Topic: Medium of Exchange vs Store of Value: Where is Bitcoin today? - page 2. (Read 708 times)

Currently, I think, it still acts as a store of value. However, this might change slowly as soon as lightning network opens up to the public. Right now, the lightning network is used by merchants in a closed environment.

It's a very good store of value, despite what newbies and people from outside of the space are saying. There are only 2 things that you have to understand.
1. Bitcoin has a steady gains of around 10% a year, which means that it's slowly gaining value if you buy only at the lowest yearly prices. If you bought at the low of 2016, it will retain value and bring you some profit in 2017 and so on, if you buy at the low of 2017, it will be worth more in 2018.
2. You should avoid buying hypes and pumps, and it's easy to spot these events. If Bitcoin is going up more than 50% in a single month, it's in a hype phase. It's known to gain over 300% a month, which is exactly the time when you should never buy if you want to treat it as a store of value, and not as a "get rich quick and forget about it" scheme.

I bought my coins in 2015 and don't believe that I'll ever see sub $500 Bitcoin, which means that it is going to work as a store of value for me.

There are few countries which is not allowed the use of bitcoin hence there are few intermediaters or brokers who help the people in exchanging btc to other coins in terms of storing btc there are few hardware tokens available and software available to store coins.  Bitcoin is fighting back to get its value and gaining confidence from investors.

Although Bitcoin is facing a very hard time in its survival journey I still strongly believe that it is not going to be its end - not with the highly acclaimed valuable nature of blockchain, the technology that powers it. Bitcoin isn't going to die. It will survive as blockchain continues to gain more popularity and adoption across borders.

Well it has not been accepted and legally adapted to all countries around the world. The bitcoin system is still on the process and the big disappointment that bitcoin will not going to survive and it will going to end as the system has been accused as scam due to the ICO projects that uses the concept of bitcoin.

Your position that Bitcoin is the best currency that exists in the world today is very debatable. This is because you got to consider its other weak points such as high volatility, underdeveloped and narrow adoption, as well as weaning confidence in the market by the ecosystem players. The ability to confirm transactions in the public ledger using cryptography is not enough to give it that status as the best currency in the world. After all, transactions done using other currencies such as USD and Euro can as well be confirmed, although in a private ledger. Bitcoin needs to do more if it must earn that status.

You do have a point, but BTC is a store of value not in the mid term (2-3 years) but in the long one (at least 5 years).

Gold has lost 50%+ of its value against USD in the past within two years (Jan 1980 - Jun 1982), but in the long term has always kept its value.

https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart

BTC is really too young to be judged on a long term view, but it has always shown a steady growth since its foundation, we'll see in 2021 who's right.
If someone invested a sum at 6,000 USD/BTC that he cannot afford to lose I'm sorry for him, but that's a misinvestment.

By the way BTC can't die if current miners stop mining, this just means difficulty will be lowered, medium hashrate will decrease, new miners will come.

Store of Values don't depreciate 80% and still be called a store of value.

So while you could make the argument Bitcoin functions as a crypto asset, it would be like milk with a short expiration where the value is completely Lost!

Sorry, no good store of value analogy works at all for bitcoin, it depreciates too much to have any true usage as such.

While Bitcoin has proven to be in the last Year is a Collapse/Loss of Value nothing more.
It is a Gamblers Dream , but too unstable for real financial security.

Want to based your kid's college fund, your mom's retirement on something that loses 80% before you can cash out.

No Bitcoin is Risk, and should be considered Pure Gambling as it has proven , it will make some rich and others poor,
much like a black jack table or roulette wheel.
Has anyone ever called betting on the horse races a store of value.
The Crypto races are the same, make your bets on your favorite crypto.
Just as race horses can die so too can Bitcoin.


 

Bitcoin is the BEST currency that exist in the world now. It is better than the Euro and the USD, because it give the possibility sending money everywhere in the world, and have the PROOF that you have done that.
 When we talk about sending money everywhere in the world Paypal is the best, Bitcoin having the disadvantage of some time delay (usually 30 minutes) necessary for 3 confrmations of the transaction) until the money arrives. Bitcoin is good because of these confimations of a transaction, when a transaction is done, then these confirmations are the proof that it has been done.
 This is why bitcoin is good, better than the Euro and the USD.

Bitcoin has been invented as a medium of exchange, because it is very good, it has become a Store of Value.
Alt-coins are being used now as a medium of exchange, their confirmation time is faster and they are more convenient (as example the number of the dogecoins in this world is not limited, when compared to the number of bitcoins: 21 Millions of bitcoins in this world).
 

I totally identify with your point. I do believe that bitcoin's main goal is financial inclusion and decentralized digital economy. And this can only be achieved if bitcoin can effectively play the role of money as a medium of exchange. But this is not going to happen if it cannot be used as a good store of value. Its ability to serve as a store of value will inspire confidence in its use as a medium of exchange.

Bitcoin still in medium exchange phase and need to be on that phase to survive in the future, but for now Bitcoin is more popular due to the store of value, most of the fluctuating value is coming from the trade action, to become currency,Bitcoin still need to face many obstacles

bitcoin is in a transition stage in between mass adoption and government regulators green signal bitcoin already proved both the features like the medium of exchange and store of value. when trillions of dollars are processed in blockchain it proves it is exchange and store of value

Your view is likely a valid one. However, according to Wikipedia, a store of value is the function of an asset that can be saved, retrieved and exchanged at a later time, and be predictably useful when retrieved. In other words, a store of value is anything that retains purchasing power into the future. For instance, the most common store of value in modern times has been money, currency, stock or a commodity like a precious metal or financial capital. Do you agree that Bitcoin is money, currency or an asset? If yes, then, it could likely serve as a store of value.

I think ass long as there is an intrinsic value of the coin, it still can be both medium of exchange and store of value. Value after all are presumed by traders which makes its value. The whole point for satoshi is to make it available for everyone and thus Bitcoin can be sent to anywhere in the world and this had been achieved long time ago as long as it has a value no matter how low it is.

Bitcoin's price is defining by perception of people, this is all the story.

A store of value is an asset that maintains its value without depreciating.
https://www.investopedia.com/terms/s/storeofvalue.asp

BTC has 80% losses every 2 or 3 years , a store of value it is not.

Gold remains relatively stable , and when it price decreases too much , their are alternative uses in industry for it that eventuality increase it's price.

BTC has no other usage except as a payment system, which the miners are now losing money to keep it running.

Gold can't die, because a group of miners stop mining , bitcoin can.

Find anyone that purchased Bitcoin above $6000 and tell them it is a store of value,
don't be surprised when they laugh in your face and ask for their thousands of dollars of value back that evaporated into thin air.
 

 

It depends, how are you defining store of value ? In a free market, nothing has a fixed price.
If you see Gold/USD 50-years chart, it has highs and lows too.
Do you think gold is not a store of value ?

Bitcoin as a medium of exchange is still vague and not yet widespread as it should have simply because of its volatility,its somewhat not possible to get the required number of merchants to accept the bitcoin that'll make it an acceptable medium of exchange,considering how volatile and unpredictable the bitcoin is, and also putting into consideration that the major aim of a merchant is his or her profits and nothing more

Bitcoin being a store of value wasn't the perceived purpose for it's creation,but it definitely can act as such based on its value/price/unpredictability
I think this days the bitcoin is used more as a store of value as we've got less bitcoin enthusiast looking to spread the word about bitcoin or get a store near them to accept the bitcoin as a means of payment.
We're all cool with purchasing and storing for a pump in order to earn huge bucks

something wont be a store of value unless it has utility.

for instance. people think something just needs 'rarity' to have value
1. my dog does 1 bowel movement a day. and will live for ~15 years
thats ~5500 bags of dogs mess that will ever be made.
want some? only $1 a bag...........
...... no? i thought not

2. there are many coins that have no function/utility and so they have no value. even when their cap may be less than 21mill

3. bitcoin (not locked btc where unconfirmed unaudited transactions are played with on other networks) but real bitcoin network utility needs to keep utility to have value.

take gold. the VALUE of gold (how many loaves of bread it can buy) would be worth more now if it was not for banks fortknoxing it up and making people play with paper money.
golds value now is just playing against the cost of obtaining it. plus a bit of speculation due to the industry utility.
again gold would have had more utility as 'money' if the last century of bankers didnt stop that.
god would be worth more loaves of bread value WITH medium of exchange utility as 'money'

if bitcoin had no utility desire. then people wouldnt want it. thus no value

shouting store of value purely because store of value.. is a foolish mindset
shouting store of value purely because medium of exchange utility.. is a smart mindset

thus bitcoin needs to have medium of exchange to keep it having a store of value.

A store of Value , Holds it Value Relative to Fiat.

Bitcoin is not a store of Value as over 80% can be lost at a moment's notice as the past year has proven.

Things that value is almost fixed are a store of value.

People need to learn the difference.

Bitcoin is a fluctuating medium of exchange, it has never been and never will be a store of value.