Store of Value: Is That Enough for Bitcoin?

[CryptoBry]

There is no question that Bitcoin right now is facing big challenges thrown its way to stardom...with many of these problems existing for a long time that we are really wondering why it took so long for the solutions to arrive. Are we not now reaping the other side of decentralization so that no one can decide for the whole network -- in other words there is a big gaping leadership vacuum in Bitcoin?

We are always told that Bitcoin is a store of value, just like its real and physical gold counterpart. But the question is: Is that enough for Bitcoin to continue in rising in terms of value and popularity? Please share your opinion and maybe also ideas on how these problems can be gradually solved...

[tech72]

Well, initially the goal of Bitcoin was to replace fiat currency and be a unanimous currency for all people of world to exchange. But right now Bitcoin is more like gold and a store of value. With the prices so high, the transaction fees and times also have increased. This is a gap which Bitcoin can't fill and so it was formed with an intention that new forked coins will fill that gap. The only solution would be to let Bitcoin be the store of value and one of its forked coins be the real world use coin for day to day transactions.

[Xavofat]

Is that enough for Bitcoin to continue in rising in terms of value and popularity?

Well, it's difficult to predict.  It can, because Bitcoin's value and popularity are not necessarily based on logic.  Something can become very valuable and/or very popular based on little merit.

It's also definitely possible because first-mover advantage is very relevant in a system where the currency which is already the most popular is therefore the most secure (and Bitcoin's development is also likely to be the most secure over time).

To some extent though, Bitcoin's popularity is a result of its utility - losing its original use could have a terrible impact over multiple years

Well, initially the goal of Bitcoin was to replace fiat currency and be a unanimous currency for all people of world to exchange.

Not really.  Read the whitepaper.

[talkbitcoin]

with many of these problems existing for a long time that we are really wondering why it took so long for the solutions to arrive.

the solutions were there for a very long time, or did you miss the ~3 year old scaling debate?
the issue was to reach a solution that everyone agrees about and also at the same time keep bitcoin decentralized and not lead to centralization like increasing the blocks and making it impossible for regular people to run full nodes in the near future and centralize them.

We are always told that Bitcoin is a store of value, just like its real and physical gold counterpart. But the question is: Is that enough for Bitcoin to continue in rising in terms of value and popularity?

no it definitely is not.
in my opinion the only reason why anyone ever pays any attention to bitcoin for long term is because it is a currency. otherwise the short term attentions and any value due to them is useless.

[squatter]

There is no question that Bitcoin right now is facing big challenges thrown its way to stardom...with many of these problems existing for a long time that we are really wondering why it took so long for the solutions to arrive. Are we not now reaping the other side of decentralization so that no one can decide for the whole network -- in other words there is a big gaping leadership vacuum in Bitcoin?

I sort of hate this phrase, but it applies here: It's a feature, not a bug. Developers of other protocols are free to explore governance structures, but I don't see a problem with Bitcoin's. It has always adhered to traditional open source ethos and development structure. That has always produced top-notch software with perpetual uptime.

The real downside of decentralization is its inefficiency and redundancy. Every node uploading/downloading every transaction and every block? It doesn't scale. That's why Lightning is such a big deal; it addresses the linear scaling problem. And it might have been ready already if not for 3 years of infighting about how to scale.

We are always told that Bitcoin is a store of value, just like its real and physical gold counterpart. But the question is: Is that enough for Bitcoin to continue in rising in terms of value and popularity? Please share your opinion and maybe also ideas on how these problems can be gradually solved...

In a word: yes. I think the market demand speaks for itself. As usual, speculators usually front-run actual utility. But I'm very impressed with Core and all the work that has gone into the Lightning Network.

[d5000]

We are always told that Bitcoin is a store of value, just like its real and physical gold counterpart. But the question is: Is that enough for Bitcoin to continue in rising in terms of value and popularity?

In my opinion, it's not enough. It can rise a lot more in terms of value, but not in a sustainable way.

Without any connection to the real economy, as a pure "speculative" asset, there is no way to tell the "fair" value of Bitcoin. The problem is that while Bitcoin's price may be currently rising, people are buying it because it's rising, and NOT because it could be stable at this price.

That is a big difference. For example, we could now go magically sideways for some months. It would look even good, it would demostrate Bitcoin's stability to the world. However, that wasn't what most buyers expected. Many would sell, because they have no way to tell what it's "worth".

The solution would be - more use as a currency. If merchants are accepting BTC, they are "backing" the value, even if they later change their BTC into fiat. A solution to the scalability problem is the key to make that possible. Apart from the much-hyped LN, I would intensify investigation in alternative scaling technologies - pegged sidechains/drivechains, extension blocks, and mini-blockchains (e.g. like in Cryptonite).

[Dexion]

yes, this is a tough day for bitcoin. everyone is losing interest to bitcoin. will they leave bitcoins?
yes, your assessment is right, bitcoin is not enough just to increase value and popularity. but bitcoin should also pay attention to network issues, security, and costs.

[hatshepsut93]

Bitcoin is not just digital gold, Bitcoin is going to become more like a base protocol layer for new networks and chains that are connected to its blockchain - most small and medium value transactions will happen there, and only the biggest multi-million dollar worth transactions will happen on the main chain - those transactions will belong to very wealthy individuals and big companies.

Watch Andreas' videos to learn more: https://www.youtube.com/watch?v=rc744Z9IjhY

[patt0]

We are always told that Bitcoin is a store of value, just like its real and physical gold counterpart. But the question is: Is that enough for Bitcoin to continue in rising in terms of value and popularity? Please share your opinion and maybe also ideas on how these problems can be gradually solved...

Actually I think were always told that bitcoin would act as a currency, and that was actually the intend mentioned in it's whitepaper. What people then realized, is that because a large number of factors, like the scalability problems and the high volatility, bitcoin would work best (at least for this time being), as a store of value, and even start calling it gold 2.0. This actually fits bitcoin right now, and I'm ok with it. Gold has been around for ages, and even though it's hard to mine, and and also quite hard to store or spent, people still use it because they confer it value.
Bitcoin is much easier to use, mine an even spent than gold, so I don't know why people wouldn't like to invest in it, just like they did with gold.

[kpcian]

There is no question that Bitcoin right now is facing big challenges thrown its way to stardom...with many of these problems existing for a long time that we are really wondering why it took so long for the solutions to arrive. Are we not now reaping the other side of decentralization so that no one can decide for the whole network -- in other words there is a big gaping leadership vacuum in Bitcoin?

We are always told that Bitcoin is a store of value, just like its real and physical gold counterpart. But the question is: Is that enough for Bitcoin to continue in rising in terms of value and popularity? Please share your opinion and maybe also ideas on how these problems can be gradually solved...

At first, I want to say that Bitcoin is an open source of a currency, It's becoming a popular currency for the purchasing purpose. It will become a mature currency when it will be used for at everywhere. After that Bitcoin can be used for the saving purpose. So you have to make sure that Bitcoin transaction has got a platform then Bitcoin storing will be phenomena.

It's true that saving Bitcoin will bring a lot of profit but it's also true the demand of Bitcoin should be higher then Bitcoin popularity will also high. then automatically Bitcoin value will rise up in futere.

[TorbiK]

It seems to me that Bitcoin has lost his values. Rather in the last three months 80% of the new capital that came to Bitcoin came from people for whom Bitcoin is just a name and this name is growing very rapidly in price. This is his current meaning. An asset for speculation. Smart money and general understanding in this market is very small. Today, the greed of people reigns here.

[audiman]

That not enough , as soon as the market find a more profitable Store of Value , every one will say goodbye to bitcoin

[hessanseen]

I think investors who keep coming in will make the community of encrypted money develop rapidly. In addition, there are one or two forks or other potential altcoin that can help it.

[TheUltraElite]

It seems to me that Bitcoin has lost his values. Rather in the last three months 80% of the new capital that came to Bitcoin came from people for whom Bitcoin is just a name and this name is growing very rapidly in price. This is his current meaning. An asset for speculation. Smart money and general understanding in this market is very small. Today, the greed of people reigns here.

While it is true that greed reigns and moral values are low but how does this come up with bitcoin price? Bitcoin has its own software - the blockchain which is available on github in case you dont know and then there is also the acceptance of bitcoin.

To counter your baseless argument I would say - think about USD. Does it have any value of its own? Its just another paper-printed "currency note" which is agreed to have a value - a legal tender.

Bitcoin is similar to that and in no ways is it an asset for speculation. Rather that would apply to shitcoins.

[Red-Apple]

no it is not enough at all.
specially since we are talking about a competing market where bitcoin can be simply replaced by another cryptocurrency if it fails to be able to scale in time.
so far we have been keeping up with the scaling but with the recent sudden increase in adoption which was ridiculously fast, things got out of hand and we fell behind. now we just have to catch up to scaling requirements of this new adoption and things will be fine but we have to do it fast.

[krishnapramod]

Bitcoin's primary function as a currency is the reason it got adopted in the beginning, but if you look at the last few years, the adoption/speculation is purely based on Bitcoins utility as a store of value, its secondary function. Currently investors are just looking at the secondary function, they just want to own Bitcoin, not spend it. Bitcoin is a better currency than fiat, but it's not going to replace it and right now the market sentiment isn't centered around Bitcoin as an alternative currency, but to store wealth.

When a currency loses its store of value, or more accurately when a currency is perceived to lose its future purchasing power, it fails to function as money.

IMO, in the long-term, without being a peer-to-peer payment system, store of value isn't going to be enough, but in the short-term, Bitcoin functioning as a store of value is not only necessary for adoption, but also to make sure that it would lead to a solid Bitcoin economy where it functions as a currency, as a reliable medium of exchange.