Topic: Do you think Bitcoin has an identity crisis now? - page 2. (Read 770 times)

With the current economic crisis caused by the corona virus does not make bitcoin replace the role of fiat, because according
my opinion it was too quick to conclude that bitcoin is able to replace fiat with network lighting. It is true currently using
bitcoin is very effective as cross border payments, because it can prevent transmission of the corona virus. But on the other
hand there are still many reasons bitcoin still cannot replace the role of fiat as a whole. For now I feel that bitcoin is still better
as an investment compared as payment.

No, Bitcoin do not, it is some people that do not understand what they want form Bitcoin. I can assure you Bitcoin is coming out of this crisis stronger, remember most of these new money printing is going somewhere and some of it will find its way into Crypto. Fed just printed more than $1 trillion which is far more than the whole Crypto marketcap

Yeah, it's pretty disgusting that newly printed money is being used as yet another bailout for billionaires, despite the fact that numerous studies have shown it to be a weak method of providing stimulus to the economy.  Maybe that's why they don't refer to them as 'stimulus packages' anymore?  The term seems to have fallen out of use.

In fairness, though, even though we'll probably never agree with how QE is utilised by central banks, it's not like Bitcoin is capable of providing loans to the companies that need it either.  They'll need an entrepreneurial whale for that.  The totally debt-free nature of Bitcoin is absolutely the right path for what we're setting out to achieve, but it does mean we aren't really in a position to "save" the ones who are already in debt.

The ironic thing is, at such a critical time, with tons of helicopter money, banks are refusing to loan to the company that most needed money, simply because their forecast showing that those companies are losing order dramatically and are on the brink of bankrupt

Similarly, commercial banks in my country are not interested in getting those QE loans from central bank, since central bank asking for collateral, and they have to buy collateral from central bank at an unfavorable rate, means central bank want to get a cut from this crisis too

It is totally corrupt at the top in today's financial system, and that's why people are embracing bitcoin and self managed cash flow, instead of becoming killed by the bankers at such a moment

I think that the whole economy in crisis and cryptoeconomy too

Well honestly one cannot expect bitcoins to increase in price of get all that positive impact due to the Halving when you see the economic condition the world is in.
Everything is breaking , people are dying , governments are collapsing therefore I do think there is no way that bitcoins would increase at a time like this , what one can wish is all of this to be over really really soon and us finding a vaccination which is completely effective .
You know , people are using bitcoins now more than ever therefore I do think there is nothing wrong with bitcoins .

due to CV i have plenty of time to think
i changed my standard procedure about how i read posts in our beloved forum
now i am reading just the OP only if it is small enough
but i am reading such posts at least ten times before i decide to reply

from my POV exclusively ,here is my reply (green letters within the quoted OP)


Elias Ch.
*please do not merit my post here, since i am 50+ years old i love to stay SENIOR member of our forum
*i do not feel the need to be Hero or Legend of any kind.

I also think like that. however, although it is still in a state of crisis, there are still many people who are optimistic about prices, and also make asset investments, because they are speculating for greater prices. if this is a time of crisis, I think this is a good enough situation to immediately do a large stock.

Well, now we know that cash is actually the safe haven that most investors choose. People here often hate fiat, especially the US dollar, but in short term it's very stable and predictable, and inflation really doesn't mean much on a scale of weeks and months.

And as for volume, it's a closed loop problem - there's little volume so the price is volatile, and because the price is volatile volume doesn't want to come - less people want to adopt it or trade it.

Good observation. And this pandemic already demonstrated that when in panic, everything is sold for USD, which is long been regarded as a worse currency than BTC by people here

The root for this is planted long long ago in everyone's mind: Since we were born, we got used to use USD to measure value, USD is like foot to measure length or lbs to measure weight, it is a standard unit to measure value, and its value never changes, just like foot or lbs. We received  this concept from our parents and grand parents, and there is no way to get rid of this way of thinking easily, unless you travel a lot between countries and use many different currencies

So, in panic, BTC would only be kept by those people who don't use fiat money to measure value, they are highly knowledgeable in economy and money theory, and they are very few

If people can measure value without using fiat money, e.g. they can understand that everything's value is relative and fluctuating, including fiat money, then BTC will become fiat money independant. For example, if people start to use energy unit like kwh to measure value (since everything valuable essentially are some form of energy or made by input some energy), then bitcoin's value will be related to its mining energy input, instead of USD

On the other hand, you can see that the idea of a standard unit of value (fiat money) have deep effect on people's prespective and behavior, so that no matter how much more USD is printed, people still regard its value unchanged, they actually become a life-time slave of that cognition

My assumption before this corona crisis was that in case of economy slowdown, people will sell off stocks and then they would need some safe haven to park their investments. In that case, crypto can come up as an alternative along with gold, oil and other commodities. But unfortunately, even when the oil prices are halved, money got wiped out of the crypto too.

Th biggest reason could be the small market which can easily be manipulated by a small degree of sell off in such economic condition.

Thus, replacing fiat would need much more than just a use case. It needs volume.

It is, somehow. It is formulated as p2p cryptocurrency. But it is said to believe in different ways by others. Thus, this identity  crisis is really happening now. But this will not change the fact this this bitcoin is an advantage to most of us here. In it's overall, it is still bitcoin where in we can do digital payments and transactions like it used to be which also doesn't need any third party.
 
 However, when it comes to the financial freedom. Well, you can control over your bitcoin because they can't have any access to your own digital wallets.

I don't think that bitcoin would replace the fiat currency because not all people are really used with technology especially those rural places, so it would be hard for them to learn about different cryptocurrency, do not think that the bitcoin has an identity crisis if it is only going down, bitcoin already reaches about the lowest value of it for about 3,000 USD but it turns back again, bitcoin dumping is a normal thing because of its volatility and that feature of the bitcoin makes itself as good for investments and trading because that is how we may earn from the bitcoin.

Indeed, they keep on saying that bitcoin will be dead when it reaches for about 3,000 Dollars, and feels like so happy when it reaches for about 10,000 dollars. So basically, they already know that bitcoin is volatile which means it changes its price minute by minute. So stop thinking about that way because bitcoin bumping and dumping is a normal thing.

I think the identity crisis of bitcoin is because it isn't considered transaction money. For the laws, it's a Virtual Active. And that's the problem, you can't make a payment with bitcoin and get a tax bill because, in theory, you are not paying in bitcoin. So, my answer is yes, it's under an identity crisis.

bitcoin is still young and sealed as cryptocurrency, the identity crisis was expected to happen normally that's because of their volatility, aside from that bitcoin involves the exchange of money and consumers which is needed laws in place to protect their assets, unfortunately, the majority are not yet enough and still do not understand and not used digital currency cause of lack of knowledge regarding the cryptocurrency probably bitcoin is very useful need to expand throughout the world especially now many people affected with coronavirus which is digital cash because many people abandon fiat currency as payment for their daily basis.

Bitcoin is none of those things you have mentioned . These were started by some enthusiasts and I don’t have time to believe things like that; I only accept Satoshi's definition of Bitcoin that it is a payment method. He never said that Bitcoin was a replacement for fiat and he never said that it is a store of value, he only called it a payment method and that’s what I see it as.

Since the price fluctuates, I also see it as an investment and I’m always ready for it, knowing that it is volatile, I invest only what I can afford to risk. You got to be careful, stop believing everything you see, though anything can be used as a store for value if you want.

But this cut across every market. Even the stock market is also affected. I lived in a country where the major source of revenue if from oil and due to the crises, the economy is affected including importation. The price of crude oil has crash and the government is looking for a way to mitigate the effect of this loss. The same is happening to crypto which is regarded also as an asset. I want to believe reason, why there is a lot of hoax about this, is that people see crypto more as currency rather than asset

In the near future, I feel it is still difficult for bitcoin to be recognized as being able to replace the current currency, not that I do not support it but in the near future this will not happen because people now still view bitcoin as a fast investment. It takes a lot of time

Yeah, that's exactly the point he is trying to make and I don't know what is so hard to understand..

I've mentioned them early, remember those?

Remember the Cyprus crisis? Everyone was talking about how people are buying bitcoins cause the banks are closed!
Remember all the talk about Venezuela and how people there are buying bitcoin to hedge against the bolivar?
Remember the Iran scare, where supposedly millions of Iranians we're buying BTC?
Nigeria? Turkey?

Why it's not like that now? Because it was false from the beginning!
In all those cases we didn't really see an effect on the price because the few people that actually did it couldn't move the price a dime.

Now this pandemic hit where it matters, the western world!!! Where there is both money enough to make the price go to the moon and enough BTC to drop it to 4k.

And what happened? Nothing special, BTC went the same way as stocks, the same way as everything!
That's his point, the whole scenario the economy fails BTC will go to the moon was false.
I've told people a hundred times if the economy will crumble, if there are job loses, shutdowns, less than 1% of those who invest during good times will buy now. It's natural!!!

Bitcoin's price reflects one thing, the trust people put in its value, and currently, that trust is down -48% percent from what it was 30 days ago.

Is the coin still working as it should, yes it does, apart from a small timeframe where we had a close to~40MB mempool everything is fine!
When it comes to price, the people are the ones deciding it, and it looks like they've decided it's not worth that much.
I'm certain the trend will change once we're done with the virus but one thing was cleared with this.

Bitcoin's price is still to fragile and it's adoption too low to face a worldwide crisis yet. YET! This test came to soon!


Exactly!
That's how free markets should work!
Demand and offer, if the people don't want something, it's their choice, you don't force them to buy or sell at a fixed price.
But sometimes, when things go wrong, the same people that advocate for freedom are starting to lean towards a controlled market.

Because, what matters most in the end, is money, no matter how they look or how they are called.

Seconded.  I made this post two years ago and it still seems to hold true.  There's far greater potential still to be unlocked and we just need to give it time.  Anyone writing off bitcoin now is just impatient.