Topic: Bitcoin - Store of Value or Method of Payment (Read 551 times)
cryptocurrency or bitcoin is a digital currency that we can use as a payment method and also for valuable storage assets, but now we see governments in some countries unfortunately have not yet formalized crtptocurrency and bitcoin as possible payment methods because of this we can say people make bitcoin as valuable storage assets in the future.
I've recently meditated on this thought. We all want businesses to adopt bitcoin as a payment method and people to pay with it, but I think most people are rather avoiding to spend their BTC as they see it more as a store of value that will bring wealth to them over the next years. So they are more likely to keep their BTCs and spend the fiat currency, thus the use of BTC in day-to-day transactions won't probably go up until people actually get their wages in Bitcoin denomination. But in order for companies to enable that so it will be convenient for both the employee and the employer we need to have the infrastructure in place, including regulations and major stores in the cities accepting BTC.
What's your thoughts on this? Do people prefer to spend their BTC or do anything( maybe even taking a loan) to protect them?
What's your thoughts on this? Do people prefer to spend their BTC or do anything( maybe even taking a loan) to protect them?
Upon thinking about it, I've came out that for me, it shouldn't be both since bitcoin has a very good potential market value in the future, and we actually use other cryptocurrency such as XRP or ETH to buy goods why? since the transaction fee is quite better for each transaction that we are executing daily. In this case, I am in favor of bitcoin as a store in value rather than mode of payment for micro transactions.
You could even send your change to the same address after each purchase.
That's not really recommended as you would be reusing addresses. It's not that hard to use different addresses and most bitcoin wallets do this for you automatically.
The bitcoin is both. Bitcoin was originally invented as a digital store of value and also a payment system. You are the one who gets to decide whether to use bitcoin as a digital store of value or a payment method.
Bitcoin as a means of payment, that is the true reason for making bitcoin. Over time, bitcoin has become an expensive investment asset. But to be used as a bitcoin payment tool also continues to get support from various groups.Until now, adoption of bitcoin continues to increase in various countries. Countries that have crypto-friendly regulations will make it easier for citizens to use bitcoin for payment, but not a few countries have regulations that prohibit bitcoin as a means of payment.
You could always just convert your fiat to crypto and keep a little crypto so you pay with crypto instead of fiat. If you want to keep some then buy some more. YOu not losing anything spending crypto if you were going to buy that item anyway. If you end up not spending all of it you will have some left that can act as your investment. You could even send your change to the same address after each purchase.
Honestly, any country that limits bitcoin payments is not worth living in, because that's not freedom.
One could even use BTC as collateral for a fiat loan. The fiat loan will charge interest and if you don't pay it back, they'll keep your BTC.
The smarter way would be to use those altcoins that are made for this purpose, like the DAI stablecoin with it's collateralized dept thingies, so you stuff it with ETH (or other collateral soon) and you get DAI, which is like worth $1 USD (or it's supposed to be close to a dollar)... But the interest rate for this has increased in the last few months relatively high. It started around 0.5% or something.
As to the original question, I've used it to buy all sorts of stuff on Amazon, and also to pay all sorts of bills everywhere. I'm inclined to keep it as a store of value tho and only use it when really needed. Or use it, then make sure to top it back up, sort of like a debit card.
The smarter way would be to use those altcoins that are made for this purpose, like the DAI stablecoin with it's collateralized dept thingies, so you stuff it with ETH (or other collateral soon) and you get DAI, which is like worth $1 USD (or it's supposed to be close to a dollar)... But the interest rate for this has increased in the last few months relatively high. It started around 0.5% or something.
As to the original question, I've used it to buy all sorts of stuff on Amazon, and also to pay all sorts of bills everywhere. I'm inclined to keep it as a store of value tho and only use it when really needed. Or use it, then make sure to top it back up, sort of like a debit card.
I think the big hoarders are also the ones spending it. If you see, now they can purchase vehicles and houses/real estate with Bitcoin, so those miners and also early adopters who have thousands of Bitcoins sitting in their wallets can easily afford to splash out and spend a few BTC to purchase luxury goods and services. This is the new phenomenon now that the Super rich are engaged in and what the rest of us only can dream of right now with the few satoshis we currently own.
hero member
Activity: 2590
Merit: 650
Want top-notch marketing for your project, Hire me
Quote
Bitcoin was initially designed to be both.
But thanks to the wisdom of blockstream and their small block 'theory' it's become a settlement layer.
But thanks to the wisdom of blockstream and their small block 'theory' it's become a settlement layer.
It's easy to blame. We have BCH and other chains with big blocks. They can do as many transactions as we want. We've been focusing on the wrong problems. When you have limited supply and SoV, people hodl.
Join Bitflate community: https://discord.gg/utnEyp8
The bitcoin is both. Bitcoin was originally invented as a digital store of value and also a payment system. You are the one who gets to decide whether to use bitcoin as a digital store of value or a payment method.
Bitcoin as a means of payment, that is the true reason for making bitcoin. Over time, bitcoin has become an expensive investment asset. But to be used as a bitcoin payment tool also continues to get support from various groups.Until now, adoption of bitcoin continues to increase in various countries. Countries that have crypto-friendly regulations will make it easier for citizens to use bitcoin for payment, but not a few countries have regulations that prohibit bitcoin as a means of payment.
The bitcoin is both. Bitcoin was originally invented as a digital store of value and also a payment system. You are the one who gets to decide whether to use bitcoin as a digital store of value or a payment method.
I think bitcoin can do both. as a store of value and a means of payment. it's just that not all countries allow bitcoin as a means of payment. so most bitcoin holders only use bitcoin as an investment or trading tool. but for countries that have accepted bitcoin as a legal payment tool. some users already use bitcoin for many things like buying property, cars and others. I am sure that over time there will be more countries and companies that will legalize bitcoin as a means of payment.
Well" actually bitcoin is very useful for fast payment transaction they guve convinient for those busy people for their day yo day work so bitcoin guve this opportunity to use it via onlin paymeny without traveeling and wasting of time. But of course if they have an opportunity to keep bitcoin and wait for the new all time high the way to become rich or the way to get huge profits as bitcoin treated store value. So is obvious bitcoin both is important and useful.
It will eventually function as a store of value and as a means of payment, but today it is considered more like investment, unfortunately. Majority of people think only of prices and pumps to make profit and they don't really care about adoption, technology or development.
I also see it as a store of value not the payment system Satoshi had dreamed of.
Bitcoin with its deflation will never be a popular payment system because people want to spend what loses value and hold what gains it. You don't spend your gold and hoard cash. That would be counterproductive.
Quote
Bitcoin was initially designed to be both.
But thanks to the wisdom of blockstream and their small block 'theory' it's become a settlement layer.
But thanks to the wisdom of blockstream and their small block 'theory' it's become a settlement layer.
It's easy to blame. We have BCH and other chains with big blocks. They can do as many transactions as we want. We've been focusing on the wrong problems. When you have limited supply and SoV, people hodl.
Join Bitflate community: https://discord.gg/utnEyp8
Bitcoin was initially designed to be both.
But thanks to the wisdom of blockstream and their small block 'theory' it's become a settlement layer.
But thanks to the wisdom of blockstream and their small block 'theory' it's become a settlement layer.
Bitcoin is predominantly a Store of Value. It's working as designed. We're trying too hard to make it do both.
I advocate Bitflate, a Bitcoin fork with 7% constant inflation. We need to separate these two use cases.
I've written longer posts to explain my point of view. Bitcoin is a Store of Value. Bitflate, a parallel chain with inflation, is used for transactions.
The Next Big Thing in Crypto: Using Inflation to Create Stablecoin
https://bitflate.org/post/2019/10/10/the-next-big-thing-in-crypto-using-inflation-to-create-stablecoin.html
Bitcoin's Missing Link to the World
https://bitflate.org/post/2019/08/26/bitcoin-missing-link-to-the-world.html
Join Bitflate community: https://discord.gg/utnEyp8
I advocate Bitflate, a Bitcoin fork with 7% constant inflation. We need to separate these two use cases.
I've written longer posts to explain my point of view. Bitcoin is a Store of Value. Bitflate, a parallel chain with inflation, is used for transactions.
The Next Big Thing in Crypto: Using Inflation to Create Stablecoin
https://bitflate.org/post/2019/10/10/the-next-big-thing-in-crypto-using-inflation-to-create-stablecoin.html
Bitcoin's Missing Link to the World
https://bitflate.org/post/2019/08/26/bitcoin-missing-link-to-the-world.html
Join Bitflate community: https://discord.gg/utnEyp8
I've recently meditated on this thought. We all want businesses to adopt bitcoin as a payment method and people to pay with it, but I think most people are rather avoiding to spend their BTC as they see it more as a store of value that will bring wealth to them over the next years. So they are more likely to keep their BTCs and spend the fiat currency, thus the use of BTC in day-to-day transactions won't probably go up until people actually get their wages in Bitcoin denomination. But in order for companies to enable that so it will be convenient for both the employee and the employer we need to have the infrastructure in place, including regulations and major stores in the cities accepting BTC.
What's your thoughts on this? Do people prefer to spend their BTC or do anything( maybe even taking a loan) to protect them?
What's your thoughts on this? Do people prefer to spend their BTC or do anything( maybe even taking a loan) to protect them?
It is both. As with any deflationary coin, people will tend to save as much as possible, and only spend the absolute minimum. Of course, if people still have earnings in inflationary fiat, they would spend that first, and exchange the rest.
Loans are a bad idea, just live managing your current income. You have to learn to go from a debt mentality to a savings mentality, it is a big shock in the western hemisphere, especially in America where the school of Chicago reigns supreme.
If your income is in bitcoin, its even easier, if not exchange what you can save for long term into bitcoin is good.
But, do not think it will bring you "wealth over the next years". Those bitcoins are first preserving the purchasing value of your money, and only slightly possibly give you a bit of profit, unless you are trading, but that's another subject entirely. For "holders", the right mentality is to stay cool and wait the years to pass, use only what you must.
Think of gold, it if wasn't dangerous to store and handle your own gold, you would buy gold and keep it safe by yourself, only selling small amounts from time to time for daily use. Well Bitcoin is like gold, but much much safer, and you can probably remain hidden from criminals if you do things in moderation.
On a general perspective, Bitcoin as a store of value is not very feasible regarding the fact that it is very volatile. It's more of a method of payment even though it is not accepted on a broad scale. To me, based on the fact that Bitcoin is grossly traded, it is can be seen as a speculative assest. The volatility makes it fall short of being a store of value and method of payment to some extent.
You're right when you said bitcoin can be seen as a speculative asset but you're wrong when you said "Bitcoin as a store of value is not very feasible regarding the fact that it is very volatile." because every asset that can be exchanged, save and be useful in future (profit) is a store of value.Don't use the current situation of the market to justify the promising future of bitcoin.
It will eventually function as a store of value and as a means of payment, but today it is considered more like investment, unfortunately. Majority of people think only of prices and pumps to make profit and they don't really care about adoption, technology or development.
I've recently meditated on this thought. We all want businesses to adopt bitcoin as a payment method and people to pay with it, but I think most people are rather avoiding to spend their BTC as they see it more as a store of value that will bring wealth to them over the next years. So they are more likely to keep their BTCs and spend the fiat currency, thus the use of BTC in day-to-day transactions won't probably go up until people actually get their wages in Bitcoin denomination. But in order for companies to enable that so it will be convenient for both the employee and the employer we need to have the infrastructure in place, including regulations and major stores in the cities accepting BTC.
What's your thoughts on this? Do people prefer to spend their BTC or do anything( maybe even taking a loan) to protect them?
What's your thoughts on this? Do people prefer to spend their BTC or do anything( maybe even taking a loan) to protect them?
For me ,Bitcoin is both a store of value and method of payments. I think there is no problem about that. Anyway this topic is always asked repeatedly. Bitcoin is valuable and volatile.People earning more profit through holding bitcoins while waiting their target price. Also others use it to pay as a mode of payments like here in our country. For me the more things we can do with bitcoin is much better.
Bitcoin is both a store value and a method of payment. The reason why some people would keep their bitcoins is that bitcoins price is changing from time to time even with just holding it if it hits the bull then the value will increase. Bitcoin is also a mode of payment because it is faster and convenient to use it, not only that it is also secure because it is place on a hard wallet that has high authentication rather than using fiat money.
Jump to: