Why would people ever use bitcoin if its expected to always go up?

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Quote from: jaysabi on October 03, 2021, 10:00:30 PM

Quote from: Emitdama on September 27, 2021, 01:48:36 PM

Quote from: bitsnack on August 07, 2021, 11:22:57 AM

After reading several posts on this forum many people seem to think that Bitcoin will always go up. If this were to be the case, why would people spend Bitcoin at all? In this theoretical time, wouldn't it just be a poor financial decision to do?

Or is it thought that in this future where there is widespread adoption the price would stop being so volatile and for the most part stabilize?

If the price would always appreciate, how would that stop you from making use of Bitcoin?

Nothing would stop you from using it, that's not the question. The question is if you think bitcoin is always going to go up, why would you ever spend it? Because obviously if you think it only goes up, spending it brings the opportunity cost of losing future gains.

Agreed, and this is the point at which people will stop selling it because the price is rising. That is nonsense, and we could say that there will be no trading because there will be no buying and selling because there will be no movements, only selling and buying. The market will not go through a cycle. Also, if the price continues to rise, the day will come when no one can afford to buy a bitcoin because the price is so high, unlike now.

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Quote from: Emitdama on September 27, 2021, 01:48:36 PM

Quote from: bitsnack on August 07, 2021, 11:22:57 AM

After reading several posts on this forum many people seem to think that Bitcoin will always go up. If this were to be the case, why would people spend Bitcoin at all? In this theoretical time, wouldn't it just be a poor financial decision to do?

Or is it thought that in this future where there is widespread adoption the price would stop being so volatile and for the most part stabilize?

If the price would always appreciate, how would that stop you from making use of Bitcoin?

Nothing would stop you from using it, that's not the question. The question is if you think bitcoin is always going to go up, why would you ever spend it? Because obviously if you think it only goes up, spending it brings the opportunity cost of losing future gains.

Sanugarid

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Quote from: bitsnack on August 07, 2021, 11:22:57 AM

I couldn't put the full title in the subject line due to character restrictions, but here is the full question:
If bitcoin was fully adopted into everyday life, why would it ever be used for day-to-day transactions if the general consensus was that the price would always appreciate?

After reading several posts on this forum many people seem to think that Bitcoin will always go up. If this were to be the case, why would people spend Bitcoin at all? In this theoretical time, wouldn't it just be a poor financial decision to do?

Or is it thought that in this future where there is widespread adoption the price would stop being so volatile and for the most part stabilize?

I think the reason why people advocate the widespread adoption of BTC or blockchain technology is due to its nature which is a decentralized system, without any 3rd party involved. However, If people wish to use it as a currency in a real-world setup, then its price needs to stabilize just like what you've said and fluctuations of price would be problematic. For me, it's still best to consider it as a speculative asset rather than a currency, if your primary concern is its price

Emitdama

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Quote from: bitsnack on August 07, 2021, 11:22:57 AM

After reading several posts on this forum many people seem to think that Bitcoin will always go up. If this were to be the case, why would people spend Bitcoin at all? In this theoretical time, wouldn't it just be a poor financial decision to do?

Or is it thought that in this future where there is widespread adoption the price would stop being so volatile and for the most part stabilize?

If the price would always appreciate, how would that stop you from making use of Bitcoin? That the price is appreciating doesn’t mean that you can’t be able to make use of it, and moreover that would be to your own advantage if you are to adopt it earlier and start making use of it, because as the price increases you are still the one that is going to beginning from it.

I think that in future when the price gets to a certain extent it might stop increasing that much and become a bit more stable than it is now. So I do not think that this is an issue at all, Bitcoin is still new so it is going to be volatile for now, until the time comes for it to become stable and that is going to be the time when there are lots of people who are making use of it.

MyRihanna

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I think this problem exists because there are still fiat currencies that can be used as an alternative to Bitcoin. In fact, as far as I know, Bitcoin has incomparable advantages in cross-border or large-scale transactions. For example, if you need to pay 1 million US dollars for your imported goods, you can choose to use bitcoin to pay at this time, and then buy US dollars into bitcoins will save time and cost of handling fees.

riso2015

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Why do we invest in bitcoin? Yes, because we want to get profit to continue our life, to survive, pay bills, buy food, shop etc. The value of bitcoin fluctuates due to buying and selling transactions. it will go down if more people are selling and the price will go up if more people are buying . So I think you need to understand exactly what your goal is to enter in bitcoin for what.

kingangel

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A lot of people expect the price of bitcoin to go up because it is driven by demand and supply. And since it is still a new thing, there are lots of people who are yet to join the community, and with time we will get to see a lot of them join the community and invest their money. So since the market is driven by demand and supply, you’re going to see an increase at anytime. That’s why if you check the market chart, the market has been growing from year to year.

But then, everyone has a purpose as to why they are making use of bitcoin, there are people who are using it as a payment method and there are those who prefers it as an investment, just do what works for you.

pergola

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Bitcoin has a scarcity while the usage environment of Bitcoin increases. Bitcoin, on the other hand, has proven to be valuable moving according to the 'Stock to flow' model so people always believe that Bitcoin will increase in price. Even so, the value of anything is
comes from the need to buy and sell, so the market will determine the value of Bitcoin.

Aurorra

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The price of Bitcoin will be determined by demand and users. Due to the volatility of Bitcoin prices, many investors will sell when the price is high to get a profit, and then buy and hold when the price is low to get more profit.

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Quote from: Wong Gendheng on September 24, 2021, 05:48:34 AM

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Now everyone does not pay attention to their privacy. The use of Bitcoin for payment reduces the number of third parties and protects our privacy. There are many people who are willing to use Bitcoin to pay.

I think the best thing about bitcoin is that it can be used to pay, with functions like fiat, bitcoin will last for a long time, maybe most people currently only use it for trading and long-term hold, this is what makes bitcoin too volatile because demand and stock can skyrocketed unexpectedly.

precisely because the price of bitcoin is very volatile, bitcoin will not be able to replace fiat money as a legal tender. I think the best thing for bitcoin is that it is recognized by the whole world as a safe investment tool.

Cindella

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The price of Bitcoin is unstable. If all investors choose to hold for a long time because of future price increases, its utilization rate and liquidity will weaken, and the corresponding price may also show a downward trend.

Although long-term investment in bitcoin will make a lot of profits, people will sell bitcoin in exchange for legal currency when they need other expenses.

Wong Gendheng

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Quote from: ?? on ??

Now everyone does not pay attention to their privacy. The use of Bitcoin for payment reduces the number of third parties and protects our privacy. There are many people who are willing to use Bitcoin to pay.

I think the best thing about bitcoin is that it can be used to pay, with functions like fiat, bitcoin will last for a long time, maybe most people currently only use it for trading and long-term hold, this is what makes bitcoin too volatile because demand and stock can skyrocketed unexpectedly.

Marcorey

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If everyone holds Bitcoin and does not use it, the volatility of Bitcoin will decrease and its price will stabilize.

Bitcoin is a kind of currency. Using Bitcoin to pay can increase its liquidity, which is conducive to the wide spread of Bitcoin and the enhancement of people's awareness of it.

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Quote from: Rajamuda on September 19, 2021, 11:41:09 AM

Each person has different living conditions/economic conditions, and of course this has something to do with their living conditions, some are after it for profit in investing, trading, and some are making it a steady income which of course is done with certain efforts. I think the demand will indeed increase, and Bitcoin price is indeed more likely to increase, but not everyone is only focused on investing their money in long-term profits in Bitcoin, on the other hand... Bitcoin has become a means of payment, I think this does continue to fluctuate because of the large number of the different activities carried out within the Bitcoin sphere itself.

Bitcoin is purely based on its demand and supply. If you see the price increases, its because there are more of its consumers or users are using it for investment or for payment purposes. And i don't think we will live our entire life investing the whole time. People will definitely end up using their bitcoins either just to enjoy the profits or use it for some uncontrolled emergency events. Its a matter of choice anyways. And bitcoin will definitely not become stabilized because its nature will always be highly volatile.

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Quote from: sana54210 on September 18, 2021, 04:05:35 PM

Why do people still hold dollars if they believe it will lose value constantly? That is what dollar is (and all other fiats), because of inflation the value of dollar will ALWAYS be lower and lower in the long run. Then why do people still keep holding dollars in their bank accounts, shouldn't they spend it as soon as they get it so they do not lose value?

People still do hold it on savings accounts and all that right? Because that is how people invest, well at least some people do. Plus bitcoin is a currency as well, you may spend it, but you may also earn it as well, if you want to survive then you gotta pay for bills or food or whatever and that means you HAVE TO spend, not just because you want to, but because you have to.

I'd like to answer your question about why people hold their dollars in spite of inflation. The short answer is the dollar is the most liquid asset there is. If there is an emergency, people can spend their money without any fuss or muss. No one will accept your FAANG stocks or your real estate if there is a panic. They are illiquid and are subject to depreciation during a major collapse and uncertainty. The dollar is the answer, everyone will accept it because it is liquid, highly divisible, easily transportable. The only major problem with fiat currency is that it doesn't retain its value for long. That is why people are hoarding gold, however, gold is poorly divisible, hardly transportable, and easy to confiscate, nobody wants to run around with bars of gold. Bitcoin is another option, it retains value over a long-term horizon and is easy to carry, however, it is likely illiquid during an emergency situation. Conclusively, there is no perfect solution, you should try to make use of all three options to alleviate the uncertainty that the future brings.

Rajamuda

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Each person has different living conditions/economic conditions, and of course this has something to do with their living conditions, some are after it for profit in investing, trading, and some are making it a steady income which of course is done with certain efforts. I think the demand will indeed increase, and Bitcoin price is indeed more likely to increase, but not everyone is only focused on investing their money in long-term profits in Bitcoin, on the other hand... Bitcoin has become a means of payment, I think this does continue to fluctuate because of the large number of the different activities carried out within the Bitcoin sphere itself.

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Quote from: bitsnack on August 07, 2021, 11:22:57 AM

I couldn't put the full title in the subject line due to character restrictions, but here is the full question:
If bitcoin was fully adopted into everyday life, why would it ever be used for day-to-day transactions if the general consensus was that the price would always appreciate?

After reading several posts on this forum many people seem to think that Bitcoin will always go up. If this were to be the case, why would people spend Bitcoin at all? In this theoretical time, wouldn't it just be a poor financial decision to do?

Or is it thought that in this future where there is widespread adoption the price would stop being so volatile and for the most part stabilize?

Why do people still hold dollars if they believe it will lose value constantly? That is what dollar is (and all other fiats), because of inflation the value of dollar will ALWAYS be lower and lower in the long run. Then why do people still keep holding dollars in their bank accounts, shouldn't they spend it as soon as they get it so they do not lose value?

People still do hold it on savings accounts and all that right? Because that is how people invest, well at least some people do. Plus bitcoin is a currency as well, you may spend it, but you may also earn it as well, if you want to survive then you gotta pay for bills or food or whatever and that means you HAVE TO spend, not just because you want to, but because you have to.

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Quote from: Dax Robinson on September 18, 2021, 01:49:07 AM

The price of Bitcoin is determined by people's needs. Daily price fluctuations are due to someone buying and selling Bitcoin. The high volatility of Bitcoin indicates that the daily trading volume of Bitcoin is also very large.
The purpose of our investment in Bitcoin is to profit from it, and the profit is to satisfy our daily lives and improve our quality of life, so why not use Bitcoin after we invest? Investment is not just to make profit after accumulation, but to make this investment meaningful.

The price isn't a function of need at all, but overall supply and demand at any given time. Since bitcoin isn't actually needed for anything in daily life though and the only people buying it are speculating on price, demand is a function of speculation more than anything else. Bitcoin is purchased exclusively by people who have money they can spend on speculating the price will go up, since obviously people who can't afford it won't be able to.

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Quote from: bitsnack on August 07, 2021, 11:22:57 AM

I couldn't put the full title in the subject line due to character restrictions, but here is the full question:
If bitcoin was fully adopted into everyday life, why would it ever be used for day-to-day transactions if the general consensus was that the price would always appreciate?

After reading several posts on this forum many people seem to think that Bitcoin will always go up. If this were to be the case, why would people spend Bitcoin at all? In this theoretical time, wouldn't it just be a poor financial decision to do?

Or is it thought that in this future where there is widespread adoption the price would stop being so volatile and for the most part stabilize?

This question of yours I feel you can answer this question on your own, because any investor wants to profit and profit from the increase in bitcoin value, this goes to every investor. private. investors expect bitcoin price to rise, do you think i'm right?

terrorJR

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Quote from: bitsnack on August 07, 2021, 11:22:57 AM

I couldn't put the full title in the subject line due to character restrictions, but here is the full question:
If bitcoin was fully adopted into everyday life, why would it ever be used for day-to-day transactions if the general consensus was that the price would always appreciate?

After reading several posts on this forum many people seem to think that Bitcoin will always go up. If this were to be the case, why would people spend Bitcoin at all? In this theoretical time, wouldn't it just be a poor financial decision to do?

Or is it thought that in this future where there is widespread adoption the price would stop being so volatile and for the most part stabilize?

This goes back to everyone because indeed not everyone uses bitcoin in the same way because here even though the scope of crypto, including bitcoin, is still very small compared to the human population, even with the current number, the goals of people in adopting bitcoin are definitely different.
some are intended for long-term investment, some are used for daily trading and it's not even impossible there are people who keep their money here but they don't understand what they are going to do.
so? why is it always expected to go up? because everything is mainly related to financial matters, surely everyone will target like that, the goal is none other than to get the maximum profit.
and indeed there may be some people say I am naive but I am here for that (profit)

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