Topic: I think Bitcoin is great as an asset and not as a Currency. - page 6. (Read 1115 times)

Bottom line, the issue is the high volatility of Bitcoin. Am I right?
I don't think you don't have a problem with Bitcoin's volatility. Base on your example from your statement, you're pointing out that Bitcoin's volatile nature is the major economical problem for it to be used as a currency.
Correct me If I'm wrong.
However, I somehow get your point and It's very obvious that majority of Bitcoin owners are either hodlers or traders and isn't usually used as a currency. But there are some Bitcoin supporters that are actually using it as a currency.

Bitcoin was created to be p2p payment method and remove the governments and any related organization in payment systems whenever you send a transaction. But, since the price is not stable and sometimes there are really high fess, this cannot be a good payment system, however, some people even the highest transaction fees are reasonable, depending in the case. As an asset, Bitcoin gave us real high profits and there are many advantage on it that people may know. I believe bitcoin can be a good payment method if you know where/when/how to use it.

Bitcoin is great for an asset and currency because bitcoin can cross the border and be used in all countries. If you use bitcoin as an asset, you do not have to sell bitcoin for daily use, but you will use bitcoin for the investment and sell only if the price increases. You can use the other crypto as the currency and in the cryptocurrency, there are stable coins that you can use as a currency. You do not have to worry about the volatility of bitcoin price, and you can hold your bitcoin until you decide to sell it later.

There are already lots of these kinds of posts that had been going around for years stating that they don't agree with what the other people claimed about the good things that bitcoins can do. Until today they claimed has no basis and it's purely delusions which are often fell to regret because whenever the bull run has come, they are out of BTC on their wallet because they don't believe that the price will reach up to that high. the truth is, they don't even have any BTC wallet, to begin with. If you get your sources from these kinds of people, you will end up in deep regret whenever there is a bull run.

Bitcoin is great for both situations.

It is a good asset because no one really owns it. You have the right how you will secure it properly and banks have no control of it. Also, its supply is very limited but the demand is continuously increasing over the years causing for its price to soar greatly.

It is also good as a currency for me because you can send or pay someone anytime anywhere you are. It introduces the concept of blockchain technology which would have a big impact on our future in terms of innovation.

as an asset and as a currency, Bitcoin really fits in both
I'm not too idealistic in responding to what Bitcoin is more suitable to be called

for me Bitcoin I can call both. btw, we live in the same country so I also agree with our government's view on Bitcoin
El Salvador was the first country to become Bitcoin as a legal tender, so we can call Bitcoin a currency too

We are still on the development stage. We already have Lightning but still it is not yet as widely used as we want it to be. So Bitcoin transactions are to be limited to large amounts if we are to use on-chain payments. But it does not mean it is not a currency.

Second layer payments are not expensive. In El Salvador, even small street vendors are selling their food and other goods in Bitcoin. You can easily buy a piece of shirt, groceries, burgers, etc in Bitcoin. So if it is possible to use Bitcoin as a currency in El Salvador, it is also very possible in other countries.

LOL for me it sounds like another FOMO news why don't you share where you pick up those joke so we could all laugh at it,
Investing on it and wouldn't sell for 100 years so who would use their investment their grand child? how much would they invest to ignore it through those years?
I agree to your title but what you are talking is a good joke.

You can use Bitcoin to buy, sell products but it is far from a normal currency. Especially it is not a good currency in times transaction fees are crazy high. No one will be readily to pay excessive fee for bitcoin transaction when the payment is for a small deal, a cup of coffee, a glass of tea, etc.

For small stuffs, minor deals, Lightning network can solve this problems but LN does not get good adoption so far.

I am keen on an asset rather than a currency for main usecase of Bitcoin.

Why not both? In fact, Bitcoin is both an asset and a currency today. You can spend your Bitcoin right now as a real money. But you can also invest in it and store your value there. You can also buy it as an asset and just hodl it to make your value increase. Those are different uses of the same cryptocurrency which is Bitcoin.

In fact, Bitcoin is legal tender in El Salvador today as it is an asset in China. That's both happening at the same time.

all currencies have their own weaknesses, if in one country there are too many paper money prints then the paper money will automatically decrease, as well as bitcoin, if bitcoin has been used as currency then the bitcoin price will automatically go down too, I agree with your opinion, we will continue to make bitcoin an asset, so the price will continue to skyrocket..

An Asset always has an intrinsic value that is based on its utility, for example, gold has an ornamental value and is considered as a luxury, Stocks of different companies derive their values from the underlying assets and liabilities and the value of the future cash flows which that company might have. The value of currencies is generally based on the economic conditions of the countries which is why the exchange rate between the countries generally reflects the purchasing power parity between two countries. Similarly, the utility of bitcoin is as a currency. Any Asset which doesn't have a utility is basically a bubble, so this is sort of a paradox, if you consider bitcoin as an asset, it basically is not an asset at all because its utility lies in spending it not holding it, while if everyone starts spending it as a currency it's value might fall a lot from what it is today.

Bitcoin is a currency, it's just  a not very convenient one because of volatility and occasional high fees. But any currency has some drawbacks, fiat currency gets devalued with inflation, while Bitcoin has no such problems, so you can just store it yourself without the need to invest it somewhere. Store of value is also an aspect of money, money is not simply a unit of exchange.

The same argument can be used for many assets, for instance, the stock market. But people don't do that anymore, as price manipulation with stocks is illegal. I think when Bitcoin becomes legal, maybe some similar regulations will be implemented.

And yes, you're right, people shouldn't hold Bitcoin forever (figuratively speaking), because it will make it more like an asset. But what there's to be done? You can't prohibit holding and order people to use Bitcoin. Especially at times like now, when abilities to make purchases with crypto on a legal basis are very limited.

I think this problem will go away to some extent when Bitcoin will become more adopted and people will use, say, 50/50 crypto and fiat. That will keep the coins in circulation because people will have the opportunity and will use it. Some will still hold, but that amount will be much less.

Bitcoin can be subdivided down to a single satoshi on the base layer, and down to a milli-satoshi (that's 11 decimal places) on Lightning. Yes, it has a finite supply, but it can be subdivided to any value required for day-to-day spending.

As opposed to fiat, where 8 individuals hold more money than 50% of the human race?

Again, how is this different to fiat? The value of all fiat currencies steadily declines over time. Sometimes faster, sometimes slower, but always on a steady trajectory towards the bottom.

So he asks to get paid in fiat-pegged amount of bitcoin. If the price goes up, he gets less bitcoin but the same amount of fiat. If the prices goes down, he gets more bitcoin but the same amount of fiat. If we reach the point where he can pay his bills and expenses in a flat rate of bitcoin regardless of the fiat price, then this no longer becomes necessary.

None of your arguments assume bitcoin is working as a currency, though. All of your arguments assume that fiat is the currency, everyone uses fiat, all prices are denominated in fiat, and people are swapping back and forth to bitcoin. If bitcoin is working as a currency, then I can get paid in bitcoin and I can spend that bitcoin without ever touching fiat or looking at the fiat-bitcoin exchange rate.

I think my bold and capital letters have affected your eyes please read it again, Let us forget Michale Saylor

Jeff Bezos - 19 Trillion Crores Dollars
Bill Gates - 12.5 Trillion Crores Dollars
Mark Zuckerberg - 11.97 Trillion Crores Dollars

and many moreeee....

These guys can buy 20% Of Bitcoin Market Supply if they want and don't comeback with stupid comeback like it will be a bad wealth decision they are smart they won't do that or anything like that, be practical even I love and support bitcoin but just please sit back and think.

and I agree with the fact that it has properties that the traditional banking system lacks of, but what about the other economic problems it is creating please just the read my above message in which I have replied to someone you will understand what I am trying to say.

Yes I know people use it to buy and sell stuff but the majority people are hodlers let me give you a simple example

You are a normal working man and is paid salary in Bitcoin, your salary is 20,000$ so your company gives you that much worth of bitcoin as salary, now the Bitcoin prices rises which means you 20k salary becomes 25-30k or more which is obviously very very good but what if that 20k become 15-10k so tell me is that a steady income every person has his calculations that he will this much and save this much but now the price has dropped so your whole monthly planning is messed up, your expenses are same as before but your salary is not same, now do you think is a great idea to adopt is as a currency.

AND I DON'T KNOW WHY GIVE SUCH EXAMPLES THEY THINK I HAVE PROBLEM WITH BITCOIN'S VOLATILITY, NO I DON'T I HAVE 0% PROB WITH IT I AM A FULL TIME TRADER, this might have happened to you if you are trading in crypto you might have plans to buy something but the prices go downs so ob you won't be able to buy that unless BTC restores it's price, majority of us a are a trader and we know that BTC will rise again but what about regular people they don't what will happen when will it go up or down they just want their money to fulfil their dreams.

One more thing GOD FORBID if anything happens to you or anyone in your family and let us assume Bitcoin is legal everywhere and you have to pay operation fees which is 34,000$ = almost 1 BTC acc to current market price, so you are about to pay 1 BTC and the prices went down to 28,000 then you have shortfall of 6000$ how will you arrange that ?

See there are many economical problems to use Bitcoin as a currency.

No, I'm pretty sure that it'll be a shock. Owning 20% of Bitcoin means around 3,7 million bitcoins. Even if we assumed that exchange rate stayed the same (that will not, but anyway IF) they'd need around 129.5 billion dollars. Quite hard when MicroStrategy's net worth doesn't exceed the 10 digits.

There's no reason to use bold and uppercase together, it's annoying and it feels like you're yelling. Whoever is satisfied with Bitcoin's functionalities can use it as a currency; it has properties that the traditional banking system lacks of.

Bitcoin isn't just exclusively a currency, and mind you that it's yet to get to the level of mainstream adoption that'll mean it can be used as a currency like the USD, Yuan, Euro etc, thus for now it can be used as either a currency, an asset or whatever anyone wishes to do with it (except fraud). Bitcoin is and will never be like the traditional Fiat that's tied to the economy, Bitcoin is decentralized, with the users "being their own bank", and mind you that there are quite a lot of people who use Bitcoin to buy things every now and then.

No Saylor didn't tweeted it but with the speed they are accumulating it won't be a shock that they own 20% of Bitcoin supply and let us assume he doesn't do that but anyone can do that if they have money, if a person i really really really rich then sure he can buy 20% of BTC and that's not fair to other people,

See tbh I also don't know am I right or wrong I just had a thought and wanted people's opinion what I am thinking is right or wrong, but trust me HODLING BTC is not a good thing ONLY IF YOU WANT IT TO BE A CURRENCY, otherwise if you treat it as a Digital Gold which was it meant to be then HODLING is not at all a issue.