Topic: Why would people ever use bitcoin if its expected to always go up? - page 6. (Read 1246 times)

In fact, many people know that bitcoin will increase in value over time, but many of them have not dared to take a step, this is a dilemma because if we want to be successful, we have to get out of the box that always shackles us, until in the end we don't sorry that we are late to step up, and as time goes on of course we will be forced to use it, so what are you waiting for

If bitcoin would be mass adopted by most countries, it would act like a currency itself that can be used for transactions. Bitcoin being one of the modes of payment will be a fulfillment of its intended purpose because it was made to be a currency in the first place and not really a form of investment. Although soon after it was marketed, it became an investment vehicle for most people because it has shown the potential that no other coins exhibited. To add, it is also not prone to inflation unlike with fiat which enticed most investors to make it a store of value.

Using it in everyday scenarios could possibly happen and I think people wouldn't opt to spend it on anything that they could buy with fiat (only if bitcoin would retain its volatility). Like what you said when they know its value would increase soon after, why would they spend it with something they can buy with physical money the moment they exchanged their btc with fiat?

However, when this time comes, I think the volatility of bitcoin would lessen compared to the time people are just holding it. If the time comes that bitcoin could be used in daily transactions such as buying groceries, I guess this will be the time that the value of bitcoin would be more stable. Its price unpredictability will decrease. The gap between the pump and dump positions wouldn't be that massive and it would function as a normal currency there is, except it is decentralized and scarce.

People use their Bitcoin in different ways, some see it as an asset more than using it as a currency but the general consensus of bitcoin is never the price to always appreciate and the last time I check no currency, asset or commodity whatsoever will ever surge in price. Besides, the volatile nature of the market won't allow that.

OP, take note of jaysabi's answer here, because I think it's probably the best one I've read so far (and I haven't read this thread in its entirety).  I don't know if everyone expects bitcoin to only increase in value, but its volatility alone discourages its use because people see that there's a very real potential to miss out on profits if they spend it.

And that's only one of several reasons why people don't use bitcoin to buy things all that much.  Bitcoin will never become a viable alternative to fiat currency unless fiat ends up failing all over the world, all at once--and I seriously doubt that's going to happen in our lifetime.  But the main reason is indeed bitcoin's deflationary nature, which is the basis of your question.

If in a certain situation the use of Bitcoin provides you with sufficient utility such that you feel the use is justified, why not use it even if you expect it to go up further? The time concept comes into play here as well. If you have to make a decision that is aligned with your preference curve and using Bitcoin today provides you with more utility then keeping Bitcoin and gaining an expected 10% more value over the next four weeks, using it makes sense. The rest has been said here, if you have no choice, I guess you have no choice but to use it!

Let me add: Maybe you got kidnapped or hacked and the criminals want you to use Bitcoin! Even if you expect it to go up, I suppose you are going to use it regardless.

You make it sound like volatility is the backing of Bitcoin. I don't understand how high volatility helps in a currency's survival. I scalp the small dumps for profits and I'm okay with the occasional dump but volatility is not a factor that as you say balances and survives bitcoin. According to your theory, stable coins will eventually crash since they are not very volatile

Besides that, volatility also helps newbies to get in at a much lower price when the prices are going down or in the bear market. Plus, having that volatility makes it less susceptible to manipulation or prediction of where it will go next. For me, it's only on whim or that they want to experience using bitcoin like how you spend a fiat, that's probably the reason why they use bitcoin like that.

Everyone sees volatility as a bad thing but in general it's helpful, what goes up and doesn't come down is HYIP and in a matter if time they crash hard and never grow again, BTC is the best because it's highly volatility I see that as balancing and surviving for long term

Whether we like it or not, that really the thing that we are able to see. Not all have bought and just hold for a lifetime as it never makes sense for me. I bought this because I've wanted to use this while I'm still alive, not after death.

Honestly, we are not sure how long this Bitcoin would exist and that is why someone has to sell. Because if we all just buy and hold, I can't imagine what going to happen in the market. And I don't know how this can be appreciated and how this fulfills the thing to be called currency.  Buy and sell that really it involves as that was the nature in the market.

The existence of transactions in bitcoin also increases the value of bitcoin, which is why in the past so many people supported a service payment platform or any services to using crypto. because if transactions is used by other people, the demand for bitcoins will also increase and the community will become larger. but with bitcoin prices this high right know I think many prefer other cryptos that have lower value and are stable in volume on the marketcap.

Why would anyone sell gold if they ever think it's going to go up.  The same holds true for tons of appreciable assets.  Using bitcoin not only increases the chances that it will go up but accomplishes what it was meant to do.  Will it go up yeah, but if you are going to use fiat to buy things what's the difference with buying bitcoin and when needed use it for transactions.  Tax wise it's a pain in the ass that would be the only downside.

It should not go up forever, once the demand and use is widespread, it should progressively become more stable or its value should go up, but maybe not as much as other alternative investments. Like everything else out there, growth is never unlimited. Perhaps the difference is that if bitcoin reaches an overprice or bubble it may be quite difficult to identify due to its tradition of being a very volatile asset in general. That is where the investors that have a hint have the upper hand.

You see that is the problem, there are a lot of people who are want bitcoin to used as a currency which is the reason it was created, and others who see as just an investment and an asset that should be held and sold at a higher profit, and because of the imbalance in these forces the price of the bitcoin is quite volatile ( more demand and less supply) , and to be honest i don't see this changing because the higher the price the more people want to invest in it for profit, so the idea of bitcoin as a currency is starting to fade out.

its already happening in most people . they use btc in their daily lives whether whether for daily trading if they are traders or simply by spending thier btc because they love it more than other payment methods  . to the people that spend their btc i think they dont care much on the increasing value .
they do this because they are a true supporter of btc and this is the real use case of btc  .

For me personally it is more about bitcoin getting at the hands of others so that they would like it and I would gain more from it, not maybe personally but the general bitcoin world. Think about it this way, you have a company and you own 100% of it, but it makes 100k a year, then you give 50% away to Elon Musk, and now you only own 50% of the company, but he takes it to a billion dollars, now you own half a billion dollars worth of company instead of 100k.

As you can see you lost half of your company but now your half worths more than fully of what it used to be. Same logic here, if we all used and spend bitcoin that will make bitcoin grow bigger, so 1 bitcoin I have worths 45k now, but if we all spend it then bitcoin will become 100k and my 0.5 bitcoin will become 50k and I will be in profit. That type of logic will make bitcoin grow bigger, or at least that is what I think.

Yes, the expected outcome is that once bitcoin has sufficient adoption, its price should stabilise.

Besides, there is no reason why bitcoin has to be a currency that is actively used. It can definitely still be good as a store of value even if its ability to serve as a currency may be diminished.

But bitcoin at the end of the day is not designed to be deflationary. It is disinflationary - which means that we will stabilise eventually as adoption levels continue to climb, and bitcoin reaches that 21 million hard cap. Higher prices due to increased adoption levels should be the least of everyone's concerns here.

No one can but people having faith in it's prices going up is enough to not worry that it's not going to go up forever and even if that happens, I don't think that we will be alive at that time when it happens. Those countries that you're talking about, they will eventually fold, remember that they care about public opinion and if their people cares about bitcoin, they will eventually change their allegiance.

I wonder if Op has researched how real currency worked in the old/ancient times. I wouldn't be surprised if lots of them appreciated in value, meaning their prices increase in relation to prices of goods and services. So, if you save some money at  home back in those days, you would expect that the price of the money would increase whenever the price increases in open market.
I actually think a real currency should be anti-inflationary and good Store of Value... that's what Bitcoin is basically meant to be. If you save $50 worth of Bitcoin for 5years where a bag of rice is worth $50,  and you withdraw the Bitcoin after the 5years... if the Bitcoin is worth $100 while the bag of rice is $70, the Bitcoin appreciation in value in relation to the price of the rice makes it anti-inflationary currency and a good Store of Value.

The price of Bitcoin is volatile, it is unstable, and no one can guarantee that its price will rise forever.
Most traders use its volatility to continuously buy and sell Bitcoin to obtain high profits.
There are still many countries that do not support the use of bitcoin. In those countries, bitcoin cannot be used for transactions. They must exchange bitcoin for legal currency when they consume daily.

The example of the artwork I like I have already mentioned it several times, Nobody wants to sell your  beautiful painting of Picasso.

With the Bitcoin the same thing happens, we go Open Mind, you can not generalize in the trend, although Bitcoin becomes a very valuable asset the retail or the big buy/sales according to the case they will always be there, someone for some reason will have Satoshi to buy a coffee and someone will have BTC to buy a jet.
A picture of Picasso is not sold every day but someone is going to buy it. Sale and purchase is an innate process to asset.

Regarding your last question I do not know how real that a generalized adoption causes little / a lot of volatility, this is a latent term of any asset, perhaps when its price is very high a volatility of a percentage unit causes the same effect of nowadays.