Topic: Why would people ever use bitcoin if its expected to always go up? - page 7. (Read 1246 times)

The truth is people always have pressing needs and because they live in the present spending some of their bitcoin will certainly make perfect financial sense at that time irrespective of whether the price would go up.

It is however a poor financial situation to always spend fractions from your bitcoins even when you have an alternative.

Well, Bitcoin is supposed to be used to spend or use it to transact p2p in a daily basis without the need of the banks to approve the transaction globally. But because of it's high volatility, people tend to consider Bitcoin as a store of value and doesn't want to spend it instead wait for it to pump and then sell.
Another fact, people cannot continue holding Btc without having a liquidity because If that happens Btc might gradually lost it's value as a currency.

Nothing goes up forever, even the law of gravity has prove it and the same ideology will always be applied to our daily life.
We are all investing to secure a good future and we don't want our $1 to depreciate in value due to growth of inflation we are experiencing. If inflation growth continues with this geometry, it will be a disaster for everyone. This is why everyone is investing in bitcoin and hoping it continues to grow in value.
Now, people invest with different strategies, some are normal traders who after getting gain, they sell off while some prefer to hold for a very long time.

It would just be good for alternative payment system but imho it wouldnt able to play such same role on how fiat is been doing and volatility would be the main  problem of that.

People would normally think off about high  prices or  bitcoin had already become  a store of value which i really cant blame off basing on the history on how it did become so huge

then it  would be just normal that people would be thinking off holding for future profits.If it becomes mainstream but i dont see the reason for it to replace fiat anytime soon.

What people say doesn't mean that it's true. Nothing can grow enormously, without limits, especially the currency and also, bitcoin isn't mean for massive usage, it won't be able to handle a number of billion daily users. At the moment we can say that bitcoin's price rises after every halving, we don't exactly know what will happen once the halving ends and all the bitcoins will be mined. Also, with the help of futures trading, you can make money on Bitcoin's price rise and fall, so, this will again strengthens the power of the bear market.

Also, another thing: If the society holds something and doesn't use, then it loses value. Let's hold gold and don't use it, what will be the value of this? Also, value is the psychological factor too.

And I think a great deal of the people in this market think that they are correct as it is almost unthinkable that the price of bitcoin is not going to go up during the next decades, however I think that the creator of this thread is making a mistake, you can spend your bitcoin and use it for whatever you want just make sure to use your fiat to buy bitcoin after you do so, that way even if the price of bitcoin went up significantly during that timeframe you're still going to have bitcoin at hand which at the end of the day is all what matters.

If everyone adopted the bitcoin and using it for day to day usage then the price is not going to increase anymore, it will only increase according to the population growth of this world but its a very gradual process so it won't be a noticeable one like now.

But I never thought about bitcoin is the only currency used by everyone in this world because its not possible and the actual blockchain can't handle such huge number of transactions.

Yes, lately the trend is never sell and mortgage it and get loan to spend. It will be used in many different ways, but to buy a cup of coffee is not that important, although doable

It is mostly about those higher level financial usage that normal people typically have no knowledge of. For example, if the pension fund decided to buy bitcoin ETF, then it will impact everyone's future pension, while they might never know about it at all.

It may seem silly and irrational now, but try to picture the situation this way.

Right now Bitcoin is precious and, indeed, many want to hold on to it, because it will be a great profit in the future. But with the years passing and Bitcoin getting closer to 21m the degree of price increase won’t be that significant. But more importantly, if (when) Bitcoin is widespread you won’t be afraid to use it in everyday life. Firstly, you won’t be using a large portion of it. Say you’ll have 1 BTC worth of $100,000.

So assuming you only spend, monthly you’d be only using around 0.01 BTC. And the more the price grows - the smaller portion it would be. But then again, in a world where Bitcoin is widely adopted, you might get paid in Bitcoin, so you won’t actually be losing any of it. Your friend borrowed BTC - you get your money back in BTC, you made a purchase in BTC - you sold something in BTC, etc. So the idea is, that no one will keep Bitcoin to themselves because it would be in circulation.

Also, consider this: in poor, developing countries people think of USD the same way you think of BTC “why spend it if I can store it and get profit, or use it as a hedge?”, but the rest of the world is fine buying a pizza with $, right? So, hopefully, in a more stable economical environment and easy access to Bitcoin, we won’t face such a problem.

Though I have to admit, that is a possibility.

Why do people only look at the spender side as well, I get that there are good sides and bad sides of spending bitcoin, but why only the spender? If a person spends bitcoin somewhere, that means that another person has earned bitcoin somewhere right? That is why people could be using bitcoin, because there are people who wants bitcoin to begin with.

That is why I honestly believe that we should be considering this as an option or a reason for it, if I own a game company and willing to sell my game for crypto, there will be some people who would be willing to buy it, if I own a Laundromat that takes crypto I am sure even that will get something, vending machines too, doesn't matter who and why but there will be "some" who will. It is not about the number of spenders, it is about number of sellers, if we have everyone around the world accepting bitcoin, we will see a lot more spenders as well.

The extent of bitcoin's price volatility may be decreasing as adoption is increasing, but Bitcoin price can never be stabilized or stable, it will have be fluctuating. Do not forget that some people will always trade it, I mean scalping, day, swing, and future trading, and other form of margin trading, this will always make the price to be volatile. Also people will use it for day to day buying and selling reasons which can not let the price not volatile. But the more the adoption, the lesser should be the volatility.

Maybe the price is going to stabilize when there is much adoption. I think for now that it is still growing, there is always going to be an expectation that it is going to increase in value. And especially times when there is halving, everyone usually looks forward to the time the market price will go up.

This is normal because when there is a decrease in the rate of supply, then you should be looking forward to an increase in price since demand is going to be high at times like this. So, the question is what would now happen when there is no other supply coming and there would be no other halving? I believe the price will be really stable by then.

To answer your question, I can say I know many people who don't actually 'spend' bitcoin and they just hold it in long term to get benefits. However, sometimes due to personal economic issues, people will have to use their bitcoins and spend the savings to buy stuff. Also, you may don't know but because of the economic sanctions or privacy stuff many people can not have the master card/visa card or Paypal, and in order to buy stuff online or receive the online premium services, they will have to use bitcoin as an alternative payment method.

Because it is fully decentralized and has a fast transaction without the need of a middle man unlike the financial institution, because of having financial freedom and not tied to the clutches of the government, for the purpose of liberation and many other reasons some people could think of,  I guess only people who are in this school of thought will understand and buy btc at any cost without hesitation.

Don't forget, bitcoin was created to give people personal freedom and control over their money. While the mainstream media and economic experts say it is just a tool for speculation. Those are the two sides of bitcoin and you'll want to use them regardless of whether it's practical or not in your opinion.

I can say that the demand for bitcoin will be higher than the fiat currency you will have the money to use the fiat currency for shopping you may have to transact it through the bank but it is easier to trade with bitcoin here you can easily pay for everything with your own bitcoin as the market fluctuates, its value increases. Bitcoin is more profitable because there is no such move for Fiat currency the exchange rate at bitcoin increases all the time.

Since at the moment we probably do not know 100% for what exactly Bitcoin was invented and launched, it can be assumed that it is a kind of new financial assets, which at the moment are best used as a store of value, as well as to preserve your funds. from inflation. Of course, the price of BTC cannot constantly go up, and we see this in the example of a fall in price, and then again its growth, which, in principle, is shown by other assets. I also believe that it will not be possible to keep BTC all the time, because in the end everyone will want to fix their profit and be sure to sell their Bitcoin for this.

Interesting question that got me into thinking also but I think most replies have already answered your question.

Just to add, what drives the price of BTC is the law on supply and demand. When people sell their BTCs, the price goes down and when they purchase it, the prices increases. As there are wealthy people who trade BTCs on a daily basis (by taking advantage of its volatility), this affects its price on the market. Not to mention, since BTC has a significant value, some have already sold their BTCs to cash for their personal expenditures.

Indeed, based on your explanation, making payments using Bitcoin will be more profitable than making payments with fiat. Because the price of
Bitcoin is likely to rise, while fiat will remain. But it will be useful if the price of Bitcoin goes up, what if the price goes down. We also need to think
about the worst that will happen, so with Bitcoin's volatile price, many people still choose fiat to pay the bills. I also still choose to use Bitcoin as
a digital asset, the reason is because the price of Bitcoin is volatile, it is too risky to use Bitcoin as payment.

If all investors keep holding and not selling because of the expectation of rising Bitcoin, the price of Bitcoin will show a downward trend. Therefore, if you want to hedge against inflation and push the price of Bitcoin, you must keep Bitcoin liquid and continue to trade.
Bitcoin as an investment has a good storage value, but there will always be people who use Bitcoin for transactions for daily consumption or some countries that prohibit Bitcoin need to convert Bitcoin into legal tender.