Bitcoin Forum

At the end of the last year, the G7 released a report, reading that Bitcoin and other cryptocurrencies “have so far failed to provide a reliable and attractive means of payment or store of value.”

The authors of the report believe that cryptocurrencies are excessively volatile and difficult to use, suffer from scalability problems, and face regulatory risks.

An American billionaire Ray Dalio, founder of investment firm Bridgewater Associates, said that the first cryptocurrency is a speculative asset and isn’t effective for payments or store of value.

We try to find out if Bitcoin is able to be money and what is it, exactly: the internet’s native money, a hedging instrument, or an asset for speculation?

https://forklog.media/what-is-bitcoin-internets-native-money-hedging-instrument-or-asset-for-speculation/

If you look from a conventional perspective, you will see many problems in bitcoin. But we need to understand that bitcoin wasn't created to become a mainstream currency system. Neither it is created to replace fiat currencies. So yes, it is volatile, it has scalability issues and it is slow if you compare it with current plastic money usage.

As of now, bitcoin is majorly used as a speculative asset around the world. Millions of traders are earning their living through this speculative asset class. Million others are holding for a better price. So yes, it has not yet become a full fledged currency system yet, but definitely has become a store of value!

There are a lot of people who dont care what the G7 and other mainstream
financial institutions think and say about Bitcoin.

Bitcoin is and can be many things and one of them doesnt have to be an
"effective means of payment" when compared to Visa for example.

There are many things which Bitcoin does very well depending on how
we interact with it. Consider for example movement of funds or wealth
across borders, because Bitcoin and crypto is borderless.

There are other traditional financial institutions who are quite happy
to accept Bitcoin on their own terms . . . for wxample Futures trading

so I personally dont care what the G7 think

And I'll be truthful to say I'm one of them, I can choose to use bitcoin the way I want, every user and even those who question what exactly it is can do the same too. I hodl bitcoins, I buy and just store them in my wallets, I try not to touch it for any reason. Months ago I started daytrading, so I use bitcoin also for that purpose as well.  I bought the wristwatch currently on my wrist right now using bitcoin as the means of payment for it's purchase, and many more other purposes, so what exactly is bitcoin to me.

@-Multivitamina-, the source of the article (forklog.media) is your site or not? If it is not your site, you are better to write down the introduction of the topic on the OP with your own words! And it will be more interesting if you also add your own opinion there. So, you are not only asking people but you also try to deliver an opinion.

About the Bitcoin, I think it is clearly enough that it is still a speculative asset for now. Even it is the safest coin in crypto investment, but it also has high risk, especially about the volatility in price. While to call it as the internet’s native money, I doubt if all online/digital businesses use Bitcoin as a primary payment tool.

If I'm not mistaken, bitcoin was design to be as micro-payment scheme initially, but when it started trading, from $.1 - $10k, it become a speculative asset, and sometimes is treated as SoV (store of value).

We could have a whole day arguing about this, but the point is that many people are using bitcoin with that reasons. If it's not an effective means of payment so be it, we really can't blame those critics. They won't change their stance on bitcoin. On the other hand, we crypto enthusiast are enjoying what Satoshi invented so we don't care what those haters are going to say today or 10 years from now, it won't change.

It is true. and I always say that cryptocurrency, specifically bitcoin will complement the flaws and conventional systems use fiat, not replace. However, bitcoin is better the system but there is another side that will be more effective if it is resolved with fiat.

Bitcoin is a commodity trading and storage of assets that have high value with high risk as well. High price volatility is also widely used to take profit, this is a potential and risky job. So don't just be affected by the bad or the good and get dizzy thinking about it, but focus on getting what we can achieve here to get profit.

They need to look at numbers and not take facts out of their asses. If Bitcoin is not a good store of value then how come all people who bought before Winter of 2017 have more than they had in terms of real value?

If you bought a car in 2013-17 with your fiat and someone else bought Bitcoin that other guy can now buy 10 or more of similar new cars. To me that's an obvious case of growth and that's more than I need from a store of value.

Hi! I'm kinda related to this online magazine. Our goal is to explain what's up with crypto and why it's important. I share our posts here on Bitcointalk because I believe that the community may benefit from these features.

I hope you don't end up like this guy, I sincerely apologize to everyone (https://bitcointalk.org/index.php?topic=5219907.0). And really genuine and doing everything in good faith for sharing your links into a website you admittedly

Otherwise you are just using this community to drive traffic into your website. Very shady tactic and frown up.by majority of the members here.

Edit: Just what I thought: List of advertising shills. Mods please review and ban as appropriate. (https://bitcointalk.org/index.php?topic=5223412.0).

Obviously, with Bitcoin it solves problems that with FIAT money are not, especially for transfers that are made in a very short time, they are immediate, the conception of some people according to the Internet is subjective, at a digital level the FIAT money moves, Bitcoin is It takes into account much more power, for having a large share in the speculative market, which is not the case with stable currencies. The impact of Bitcoin is so great that it can be taken many times as a refuge from deflationary economies in countries with crises, very similar as they do with gold.

I read something in the past about some histories of bitcoin, it is said that in the program there is a part there that is meant for gambling hence it is said to be meant for gambling, poker to be exact as far as I know. We don't know for sure what the creator wants but he said that there will be a lot of transactions in the future or none, it is a simple prediction but all we know is that it is usually for peer to peer transactions, payment and that is not the path it really took.

BTC can be all of what's mentioned above and that's the beauty of it

But it's a reliable store of value. It's easy to store, you fully control your keys, and its long term value is increasing,

https://pbs.twimg.com/media/ENPVB_EUYAAYAEj?format=jpg&name=large


But it's reliable for long term store of value.


It's an effective speculative asset to invest in a reliable store of value.


It can be all of them. 8)

This report says nothing new.We all know that the Bitcoin price is very volatile and cryptocurrencies "face regulatory risks" in most countries,due to the fact that their status isn't clear-are they an actual currency or a digital financial asset.The guy,who created the report asks the same question,we've been asking since the creation of bitcoin.So far,BTC is mostly used for speculation,but I wish that it will move into the field of retail payments,if it gets recognized by the authorities as a real currency.

I want to debate some of the so-called disadvantages of Bitcoin that are listed in this article, namely :

1. High volatility - The high volatility of some fiat currencies like the Zimbabwean Dollar and Venezuela Bolívar does not render it useless as acurrency, because people still use it to transfer value, so why is the high volatility in Bitcoin a problem? Yes the merchants might favor a more stable currency, but they would still accept it as a currency, no matter how volatile it is.

2. Governments prohibiting or banning Bitcoin. Is this a Bitcoin problem or a political agenda? Governments wants full control and also protection of their local reserve currency. So, if they cannot manipulate or control it, they ban or restrict it's use. Bitcoin adoption and use will continue in these countries and the governments will lose even more control.

3. Transaction reversibility not possible. Yes and who says that is a bad thing? Financial freedom comes at a price, because you cannot rely on a Bank <third party> to control your actions. Merchants are happy about this, because once they are paid, the transactions cannot be reversed.  ;)

4. The loss of a private key means the loss of funds. That is how it should be, because people give control over their finances to third parties and these third parties control their wealth. You are given more responsibility to guard your own wealth. <Make sure you have multiple copies of your private key, stored in several different locations.>  ::)

Currently, still in the earliest phase, bitcoin is used by a few people and with some whales that can make good and bad weather. This is why it is still speculative. In a few years we will be here to talk about it instead as "Internet's Native Money" and then everything will be much clearer.

Bitcoins getting recognized by the legal authorities is not possible on a greater scale. We all know the benefits of bitcoins only because we are deeply connected to the roots of bitcoins but any legal authority might not have this deep relations with bitcoins which would only end up for them as a coin nothing more than a bubble and this would never allow them to start regulating the flow of bitcoins.

There needs some more awareness about bitcoins and also some major changes needs to be done to the blockchain network which might than serve the nation with stability and transparency but it would make bitcoins to lose their original properties and hence a lot of people who already have been regulating bitcoins might loose interest from those.

It was never something to be considered something similar to gold and silver which are stores of value. It's more like an asset, a medium, one that lets the users transact anonymously so that they can retain their wanted privacy. As for its high volatility, I'm pretty sure it could be removed/fixed once a stable line of supply is achieved? I mean, it's not like BTC has an infinite supply. Just that currently, it's still at it's infancy and supply is still currently increasing by the day. Once it achieves a stable supply though, it wouldn't move as much as compared to today.

As for what the government says, let them parade on their own. It's not like their using the coin, the community is. And most, if not all, like it or at least, accept its usage. Even if the government does try to reduce its influence, as long as BTC stands as a medium that the community likes and accepts, it won't exit the world.

A story has two sides always. And for this topic, Bitcoin has people opposing and cheering for it. We may have been repeatedly hearing about Bitcoins advantages such as its easy storage value, low and predictable inflation rate, censorship resistance, low costs and speed in transaction, and security. However, there are also disadvantages that hinders Bitcoin's acceptance among people. This includes its speculative property, high volatility, deflationary nature, transaction irreversibility, and real problems when some things were ommitted.

But I think before all of these points, it is necessary not only to consider the country and its economy, it is better to survey people and understand the different modes of living of people. Depending on what country and way of living, it should be considered for the global community the feeding of Bitcoin among users. It is very unlikely for people to trust something they don't know or doesn't experience. So I think a trial that is first hand must be given.

I'd rather call bitcoins as a asset for speculation because bitcoins do not possess the functions and characteristics of any financial monetary system which makes bitcoins a currency used online to speculate the markets and earn profits from the high volatility nature of bitcoins. Bitcoins needs a lot of renovations in order to get accepted by the globe as a medium of payment.

High volatility nature makes bitcoins stay far away from getting accepted as a mean of payment because the value keeps on changing ever hour which would not give a stable source of payments for local business operators. There have been a lot of such articles stating views from different individuals but at last it depends on us about which article to trust and take the rest for granted.

Hi Baofeng! Thanks. I've responded to that accusation. I deem it an explicit witch-hunt.

Maybe some people say that Bitcoin is not a good store of value because it contradicts the definition. A store of value simple refers to an asset that has a market value is not depreciating or decreasing over time such as Gold. Bitcoin's market value is volatile, or changing from time to time; including backdrops in its market price which makes it risky to some people, despite of the fact that its market value is increasing for a long run especially in the previous years.
To make it clear, it is now a new form of investment, because storing fiat to crypto or Bitcoin perhaps, most of the time, is to earn profit over time given that its market value is increasing in the long run.

There will be more years to come for sure before that day would come when Bitcoin is used by most of the people, and I think it is when its market value is stable.