Topic: Money vs Bitcoin (Read 208 times)

Traditional money or fiat is more a medium of exchange than a store of value because it's affected heavily by inflation and you can't consider something a store of value if it tends to devalue over time because of economic ups and downs.

No one can call Bitcoin just a medium of exchange because it isn't, it has multiple features and properties and that is the reason why it's so popular only within the second decade of its creation. People know that Bitcoin can be a great store of value because instead of their money devaluing over time, it gains more value if handled in a good way.

So most people these days are using Bitcoin more as an investment asset and an store of value than a medium of exchange because it is not yet accepted everywhere to be used as a medium of exchange.

This is the only comment that have made me relief. Fiat is not money.
Money's definition is any thing that can be used to exchange goods from one person to another, in a lay man understanding. From barter exchange to cowries, golds and silver,  boiling down to fiat ( this is when the existence of fiat or paper money emerged). As man advances in technologies like ICT emerged e-money, bank wire, credit and debit cards etc...

2009 Almighty btc emerged. Without money no BTC.

It's even worse than that.

You first have to earn it. Your employer pays tax on every worker he employs, so he has to cut your pay to be able to afford to pay the government.
Then you are taxed on your share. First they tax your income, then they tax products you buy with that income with different taxes like excise.
If you put the money in the bank you're taxed with inflation.
Put it to work in a brokerage and you pay tax on whatever you make from it.

The answer is bitcoin - hold it and nobody knows you own it. If by any chance it grows in value significantly you'll be able to go somewhere where there's no bitcoin tax and live like a king and should you decide to leave it to your children they won't have to pay any inheritance tax and hold it for as long as they like. It's like an untouchable and uncontrollable vault that holds your wealth.

Bitcoin was designed to be used as an alternative for the fiat currency and I will say it defines bitcoin as another form of money in digital form. Bitcoin can be used as a medium of exchange, can also be used as an investment asset that one can invest in and earn massively overtime. With this distinctiveness between money and bitcoin, it makes bitcoin a more reliable currency than the fiat which has been widely pegged by centralization and controlled by the government unlike bitcoin that is decentralized and has a lot of technology surrounding it that makes it difficult to be centralized or controlled by a single or multi entity.

Every member that made comment in this thread agrees that fiat currency can not be a store of value, it's primary purpose is a means to make payments for transactions and it's controlled by central authorities being the governments. While Bitcoin is a store of value because like gold, it's not affected by inflation unlike fiat, it's price is determined by its supply and demand that is decentralized. Bitcoin serves dual purpose, it's used as a decentralized digital currency to make payments just like fiat, then it's edge over fiat is that it is an investment asset, if held for a long term, then it's guaranteed to give the holder massive ROI, and history has proven that it's value will keep increasing, reaching new ATH in every bull run.

You are absolutely correct and your line of argument agrees completely with mine. There is a saying that "pictures speaks more than words", the picture below shows how many has lost its value over the years in my country. What could afford the latest car in 1975 can only afford a loaf of bread today, this is just a space of 49years.



Money is just a medium of exchange and never a good store of value. Like many people already said, inflation is a huge weakness of money. On the contrary, Bitcoin is both a store of value and medium of exchange. As a store of value, Bitcoin have demonstrated it is one of the best we have seen and as a medium of exchange, it is evolving and we will definitely achieve wider adoption in the future.

Yes, you are right gold and real estate are storing values working for centuries but nowadays it is replaced by BTC. We know that Bitcoin is not only a digital currency but it is more than this and will bring a change in traditional finance. In the coming era, the traditional finance system will be completely disrupted and everything will be done through BTC either you use it as a storing value or use it to buy or sell something. On the back of btc system, a transparent blockchain system is present which everyone can see and makes BTC unique from others and also gives independence to the people from govt and banking system.

Yes Fiat is never meant to be storing value because there are lot of factors which can decimate the value of fiat, look at the currency of Lebanon, Syria and Iraq. Gold and real estate are two asset to store value which has been in existence from centuries. I would say Bitcoin is one of the best asset to store value but that's not why it was created because even Bitcoin is volatile as it's best for risk investment and P2P transfers.

For some obvious reasons which has been proven with time along with the various fiat currency devaluation and how banks have eaten up our savings through various taxation and deduction from accounts which have drastically devalued any money held in the account,  this make fiat currency no to be a store of value for what soever.

But when you talk of other currencies that have the decentralised nature like bitcoin,  it free from some illegal taxation and deductions, which makes it intrinsic value to be sustained a situation that bring in more value while holding bitcoin against holding fiat currency.

FIAT ( USD, EUR, GBP, JPY etc) is not money. They are currencies. USD used to be money when it was pegged to Gold but now it is pegged to nothing. Bitcoin on the other hand, it has the characteristics of money but it is somehow failing at being a currency because of the transaction fees so bitcoin is not the perfect money either. It is great as a store of value asset (and obviously much better than any FIAT currency) but its scalability has its limits unlike the USD which can scale infinitely. In its current form bitcoin is very close to being the perfect money. Almost.

It is very good and profitable to keep some necessary money and save all the money in bitcoins. But if you want to invest in bitcoins, you must invest with a long-term plan. That's because you keep some money aside for your principal expenses, keep the rest of the money in savings, then after a few years you will see that you have accumulated one of the most profitable money.

truly it is! But I am not sure on the statement that it will eat everything. Nope! Bitcoin can't eat everything. It has its own limitations and challenges. Bitcoin is not fit to replace the current financial system. It can't scale to such a level where it can handle the ever-growing number of transactions. It's expensive and slow. There are far better payment methods available in the market.

Bitcoin is a monster in investment scenario, which can probably eat everything else. because the amount of return it has given in its lifetime, no other asset can compete with it. So when it comes to investment, bitcoin is the king. But Bitcoin will not qualify as a competitor in payment processing race.  

What do you think about money? Because people have no other choice but to work hard to earn money.
Fiat money is like magic that makes people keep chasing it. It's not bad if people have to work hard to earn money, but people who are aware of the decline in value of paper money must invest it in types of investments that are not in the form of money.

Bitcoin is a currency that can be used as an investment asset to maintain long-term hedging.
Actually, if we think about it, it's all about intelligence in taking advantage of opportunities. People who choose to invest Bitcoin instead of saving money are smart people.

Technically you're right but USD and some other prosperous nations have their currencies used as a store of value via using them as reserves of some sort but that's just the end of it. I think everyone here is in agreement that it's bitcoin over fiat but remember that not a lot of us can use our bitcoin if fiat isn't important to, a lot of people still converts their bitcoin or profits in fiat so I'm not really sure that a debate and whatever is important is a valid one, for now, it's a tie between the two because bitcoin's not yet that strong to go against fiat.

Money vs Bitcoin.
I am more interested because Bitcoin is very transparent and cannot be manipulated. And if anyone wants to know, they can find out by checking the blockchain and wallet addresses to see if the person is functioning properly and doing what they claim, and any dishonest actions the person is doing are very easy to find out. And this is a very important thing, there are no fake Bitcoins and corruption in this system has never happened and will never exist because it is transparent, and besides that Bitcoin has advantages in investment in terms of profits and can also store value in inflation.
And if we talk about the advantages of Bitcoin, in my opinion there are many advantages of Bitcoin apart from profit, security, comfort and also freedom.

I think it's polite to read to understand. Money is a movement that gave rise to Bitcoin. Bitcoin didn't just emerge, money went through series of innovations that gave way to Bitcoin to be born. It has every right to be undermine due to the spawn and ill the creation of money has brought to the society. Don't confuse money to fiat. The difference is parallel.

Money has never been and never will be a means of saving. You initially misunderstand the concept of money.

This is not just a problem today. It has always been this way.

Bitcoin will be what this community wants to see. Currently, bitcoin is more of an investment asset than an online payment tool.

No longer, bitcoin is not just money and its original purpose has been transformed into a means of investment and speculation.
 

The comparison in the title "Money vs Bitcoin" seems irrational to me, because money and bitcoin are already in different categories.

Money is enough to be used as a medium of exchange for our daily lives but to store value, it will never be profitable especially with high inflation rates.

Bitcoin has become a rapidly growing revolution that many people store their value in bitcoin because there is hope for high prices in addition to having no control aka decentralized then everyone can fully control what they want, so bitcoin is now more in demand because there are greater aspects they know.

Bitcoin is a revolution not am evolution, everything in the world is going digital. Looking at the evolution of money, money as a medium of exchange began with barter exchange, as man advanced the commodity means of exchange emerged; the use of cowrie shell, Gold, silver and other valuable commodities. From there, boiling down to paper money (fiat currency) to credit card, to bank wires to cryptocurrency which Bitcoin is the boss.

 
Indeed money had served as a stock of value

According to the country's GDP, the government of each country can print money as it wants, there is no unlimited money printing, and money cannot be printed at will. But we see that money inflation often happens.  But the supply of Bitcoin is limited and we can see that Bitcoin continues to pump since 2009 and it is a very valuable coin and has a lot of potential for the future.  So if we can hold on to it, it will give us a much better life in the future. So I think it is wiser to hold Bitcoin than money

Bitcoin is a digital currency, which means its another form of money in a digital form to use in making payments either on buying or selling, bitcoin is also an asset of investment, which also means you can exchange your asset into bitcoin and hold it for some time and it will yield some profits for you, it has the ability of withstanding against inflation, it does not loose value over time, bitcoin has many means of applicable uses than we have with fiat, if we can invest, we can use it on various purpose to our own benefits in the financial economy.

Inflation is a part of fiat's design. Low inflation (but not no inflation) is considered a good thing by most economists, as devaluation of money is supposed to motivate people to spend money, and thus money continues circulating and keeps helping the economy. Bitcoin is surely better as an investment than any fiat currency, but I'd say it's worse as a medium of exchange because its growth does lead to the "hodl" attitude, and its scalability makes it inconvenient for daily purchases (as a practical replacement of fiat, unless we go with centralized solutions).

Fiat currency has never been used as a store of value, because it can be manipulated by the government, and the government prints more money when there is low circulation of money. What are store of values are those valuable assets that appreciate over time, which fiat currency is not part of it. We only use it to buy and pay for goods and services, because it is a legal tender made by our government. Gold, estates and landed properties are known as store of value because they are used as hedge against inflation. Here comes bitcoin in 2009 the only digital currency that can now be used as a store of value or as currency reserve for the future.

Money is supposed to be a medium of exchange, unit of an account, and a store of value. However, our money today is far from a store of value. Nowadays, people must earn their money twice: first, work to earn a paycheck, and secondly, figuring out a way to invest a portion in assets or financial products because their money lose value due to inflation and currency debasement.

While Bitcoin is chiefly a system for transferring digital value, it is inherently and always will be so much more than just that.
The blockchain truly is a marvelous piece of technology. A mechanism to timestamp the order of digital information without needing to depend on a centralized operator. A decentralized mechanism with no one in charge, that provides undeniably cryptographic guarantees around what data was added to the temporal record in what order. This property is the entire reason Bitcoin is useful as a form of digital money, without it there would be no way for the system to function at all without a centralized authority.

Bitcoin is not just money, and no matter how many times people chant it is only money and nothing else, it will never be true cos all of these guarantees are provided by three simple technical building blocks: private/public key cryptography, merkle trees, and hash algorithms.
Bitcoin is a digital monster, and it will eat everything. The only thing challenging the existence of Bitcoin is "time" cos as time goes, Bitcoin goes.