Why Bitcoin is not that good as currency? - page 10.

meliodas

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Quote from: desticy on October 16, 2019, 07:47:26 AM

Quote from: gaston castano on October 16, 2019, 07:26:09 AM

but still people use it as a means of payment, I mean a lot of businesses, companies, factories accept payments in the form of btc, to accept btc as a means of payment takes a long time.
Before BTC was recognized people would use it as a place of investment, seeking profits through trading, anything that was not related to official currencies such as Fiat.

Bitcoin is a very attractive cryptocurrency in terms of a variety of means of payment. But you need to understand that any business in any country is regulated. Business is subject to certain jurisdictions of the country in which it is located. Bitcoins are outside the jurisdiction at the moment, which means that various criminal elements can use it for criminal purposes. All this complicates the use of bitcoin as a means of payment in small and medium-sized businesses, especially in large ones.

If bitcoin will get regulated or accepted by the government in a certain country, it will still get used to do illegal stuff or criminal activities because of its features. Bitcoin is anonymous and we all know that the authorities cannot track the location or the owner of the transaction so even there will be regulation, it will still be useless for them since the criminals can easily bypass those regulation.

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Quote from: gaston castano on October 16, 2019, 07:26:09 AM

but still people use it as a means of payment, I mean a lot of businesses, companies, factories accept payments in the form of btc, to accept btc as a means of payment takes a long time.
Before BTC was recognized people would use it as a place of investment, seeking profits through trading, anything that was not related to official currencies such as Fiat.

Bitcoin is a very attractive cryptocurrency in terms of a variety of means of payment. But you need to understand that any business in any country is regulated. Business is subject to certain jurisdictions of the country in which it is located. Bitcoins are outside the jurisdiction at the moment, which means that various criminal elements can use it for criminal purposes. All this complicates the use of bitcoin as a means of payment in small and medium-sized businesses, especially in large ones.

gaston castano

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but still people use it as a means of payment, I mean a lot of businesses, companies, factories accept payments in the form of btc, to accept btc as a means of payment takes a long time.
Before BTC was recognized people would use it as a place of investment, seeking profits through trading, anything that was not related to official currencies such as Fiat.

DaftAjax

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Quote from: whyrqa on October 14, 2019, 10:35:24 AM

Quote from: DaftAjax on October 14, 2019, 06:57:47 AM

~snip

Actually, of course you can agree with your opinion, especially in the sense that having real value in your hands, such as gold, you feel much calmer.

I am agreeing with MY opinion--because it's MY opinion. Grin

What do you mean by real value? Are you saying that Bitcoin doesn't have a real value? Sure, Bitcoin is a digital currency (intangible) but it has a real value. Currency doesn't have to be tangible to have a value, sometimes even information (knowledge) have values. Being comfortable (in your case being calm) on having a physical or digital asset is quite arguable, we can discuss that in a different thread.

Oneandpure

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Bitcoin good as currency digital payment but many transaction do not support with use bitcoin, if you to buy your product in your country or other country many people still do not know with bitcoin, although bitcoin never have inflation value like money could be lower value for several year later. Bitcoin become good as currency if have support with thousand kinds store want to adopt bitcoin together and accepted bitcoin for payment way.

Murat

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When you compare Fiat with Bitcoin then it's not an easy task to relates both these two things, I think Bitcoin has some restrictions regarding to be used as fiat as good as we have, Since the price of Bitcoin is very volatile so people will not go to spend at randomly and they are trying to hold for the high price, so if BItcoin becomes the general currency then the market will face shortage of currency, not only that but also Bitcoin transaction is not confirmed within a moment, it requires at least one hour to get approved finally so people don't have too much time to get along with this system, also the transaction fee is too high to afford this virtual currency in the real life. so these hinders should be removed if there is any vision to make Bitcoin as the main currency in the coming world.

reality18

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Bitcoin is a currency but have some challenges. One of the major challenges of Bitcoin is its slow confirmation speed. This does not allow shop owners who cannot wait for that long hours to receive payment for an item purchased by a client to integrate Bitcoin as a currency into the payment systems of their businesses.

Faxmate

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Quote from: meliodas on October 13, 2019, 05:16:12 AM

Quote from: DaftAjax on October 13, 2019, 03:44:25 AM

Quote from: EdvinZ on October 12, 2019, 07:50:39 AM

The obvious and most important reason why Bitcoin is not perceived by people as a currency for everyday settlements is its high volatility. Bitcoin is like shares. Nobody pays for goods and services shares, the price of which is little predictable. The same is true for the main cryptocurrency. People need a stable digital currency as a digital cash for daily settlements.

I've been telling this for a very long time.

The worst part about it is, some people treat Bitcoin as "money", which is quite arguable. I treat it as a "currency" and an "asset". Its volatility is probably the only thing that differs it from fiat and other assets such as gold, silver. Though we can argue that volatility has its disadvantages, which convince other people to not invest in Bitcoin but experienced traders/investors would say otherwise.

Someday a new system will provide such service.

Money and currency is like the same because they are just fiat that you can spend to buy something. It is more appropriate if we will use it as an asset because bitcoin is a safe haven for our money or currency since it really holds it value in terms of long term basis. Bitcoin is a good investment for people who want to jump into an aggressive investment with a high chance of making profit.

Bitcoin was originally formed as a mode of investment that could generate nice amount of money. Later people started using it for currency and made business trades in the form of bitcoin. I believe that majority treats bitcoin both as currency and investment and this is why it has support from all over the world. People do not have to carry cash with them for investing it into different markets.

dengpei

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I think it's undisputable as a fact that Bitcoin remains the best-performing investment asset class for the past 10 years given that it rose from a value in cents to thousands of dollars during the said time frame. However that having been said I do not think that BTC would make a good primary/default currency given that it's too volatile even in a space of seconds. How would the exchange rate and conversion rate to other currencies work when you are dealing with such a highly volatile asset? It wouldn't make sense to use a medium of exchange whose value changes mid-transaction because most of us are risk-averse.

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Quote from: Sithara007 on October 14, 2019, 10:35:09 AM

Here are the reasons why Bitcoin is not suitable as a currency:

1. It is protected against inflation and therefore the purchasing power will be intact. The users have an excuse to hoard them.
2. Long delay in getting confirmations (up to 1 hour, compared to a few seconds for PayPal, Visa, Master.etc)
3. Unclear legal status in many of the countries
4. The transaction fee can be high, especially for small sized transactions
5. Difficulty in converting crypto to fiat, and vice versa

Yes these are the things that needed to be solve or have some changes if we want bitcoin mass adoption although i find it comfortable using bitcoin, the fiat currency cannot be erased in the financial system but instead co-exist with bitcoin because both of them have good and bad effects in economy, also if we use them both correctly then we could balance everything without worrying about their bad side effects.

Ctn

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Bitcoin is absolutely not a good currency but I think it's best we have. I mean world is not just economics. All the theories which you are saying once never existed and were created after scholars examined the world around them. So why is it not possible people could also start use Bitcoin and then scholars would create a theory which can prove that how bitcoin is good as a currency. Moreover considering that most of the central banks are the persons responsible for crash so I think independent economy is much better.

haidil

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Quote from: DarkIT on October 15, 2019, 02:46:33 AM

Quote from: Sithara007 on October 14, 2019, 10:35:09 AM

Here are the reasons why Bitcoin is not suitable as a currency:

1. It is protected against inflation and therefore the purchasing power will be intact. The users have an excuse to hoard them.
2. Long delay in getting confirmations (up to 1 hour, compared to a few seconds for PayPal, Visa, Master.etc)
3. Unclear legal status in many of the countries
4. The transaction fee can be high, especially for small sized transactions
5. Difficulty in converting crypto to fiat, and vice versa

yes, the issue of legality has always been the hardest part of it. not all countries recognize bitcoin even though its existence is even better than fiat. on the other hand, volatile prices also pose a threat to cause economic chaos, and the other thing is, transaction costs are also sometimes high. I think it's quite difficult for those who have not so much bitcoin. Even today, bitcoin still raises many challenges from other countries / other organizations.

it will be difficult if bitcoin becomes a currency for daily use, although I think many times fiat is better than bitcoin, for my own reasons I prefer bitcoin as an investment.

DarkIT

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Quote from: Sithara007 on October 14, 2019, 10:35:09 AM

Here are the reasons why Bitcoin is not suitable as a currency:

1. It is protected against inflation and therefore the purchasing power will be intact. The users have an excuse to hoard them.
2. Long delay in getting confirmations (up to 1 hour, compared to a few seconds for PayPal, Visa, Master.etc)
3. Unclear legal status in many of the countries
4. The transaction fee can be high, especially for small sized transactions
5. Difficulty in converting crypto to fiat, and vice versa

yes, the issue of legality has always been the hardest part of it. not all countries recognize bitcoin even though its existence is even better than fiat. on the other hand, volatile prices also pose a threat to cause economic chaos, and the other thing is, transaction costs are also sometimes high. I think it's quite difficult for those who have not so much bitcoin. Even today, bitcoin still raises many challenges from other countries / other organizations.

Sithara007

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Quote from: Edraket31 on October 14, 2019, 09:17:02 PM

Yes, all what you said is correct, one thing that would change this is if it will be regularize by all countries, when Bitcoin will be legal, a lot of things will happen, it will have stability, it may reduce the transaction fee, it might also happen that it would be easy to convert from crypto to fiat as there will be no more question from the bank.

Till now, only a very few countries such as Japan, Germany, Switzerland and Singapore have completely legalized Bitcoin. In the United States, the situation varies from state to state. Larger states such as Texas, New York and Florida have taken a hostile stance towards BTC, while some of the smaller states are more lenient. And the third world nations in general has adopted a hostile stance and this includes the most populous nations (India and China). Only a few of the third world nations such as the Philippines have legalized BTC.

That said, I don't think that legalization is correlated to any of the other aspects which you had listed here, such as transaction fee, stability and safety. Transaction fee depends solely on the number of transactions being made. If there are more transactions, then a higher fee may be needed for quick confirmation. And the implementation of the Lightning Network has helped to lower the fee by quite a bit. Stability depends on the developers. But no one complains that Bitcoin is unstable nowadays.

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Quote from: Sithara007 on October 14, 2019, 10:35:09 AM

Here are the reasons why Bitcoin is not suitable as a currency:

1. It is protected against inflation and therefore the purchasing power will be intact. The users have an excuse to hoard them.
2. Long delay in getting confirmations (up to 1 hour, compared to a few seconds for PayPal, Visa, Master.etc)
3. Unclear legal status in many of the countries
4. The transaction fee can be high, especially for small sized transactions
5. Difficulty in converting crypto to fiat, and vice versa

Yes, all what you said is correct, one thing that would change this is if it will be regularize by all countries, when Bitcoin will be legal, a lot of things will happen, it will have stability, it may reduce the transaction fee, it might also happen that it would be easy to convert from crypto to fiat as there will be no more question from the bank.

whyrqa

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Quote from: DaftAjax on October 14, 2019, 06:57:47 AM

Quote from: meliodas on October 13, 2019, 05:16:12 AM

Quote from: DaftAjax on October 13, 2019, 03:44:25 AM

Quote from: EdvinZ on October 12, 2019, 07:50:39 AM

~snip

Money and currency is like the same because they are just fiat that you can spend to buy something. It is more appropriate if we will use it as an asset because bitcoin is a safe haven for our money or currency since it really holds it value in terms of long term basis. Bitcoin is a good investment for people who want to jump into an aggressive investment with a high chance of making profit.

You must've misunderstood my point. Money or rather Fiat Money(which in this case in the form of paper bills and coins) is a currency; Bitcoin(which in this case is in the digital form) is also a currency. But Currency, on the other hand, is anything that has value and is accepted/well-known by the public. That's why I'm only considering it as a currency, but not money.

I agree on Bitcoin being an asset but being a safe haven is arguable. If safety is what we consider the most in any investment, then I'd rather invest in a less volatile asset such as Gold.

Actually, of course you can agree with your opinion, especially in the sense that having real value in your hands, such as gold, you feel much calmer. Nevertheless, in our world of digital technology and cashless payments, digital currency can also be valuable. If Bitcoin has a good transaction speed, which will attract a large number of wealthy investors and make this coin a real means of payment, then the price of Bitcoin will skyrocket and stabilize. I really hope that Bitcoin will be appreciated highly and we will not see such large collapses in the market.

Sithara007

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Here are the reasons why Bitcoin is not suitable as a currency:

1. It is protected against inflation and therefore the purchasing power will be intact. The users have an excuse to hoard them.
2. Long delay in getting confirmations (up to 1 hour, compared to a few seconds for PayPal, Visa, Master.etc)
3. Unclear legal status in many of the countries
4. The transaction fee can be high, especially for small sized transactions
5. Difficulty in converting crypto to fiat, and vice versa

uray

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Quote from: Brunus on October 13, 2019, 03:32:34 PM

Bitcoin is still too volatile to realistically be used as currency.
And then, those who trust in its development will be careful not to spend it: if it really grows as expected, it would be a stupid move.

If you are looking at its base valuation then no one will be able to spend anything and that includes fiat currency, lets say you are a forex trader and if you are looking at the changes daily and holding on to your dollars or euro then you cannot have a realistic possibility to spend fiat too. You choose whether to hold it as a saving or to spend it.

cutesgirl

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Bitcoin good as currency than you use money as your payment although sending your transaction to other country, lets check how much profit do you get if you use bitcoin s your currency than you use money, when you sell some soft ware product to people on other country and you ask bitcoin as payment, when you hold just one months you can get bitcoin have higher price but if use money your money value will be down and you can buy something at next month because have change price.

djsugar

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BTC isn't a successful currency first because of its deflationary property. There is no as such incentive of using it as a currency for day to day transactions when it can be used as a store of value. Second, the high volatility doesn't make it as a good alternative to fiat which is inflationary too. Third, there isn't much mainstream acceptance of cryptos at this point. You will find very selective vendors that will accept crypto.

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