Why Bitcoin is not that good as currency? - page 13.

EdenHazard

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Quote from: DaftAjax on October 08, 2019, 10:38:20 PM

I understand your point and it's very logical, but you got something that is obviously wrong.

Why do people keep on assuming that Bitcoin is money? Bitcoin isn't money, it's an asset, it is obvious that the change in value wouldn't be the same as fiat. As it is an economic driven currency, while investments like Bitcoin is volatile and it is not determined by how much money is being printed out but how much is being mined. Gold is a very good comparison to Bitcoin, as they have the same properties as being an asset. Scarcity is pretty much what determines the price of Bitcoin, the lower the quantity the higher its price would be.

It is an asset but you can always use it as a currency and nobody can stop you doing so. Realistically for the current society that not ready to accept a currency with high volatility l, bitcoin won't be a good currency but who knows ... someday people realized that is bitcoin the currency they wanted even with its volatility!

Since first day we are a solid believers and will continue to do so. That bitcoin as time goes by could be developed as a widely used currency all over the world. We just haven't find that way ..

DaftAjax

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I understand your point and it's very logical, but you got something that is obviously wrong.

Why do people keep on assuming that Bitcoin is money? Bitcoin isn't money, it's an asset, it is obvious that the change in value wouldn't be the same as fiat. As it is an economic driven currency, while investments like Bitcoin is volatile and it is not determined by how much money is being printed out but how much is being mined. Gold is a very good comparison to Bitcoin, as they have the same properties as being an asset. Scarcity is pretty much what determines the price of Bitcoin, the lower the quantity the higher its price would be.

Beparanf

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Having bitcoin will depend on your lifestyle and purpose of having it. As a currency if you prefer to do transactions online then better find wallet that are connected in some online shops then do shopping using it, which is now applicable in our country. But if in physical stores it will be hard to find one so better still have your fiats with you. It all depends on us how we can utilize the use of bitcoin, act as our fiat currency, online currency or as an investment.

jseverson

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Quote from: teosanru on October 08, 2019, 05:34:36 AM

Quote from: jseverson on October 08, 2019, 04:09:42 AM

-snip-

Well unfortunately I think it can be a question towards survival if you don't want to Bitcoin to be the next cocaine or Weed. China & India two highly populated countries have put restrictions upon its usage. If we see more countries following the same track I don't think how are you saying that Bitcoin Survival is at question.

You misunderstand me. I acknowledge that governments present a threat to Bitcoin's survival. What I was saying is that there is nothing to suggest that countries are lining up to ban it, as you imply. Outright bans have been isolated cases of desolate, corrupt, or authoritarian governments. The top global economies are open to it, even China which allows peer-to-peer and over-the-counter trading. If you're saying a worldwide ban is inevitable without anything to back it up, you're only spreading FUD. I don't even know how you think Bitcoin is remotely comparable with illegal drugs regulation-wise.

I would like to reiterate what I previously said: while wholly possible, there are no developments that signal Bitcoin's survival is in question.

imstillthebest

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Quote from: btc78 on October 08, 2019, 09:43:46 PM

Maybe we are taking long before being adopted by masses by what we are having now is a complete concept on how the domination of bitcoin with cryptocurrency started and the progress and success is really undeniable.so let’s continue holding and use bitcoin as transaction payments to prove the healthiness of market

no its not just a concept but its already happening . cryptos/bitcoin wont grow thier market cap if they arent dominating and for sure they will dominate more in the future . mass adoption had already started even before . crypto/bitcoin markets are healthy with or without using it for payment purposes but as long people buys and hodl , that is already enough . why bitcoin is not good as a currency ? because its only online . that is his major disadvantage

btc78

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Eloncoin.org - Mars, here we come!

I’m amazed how you created that comparison in Photo very perfect and truthful,while Fiat is lowering its value on the other side Cryptocurrency is gaining its value .
Maybe we are taking long before being adopted by masses by what we are having now is a complete concept on how the domination of bitcoin with cryptocurrency started and the progress and success is really undeniable.so let’s continue holding and use bitcoin as transaction payments to prove the healthiness of market

kooboat

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There are always pros and cons that comes with currencies with limited supply such as in the case of bitcoin. People always have their doubts with bitcoin as a great replacement for fiat currency due to the high volatility and the increasing number of FUDs that are created on cryptocurrencies on a daily basis.

bitgolden

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Leading Crypto Sports Betting & Casino Platform

This has a good side and has a bad side at the same time. When bitcoin is something that gains value over time and dollar is something that loses value in time, then how can we expect bitcoin to be anything other than just an investment? People can definitely buy bitcoin, they can store it, they can eventually sell it for a lot more to pay for something or just retire, but how can they spend it?

If they spend bitcoin right now then they are missing out on a big profit down the road. Hence this increasing value of bitcoin means its a great investment and that's good, it helps people buy and it increases the price but at the same time it makes people not spend it and that clogs the adoption because people can't or even won't spend it on regular goods.

iMark

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Quote from: Meowth05 on October 08, 2019, 08:51:36 AM

Quote from: pecson134 on October 08, 2019, 08:41:34 AM

Quote from: Btcvilla on October 08, 2019, 12:29:22 AM

Bitcoin is good as currency with faster and easy for transfer your bitcoin from one wallet to other wallet around the world, if use your money maybe little difficult if sending money to other country and take several day for sent it, with using bitcoin or altcoin just take several minutes your payment have been sent.

Transaction wise it is good since it is faster but one of the main problem is how stable its value now was since there's a great increase in its price from the beginning up to now. This is a foreseeable risk for every business planning to use bitcoin as a method of payment because it may put them into disadvantage in some situations though there might be some instance that they can profit from it.

The volatility indeed will be a problem in using bitcoin as a normal currency like fiat. It is hard to imagine if bitcoin will be used in a transaction and then the sudden movement will occur. We are not ready yet to use bitcoin as a normal currency due to some complications so I think it is better if we will use it for a profitable transaction such as trading and investment since the volatility is perfect for this industry.

What about inflation from fiat currencies? is it inflation in a currency similar to fluctuation, but that currency is still used for payments in that country, why bitcoin cant be that way? fluctuation is not a problem as long as the price of the item is still crammed with the existing rate, then fluctuation is no longer a problem?

MonsterV

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Quote from: Pearls Before Swine on October 08, 2019, 11:57:05 AM

I did not study economics in university and so I can't refute anything you wrote, op. It all sounds logical to me.

The real issue with bitcoin as money is it's volatilty. Any time you have a form of money that might gain in value, there is less incentive to spend it. That just is not the case with gov't issued fiat currencies, but it is true for bitcoin. This is why you hear so many cries of 'HODL!!". Nobody is saying that about the euro or USD.

Bitcoin is a much better investment opportunity than it is a currency. That isn't to say it couldn't be a good currency, just that it isn't right now. If bitcoin were ever to achieve a plateau, a stable price for many months, then people might be more willing to spend it. But that doesn't ever seem to happen, does it?

Well, I agree with your statement, that bitcoin is not used like a currency in general because of its volatility. On other hand, I still consider bitcoin as a currency only in digital form and with high volatility. And for me there is nothing wrong, using currency as an investment, as long as it is still able to profit in future. I am also sure, if USD, EUR have high volatility, surely they will use that currency like bitcoin.

teosanru

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Quote from: audaciousbeing on October 08, 2019, 10:30:10 AM

To want to start comparing bitcoin to fiat is kind of misplaced in my opinion. I have seen several arguments for the latter and against and each argument surprisingly always make convincing arguments. For me, I think there is no point arguing which one is a better form of currency rather the argument should be about collaboration because really at this time, while fiat can survive without crypto, the same thing cannot be said if crypto can survive without fiat.

Okay so I think what you are trying to say is that one should not compare two currencies one which is based on the underlying concept that other is a hoax which can be created from thin air?

Quote from: nasipadang on October 08, 2019, 10:32:57 AM

I don't think this is a concept of inflation, obviously if you see the concept of inflation then bitcoin will be very high from year to year, because there is no increase in the number of bitcoins while mining continues. It can also be called deflation which preserves the value of a thing due to inflation in the value of certain goods. In my opinion this is more to fluctuations where prices fluctuate erratically, I know that memes have long been made at high rises.

Bitcoin is a currency when we talk about inflation we talk about the general price level of goods in the economy and not about the inflation of currency. bitcoin as we consider is a currency or atleast a security these things don't have much effect of inflation on them. As BTC price will increase economy will deflate in a crypto only economy.

Pearls Before Swine

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I did not study economics in university and so I can't refute anything you wrote, op. It all sounds logical to me.

The real issue with bitcoin as money is it's volatilty. Any time you have a form of money that might gain in value, there is less incentive to spend it. That just is not the case with gov't issued fiat currencies, but it is true for bitcoin. This is why you hear so many cries of 'HODL!!". Nobody is saying that about the euro or USD.

Bitcoin is a much better investment opportunity than it is a currency. That isn't to say it couldn't be a good currency, just that it isn't right now. If bitcoin were ever to achieve a plateau, a stable price for many months, then people might be more willing to spend it. But that doesn't ever seem to happen, does it?

teosanru

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Quote from: lionheart78 on October 08, 2019, 10:17:32 AM

Quote from: alyssa85 on October 07, 2019, 03:17:14 AM

The issue is this: people hoard scarce currencies like bitcoin or gold.

Now imagine that you couldn't use dollars, euros or any fiat, and there was just gold and bitcoin. And the price of gold and bitcoin kept rising because they're scarce.

You might spend a little on absolute necessities - food, rent and so on. But you wouldn't spend on luxuries like going to the cinema etc, you would hoard your bitcoin because the price is rising.

That would completely collapse the world economy. Most of the things we spend money on are not necessities. The few people with gold and bitcoin would be fine, the rest who depend on their jobs would be absolutely miserable because their jobs and income would disappear.

That's why people fear deflationary currencies and that's why central banks encourage a small amount of inflation - it's to encourage people to spend.

Believe me people will keep spending to suffice their wants and desires. Bitcoin is not exempted in spending spree. So your worries about the collapse of a certain economy because people won't spend Bitcoin will not happen.

As for the limited supply of Bitcoin, we have satoshis and I heard there is milisatoshi on the lightning network? https://twitter.com/CryptoVanessa/status/1171140604027387905. I believe we have enough supply of Satoshi for the future. The only thing about Bitcoin not being good as currency at this current state is its high volatility but I think this fluctuation will settle down once we get to the actual price value of BTC.

Haha i think you are too obsessed with an inflationary structure. Think of it, if you are planning to buy something today. But you are almost sure that it would go cheaper tomorrow. You won't buy that thing today obviously, this is how hoarding will start. And supply is too limited think of it we have trillions and zillions of dollar currently in the world economy and you are saying that 21 million is enough even it goes to satoshis? Moreover i am not talking about supply in context of its divisible unit it's about total supply against aggregate demand. Volatility is never an issue as dusts will settle with widespread adoption.

nasipadang

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I don't think this is a concept of inflation, obviously if you see the concept of inflation then bitcoin will be very high from year to year, because there is no increase in the number of bitcoins while mining continues. It can also be called deflation which preserves the value of a thing due to inflation in the value of certain goods. In my opinion this is more to fluctuations where prices fluctuate erratically, I know that memes have long been made at high rises.

audaciousbeing

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To want to start comparing bitcoin to fiat is kind of misplaced in my opinion. I have seen several arguments for the latter and against and each argument surprisingly always make convincing arguments. For me, I think there is no point arguing which one is a better form of currency rather the argument should be about collaboration because really at this time, while fiat can survive without crypto, the same thing cannot be said if crypto can survive without fiat.

jake zyrus

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Primarily it's because of its volatility that makes bitcoin as not that good for currency. In our everyday life, we buy things, foods that are essential to survive, imagine everyday its value are changing. It'll be a hard for everyone, even monitoring its price and value everyday.

lionheart78

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Quote from: alyssa85 on October 07, 2019, 03:17:14 AM

The issue is this: people hoard scarce currencies like bitcoin or gold.

Now imagine that you couldn't use dollars, euros or any fiat, and there was just gold and bitcoin. And the price of gold and bitcoin kept rising because they're scarce.

You might spend a little on absolute necessities - food, rent and so on. But you wouldn't spend on luxuries like going to the cinema etc, you would hoard your bitcoin because the price is rising.

That would completely collapse the world economy. Most of the things we spend money on are not necessities. The few people with gold and bitcoin would be fine, the rest who depend on their jobs would be absolutely miserable because their jobs and income would disappear.

That's why people fear deflationary currencies and that's why central banks encourage a small amount of inflation - it's to encourage people to spend.

Believe me people will keep spending to suffice their wants and desires. Bitcoin is not exempted in spending spree. So your worries about the collapse of a certain economy because people won't spend Bitcoin will not happen.

As for the limited supply of Bitcoin, we have satoshis and I heard there is milisatoshi on the lightning network? https://twitter.com/CryptoVanessa/status/1171140604027387905. I believe we have enough supply of Satoshi for the future. The only thing about Bitcoin not being good as currency at this current state is its high volatility but I think this fluctuation will settle down once we get to the actual price value of BTC.

teosanru

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Quote from: febriyana on October 08, 2019, 09:28:21 AM

Bitcoin is don't have intrisic value, only digital number if people see it. That is no different with bank, they can create digital money, send it more fast than BTC.

I don't judge Bitcoin is bad, but that is what people see.
So many people not interested about cryptocurrency.
I prefer Gold to keep value of money, it is already known.

I Disagree that BTC doesn't has an intrinsic value. How do you determine the intrinsic value of FIAT currency it's because of the economy of the country using it. Therefore in technical sense it's basically due to the widespread adoption of that currency in that particular country. So similarly the number of users which currently use Bitcoin determine it's intrinsic value. Also the Stock to Flow ratio value could the new thing for bitcoin as I already mentioned. Have a look at this thread to know intrinsic value of Bitcoin: https://bitcointalksearch.org/topic/m.52690215

febriyana

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Febriyana Muhammad

Bitcoin is don't have intrisic value, only digital number if people see it. That is no different with bank, they can create digital money, send it more fast than BTC.

I don't judge Bitcoin is bad, but that is what people see.
So many people not interested about cryptocurrency.
I prefer Gold to keep value of money, it is already known.

Pab

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Bitcoin is only 10 years old.Previously was some problems with security storage
But still bitcoin transaction fee is higher than cards.But the biggest problems are regulation.Bitcoin is not illegal but is also not accepted like a legal way of payments in most of countries

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