Bitcoin Price VS Bitcoin Usage

[AbuBhakar]

Obviously Bitcoin price; the amount Bitcoin is worth at a particular time, and Bitcoin usage; the rate at which Bitcoin is adopted and used. The above phenoms surely has implications, one may be tempted to as; which is more important? The interesting fact is, price affects usage both positively and negatively. An increase in price attracts high usage, and vice versa. Conversely usage also affects the long term pricing of Bitcoin. Price has short term implications, usage and acceptance has long term implications. From the aformentioned, I can conclusively say; Price and Usage are phenoms that can influence the volatility of Bitcoin

Both are important and related to each other.

Price is heavily influenced of the usage since no one will be interested on buying Bitcoin if there’s only limited usage for it. While the usage will decrease if the value of Bitcoin is always dumping since it gives a high level of risk to potential user that will purchase the coin.

Both are important and there’s no less important imho because everyone considers every aspect of Bitcoin for their future investment.

As holder, I rarely use my Bitcoin but that doesn’t mean I’m not utilizing its usage since I’m storing its value for future investments.

[Patikno]

Obviously Bitcoin price; the amount Bitcoin is worth at a particular time, and Bitcoin usage; the rate at which Bitcoin is adopted and used. The above phenoms surely has implications, one may be tempted to as; which is more important? The interesting fact is, price affects usage both positively and negatively. An increase in price attracts high usage, and vice versa. Conversely usage also affects the long term pricing of Bitcoin. Price has short term implications, usage and acceptance has long term implications. From the aformentioned, I can conclusively say; Price and Usage are phenoms that can influence the volatility of Bitcoin

I don't think we can differentiate between the two, as they are inextricably linked. Simply put, supply and demand for a good influence its value or price. Meanwhile, the usage of a good is one factor that increases demand for it. So, when we talk about Bitcoin, the same applies. I hope you understand my point. Additionally, you need to realize that Bitcoin is already widely used, and has the potential to become even more widespread, plus Bitcoin has scarcity, so you should know that it will be an added value for Bitcoin's price increase.

For reference, perhaps you need to read things regarding to our discussion this time : investopedia.com - What Determines Bitcoin's Price?

[asriloni]

Price and Usage are phenoms that can influence the volatility of Bitcoin

I'd rather believe Bitcoin's usage is the reason why became volatile. The volatility came when usage bring demand, which is making the price of Bitcoin up and down. Basically, Bitcoin usage is the root that create the value to the Bitcoin itself.

You can do tx with others without revealing your identity use Bitcoin. You can also use it to store your value and hedging against the inflation. You can also use it to get some yield by used it in some defi for Bitcoin. It's all create the demand to buy and sell for Bitcoin. In conclusion, Bitcoin usage was the factor why it has value atm.

[hedgeh0g]

 

Obviously Bitcoin price; the amount Bitcoin is worth at a particular time, and Bitcoin usage; the rate at which Bitcoin is adopted and used. The above phenoms surely has implications, one may be tempted to as; which is more important? The interesting fact is, price affects usage both positively and negatively. An increase in price attracts high usage, and vice versa. Conversely usage also affects the long term pricing of Bitcoin. Price has short term implications, usage and acceptance has long term implications. From the aformentioned, I can conclusively say; Price and Usage are phenoms that can influence the volatility of Bitcoin

I believe that Bitcoin usage has very little effect on its price. Remember examples like Litecoin or Tron, when the Bitcoin network was polluted and severely paralyzed by Ordinals. The prices of the above-mentioned altcoins did not change, although I bought them with the expectation that because everyone started using them vigorously, the prices of these altcoins would start to rise. But this did not happen.

Therefore, I believe that the statement that Bitcoin's price is related to its usage is incorrect.

[bubilas]

Obviously Bitcoin price; the amount Bitcoin is worth at a particular time, and Bitcoin usage; the rate at which Bitcoin is adopted and used. The above phenoms surely has implications, one may be tempted to as; which is more important? The interesting fact is, price affects usage both positively and negatively. An increase in price attracts high usage, and vice versa. Conversely usage also affects the long term pricing of Bitcoin. Price has short term implications, usage and acceptance has long term implications. From the aformentioned, I can conclusively say; Price and Usage are phenoms that can influence the volatility of Bitcoin

I believe that Bitcoin usage has very little effect on its price. Remember examples like Litecoin or Tron, when the Bitcoin network was polluted and severely paralyzed by Ordinals. The prices of the above-mentioned altcoins did not change, although I bought them with the expectation that because everyone started using them vigorously, the prices of these altcoins would start to rise. But this did not happen.

Therefore, I believe that the statement that Bitcoin's price is related to its usage is incorrect.

The price of Bitcoin is so high not because someone uses it everywhere, we all know that. After all, stablecoins or altcoins are used much more widely by cryptocurrencies. Well, but the price of Bitcoin is so high because it has proven its reliability throughout its existence. Yes, it was problematic to use it when Ordinals were introduced, but Bitcoin has never been hacked.
And it cannot be banned centrally, as it happens with stablecoins.
And Bitcoin is independent. And there are no teams of developers who can ruin the coin with their management.

[Mrbluntzy]

Usage or the utility of Bitcoin is what gives rise to the demand and accumulation of Bitcoin. The demand increase means that many people are buying and utilizing it which in return acts as the price propeller, without continuous demand and usage the price will likely not be as volatile as it can be most of the time especially during bear and bull season when there is either more buyers or more sellers. The demand or usage of Bitcoin is what drives the price to increase and the increase of price is very necessary, either ways, both usage and price increase is very important.

[Ucy]

Bitcoin should be mostly used as store of value and protection against inflation, that is what it's mostly suitable for especially on the mainchain. You can also use it to buy, sell or pay for products/services if you want to, but try to make sure what you wish to pay for with it is equally or more valuable, or better still, should be as profitable as Bitcoin. Not a good idea to spend your bitcoins on bad or less profitable things so that it wouldn't be like a waste of your bitcoin that should be multiplying in value/price if it had been saved.
Another important thing, Bitcoin is more suitable for small, medium to large (rather than tiny) transactions.


Very few to zero cryptocurrencies have been able solve diverse usage limitations issue without sacrificing on decentralization and other Blockchain principles. This is what Bitcoin community is working hard to solve at the moment. There are easy but flawed/dangerous solutions that the community prefers to ignore but massively adopted by other crypto networks, which would be creating weak price bubbles for their coins that could eventually burst when they get too weak. So, for now, Bitcoin should be mostly used as a store of value or hedge against inflation. Price of Bitcoin tends to increase faster when it's used this way. And it's both long and short-term price benefits.
We have to wait to see how fees/network react to massive price increase. It wasn't too high or conjested in recent past, which is interesting. Too much use on the mainchain would probably have led to high conjestion. Let's see what happens at 150k to 180k price increase

[Asiska02]

As holder, I rarely use my Bitcoin but that doesn’t mean I’m not utilizing its usage since I’m storing its value for future investments.

Holding on to your bitcoin investment is like you already adopting it, and adoption also in synonymous to its usage which then comes about the price increase of it. The price of bitcoin is what is attracting investors to want to invest in the asset, if the price is not encouraging and not rising, we will not see more adoptions from this investors and with time, it will become an obsolete asset. We may not know how our little influence has helped in keeping the price rising, but it’s our enthusiastic belief in it that is making us to hold on to it and help the price maintain a consistent momentum to the upside in the long run.

[lionheart78]

It is a chain reaction that triggers the volatility of Bitcoin.  Usage, price, and demand is interlinked with each other and react to the supply, which then triggers the fluctuation of the market.  The Bitcoin market won't operate if one of these is missing.  So it is natural to see volatility if the market is actively operating since supply and demand never stop balancing each other in every transaction.

As the Bitcoin price increases, the Bitcoin usage will be empowered, thus this utility will increase the demand for Bitcoin.  Then, with the demand, it will react to the supply dictating the price changes in the market, thus causing price fluctuation or volatility.

[Catenaccio]

It is a chain reaction that triggers the volatility of Bitcoin.  Usage, price, and demand is interlinked with each other and react to the supply, which then triggers the fluctuation of the market.  The Bitcoin market won't operate if one of these is missing.  So it is natural to see volatility if the market is actively operating since supply and demand never stop balancing each other in every transaction.

As the Bitcoin price increases, the Bitcoin usage will be empowered, thus this utility will increase the demand for Bitcoin.  Then, with the demand, it will react to the supply dictating the price changes in the market, thus causing price fluctuation or volatility.

Two insightful articles on Bitcoin adoption.

Bitcoin Adoption: Rates, Charts, and 2024 BTC Prediction.
You’re Still Early: An Objective Look At Bitcoin Adoption.

We are still early and if we are able to realize it sooner than the others, as well as become Bitcoin investors sooner than the others, we will have very good advantages in our Bitcoin accumulations and Bitcoin portfolios for future weath growth.

[@nn@_pen9]

Obviously Bitcoin price; the amount Bitcoin is worth at a particular time, and Bitcoin usage; the rate at which Bitcoin is adopted and used. The above phenoms surely has implications, one may be tempted to as; which is more important? The interesting fact is, price affects usage both positively and negatively. An increase in price attracts high usage, and vice versa. Conversely usage also affects the long term pricing of Bitcoin. Price has short term implications, usage and acceptance has long term implications. From the aformentioned, I can conclusively say; Price and Usage are phenoms that can influence the volatility of Bitcoin

In my opinion, all of these are interconnected. Not only that, but I also think that Bitcoin's supply is limited or scarce. Due to its limited nature and potential to retain value over the long term, it makes it a popular choice for those seeking to protect their wealth from inflation or economic instability. Furthermore, Bitcoin's rising price often attracts more investors and new users. High prices can increase public confidence in Bitcoin as a valuable asset.

The level of adoption among various groups and other Bitcoin users, including individuals, government institutions, and private companies, can influence the price in the long term. The more people who trust and use Bitcoin for transactions in terms of payments and other things, the greater the potential for large demand for Bitcoin, which can increase its price. Conversely, if usage decreases, demand may also decrease, which can cause the price to decline.

[Bitcoin_people]

People are attracted to Bitcoin and invest in it because of its high price. Bitcoin is currently a valuable asset that people like to use, mainly because of its high price, which has made it usable by most people. If the price of Bitcoin had not entered a high position, many people would not have used it, so I think the reason why people like Bitcoin more is because of the price of Bitcoin. Although when people use Bitcoin, they plan to hold it for a long time, those who use Bitcoin are certainly very confident in Bitcoin. If you plan to hold Bitcoin for a long time as an investment, you will definitely use it in the hope that its value will increase in the future. Basically, you will use Bitcoin only because Bitcoin has a bright future and will offer high value in the future.

[Boiboi20]

Price and Usage are phenoms that can influence the volatility of Bitcoin

For sure, i.e. when BTC price drops, weak hands start to sell their BTC's, and this cause the price to drop even further, that is why a lot of people believe that with fewer weak hands, there would be lesser volatility. Take note that these weak hands are also the ones caught in the fomo rush when the price starts to rise again as they rush to buy the coins they sold.

However, as for BTC usage, it can mean a lot of things based on BTC's use cases, i.e. it could be holding BTC, spending BTC, setting up BTC strategic reserve, buying BTC shares through etf, etc. Demand or adoption obviously influences BTC price movement, since we already have a capped supply, a high demand would move the price upward.

Weak hands will always exist because people will always have reasons to sell their Bitcoin. There will always be new entrants to the market that will ignorantly dump coin into the market.

Bitcoin awareness will increase adoption, which ultimately leads to an increase or decrease in price. Bitcoin use could be a huge dump which would affect the price adversely.     

I think that the more people start using bitcoin for payments in their daily lives, and the more governments begin to adopt it into their systems, the more regulations will be imposed on it. As a result, its price may become less volatile, the fluctuations won’t be as significant, and investing in bitcoin may become less profitable compared to other assets.

Both price and usage really effect bitcoin volatility when the price drop weak hand usually panic and sell which pushes the price even lower then when it start rising again those same people rush back in creating even more swings.
However usage is another factor it is not just about spending BTC it could be holding using it as reserve or buying through ETFs since supply is fixed adoption and demand naturally move the price but weak hand will alway exist because there all always be a new people who panic sell without thinking long term in the end more awareness and real world adoption should help reduce volatility but sudden dumps or panic move will alway be part of the game.

[Man of peace]

I think both of them works hand to hand,in the sense that the increase in price was because of the large numbers of demands in the market and the high rate of demand is also because of the value ability of the assets leads to the increase in price,so it was collaboration of both that enhanced the Bitcoin to become what it's today.

And when the price drops the user have the advantage of acquire more Bitcoin asset, because when the price fluatrate,the fear of losing money came over to some people that makes them start selling their coins..

[kotajikikox]

Obviously Bitcoin price; the amount Bitcoin is worth at a particular time, and Bitcoin usage; the rate at which Bitcoin is adopted and used. The above phenoms surely has implications, one may be tempted to as; which is more important? The interesting fact is, price affects usage both positively and negatively. An increase in price attracts high usage, and vice versa. Conversely usage also affects the long term pricing of Bitcoin. Price has short term implications, usage and acceptance has long term implications. From the aformentioned, I can conclusively say; Price and Usage are phenoms that can influence the volatility of Bitcoin

This is not really news. If you understand economics, the market, the demand and supply factors you will understand why bitcoin's volatility depends on how much people are wanting to have it and use it. Understanding bitcoin means understanding all these economic factors because those are what drives the market forward.

[Franctoshi]

Obviously Bitcoin price; the amount Bitcoin is worth at a particular time, and Bitcoin usage; the rate at which Bitcoin is adopted and used. The above phenoms surely has implications, one may be tempted to as; which is more important? The interesting fact is, price affects usage both positively and negatively. An increase in price attracts high usage, and vice versa. Conversely usage also affects the long term pricing of Bitcoin. Price has short term implications, usage and acceptance has long term implications. From the aformentioned, I can conclusively say; Price and Usage are phenoms that can influence the volatility of Bitcoin

Usage determine the price, the more people wants to use Bitcoin in their day-to-day transactions the more value it will become and hence demand increases which drives the price up, comparing Bitcoin price and its Usage, I think it worths what price it should be or its either being undervalued because people are still yet to catching the full potential benefit of Bitcoin technology and as digital currency, and store of value.

[DiMarxist]

Op I don't know how you understand the see the bitcoin movement as for me, it is the uses this people that affect the price of bitcoin. The more people use it the more it increases and that is where demand and supply comes to play in the usage of bitcoin. The demand makes the supply scarce and the scarce make it costly. So the price at a particular time determine by the number of usage (demand)  which would make the supply high.
People buy when the op price is low and sell when the price is high so when the price is high the level of selling is low and when the price is high the selling level is high.

[GeorgeJohn]

Obviously Bitcoin price; the amount Bitcoin is worth at a particular time, and Bitcoin usage; the rate at which Bitcoin is adopted and used. The above phenoms surely has implications, one may be tempted to as; which is more important? The interesting fact is, price affects usage both positively and negatively. An increase in price attracts high usage, and vice versa. Conversely usage also affects the long term pricing of Bitcoin. Price has short term implications, usage and acceptance has long term implications. From the aformentioned, I can conclusively say; Price and Usage are phenoms that can influence the volatility of Bitcoin

It is obvious that bitcoin just gain a popularity but the total number of people who knows Bitcoin are not the total number of the usage in the society, but people may think that based on the information that is circulating about bitcoin News that people are holding Bitcoin why it is a few people who discuss about Bitcoin that is holding Bitcoin currently, so usage of bitcoin doesn't matter