Topic: Quick Bitcoin questions - page 3. (Read 382 times)

From a newbie's perspective, you really would think that bitcoin is a better store of value than a payment solution, and altcoins a much better payment solution than bitcoin, while this is partly true, it doesn't paint the whole picture in my opinion. For instance, bitcoin is still much cheaper than fiat remittance, what would usually cost you 10% of the whole transaction for cross-country payments would only take you as high as 10-40 bucks in the bitcoin network, and it's faster to boot! Altcoins could pretty much do the same, but they don't have the reliability and the utilities that bitcoin offers.

Bitcoin is a great store of value, but at the same time it is not because it is highly volatile and you have to time your purchases right to avoid losses, which most stores of value like gold, silver, and oil do not need.

So is bitcoin a greater store of value than a payment solution? I don't think so, I think it does its job well as advertised.

It feels like Bitcoin is a better fit for store of value than the payment solution because of the feature of Bitcoin.  Bitcoin is highly volatile, it is troublesome to use a high volatile medium of exchange since prices varies every now and then.  Aside from that, as one of your given example,  Bitcoin transaction fee is somehow more expensive than other tx fee or gas fee.  Aside from that, Bitcoin technology is still under development to cope up with the demand of people.  Unlike feature which is already existing, the development needs time to be achieved so I understand why Bitcoin feels like a better fit for store of value.

Do you only base your choice of payment solutions on the fee charged per transaction? If yes, then using Bitcoin for payment is actually not for you. I believe it goes far beyond just the fee; most people see Bitcoin as their preferred payment solution because of its decentralized nature, which means it's total transparency, no figure can be manipulated, seamless transactions,  no limit to how much you can transact, no fear of market volume, and no fear of where to exchange it when ever you want into any of your preferred currencies.

There are people who, even if Bitcoin fees go as high as $10–40, will still choose to make payments using Bitcoin over any other currency.
Bitcoin is seen as a payment solution and, at the same time, a store of value because it possesses every characteristic of a real-world store of value as identified by economists, which is that it is able to be divided, transferable from one place to another, scarce, etc. So we don't just use it to make payments, but we do so because we can actually trust Bitcoin, for today's use and that of the future, without minding the price difference, and most of the time it's actually of great resistance to inflation and deflation that actually hit the real world financial system.

Bitcoin has many use cases depending on who's holding them. To an international business like a casino accepting payment in Bitcoin is faster and cheaper than the other options. It can function effectively as both a store of value and a payment solution.

No, the most secure is the better choice.

Bitcoin isn’t the more modern version of PayPal. Bitcoin is an ecosystem of its own! The coins aren’t printed by a printer, the transactions aren’t moderated and censored, you don’t need an ID to get an address, you can vote no matter who you are, your transactions will always be verified by other users of the system, there’s no way of double spending and transfers can be done no matter your region. You can be from Mars and send me a Bitcoin or mine one. And last although not least, Bitcoin is the most secure of all coins out there.

The price you pay is for all of the above. You’re paying to live in peace and you’re paying for the security. And fortunately, so far all of the Bitcoin users who’ve been loyal to it have been rewarded along the years. You pay a buck now to send a transaction, but the buck you invested years ago in Bitcoin has turned into hundreds. A lot of people would like to be banked and they can’t be due to economical and political situations. Bitcoin can let them be banked at any time with no contract.

About whether it’s a store of value or not.. I think only time’ll decide. For now, the community is pretty well split when it comes to this. It’s in my opinion very very valuable for the features I mentioned above. To others it’s worth nothing. But I think it’ll continue to be a value to so many people simply because if you ever had problems with banks or third party payment solutions, you know what it means to not be in full control. Moreover.. the transactions happen immediately. Instantly! You send the money now and next second it’s in the recepient’s wallet. To me it’s value, clearly. And if I had a choice between fiat & crypto, I wouldn’t return to dirty fiat ever again.

No, opting for a cheaper option is not always the best choice. Consider a scenario where you need to transfer a substantial sum of money, such as a few thousand or tens of thousands of dollars. Would you be willing to pay a mere $1 as a transaction fee? Now, picture the same amount being transferred through a bank or multiple banks. How much would it ultimately cost you?

The Bitcoin network is hands down the most secure payment network out there. So, it makes perfect sense that it comes with a certain fee requirement. In the end, it's up to you how you choose to use Bitcoin. You can use it to make secure transactions anywhere in the world. or you can use it as a store of value and potentially see it grow over time.

Everyone has their own perspective and approach. Bitcoin was specifically developed to address financial challenges by facilitating borderless transactions without the need for intermediaries, achieving true decentralization. Initially, Satoshi did not envision Bitcoin primarily as a store of value. While you have the option to select a cheaper cryptocurrency for your payment gateway, it is important to note that affordability doesn't always equate to the best choice. For instance, you might opt for USDT, a stablecoin with low fees on the Binance Smart Chain. However, it's crucial to be aware that USDT has the ability to freeze your address, rendering it less secure. Therefore, it's important to remember that cheap doesn't necessarily mean better. While Bitcoin is often considered a store of value, it doesn't imply that you should disregard it as a payment method.

Op I see your question has nice one because bitcoin is meant for p2p transactions at all time and anytime. The store for value is for investment purpose while the daily use of the coin is p2p. Now assuming my country adopt bitcoin as a payment method, and we make transaction every second among ourselves as business purpose and the transaction fee is high as this days, do you think people will use it for their daily basis for payment of goods and services? Because Bank to Bank  is just 0.080$ and BTC fee is up to $4-5. So the thing is some how for people to use. And for this, those who are not fully use the asset might not even come again because fear of the fee.

Exactly most Alticoins have lower transaction fee that bitcoin and it could make them more cost efficient than bitcoin but the problem is the adoption and usage of this Alticoins. Firstly this Alticoins do not have much adopters compare to bitcoin and this has reduced the usage of them as payment method. Secondly most of these Alticoins are stored on custodian wallets and exchanges when compared to bitcoin wallets that have many non custodian wallets, and this can discourage it usage as a means of payment because security of one’s funds is paramount.

I know you could say one could easily swap this coins to bitcoin for store of value but this is hard on P2P method as the adoption of them is still low, also some exchanges do charge for selling off these Alticoins to bitcoin and this could only make the business owner to pay extra charges.

For me I'm using bitcoin has a store of value because now my country hasn't recognized bitcoin has a legal tender nor businesses accepting bitcoin as a means of payment. S0 basically I don't trade bitcoin for payment solution for now, though it might changed tomorrow

You've to understand there are comparisons to be made across different use cases. My personal story with Bitcoin was in comparison to PayPal as a cross-border (international) payment method, a problem you might not experience if you don't live and work in the global South, while wanting to interact with the Northern hemisphere and Europe.

Cost and speed are only one issue -- it costs a lot just to receive payments in a different currency (never mind converting it back), and at the poor rates these services like PayPal use.

But guarantee of access is the bigger issue.

Just this week, I had a payment declined from a Balkan country, after a week (still one of my few clients not yet convinced to use crypto). It will be refunded... within 10 business days, but I already lost fees and time. I actually ditched PayPal because I could get payments revoked MONTHS down the line, and even frozen for months, with repeated KYC on me triggered each time I relocated.


Again another issue: acceptance. Bitcoin's the only crypto I can comfortably and easily exchange in any country I've relocated to. Southeast Asia, Africa, South Asia, Europe, you name a country, I guarantee there's a P2P network there.

Same if I want to buy something with Bitcoin, any merchant accepting crypto accepts Bitcoin first.

Ether, not so much, USDT, yeah, it's growing, but Bitcoin is king.

Well it has evolved from the beginning, when it began to have a value and yes, when it continue to grows every bear and bull cycle, it become an asset and then store of  value.

But still I think you can used it as a payment solution, you can used LN (Lightning Network), to get over the high fees and the speed of the transaction itself. Just remember that Laszlo Hanyecz who bought pizza with 10,000 BTC.  

If compared with fiat cross boarder payment, bitcoin payment is cheaper. Altcoins are cheaper in fee but bitcoin has more utilities compared to altcoins. Bitcoin has higher marketcap and more tendency to be supported as a means of payment by people and companies that are accepting crypto payment.

Bitcoin is also a store of value, but it is also a speculative asset. Which means you have to hold it at the right time, not when the price is significantly higher and near all-time-high.

Why does it feels like Bitcoin is a better fit for store of value than a payment solution?

Is payment the substantial use case of crypto? If yes then where do you think Bitcoin stands? It cost me 0.20$ to make transactions on other payment solution that's not Bitcoin and it costs me over 1$ to make transaction with Bitcoin, isn't the cheaper always the better choice?

Since some crypto coins have cheaper transaction fee doesn't this make such coins a better fit for payment solution than Bitcoin?.and Bitcoin a better fit for store of value