Is Bitcoin losing its purpose? - page 7.

Kakmakr

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Bitcoin has not lost it's purpose.... people are still using it as a payment option, but governments classified it as a "Commodity" to protect their Fiat reserve currencies. Once government put it in a "Commodity" box, it is very difficult for merchants and retailers to legally accept it as a "Currency".

Imagine reporting your yearly tax to the tax authorities in your country and then showing your profit and losses in Crypto currencies. They will throw the book at you, because the laws of the government does not allow for you to use Bitcoin as a legal tender. (Currency)

The Bitcoin community must stand together in their respective countries and they must vote for a party that are supporting Bitcoin and Crypto currencies. Wink

sunsilk

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Exchanges have set their limits for those friendly-countries that don't enforce KYC to the exchanges customers. Some exchanges does that and there's no problem with it but the limit is just exact to those retail investors and traders.

They have a lot of option in the US and they know the limitations if they won't pursue KYC. To us, like small investors and traders. We know where we should go, as long as it's a good exchange and it doesn't enforce KYC with some limits, we should be good with it.

Reid

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There is nothing said to be anonymous. In fact, it is not.
They want to list every holder of crypto assets. Not a problem. But I think the real reasons behind it are still hidden. Tax.
It could have been better if the information they will get will be used for a better purpose. Adoption, Usage, Information that would make merchants choose to have Bitcoin as a payment option rather than cash.
But, if it's for the purpose of tracking down every transaction you will make, then that's the scary part.
DeFi on the other hand is a different discussion, comparing it to Bitcoin is off.

ethereumhunter

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Quote from: rosebrand on August 12, 2021, 08:03:04 PM

There are just too many reasons to why this recent rules are popping up thereby making it seem bitcoin isn't getting that anonymity it supposed to get, but the fact is nothing changed bitcoin hasn't lost it purpose, you can still send funds across country's without going to bank, and people have got to see more usefulness in bitcoin, not only just using it as means of transaction but also a good store of value and a successful form of investment.

Yes, bitcoin is not losing its purpose but bitcoin has become more popular and will be the next mainstream thing in the world. Bitcoin now slowly attracts more attention from people, especially big investors who do not know much about digital transformation. They heard the news about bitcoin price and how the price can go up and down suddenly and that can make them curious and use bitcoin as their new asset in the investment.

You only need KYC when you buy bitcoin at the exchange and gladly, you can buy bitcoin from other third-party services anonymously. If you do not want to do KYC, you can search for the exchange or services that do not require KYC. I am sure these services will still be available as a crypto means anonymous.

Baihaki Khaizan

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The era of digitalization of technology gave birth to Bitcoin as an exciting new currency for the world community. He became an alternative to complete the needs of financial transactions at the global level who crave convenience, efficiency and security.

Bitcoin has indeed captured market opportunities well. The trend of increasing internet users around the world is a strategic moment for Bitcoin's presence. Especially with the development of global e-commerce business potential that encourages global people to conduct cross-border trade transactions.

So the development of Bitcoin remains on the right track.

Although Bitcoin exchange rate fluctuations are closely related to world economic policies including the regulation of a country, the perception of expectations and Bitcoin owners (panic) Bitcoin owners and the amount of demand and supply of Bitcoin in the market.

LUCKMCFLY

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I would say that BTC will never lose its purpose, many people who use BTC are freer, they escape from the traditional economy that is the one that suffocates, and that usually is the one that produces and generates debt, in addition the growth of BTC is a fact , El Salvador has already adopted BTC, Paraguay is very close to doing so and now Argentina is also in the process of adopting it, I believe that the purpose of BTC apart from generating a totally deflationary economy, is opening minds, many people are against BTC, Because they do not see it as reliable because it does not have stability, volatility is usually an ingredient that many will never accept, but BTC represents Freedom and now its mission is firmer.

qwertyup23

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Quote from: BrianH on August 12, 2021, 02:01:30 PM

I think many retail investors in the US are Robinhooder types that have a "Bitcoin go up - me buy!" mentality. They don't realize what the loss of utility from anonymous P2P transactions will mean for Bitcoin.

Of all the things that you mentioned, this is the only phrase that matters- BTCs were created in order to have an anonymous p2p transactions between users. It just so happened that its price on the market is significantly high (collateral damage) that most people purchase it either for short or long-term investment.

The blockchain technology is where it all matters. As long as there is a way in order to transact anonymously, BTCs will still remain relevant in the future. Even if people think that it is the perfect avenue for an investment, as long as people transact with it, it will not easily lose its purpose (and price).

rosebrand

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There are just too many reasons to why this recent rules are popping up thereby making it seem bitcoin isn't getting that anonymity it supposed to get, but the fact is nothing changed bitcoin hasn't lost it purpose, you can still send funds across country's without going to bank, and people have got to see more usefulness in bitcoin, not only just using it as means of transaction but also a good store of value and a successful form of investment.

Kelvinid

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win lambo...

Do you mean OP that we are losing the purpose of being anonymous due to the KYC system implemented by some banks and exchanges?
Personally, we're still not but can't disclose any possibility of losing it in the future. As long as you can still make use of it and do the transfer without any KYC verification, you are still there. But the moment that you are using a third party and pass the KYC, you will no longer enjoy the anonymity that you've wanted.

Well, they have some purpose as well and I understand that. But of course, you can also understand that not all will stay forever, like losing our anonymity is an example. But still, I'm in trust with Bitcoin and also those who ask for my personal information, so it was not a big deal for me.

Dragonfund

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Sorry to say that, that dream is still far from reality. We must put some things into consideration before making conclusions on some things.
Have you forgotten that terrorism still exist? Do you want someone to kidnap your family and ask for crypto as random because they it's a means to get fund without been trace by the officers if the law, that will be a disaster to everyone if we ignore kyc.
You can choose not to do but others will be force to comy to rules and regulations.

Hydrogen

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Quote from: BrianH on August 12, 2021, 02:01:30 PM

Great article on Bitcoin.com that people should read.

Bitcoin.com has always been controversial due to its ownership by Roger Ver and past history of questionable activity. There was a past legal case where people who tried to buy bitcoin on that site were sold bitcoin cash instead. Notions of bitcoin "usurping banks" are political in origin. As if people desiring basic protections from inflation and economic mismanagement through bitcoin, is somehow a direct attack on the banking industry. I'm not a fan of that messaging.

Quote from: BrianH on August 12, 2021, 02:01:30 PM

I think many retail investors in the US are Robinhooder types that have a "Bitcoin go up - me buy!" mentality. They don't realize what the loss of utility from anonymous P2P transactions will mean for Bitcoin.

Bitcoin has never been a truly anonymous P2P. Nor was it designed to be. There will be no loss of anonymous P2P as its not something that ever existed.

The concept of bitcoin supporting anonymous transactions was a media fabrication intended to fool people into thinking bitcoin was useful for money laundering purposes. Its not something that actually happened or existed in the real world.

Zilon

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Bitcoindata.science

Quote from: BrianH on August 12, 2021, 02:01:30 PM

I think many retail investors in the US are Robinhooder types that have a "Bitcoin go up - me buy!" mentality. They don't realize what the loss of utility from anonymous P2P transactions will mean for Bitcoin.

If Bitcoin is KYC, DeFi coins have no hope of replacing the traditional banking system and CBDCs are everywhere, why use Bitcoin at all? Governments will likely ban it in the future anyway. China and the US infrastructure bill have already set a precedent for banning mining and development in those countries.

KYC is done by exchanges since the operate based on certain rules governing their existence and would not want any factor to hinder their operations knowing fully well if the violate government orders on KYC verifications it might cost them their license to operate. This doesn't stop Bitcoin from maintaining it's anonymous nature. CDDCs even with their increasing nature can't cause a treat on Bitcoin it's the blueprint upon which other digital currency exist.

paxmao

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Quote from: BrianH on August 12, 2021, 02:01:30 PM

Great article on Bitcoin.com that people should read. Crypto has the potential to usurp the banks, allow private, digital transactions, serve as a universal currency, escape from rampant fiat inflation, etc. People need to wake up, be more active in politics and be stronger advocates against KYC.

You certainly can use bitcoin as it was intended originally, but only for transactions that make sense in relation to the level of fees. That is the only reason I see to argue that it has lost the original purpose of easy peer-to-peer transactions, which was better covered by BCH. You do not need to pass any short of KYC to use bitcoin, that is for sure. It may be easier to do so, since when you buy bitcoin with fiat you are not following the spirit of bitcoin in the first place, that is, you are not using it for its intended purpose but rather just buying.

just_Alice

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Yes, unfortunately, “no KYC” isn’t happening anytime soon in China, they’re all about controlling their nation.

But I’d say that things are a little different in the US. I think it’s only fair to impose taxes on those who make a fortune from cryptocurrencies. People pay those on stocks investments, so why shouldn’t crypto investors pay as well? I think it would be a perfect compromise if other countries would agree to let people use, keep, exchange cryptocurrencies, but in return, people would pay the government. It’s a good trade considering the prize. Do no questions to the IRS. But the SEC seriously needs to calm down and let people have a little privacy!

Myleschetty

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Quote from: BrianH on August 12, 2021, 02:01:30 PM

serve as a universal currency

Bitcoin was not created to serve as a universal currency, it was created as an alternative currency that will make people's financial freedom.

Quote from: BrianH on August 12, 2021, 02:01:30 PM

the EU’s plans to track all bitcoin transactions and ban anonymous wallets, the massive momentum CBDCs are gaining worldwide as countries responsible for 90% of the world’s GDP research and trial them — it is clear we are on the cusp of something unprecedented.

It is not possible for any government to track all Bitcoin transactions and ban every anonymous wallet, if they do a new alternative will always be introduced and I once read that the ETH dev is also planning to create a tumbling service.

Quote from: BrianH on August 12, 2021, 02:01:30 PM

If Bitcoin is KYC, DeFi coins have no hope of replacing the traditional banking system and CBDCs are everywhere, why use Bitcoin at all?

Ask yourself who's going to KYC Bitcoin when it is decentralized? They can only KYC/AML exchange and others payment sites. DeFi coins are the future of finance and they don't hype or hope before they can stay true to their mission.

Charles-Tim

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Quote from: BrianH on August 12, 2021, 04:38:36 PM

Why use BTC (or DeFi) if CBDC replaces their function? Especially considering the likelihood that governments will completely ban BTC to prevent competition from CBDC.

I will be specific on Bitcoin. CBDCs are pegged with Fiat or manipulated like Fiat, which means they are inflationary, subjected to central control and the control always lead to devaluation, also any currency controlled by the government has no privacy, not a speculative asset, neither also a store of value. That is why Bitcoin is so different, it is an alternative, it is a speculative asset and also a store of value, it appreciate in value over long period of time, this has been the reason for the price valuation of bitcoin, because people know it is appreciative and buy more of it. The more the demand the higher the value and the more valuable it is and the higher the price.

BrianH

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Quote from: Charles-Tim on August 12, 2021, 02:39:09 PM

If anyone against CBDC, the person is also againsting Fiat, Bitcoin is not DeFi, Bitcoin is also not a replacement but an alternative, Fiat is inflationary while Bitcoin is deflationary, appreciative and increase in value, while you can make use of it and have privacy, unlike Fiat or CBDC, but there are many reasons we may still need Fiat or CBDC which are legal tender. But Bitcoin as an asset, also as money and appreciate in value over time.

Quote from: BrianH on August 12, 2021, 02:01:30 PM

If Bitcoin is KYC, DeFi coins have no hope of replacing the traditional banking system and CBDCs are everywhere, why use Bitcoin at all?

Why linking or relating Bitcoin with DeFi? They are two different things, Bitcoin is a complete decentralized digital asset.

They are two different things. My intent was that DeFi coins would be an alternative to BTC or CBDC. Why use BTC (or DeFi) if CBDC replaces their function? Especially considering the likelihood that governments will completely ban BTC to prevent competition from CBDC.

wxa7115

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Quote from: dothebeats on August 12, 2021, 02:56:47 PM

True that bitcoin was intended to be a P2P electronic cash alternative, but as time went by people realized that bitcoin also works well as a store of value, hence why a lot of people cared about the price of bitcoin more than its status as an alternative way to pay whatever they purchased online. It is almost inevitable that bitcoin will get regulated one way or the other, though that per se, IMO, does not lessen or change bitcoin's purpose.

Being a store of value is also part of being money, it seems that fiat has been around for so long that people have forgotten that fact, so bitcoin is still fulfilling its purpose it is just that right now its usefulness as a store of value dominates it usefulness as a currency that you use in your everyday life.

Is this going to change? I think it will but for that to happen we will need for adoption to grow significantly and a deepening of the crisis of fiat currencies, and while both are underway it is going to take some time before this becomes the main use of bitcoin.

Haunebu

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How exactly is BTC losing its purpose? Do you even realise how much BTC and the crypto market has grown overall during the past couple of years? If anything, BTC is actually growing more and more relevant over time(Not the opposite).

Personally, I hate KYC myself and it's still possible to execute cryptocurrency transactions in different sites without providing our KYC documents and I don't think this will change at any point in the future.

mu_enrico

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What's the purpose of Bitcoin? There's no absolute answer to that question. Anyway, as much as I don't enjoy doing KYC, businesses must get customers' data for shipment and stuff. Anonymous transaction has drawbacks. Let's say you sell goods in the marketplace. You need more hassle to verify whether Alice or Bob did the payment (in Bitcoin you simply attach the link to blockchain explorer). And then Alice and Bob still cannot be anonymous because you need their address for shipment. Bitcoin is not anonymous, that's an old concept predates Silk Road, and other, now closed, anon businesses.

Yep, Bitcoin can replace the payment part of commercial banks with its P2P e-cash system, but I think we won't win the battle anytime soon.

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