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MicroGuy
In my case, I did indeed buy using my Bitcoin even though I could get what I wanted for slightly cheaper using cash. I started as a complete beginner a little over year ago (approx.), and it took "learn by doing" for me to understand and correctly use BTC.
I have spent about 35% - 40% of my Bitcoin that I bought. I will HODL most of the rest (investment), and hope that I can get some more by rickety localbitcoins.
Topic: Investment demand itself will drive bitcoin to success (Read 1397 times)
Another potential area is international trading and remittance, but that requires user to have exchange with good liquidity on both ends. I observed that some small companies are using bitcoin to do business with China due to its slow foreign currency settlement process.
Surprisingly, there are not a lot of progress in the most possible area - game and software purchase on internet. So far the major software company and game company have not accepted bitcoin payment, which should be the most convenient way for them to expand foreign market sale
Surprisingly, there are not a lot of progress in the most possible area - game and software purchase on internet. So far the major software company and game company have not accepted bitcoin payment, which should be the most convenient way for them to expand foreign market sale
nice post.
right now the challenge Is crossing the chasm to where early adopters will start using it, not just innovators.
right now the challenge Is crossing the chasm to where early adopters will start using it, not just innovators.
People give way too much value to their hard earned BTC's to spend on frivolities.
It's not the same having 3 BTC for example, than having 10000. If you have 3 BTC you give it way more value than it's inmediate equivalent in fiat, and you would rather use fiat than BTC to buy stuff.
On the one hand it makes sense, on the other people have more tendency to gamble with bitcoin lightly. So IMO the general feeleing is that Bitcoin is an innovation that brings great opportunities, but it is still "electronic money from internet", a technical curiosity.
This is the problem with bitcoin at the moment and all other emerging cryptocurrencies.
Consumers are not going to take an extra step to buy Bitcoin, so they can then go out and buy something that they could have already bought with the debit card in their pocket. This is not going to ever happen. It would be like asking someone to go to the store and buy a can or petrol for their lawn mower, when they already had a can of petrol in their garage.
That's why currently, people are interested in Bitcoin for three primary reasons: speculation, novelty, and making darknet purchases (places debit cards don't work). In my view, the way to change this is for the community to embrace and promote services/methods that allow consumers to receive their wages in Bitcoin.
Consumers are not going to take an extra step to buy Bitcoin, so they can then go out and buy something that they could have already bought with the debit card in their pocket. This is not going to ever happen. It would be like asking someone to go to the store and buy a can or petrol for their lawn mower, when they already had a can of petrol in their garage.
That's why currently, people are interested in Bitcoin for three primary reasons: speculation, novelty, and making darknet purchases (places debit cards don't work). In my view, the way to change this is for the community to embrace and promote services/methods that allow consumers to receive their wages in Bitcoin.
i sure don't do that. i own bitcoin because i believe that "trusting in god" for the federal reserve to print and control money is a failed experiment.
It also begs the question, should bitcoin be seen as only an investment or also a currency to be spent?
From what I see bitcoin is going to be a good investment for know, although it still being debated that it is going to be a long term or just a short term due to of its volatile price. And if later on this is going to be mass adoption may be one day it can be a currency but there is too much problem with fiat and bitcoin so my point is there is so many pros and cons with bitcoin we just can wait and let them to grow with the time
And even worse, if one day a bubble is large enough to attract more than 50% of the existing population to invest, then you might never find enough population to absorb the sell pressure when those people have reached their target. The burst of such a large bubble might end up broke the promise of anti-inflation. E.g. bitcoin exchange rate makes a lower low after 4 years. Of course we are still far from it, but worth noting. And by that time, people might not need to sell bitcoin on exchanges, they just spend them, maybe the crash can be avoided
which target? when you can buy eveything in bitcoin in 10-15 years there is no target. you buy it for BTC and the seller will use BTC too...
nice post.
right now the challenge Is crossing the chasm to where early adopters will start using it, not just innovators.
right now the challenge Is crossing the chasm to where early adopters will start using it, not just innovators.
People give way too much value to their hard earned BTC's to spend on frivolities.
It's not the same having 3 BTC for example, than having 10000. If you have 3 BTC you give it way more value than it's inmediate equivalent in fiat, and you would rather use fiat than BTC to buy stuff.
nice guide on investment . i was thinking of getting to an investment scheme and this is a good knowledge that you provided.
This is the problem with bitcoin at the moment and all other emerging cryptocurrencies.
Consumers are not going to take an extra step to buy Bitcoin, so they can then go out and buy something that they could have already bought with the debit card in their pocket. This is not going to ever happen. It would be like asking someone to go to the store and buy a can or petrol for their lawn mower, when they already had a can of petrol in their garage.
That's why currently, people are interested in Bitcoin for three primary reasons: speculation, novelty, and making darknet purchases (places debit cards don't work). In my view, the way to change this is for the community to embrace and promote services/methods that allow consumers to receive their wages in Bitcoin.
Consumers are not going to take an extra step to buy Bitcoin, so they can then go out and buy something that they could have already bought with the debit card in their pocket. This is not going to ever happen. It would be like asking someone to go to the store and buy a can or petrol for their lawn mower, when they already had a can of petrol in their garage.
That's why currently, people are interested in Bitcoin for three primary reasons: speculation, novelty, and making darknet purchases (places debit cards don't work). In my view, the way to change this is for the community to embrace and promote services/methods that allow consumers to receive their wages in Bitcoin.
True, consumers are not going to take an extra step to buy bitcoin and then make purchases. Even if they receive bitcoin as salary, they will store it and get some fiat to spend, since fiat will drop in value while bitcoin will rise in value
However, once they have some bitcoin holding, things will change. They will participate in bitcoin related activities to promote its usage and raise its value, so that their holding will become more valuable (more usage will cause a shortage of coin on the market, thus raise its value indirectly), and to make sure that they can spend their coin easily in future when their investment matures An easy way to make bitcoin worth millions of dollars
As a fiat money user, your action have almost no influence on fiat money's value, because central bank have dominance influence. But as a bitcoin user, your action (especially a consensus reached among many participants) can affect the value of bitcoin significantly, that is a big difference. By holding and buying bitcoin to purchase things, its value will rise. You can imagine, if the major players in the space like large exchanges and mining pools all decided to tighten money supply, they will achieve basically the same result as FED's open market operation
Central banks are doing such kind of operation constantly to stabilize the value of currency. In bitcoin world, everyone is a distributed central banker. If enough people reach consensus, their action will directly affect the money supply in bitcoin monetary system: If 1 million people hold 1 coin each, then the bitcoin money supply will reduce by 10%, cause a 10% increase in currency's value. And if 1 million people spend 1 coin each, then the bitcoin money supply will increase by 10%, cause a 10% drop in value
This is the problem with bitcoin at the moment and all other emerging cryptocurrencies.
Consumers are not going to take an extra step to buy Bitcoin, so they can then go out and buy something that they could have already bought with the debit card in their pocket. This is not going to ever happen. It would be like asking someone to go to the store and buy a can or petrol for their lawn mower, when they already had a can of petrol in their garage.
That's why currently, people are interested in Bitcoin for three primary reasons: speculation, novelty, and making darknet purchases (places debit cards don't work). In my view, the way to change this is for the community to embrace and promote services/methods that allow consumers to receive their wages in Bitcoin.
Consumers are not going to take an extra step to buy Bitcoin, so they can then go out and buy something that they could have already bought with the debit card in their pocket. This is not going to ever happen. It would be like asking someone to go to the store and buy a can or petrol for their lawn mower, when they already had a can of petrol in their garage.
That's why currently, people are interested in Bitcoin for three primary reasons: speculation, novelty, and making darknet purchases (places debit cards don't work). In my view, the way to change this is for the community to embrace and promote services/methods that allow consumers to receive their wages in Bitcoin.
you forgot gambling, in gambling bitcoin is much easy to use than credit card, which also require for some legal site in your country, to compile a form and send it to your local autorithy
with bitcoin instead with 1 click and 30 sec you are ready to play and gamble in every website that accept it
this is another reason why bitcoin will never die, but will find only its niche market if something goes wrong in the future
This is the problem with bitcoin at the moment and all other emerging cryptocurrencies.
Consumers are not going to take an extra step to buy Bitcoin, so they can then go out and buy something that they could have already bought with the debit card in their pocket. This is not going to ever happen. It would be like asking someone to go to the store and buy a can or petrol for their lawn mower, when they already had a can of petrol in their garage.
That's why currently, people are interested in Bitcoin for three primary reasons: speculation, novelty, and making darknet purchases (places debit cards don't work). In my view, the way to change this is for the community to embrace and promote services/methods that allow consumers to receive their wages in Bitcoin.
Consumers are not going to take an extra step to buy Bitcoin, so they can then go out and buy something that they could have already bought with the debit card in their pocket. This is not going to ever happen. It would be like asking someone to go to the store and buy a can or petrol for their lawn mower, when they already had a can of petrol in their garage.
That's why currently, people are interested in Bitcoin for three primary reasons: speculation, novelty, and making darknet purchases (places debit cards don't work). In my view, the way to change this is for the community to embrace and promote services/methods that allow consumers to receive their wages in Bitcoin.
In an ideal situation, an investor bought 10 bitcoin and hold it for 10 years, then spend them, those 10 bitcoins will be picked up by the next investor, at higher exchange rate. So, a constant inflow of new investor is enough to keep the balance. There are 370K new baby born every day, there will always be plenty of new investors. The whole system is quite self-sustainable
However in real world, every time a speculative bubble hits, it will dramatically increase the amount of people that invest in bitcoin. Quickly raised price will make many investors reach their target earlier, thus cause large scale of spending, and burst the bubble. After bubble burst, the amount of new investors will drop quickly, cause the coin price to dive. This whole bubble process will distort the long term price development trend, thus in some degree hurt the anti-inflation character of bitcoin: It is not easy to see the anti-inflation effect if you don't hold it for more than 4 years
And even worse, if one day a bubble is large enough to attract more than 50% of the existing population to invest, then you might never find enough population to absorb the sell pressure when those people have reached their target. The burst of such a large bubble might end up broke the promise of anti-inflation. E.g. bitcoin exchange rate makes a lower low after 4 years. Of course we are still far from it, but worth noting. And by that time, people might not need to sell bitcoin on exchanges, they just spend them, maybe the crash can be avoided
However in real world, every time a speculative bubble hits, it will dramatically increase the amount of people that invest in bitcoin. Quickly raised price will make many investors reach their target earlier, thus cause large scale of spending, and burst the bubble. After bubble burst, the amount of new investors will drop quickly, cause the coin price to dive. This whole bubble process will distort the long term price development trend, thus in some degree hurt the anti-inflation character of bitcoin: It is not easy to see the anti-inflation effect if you don't hold it for more than 4 years
And even worse, if one day a bubble is large enough to attract more than 50% of the existing population to invest, then you might never find enough population to absorb the sell pressure when those people have reached their target. The burst of such a large bubble might end up broke the promise of anti-inflation. E.g. bitcoin exchange rate makes a lower low after 4 years. Of course we are still far from it, but worth noting. And by that time, people might not need to sell bitcoin on exchanges, they just spend them, maybe the crash can be avoided
Steady investment injection will eventually lubricate the gears for the development of a super killer APP. This will open the doors for mainstream adoption and more VC investments.
We have already seen mayor companies entering the Bitcoin scene and also banks being interested in Blockchain technology.
What is a concern to me, is the amount of merchants who started to accept Bitcoin and are now not accepting it anymore. Who are doing research to see why these companies are doing this and what can be done to retain them?
We have already seen mayor companies entering the Bitcoin scene and also banks being interested in Blockchain technology.
What is a concern to me, is the amount of merchants who started to accept Bitcoin and are now not accepting it anymore. Who are doing research to see why these companies are doing this and what can be done to retain them?
It also begs the question, should bitcoin be seen as only an investment or also a currency to be spent?
In my experience, most of the bitcoin purchases are for investment purpose. Bitcoin also has the payment function, that is a plus, so in future when your investment matured you can spend it easily
Every day some of the early investors are realizing their gains, they need to sell bitcoin or spend bitcoin, those demands are driving the exchange service and merchant adoption
There are some businesses exclusively use bitcoin as payment method, but many of those are typically running underground or in grey area of the law, mostly violate AML/KYC rules, they are creating negative public image of bitcoin, but scale are small comparing with the investment usage of bitcoin. International remittance could also be a powerful usage, but the scale is also small
Some other debate about artificial scarcity
1. There are many financial products with limited supply, for example stocks, why bitcoin?
There are also speculative bubbles for stock, but those financial products are all issued by some entity, and can only be traded on certain exchange, means the owner doesn't really have the full control of his asset. This greatly reduced the ability to liquidate the asset anywhere anytime. If you want some asset that you have 100% control, bitcoin is a better choice. If you consider bitcoin as a company's stock, its company structure and profit model is very transparent
2. There are many altcoins with limited supply, why bitcoin?
Bitcoin is essentially a consensus: People invest in a crypto currency with limited supply to protect their wealth from inflation and get some potential gain in future. So, from investor point of view, to maximize the chance of success, he would invest in one most adopted crypto currency
The success of the investment is dependant on most of the investor's consensus: If everyone decided to adopt different coins, then everyone's investment will fail, due to more and more alt-coins, thus crypto currency inflation. Crypto currency inflation will destroy their most attractive feature (anti-inflation), and make them impossible to sell to future investors
1. There are many financial products with limited supply, for example stocks, why bitcoin?
There are also speculative bubbles for stock, but those financial products are all issued by some entity, and can only be traded on certain exchange, means the owner doesn't really have the full control of his asset. This greatly reduced the ability to liquidate the asset anywhere anytime. If you want some asset that you have 100% control, bitcoin is a better choice. If you consider bitcoin as a company's stock, its company structure and profit model is very transparent
2. There are many altcoins with limited supply, why bitcoin?
Bitcoin is essentially a consensus: People invest in a crypto currency with limited supply to protect their wealth from inflation and get some potential gain in future. So, from investor point of view, to maximize the chance of success, he would invest in one most adopted crypto currency
The success of the investment is dependant on most of the investor's consensus: If everyone decided to adopt different coins, then everyone's investment will fail, due to more and more alt-coins, thus crypto currency inflation. Crypto currency inflation will destroy their most attractive feature (anti-inflation), and make them impossible to sell to future investors
It also begs the question, should bitcoin be seen as only an investment or also a currency to be spent?
+1 to this post.
Now we can only wait for this to happen.
Now we can only wait for this to happen.
legendary
Activity: 1302
Merit: 1008
Core dev leaves me neg feedback #abuse #political
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The fear maybe comes from the fact that artificial scarcity can be changed if the protocol is changed. But then the general consensus of the participants will make sure that will never happen, protocol change of the scarcity rule will be discarded by almost every participants
I'm not sure that this is a fair fear in the case of Bitcoin. I mean it is obviously possible, but bitcoin is basically a global democracy, and if the admins make some stupid changes, like increasing the number of coins mined per block, then major miners can ignore that change and continue on the old blockchain.
The press are always very keen to point out that bitcoin is ruled by a few people, but they couldn't really be more wrong. Granted an active dev team was a good thing to start with, but now is too late to make major changes, so I expect, block size aside, no hard forks in the near future.
In your post you highlighted a greater issue. Bitcoin is controlled in fact by the miners, which isn't a good situation either... people who own it have no say in it unless they mine it.
not entirely true. miners need people to buy the coins. if miners did something very unpopular, price would drop because the demand wouldn't be there, thus hurting them.
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The fear maybe comes from the fact that artificial scarcity can be changed if the protocol is changed. But then the general consensus of the participants will make sure that will never happen, protocol change of the scarcity rule will be discarded by almost every participants
I'm not sure that this is a fair fear in the case of Bitcoin. I mean it is obviously possible, but bitcoin is basically a global democracy, and if the admins make some stupid changes, like increasing the number of coins mined per block, then major miners can ignore that change and continue on the old blockchain.
The press are always very keen to point out that bitcoin is ruled by a few people, but they couldn't really be more wrong. Granted an active dev team was a good thing to start with, but now is too late to make major changes, so I expect, block size aside, no hard forks in the near future.
In your post you highlighted a greater issue. Bitcoin is controlled in fact by the miners, which isn't a good situation either... people who own it have no say in it unless they mine it.
that is good post i also agreed with your point of view about the bitcoin is not a Ponzi or pyramid scheme, bitcoin is real invention through the next generation crytpo and the future of the currency at the moment after a long struggle to prove its existence now bitcoin making solid progress with real adopters and huge acceptance by large merchants.
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