (like 5 years ago) from the usable payment network. For that to continue to provide value for Bitcoin the network needs to expand, i.e., merchants need to accept bitcoin as payment. But that's not happening.
What is happening is people buying bitcoin, holding bitcoin, and then new people wanting to buy bitcoin. This is literally turning Bitcoin into a store of value.
Please tell us what is the true value of bitcoine: Because we have a lot of value in our eyes.
Actually those high fees are a big part of making bitcoin a store of value asset rather than a real currency. That's why people buy bitcoin and just sit on it. While if you wanted a real currency it would be better to turn to other alts..
BTC is mined in a predictable and steady manner. Fiat is inconsistent by nature so this is a moot point. Fiat is not money and should not be used for measuring anything.
So how do you suggest we measure the value of things? Using how many chicken eggs do they cost?
BTC is mined in a predictable and steady manner. Fiat is inconsistent by nature so this is a moot point. Fiat is not money and should not be used for measuring anything.
So how do you suggest we measure the value of things? Using how many chicken eggs do they cost?
It would be a store of value if the price wouldn't be so volatile as it is right now.
But actually, the price is moving between $1500 and $2000 a day (in both sides; down; up)
So it makes it impossible to be a way to hold money
But actually, the price is moving between $1500 and $2000 a day (in both sides; down; up)
So it makes it impossible to be a way to hold money
BTC is mined in a predictable and steady manner. Fiat is inconsistent by nature so this is a moot point. Fiat is not money and should not be used for measuring anything.
It would be a store of value if the price wouldn't be so volatile as it is right now.
But actually, the price is moving between $1500 and $2000 a day (in both sides; down; up)
So it makes it impossible to be a way to hold money
But actually, the price is moving between $1500 and $2000 a day (in both sides; down; up)
So it makes it impossible to be a way to hold money
First of all I am pro-Bitcoin and pro-Crypto-Currency, so let me get that out of the way first.
But the idea that Bitcoin serves as "a store of value" is so absurd and full of logical fallacies that I think it deserves to be explored.
First, in order for something to be "a store" of anything... it needs to exist in the present moment first. Bitcoin's value comes (or came) from the fact that it is a usable network to send payments efficiently and cost-effectively. Bitcoin's value in the present is totally dependent on network-effect, upon the fact that people are actually using the network (today, right now).
Now the idea that everyone else on Earth is going to buy 0.1 BTC, 0.05 BTC or 0.001 BTC and simply sit on it forever (HODL) for your benefit is ridiculous.
BTC Bitcoin in its current state is only a semi-functioning network plauged by high fees and long transaction times. In theory, if BTC Bitcoin was the only digital payment and remittance system on Earth, and was guaranteed to remain the only digital payment and remittance system on Earth... yes... then BTC Bitcoin *could* serve as a store of value. But of course this is not the reality of the world we live in where ideas are copied and improved upon and people gravitate towards newer products.
From the vantage point of someone who is entering cryptos for the first time in 2017/2018 it is far better to be an alt-coiner and have fast, secure payments. As opposed to buy a slow moving coin to further enrich yourselves.
But the idea that Bitcoin serves as "a store of value" is so absurd and full of logical fallacies that I think it deserves to be explored.
First, in order for something to be "a store" of anything... it needs to exist in the present moment first. Bitcoin's value comes (or came) from the fact that it is a usable network to send payments efficiently and cost-effectively. Bitcoin's value in the present is totally dependent on network-effect, upon the fact that people are actually using the network (today, right now).
Now the idea that everyone else on Earth is going to buy 0.1 BTC, 0.05 BTC or 0.001 BTC and simply sit on it forever (HODL) for your benefit is ridiculous.
BTC Bitcoin in its current state is only a semi-functioning network plauged by high fees and long transaction times. In theory, if BTC Bitcoin was the only digital payment and remittance system on Earth, and was guaranteed to remain the only digital payment and remittance system on Earth... yes... then BTC Bitcoin *could* serve as a store of value. But of course this is not the reality of the world we live in where ideas are copied and improved upon and people gravitate towards newer products.
From the vantage point of someone who is entering cryptos for the first time in 2017/2018 it is far better to be an alt-coiner and have fast, secure payments. As opposed to buy a slow moving coin to further enrich yourselves.
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