Bitcoin Forum

I was thinking about adoption of bitcoin, the number of companies accepting bitcoin etc...

But imagine just for a second Bitcoin will never be used as money.
I guess it is still perfect for using it as "store of value". We do not really need people using bitcoin. As long as they buy and HODL Bitcoin, we will see increasing exchange rates.

When government prints until every tree on earth is gone, we will see Bitcoin go up with the same rate.

Maybe people prefer using fiat for the "inflationary nature" (i do NOT agree on this, but lets assume this). Fiat will be used, but only for transactions. Bitcoin will be used as store of value.

Your thoughts?

I have thought that btc will eventually be used mainly as a store of value and for large purchases in the future. I think LTC could eventually be used for day to day purchases because of the faster confirmation times, and larger quantity available. I could be way wrong though.

maybe an inflationary cryptocurrency with a lot of units would be ideal "transaction money"?
I really dont know...

I've been thinking the same thing lately.  Even if you abolished all merchant acceptance (unlikely), bitcoin as a trustless store of value still has…ahem…value.  It is gold for the information age--more easily portable and less easily confiscatable.  

Look at the silver market for some perspective.  It is a niche market compared to gold yet the total value of all silver is estimated at $355 billion.  The total value of all the bitcoins is about $8 billion [https://bitcointalk.org/index.php?topic=508064.0 (https://bitcointalk.org/index.php?topic=508064.0)].  Admittedly, silver has some industrial uses but you can't move $100,000 of silver through an airport and you can't send it over the internet.  In terms of merchant acceptance, bitcoin is already superior.

If bitcoin were to grow to a size equal to the silver market, it would imply a price of ~$640 x (355 / 8.) = $28,400.

I expect bitcoin to have a much broader use, however.    

Bitcoin requires some use to be a store of value. Without that use, I believe that it would be unstable. Even if the only use was for silk road, that would create some stability. But the remittance market alone should be enough to eventually stabilize the valule of Bitcoin.

Note that the stability doesn't need to be that great, as long as it returns to an arbitrary value (or slight growth). Some instability can be dealt with by cost-average buying over time. The value could be also be recovered by cost-average selling over time.

Even is every bitcoin was basically worth $1 for sending funds around the world, this would also allow it to serve as a store of value. To store a $1000, I would just get a 1000 BTC. If bitcoins are $1M each, I only need 0.001 BTC. Even at a penny each, I would just get 100k BTC to store a $1000.

I personally use several brain wallets to store the majority of my bitcoins. My wealth is safe from governments, creditors, family, ect. It travels with me all over the world. The only way I can lose it is if I am brain damaged, and then I won't care anymore.

I think the value of bitcoin (and brain wallets) as a store of value is truly underappreciated at this time in history.

Why?

Again, Gold is not used in transactions (and forget about the minimal indutrial use for a minute) but still it is hoarded.
In the end, Bitcoin could be used as "digital gold".

You are correct about the remittances. But that is not really merchant adoption.

I think, however, that bitcoin will be used in personal transactions in countries who suffer from high inflation where fiat is just not usable anymore (Zimbabwe, Argentina, ...). In the past, people were creative and created their own money. Now they will use bitcoin.

Bitcoin will be solely sued as money, not as store of value. Thing is, biggest advantages of bitcoin is how flexible it is. It can be used internationally, all over the world, without bank fees and without currency exchange problem. As store of value.... yeah well hard to see any real advantages over other currencies.

This!!!

But the main problem about bitcoin is scamming, hacking, whatever. Its really insecure in a way for currency..

You can get scammed out of fiat, too?
You can get robbed?

Put bitcoins in cold storage --> safe :)

That's right but if u holding money in not secure place, it's easy to steal that. Let's just wait some more time and i'm sure bitcoin gonna be more safely than fiat etc.

the only way a cold storage gets stolen is when someone got your private key.
So keep your private key safe, if someone can generate yours 'coincidentally', he'll get struck by lightning > 10 days in a row because that has about the same probability as generating a same key :p

For real property settlements- car purchases - moving money out of country like Cyprus, Greece, Crimea, BTC is perfect

For ordering coffee LTC or DOGE may be better

So velocity of money speaks for altcoins but store of value for BTC; it's all open IHMO and there is enough fiat out there to make a few coins fat  ;)

Bitcoin will be used as a currency, just give it some time, heck it only has 5 years and no state backing! Look at all the amazon's and google's talking to implement it. Afraid of volatility? Services like bitpay are great.

As long as individuals are willing to trade with it and recognize it as a means of exchange then Bitcoin will always remain a store of value

Bitcoin can be used as a store of value commodity personally think thats a better use of it rather than a pure currency.

This is what I think, IMO doge or peercoin will be come the spending currency and Bit and Lite will become gold and silver.

Bitcoin's value comes from it's usage. It is isn't used, then it won't have any value to store.

If bitcoin is just used as a store of value, it will truly become a bubble.

Gold and silver have become a store of value after thousands of years of use as a currency. Plus gold and silver have some intrinsic value in industry and jewelry. And even then, it's only the weakness of fiat that makes they still have use as a store of value. If bitcoin took off, then gold and silver could easily lose their sheen.

Plus, ask the guy who bought in 2009 and kept holding until now? Return of investment of 1 000 000 - how is that for store of value?

Interesting, I was thinking the faster confirmation times would have the opposite effect.  Given a level of technology and of decentralisation, Bitcoin has the potential to scale further than Litecoin due to having less potent synchronisation issues.  I'm also fuzzy on this though so don't put too much stock in my thoughts.

I don't see how available quantity enters into the equation, not unless and until we've enjoyed a good many more iterations of Moore's Law at least.

my thoughts:
1) I like bitcoin as a store of value.  I think that the ability for transaction needs to be there for it to be a store of value, just like transactions with gold might not be frequent, but they exist.
2) Inflation is not needed for currency use.  Rather, I would prefer solutions that can keep bitcoin as the metric of value, but circumvent it's limitations (mainly blockchain size, confirmation time to a smaller degree), probably something like off-chain transactions or whatever solution people come up with.

I really cannot wait to see what happens, now everyone have his own thoughts and opinions but i guess will be something different that noone thought about it.

Cant wait.

A store of value is usually considered something that has a stable value.

If the price of something goes either up or down too much then it is considered a poor store of value.

Your example is what a very good investment would be.