Topic: Is Bitcoin truly losing its identity? (Read 492 times)

I think it's fine for people to see it in different lights, some want it as a store of value like gold while others are hoping it'll function as a daily currency. But you're right, the privacy issue is a big concern. With all these blockchain analysis companies out there, it's becoming harder to keep transactions truly anonymous.

I still believe bitcoin is thriving but if it can't address the privacy concerns it could lose some of its original appeal

Lack of privacy is more of a feature than a bug. You see, transparency allows us to detect malicious actors on-chain. Satoshi wanted Bitcoin to be a transparent cryptocurrency just to make it immune from corruption, manipulation, and fraud. You can always remain anonymous by changing to a new address per transaction, sending round amounts, or even using a mixer. While Gold mining and supply is controlled by governments, BTC is all of the contrary. At least for now. Besides that, BTC's supply is predictable. Gold is not. We know that there will only exist 21m BTC, but we can't tell the exact amount of Gold in existence. New deposits are being discovered as we speak.

I'd say Bitcoin is what you want it to be. Although, centralized exchanges and institutional investors have driven Bitcoin away from its original purpose (banking for the unbanked), that doesn't mean all hope is lost. The majority uses BTC as a store of value to make lots of money in the long run. But you can use it as a currency for cross-border payments if you wish. This is thanks to the way Bitcoin is designed. One would hope BTC not only replaces Gold in the future, but also traditional Fiat currencies. If we put our minds to it, anything's possible.

Bitcoin has never lost its identity and until now it is still relevant and widely used by people for payments. The matter of more people considering it as an asset is not something that needs to be a problem, because it is their right to treat Bitcoin according to their needs. The most important thing is that we understand the original purpose of Bitcoin and continue to educate others that this is originally a digital currency, not just an investment asset.

Here is how I see things.

Bitcoin has been launched as a consequence of the 2008 Crisis.  Bitcoin was supposed to become an alternative to the Banking system.

To create an alternative to it, you need either a Currency or an Asset like Gold.  Bitcoin was initially created and shaped in a form closer to a Currency than an Asset.  But arguably, it did also have many characteristics of an Asset.  I mean.  Even today, it is still compared to Gold by a lot of people.  This is why I think it is not LOSING its identity but instead, it is becoming simply more clear to us how it is perceived by people.

Some see it as a Currency, others as digital Gold.  And I think it is fine to see these two sides.  There is no thing wrong in that.  I did see an increasing number of Posts asking whether Bitcoin is failing on its objective, but I think it is not failing yet at all.  It is the opposite actually, it is thriving!

The only reason I would say it is slowly boiling a failure is the lack of Privacy.  With so many Blockchain Analysis companies running like crazy for a way to de conspire each and every Transaction possible and to create links that should not have been created, I think this is the only way it is failing.  Other wise, it is truly thriving so far and there is no identity crisis.

Anything that holds a value is an asset, is Bitcoin not holding a value? Bitcoin is naturally an asset. In case you don't know, an asset doesn't exclude currencies, they also hold value, and even some things that you do not know are assets could be because, at the end of the day, they can still hand the owners some cash. The only distinction with Bitcoin is that it's the pioneer of Crypto--Currency on the blockchain note. This has not changed and people seeing it as an asset and even using it as an asset are making it more valuable, so we should be happy for it.

You've said it yourself. BTC's focus on bringing "banking to the unbanked" has been long gone. Most people consider it an asset to build long-term wealth, instead of a currency. Because of this mindset, BTC's uses have been more akin to Gold than just money. With increasing centralization in the industry, don't expect this to change anytime soon.

I believe "Wall Street" giants only made matters worst (MicroStrategy, BlackRock, VanEck, etc). It's their game now. Eventually, they will own all of the BTC (or most of it) giving governments indirect control of it. Therefore, early bitcoiner's hopes of BTC replacing traditional Fiat currencies would be nothing but a dream. At least, the code is open source. That gives us some level of freedom, right?

Bitcoin is losing its identity, but rather, Bitcoin is strengthening its place in such a way that no asset or currency in the world can take Bitcoin's place. Bitcoin would lose its identity if it were centralized and controlled by a third party. Since Bitcoin is decentralized so far, there is no reason to worry about Bitcoin. However, one thing is very important: the number of Bitcoin holders is increasing so much that in the future of Bitcoin, competition will begin to emerge as to who has the most Bitcoin, and this Bitcoin will then become a competitive asset for becoming rich in the world.

There are people that just do things with another strange belief and all this is because they have failed to have a proper knowledge, because which identity is op talking about because the information is not valid to me, bitcoin have been. Taking new shapes and this are things that they should have even considered before making any in relevant statements about bitcoin and there is a lot of good things happening in the bitcoin market because bitcoin hitting a new ATH in a very short time just makes it more interesting.

And this is one good experience that bull run comes with you will enjoy the profit thay it comes with and you won't even know what is happening in the market because it keeps going up and down, amd some people might even get confused and sell what they at a early stage and that is one of the reasons knowledge is important every step will be known and you know what to do.

And the talks of making it a reserve is more intresting and that is why the price keeps climbing because we know how the price of bitcoin is usually influenced by good news and if Russia should pick intrest then it will make everything more interesting because the price will then continue to increase.

When something is becoming more and more valuable it becomes an asset, that is not an identity lost just because it was created to be a currency, mind you Bitcoin was never created to be money, it can be used as money but it has different types of use cases that can make person A want it, which can be different from why person B bought it, Money, store of value etc, it is all in one.

I think the real identity of Bitcoin is been decentralised, losing it's identity means it turned over to proof of stake like what Ethereum did some time ago, I don't see that happening, which is why the trust on Bitcoin will never fade.

What does identity even mean here?

Its intended purpose was to be used as a currency. It is being used like that but may not be accepted everywhere, which we are working on.
 
Because currencies are exchanged, it is inevitable that the asset would be used to trade for other currencies and this is no downside but an added advantage.

It only loses its purpose, if you stop believing in its mission.

I often call bitcoin a versatile asset, we can use it as an investment as well as a currency and this will depend on the use case and purpose. Although most people consider bitcoin as an investment these days, that doesn't mean we can't use it as a currency when needed. So it cannot be said that it has lost its identity.

To me, bitcoin is still bitcoin as it was in the early days when Satoshi created it because what makes it great is its decentralized nature and as long as it remains decentralized it will remain bitcoin. And how people use it and what they use it for is up to them, just because they don't use it as a currency doesn't mean it has lost its currency nature.

Bitcoin started as a niche interest for cypherpunks and has grown to a $2 trillion market cap. With that level of mainstream popularity, I would expect it to have evolved significantly, and it will continue to evolve. Bitcoin does not have an identity that is set in stone. As it changes, some people are going to feel like it is not going in the direction they want it to go.

When compliance and regulation started creeping into every aspect of financial activity, many Bitcoiners were happy to go along with it. The focus on being peer-to-peer and banking the unbanked has been lost. It is undeniable that Bitcoin has changed and many of its original ideals have been forgotten or ignored.

Bitcoin identity is the same but narratives are changing and in each market cycle, Bitcoin has new narrative. Bitcoin fork and Lightning Network in 2017, Bitcoin Taproot in 2021, Bitcoin BRC20 tokens in 2024 and now it's time for Bitcoin Spot ETFs and National Reserves.

Bitcoin is itself but it is for everyone, every company, every nation to buy it as individual, company investment or national treasury. Bitcoin can not affect any person, any company, any nation to do this or don't do that.

Bitcoin can be considered as different things in eyes of different people and nations, because it has diversifying utilities and use cases.

The identity of Bitcoin is different from the narratives on Bitcoin. Bitcoin isn't necessarily what people think of it. There are different perspectives and opinions on Bitcoin but these do not form Bitcoin. They do not provide Bitcoin's identity.

So, has Bitcoin lost its identity? The answer is no. The Bitcoin today is essentially the same Bitcoin that Satoshi presented to the cryptography mailing list. It's the same Bitcoin that's explained in the whitepaper.

Bitcoin remains as a currency. Whether people use it as such or not doesn't mean it ceases to be a currency. At any point in time, anybody can use it as a currency. And, well, a currency should be an asset as well.

I think you hit the nail on the head there.  They can be complementary and definitely aren't mutually exclusive.  Having it as an asset makes the value of the currency more stable over time and the use as a currency (no matter the ratio of the two) keeps it flowing.  Eventually after another order of magnitude or two bitcoin and fiat will reach a more or less stable range where the main increase in bitcoin to fiat price will be due to whatever inflation that fiat has eating away its value.  So you might have $100 in bitcoin, but the next year it will be $103 due inflation of the dollar.  Then $106. etc    As compared to now where the value of bitcoin is increasing due to people realizing that it is a great way to preserve the value of the assets that you have earned over time, particularly as contrasted with fiat.  Now the value of bitcoin is increasing slightly due to inflation of fiat, but that increase is dwarfed by the other use cases and uptake as an asset class. 

Early adopters (and some say we are still early) are rewarded for their belief and constancy in supporting bitcoin over the last almost 16 years.  It is part of the virtuous cycle that is in the code.

For me I would say Bitcoin is a currency and also am asset and it has not loss it values. Bitcoin is decentralized and not centralised so it can be used as currency and also an asset  but can not be classified as only a currency because it is versatile in it usage. Dollar can be an asset but can't be compeard with bitcoin.

Anyone can feel what they like about bitcoin but I know for sure that bitcoin is an asset a and a profitable asset that ever existed.

I'm afraid so. With Bitcoin being marketed by "Wall Street" as a "store of value", people will begin to hoard it like crazy. All with the means of getting rich quick. Who cares about using BTC as currency, anyways? Only tech enthusiasts, believers, libertarians, and academics will do so. The rest will consider it an investment like Gold. With limited transaction capacity, it's likely Bitcoin will stay that way forever. I mean, who would pay high fees to send money abroad? Even paying for simple things such as a cup of coffee becomes unfeasible. And don't think for a second that the Lightning Network is a solution, because it's not. It's a flawed, centralized network with a terrible user experience. On-chain scaling is the way, imo.

So yeah, Bitcoin lost its identity a long time ago. Luckily for us, we have many other coins to choose from (altcoins). Whereas BTC fails as a currency, coins like Litecoin and Dogecoin do a better job. At least, Bitcoin's security and reliability are unmatched. It's often better than Gold as a safe-haven. Am I right?

You’re right there’s none. Bitcoin didn’t change but the way people regard it did. Now everyone wants to hold and I would even bet that some people don’t know bitcoin as the currency but only as an asset.
Well, yes! There’s that famous story of bitcoin being used to buy a pizza. bitcoin is and still decentralized so I am sure that many found interest in that and used it in all kinds of things.

Weather Bitcoin been a currency or neither it been an asset, let's not forget that wasn't the only reason why it was created, because I'm sure we are all familiar with the story surrounding the emergence of Bitcoin, how it was invented in 2009, after the financial economic crisis of 2008, which affecting users dissatisfaction with traditional banking systems and centralized monetary policies. Hence, prompting Satoshi Nakamoto to create a decentralized peer-to-peer electronic cash system whereby users could execute transactions directly without the need of third parties, which is still applicable today, and as such, I can boldly say Bitcoin has not lost it's identity, despite the massive appreciation in value for the past 15years.

I am forever thankful to Bitcoin for showing us what not to do, so we could create a better version of it.

These things you mentioned do not prove that bitcoin has lost its identity. Bitcoin is still what it was when it was first created. It is still a decentralised currency that can be transferred across any person irrespective of border. Bitcoin is still not owned or controlled by a single entity, it is still controlled by the market. Bitcoin supply is still limited so there is no inflation with bitcoin.

How people use bitcoin is not what defines it, it's what it is that defines it. People said bitcoin was bad because it was used for illegal activities, is that what bitcoin is?
You can still transfer Bitcoin via peer-to-peer without any centralised exchange; that hasn't changed. The fact that people prefer to use centralised exchanges does not diminish Bitcoin's decentralised nature.

Btw, bitcoin transactions being transparent is one of the may great features of  bicoin.

To be fair, if we rely on the original purpose that satoshi created it for, it is clear that bitcoin has lost its identity, it is just that many people do not want to admit this so they say that it has not lost its identity.

But in my opinion, that is not so important. Even though it didn't become the currency it was originally intended to be, it still benefits us and the world, which is what matters. Bitcoin is an asset, an investment and it has changed many people's lives for the better. It helps us realize the importance of privacy and having complete control over our assets...For me, that's enough, we shouldn't be too greedy and ask for too much.
Instead of being concerned with whether it is being used for its original purpose, we should be concerned with the benefits it brings and the use cases it can bring.

Bitcoin has always been viewed not only as currency for exchange but also to perceive value, pretty much similar to the USD, which is functioning as both an asset and a currency. Even in their early days, many had invested in Bitcoin with prospects for appreciation. Countries like El Salvador expose Bitcoin for its dual usage as legal tender and a tool for long term investment.

Although volatility and uncertain regulatory positions are testing Bitcoin for mainstream adoption, that does not strip Bitcoin of utility.  Bitcoin has evolved into many usecases, including as an essential part of DeFi and probably many more in the new era of financial world. This extends from the initial ethos of decentralization and financial sovereignty that the underlying cryptocurrency represents, which proves Bitcoin is adapting, not dying.

I also used to extremely against Bitcoin as a speculative assets, but I think we need to accept the reality that when Bitcoin is widely adopted and highly demanded, it will always become a tool for speculative investors, and it doesn't mean that Bitcoin is not used as a decentralized currency whcih is the original purpose.

I agree with you. The person who came to the conclusion that bitcoin is losing its identity is only quite ignorant (not in an abusive intention) of what is happening or that person chose to ignore it and come to the conclusion just to gain some attention. Even if the person don't want to read just ask one of those AI agents and your answers will be provided in less than a minute. As at today bitcoin's price is over $100k when the topic was created its price was over $95k. The other day the president of Russia was talking about bitcoin. Theres' also a debate about bitcoin being a reserve asset for some countries. What more do we need to write or what evidence is needed to show just to prove a point, well none is needed.

I feel that instead of bitcoin losing its identity, they are now developing in a more positive direction because they are now not only considered as a digital currency that can be used as a payment option but also as a form of savings and investment that is very good to do because of its value and price.

I don't really care what other people think about bitcoin because in the end, things like this depend on each person's mindset and opinion so when it comes to viewpoints, it is clear that everyone can express what they think without us intervening.
But on the other hand, by looking at this, of course we realize that we also have our own thoughts on bitcoin so that what others say will not have any impact if we are sure of the choice that being in bitcoin is very right for us.

"Bitcoin: A Peer-to-Peer Electronic Cash System" - Source: https://bitcoin.org/bitcoin.pdf

It lost it's identity long time ago, right now it's "Bitcoin: A CeX-to-CeX Electronic Real-Estate System" - or as I call it: doodoo.

Bitcoin is not losing its identity, it’s only innovating to become more effective and productive. In fact, it becomes even more valuable than just sticking to only one method. The important thing is, bitcoin can actively perform in both ways, to act as an asset when needed and to be considered as a currency in countries where bitcoin is accepted as a payment method.

How many times are we going to keep on emphasizing that we may not have to totally agrees with what other people are saying over the internet about bitcoin, a normal person who has the knowledge of what bitcoin is and how it was been invented by it creator will not come up with the idea of it losing its identity without having anything to back things up, so far so good, bitcoin is both an investment asset and a digital currency which is decentralized and there is nothing anyone can do about these than to let it remain as it has always been.

People always like to run along with the wrong narrative, right from the onset bitcoin has always been a digital currency that has the potential of appreciating in value over time, although i haven't read about any story concerning bitcoin losing its identity, because for anybody to come up with that kind of concept clearly shows that the person hasn't been involved with cryptocurrency or bitcoin anytime. Bitcoin can be stored as an asset that appreciate over time and bitcoin can as well be used as a digital currency, there are lots of outlets out there that accept payment in Bitcoin so at what point did bitcoin lose its identity?

bitcoin is used as currency... thats the whole point of the blockchain to log and transcribe the transfers

i think you mean its not commonly used as a domestic money/international money/niche community money/common money

Bitcoin is not commonly used as a currency because it is too slow or too expensive if you want your tx to have priority, and this will only worsen over time unless the protocol is updated through a hard fork - which is unlikely to ever happen.

Just go with the flow and treat it as an asset. It will never become a practical option for small purchases due to high fees, nor for large purchases due to a lack of privacy.

But hey, that's just my opinion - everyone has one, just like everyone has an ass and you are free to use it as you want.

Bitcoin is the epitome of individual liberty. Its identity is derived from the freedom to define it yourself. It's just that it is now increasingly regarded as an asset.

It is not often very attractive means of payment, because of volatility and on-chain cost, but depending the case, it can be far more comfortable to use than other mediums of exchange. For example, sending money electronically, from one country to the other, or if you want final settlement within 10 minutes, or privacy, or [endless list].  

currencies can be anything
its an umbrella term for anything and everything thats used as a medium of exchange

there are commodity currencies, asset currencies, money currencies, etc
heck even in relationships, women can use sex as a currency

the issue is not that bitcoin is losing identity. its that most new users are the young whom have no economics knowledge of identifying things using economic terms correctly.

commodities are traditionally raw materials used to create other products so as for bitcoins status and utility, bitcoin 2009-2017 was a asset currency as it was its own sole product. however with protocol upgrades allowed bitcoin to be also a base unit to then generate other silly data and tokens for subnetworks so became a commodity currency aswell

bitcoin became BOTH a asset and commodity currency dependant on which market it is used
gold also sits in both categories of currencies(store of value market + raw material for manufacturing market)

If lost in your own terms is based on what your insinuating, then you it has to some extent to you and that’s to you.

Even now, it’s not out of context for a commodity to have it serve several purposes,
In the real estate, a property could serve housing purposes or being used as a store house or some place of business and in the same time, it retains value as an asset. That doesn’t limit it to certain functions based on where it’s most frequently used.

Same applies here with Bitcoin,
We must come to terms with the fact that, it’s an evolving commodity and means to finance that is still trying to attain mainstream use and its limited supply provides investors with opportunity to make the most of it while they can, hence the idea of hodling.

Bitcoin will always remain an alternative to fiat and I dont think it will ever lose its identity. Many people use Bitcoin as an asset and a hedge against inflation but there are still people who use it as a currency. Some countries have some restrictions placed on banking activities. In my country, you might not be allowed to transfer more than a certain amount per day. There are some businessmen who use Bitcoin to pay their business partners. While some individuals see it as the best means to carry out international business transactions. However, due to its high volatility and unfavorable government policies, might continue to be used as an asset.     

There is nothing to be disappointed about Bitcoin's ups and downs. If you dump a little, you will see many people making many comments and wondering if Bitcoin is really losing its existence, but I have one thing to say, is it so easy that it dumped a little and lost its true identity. Isn't it kind of stupid to think like that?

There will be a market volatility, we will never make such comments because Bitcoin is a permanent coin, it is kind of stupid to make different comments about it. Have faith in it and it will do you good in the long run. Wait and see with patience, then you will understand what situation it will lead to.

For most users, I think bitcoin is still a better alternative currency. I'd never know if anyone here has adopted bitcoin as a primary currency in their daily lives, but I think it's unlikely there is. This adoption depends on local regulations, so use cases are hampered by this, especially if the government has not legalized it.

Bitcoin does not lose its identity as a currency, even if you cannot use it as currency in your country. Until now I have not been able to use bitcoin as a currency or means of payment in my country, this is because regulations in my country have not legalized bitcoin as a legal means of payment. While in many other countries, bitcoin has been used as a means of payment and I really don't agree when someone says bitcoin is losing its identity.

Well, Bitcoin hasn't lost its identity at all and it will never lose it even in future. Bitcoin was always an asset and a digital currency, and it will always remain as an asset and also a digital currency.

It depends on the mindset of the ones who buy it, if they buy it for holding then it's an asset for them, but if they buy it to purchase goods with it then it works as a way of payments for them.

I believe that largely the object's purpose is defined by its usage. Sure, maybe it wasn't the initially intended purpose, but if it works fine and finds it demand, why not? Theatre used to be mass entertainment, sort of like cinemas or even Netflix is now, but now theatre is this highly intellectual thing for people who appreciate culture. Its function changed over time, but we don't say it lost its identity.
Bitcoin can still be a currency for some people, for some purchases, and in some contexts. For many it's more of an asset, though, and it makes sense, considering how much Bitcoin is growing in value over time. So yes, the two aren't mutually exclusive.

Bitcoin was an anonymous currency, a decade ago it was almost impossible to track Bitcoin transactions but now we have found that there are flaws and blockchain analysis companies are getting better with tracking.
We had a KYC-free service years ago and now almost every bitcoin-related business asks their users to submit KYC documents.
Years ago we could mine Bitcoin at home but today it's a commercial business and only big mining companies can mine it.
Bitcoin mixers were legal and now you are a criminal if you use them.
Decentralized Exchanges are also getting banned.
What's the next step?
This is why I think that Bitcoin is losing its identity.

There is no point to listen to those people as they do not know what they are talking about, if you take a look at the history of money, you will see the first currencies were called commodity money, which means that people at the time simply began to use a popular commodity as a currency in order to facilitate trade, then there is nothing wrong with bitcoin being a great asset, and if anything this should just make its case for becoming a widely used for of money all over the world even stronger.

If we say losing its identity then we should be wrong, even with the sole creation as a currency forming a hedge against centralized system,  i believe identity can be shifted but not totally removed. Just as a currency alone, less or few people would have been a part of this journey, what has successfully moved a lot of people towards adopting Bitcoin is due to its ability to give profits when controlled like an asset.

With the recent knowledge and advancement, we can see different institutions beginning to accept Bitcoin as a standard payment option, this means the ideology about issuing as a currency is also advancing, El Salvador already adopted as a legal tender, now the US are attempting a bill as a reserve fund, everything surrounding Bitcoin benefits is showing signs of improvement and more adoption is possible as time continues.

Who cares what other people think of bitcoin? It only matters what btc means to you and how you are using it. Some people indeed use it to store value or trade it like a stock. That doesn’t mean you should too. If you are using btc to pay for products and services then it means you are using it like a currency. Lots of different people find value in btc and they use it differently. We can’t stop people from trading bitcoin like it is another stock. They creating liquidity in the markets and they are also helping with the crypto adoption.

People will buy bitcoin because of its price and value that is increasing. But that does not mean bitcoin can not be used as currency.

An instance is if you do not have fiat and you want to pay someone money and the person can accept bitcoin, you can decide to pay him from your bitcoin investment instead of converting to fiat first.

Another instance is when you want to send money to your family or friend in abroad and you do not want the annoying fiat payment and decide to use bitcoin instead for the transaction.

Can you see now that mnothing takes bitcoin being a currency.

I would just use Gresham law where he states bad money(fiat) would remove Good money(Bitcoin) from the market.
I wouldn't state that Bitcoin has lost its identity because it's still decentralization
But with its scalabilty and attractiveness as a store of value
Many option to hold it while making Fiat for their everyday transactions
This doesn't mean Bitcoin isn't used as a means of Payment.

I pity who holds Dollar as an asset.

So I've been seeing a lot of talks about how Bitcoin has lost or is losing its identity because it is now regarded as an asset and not as a currency. I used to see the discourse a lot before but recently I've been seeing it more (don't know if it's just me). I have made a couple of replies on posts related to something like this on the forum.
So I really want to understand how Bitcoin has lost its identity.
There is nothing that has stopped bitcoin from being used as a currency. Certain factors make it difficult for businesses to accept bitcoin as a means of payment but I don't think the fact that it's regarded as an asset is one of them

From what I understand, these two features are not mutually exclusive. In the sense that Bitcoin can be an asset and can also be a currency. Just as the dollar is an asset and also a current. The difference, Bitcoin is a better asset than the dollar. I was not opportune or smart enough to be among the early adopters of bitcoin, so I'm going to ask a question to people who were, was there ever a time that people bought bitcoin for the sole purpose of using it just as a currency?
Like when they bought the coin, they had no expectation or hope of bitcoin appreciating so they could make a profit? I doubt that and if they did, then Bitcoin was always an asset from the beginning and also a currency.
So at what point did bitcoin start losing its identity?