Topic: Bitcoin - Store of Value or Method of Payment - page 4. (Read 551 times)
I think it's depending on the person so as how they use it as , investment , payment is something that goes well with Bitcoins and the circumstances plays a great role in it , Bitcoins value is volatile thus when the price goes up people can benefit from it , making it an amazing investment and also it's cheaper to send money overseas with respect to Bitcoins and with the lightning network it's something that we can do instantly therefore I think the answer is both.
People do the same depending on their needs. Some people do have their holdings and allocated enough money to be used as a payment. There are also traders who spend their earnings to buy and pay for their needs while some people are just keeping their Bitcoins from spending. We all have a way of handling our Bitcoins for our own purposes but it's important that we'll keep some for our future profit when the price gets better.
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?
I don't see why it can't both store of value and "method of payments". I believe Bitcoin can actually be both today without much problems.
I have witnessed lots of notable non-crypto people in the past accepting Bitcoin on social media and YouTube. All of a sudden they stop talking about it. Whether they still accept it or not I can't tell. I am pretty sure they became secretive due to fear of something. If you could promote Bitcoin alittle bit on those platforms and assure people that no one will harm them for using Bitcoin, i think they will start accepting it again. You can draw such people to this community so that they learn how to use Bitcoin with peace of mind
I think people prefer both of them. Some people prefer using Bitcoin as an investment and don't want to use it like fiat money much. Some people don't see Bitcoin as investment and they just want to use it on activities like shopping etc. . By the way, I prefer using it both ways. 
To be a store of value, a good should also have a real use, gold is used in electronics and jewelry, or at least be traded frequently. also gold does some things better than Bitcoin. Gold is not vulnerable to social attacks that can steal the name and the value associated with 'gold' and re-assign it to a new thing, as Bitcoin core have done. Gold also does not require the constant application of energy via PoW that Bitcoin requires in order to keep the entire gold supply secure. Gold also has a track record of being money, going back literally thousands of years. So if you buy gold, you really do have better assurances about your purchasing power being preserved.
Now that BTC intermittently has median transaction fees above $10-$20, BTC may even struggle to compete with gold on the portability front. Bitcoin is a p2p electronic cash system. This is what Bitcoin excels at, and has advantage. Bitcoin is only useful as a store of value to the degree it's useful as a cash system. thereby Bitcoin must remain a means of payment to be a store of value.
Now that BTC intermittently has median transaction fees above $10-$20, BTC may even struggle to compete with gold on the portability front. Bitcoin is a p2p electronic cash system. This is what Bitcoin excels at, and has advantage. Bitcoin is only useful as a store of value to the degree it's useful as a cash system. thereby Bitcoin must remain a means of payment to be a store of value.
Gold is a precious metal indeed and has some uses, but its biggest downside is the portability. You can't go to the market or a coffee shop caring in your bagpack multiple gold bullions. And how are you going to pay with it? Cut it in multiple minuscule pieces?
Gold fails the portability test and regarding it being a store of value look what happened in 2008 when crisis hit the world. I'll tell you: 30% DROP! Is that a "safer" asset? Hell no. At least this is my opinion. After all it is just a metal with special properties and what if scientists will find a way to produce it artificially combining multiple elements?
BTC function as money so we can say that it has both. For now it may not be a good store of value because of its high fluctuation, optimistic speculator say it is a good store of value because of its possibility to increase in price in the future but currently is on a decline after hitting its ATH. My country recognized Bitcoin as method of payment since it is used to pay bills, and buy items with the use of third party apps. These two is one of the characteristics of Money and bitcoin as I stated earlier is a form and functioning as money.
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?
The true intentions of Satoshi for the development of Bitcoin according the whitepaper of Bitcoin was to be method of payment that provides people the financial freedom. But as a result of the increase in the value of Bitcoin, people now see bitcoin as a store of value rather than a method of payment. In order for Bitcoin to be a method of payment rather store of value, the ecosystem of Bitcoin needs massive adoption of the use of it for daily transactions from smaller transaction to bigger financial transactions.
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?
I think what you have said has indeed come true.What's your thoughts on this? Do people prefer to spend their BTC or do anything( maybe even taking a loan) to protect them?
that the intention to hold bitcoin is for the long term when they feel the price is very profitable compared to when they bought it.
but it seems that not all countries can be free to use bitcoin for transactions, so maybe every country will be different.
It is clear that people will exchange bitcoin if it is very urgent, save more and wait for the right time to benefit.
In my opinion it's both.
Think about the people who are holding it - they believe it store of value. And it is indeed. The bitcoin a user bought for $600 each now they value grown 10x+ times. This could be 100x without any doubt.
And talking about payment - as long as we will have the fees in control it's very convenient.
Think about the people who are holding it - they believe it store of value. And it is indeed. The bitcoin a user bought for $600 each now they value grown 10x+ times. This could be 100x without any doubt.
And talking about payment - as long as we will have the fees in control it's very convenient.
Yes, it should be both so that it'll be balance. Sometimes we need to use bitcoin as a payment method because it has a lot of advantage. Like it is very secure and can use in many easy transactions. Also stored of value, it is like waiting for the right season. Always being patient and mindful in transaction is the key.
Well for me its method of payment since bitcoin give us convenience since it has reasonable fees unlike in payment/remittance which has huge fees which almost covers the actual money that you've paying/sending.
In terms of store of value? Yes indeed it is store of value since the early adopters who bought bitcoin in early days have the 10-20x of the value now.
In terms of store of value? Yes indeed it is store of value since the early adopters who bought bitcoin in early days have the 10-20x of the value now.
I see Bitcoin is more good as alternate payment.
If storing value i don't see intrisic value in Bitcoin, Bitcoin is still same foundation like fiat, that is based trust.
If you want store value, i recommended buy real Gold Bar.
That is have intrisic value, can't duplicate or create and have limited supply.
For me Bitcoin is still payment method, alternate digital payment like paypal, where other digital payment is centralized and have limited rules from government.
If storing value i don't see intrisic value in Bitcoin, Bitcoin is still same foundation like fiat, that is based trust.
If you want store value, i recommended buy real Gold Bar.
That is have intrisic value, can't duplicate or create and have limited supply.
For me Bitcoin is still payment method, alternate digital payment like paypal, where other digital payment is centralized and have limited rules from government.
Bitcoin can be both a store value and a method of payment. It's just the matter of perception of every individual. Thinking wisely, it's more practical to store bitcoin and wait for it's price the increase. 'Cause unlike fiat, it is more volatile and you can really earn money with it. We can't deny that most of us here want to earn profit that's why we tend to store it first and when we already gained profit, we could just spend it.
I think because there are two fees to pay when you are about to by something out of BTC, there is the transaction fee and the value of the item which is why I also might not spend a bit of BTC else where unless its necessary to do so. This I guess is the purpose of those debit/credit CARD projects created in previous years like the MCO or the Tenx which I have no idea what happen.
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What's your thoughts on this? Do people prefer to spend their BTC or do anything( maybe even taking a loan) to protect them?
Just treat bitcoin like how you treat your fiat.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 like also your money in bank account where you can able to withdraw it. But there are difference.
Bitcoin still able to spend, remember that there already services/entities that are starting to accept Bitcoin.
Spending their BTC based on their needs for sure and if they invested on Bitcoin. Like for example, you have job and your salary is paid via bitcoin, then for sure you will spend it to buy your needs/wants. So for me, it can be store of value and method of payment too.
With all this price volatility,bitcoin is just "digital gold".
Remove the price volatility and bitcoin will become a major retail payment tool.
Well, the problem with that statement is it won't happen. No one controls the price action to have minimal changes. It all happens when some whales want to or there's just major sell-offs.Remove the price volatility and bitcoin will become a major retail payment tool.
For me, it's more of combination of investment and gamble. You invest in the technology since you believe on its success in the future generations. But looking on short-term trades, it's more of a gamble since the risks are high yet rewards are promising.
Candidly speaking, I will say that; Bitcoin is more of a payment method than a store of value, reason be that; the aim of the creator was to make an alternative means for online transactions. Currently many have also made comments that; Bitcoin is a store of value which I also totally agreed to. Bitcoin has the identity of be a store of value and also a online payment method.
it doesn't only have to be one. in fact being a currency (or method of payment) could guarantee it being a store of value. in other words in my opinion one can not exist without the other. for example if you say bitcoin is not a currency and is only a store of value you immediately zero the value of bitcoin so it automatically stops being a store of value too.
but when it is a currency and people use it for payments it gains value and it gives it the ability to be also a store of value.
but when it is a currency and people use it for payments it gains value and it gives it the ability to be also a store of value.
To be a store of value, a good should also have a real use, gold is used in electronics and jewelry, or at least be traded frequently. also gold does some things better than Bitcoin. Gold is not vulnerable to social attacks that can steal the name and the value associated with 'gold' and re-assign it to a new thing, as Bitcoin core have done. Gold also does not require the constant application of energy via PoW that Bitcoin requires in order to keep the entire gold supply secure. Gold also has a track record of being money, going back literally thousands of years. So if you buy gold, you really do have better assurances about your purchasing power being preserved.
Now that BTC intermittently has median transaction fees above $10-$20, BTC may even struggle to compete with gold on the portability front. Bitcoin is a p2p electronic cash system. This is what Bitcoin excels at, and has advantage. Bitcoin is only useful as a store of value to the degree it's useful as a cash system. thereby Bitcoin must remain a means of payment to be a store of value.
Now that BTC intermittently has median transaction fees above $10-$20, BTC may even struggle to compete with gold on the portability front. Bitcoin is a p2p electronic cash system. This is what Bitcoin excels at, and has advantage. Bitcoin is only useful as a store of value to the degree it's useful as a cash system. thereby Bitcoin must remain a means of payment to be a store of value.
IMO, I dont think of any good reason why we need to spend our Bitcoin to buy something or to pay for a service, except for the mass adoption, or someone who had a trouble using his fiat/credit/debit card (which rarely happens). We can say It's both, but majority choose to store it waiting for the value to increase in the future.
I think, this could also be the reason why other merchants/big business entities losses their interest in accepting cryptos as a mode of payment, knowing a lot of people is considering them as a store of value more than a currency used for paying something.
I think, this could also be the reason why other merchants/big business entities losses their interest in accepting cryptos as a mode of payment, knowing a lot of people is considering them as a store of value more than a currency used for paying something.
In my opinion it's both.
It is absolutely both, BUT...bitcoin always has been more of an investment (not necessarily a store of value, since its so volatile) than a form of money. Just look at all the threads and posts on bitcointalk. Most of them are not asking about how bitcoin can be spent or what wonderful things members have purchased with it. They're all about price predictions, TA, and how to buy bitcoin. That ought to paint a picture that answers op's question.Bitcoin is never going to be a good payment method until its volatility decreases drastically. It also will never get used for that purpose unless businesses start accepting it from their customers. Even then I think people will still want to just hold it in the hopes that they'll make a profit. That mindset is very well ingrained in bitcoiners right now.
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