Is Bitcoin going to be a Store of Value or a Legal Tender Currency?

[nondormomai]

so the thinking about making it a legal tender is easier said but all the government will hardly allow it to become a normal currency to be use.

That is a very good point, IMHO.

[betswift]

so the thinking about making it a legal tender is easier said but all the government will hardly allow it to become a normal currency to be use.

That is a very good point, IMHO.

Governments want to control the things they "allow", so to speak.
There would be the answer to why they wouldn't do it with Bitcoin.

[nondormomai]

As far as I can see, BTC = LTC in more problematic for Govs than BTC = SOV.
So Govs will be forced to accept BTC as SOV, in order to avoid BTC = LTC.

That is my argument.

Now (december 2024), i see some sings in supporting my thesis:
1) CBDC is far to be implemented, in USA or in Europe, and the overall project seems quite stationary
2) China's ban is about to be overcome, since it has not been effective at all
3) Trump had to remark that the only currency for OIL trade will be USD
4) EUR interest rate will continue to decrease by ECB policy
5) USD interest rate will stay or will continue to decrease if inflation will stop (and Trump can use an OIL production with this purpose)

Do you have different argument to invalidate them?
Please, share.

[EarnOnVictor]

Let me make this short, Bitcoin is undoubtedly a store of value, the evidence is all over, it's an asset and a very appreciative asset for that matter. It continues to hit new ATHs, so it's logical. But the legal tenderness is so unclear yet, there are still enough to unravel over time before hope can be seen in that regard. I suspect that if the US strategic reserve plan could work, many countries would follow and that could cause many more countries to make further adventurous plans about Bitcoin, of which the legal tender is inclusive. However, if it fails, I am sorry for what will happen afterwards, it can't be easy on the coin.

[fikrett]

Let me make this short, Bitcoin is undoubtedly a store of value, the evidence is all over, it's an asset and a very appreciative asset for that matter. It continues to hit new ATHs, so it's logical. But the legal tenderness is so unclear yet, there are still enough to unravel over time before hope can be seen in that regard. I suspect that if the US strategic reserve plan could work, many countries would follow and that could cause many more countries to make further adventurous plans about Bitcoin, of which the legal tender is inclusive. However, if it fails, I am sorry for what will happen afterwards, it can't be easy on the coin.

The world, and the governments for that reason - are very slow in taking and digesting something new for themselves, when they have something else, and tested it, - already, through and through, bit by bit.
However - we still see that some talk about Bitcoin and how they would try to do something with it, so hope is not lost. And 2025 should be a good year for sure.

[Minor Miner]

Let me make this short, Bitcoin is undoubtedly a store of value, the evidence is all over, it's an asset and a very appreciative asset for that matter. It continues to hit new ATHs, so it's logical. But the legal tenderness is so unclear yet, there are still enough to unravel over time before hope can be seen in that regard. I suspect that if the US strategic reserve plan could work, many countries would follow and that could cause many more countries to make further adventurous plans about Bitcoin, of which the legal tender is inclusive. However, if it fails, I am sorry for what will happen afterwards, it can't be easy on the coin.

Given what has been happening, it is clear that the world is looking at bitcoin as a store of value rather than a currency. Even early investors like us, who understand the purpose of bitcoin being created are looking at bitcoin as an investment asset. Not too many people want to use it as a currency, so don't expect the world to consider it as a currency.

Even if the US succeeds with its plan to make it a strategic reserve, I don't think they will make it a currency because that would somewhat threaten the dominance of the USD. The power of the United States comes from the USD and they will never allow any currency to threaten the dominance of the USD.

[serjent05]

Let me make this short, Bitcoin is undoubtedly a store of value, the evidence is all over, it's an asset and a very appreciative asset for that matter. It continues to hit new ATHs, so it's logical. But the legal tenderness is so unclear yet, there are still enough to unravel over time before hope can be seen in that regard. I suspect that if the US strategic reserve plan could work, many countries would follow and that could cause many more countries to make further adventurous plans about Bitcoin, of which the legal tender is inclusive. However, if it fails, I am sorry for what will happen afterwards, it can't be easy on the coin.

The world, and the governments for that reason - are very slow in taking and digesting something new for themselves, when they have something else, and tested it, - already, through and through, bit by bit.
However - we still see that some talk about Bitcoin and how they would try to do something with it, so hope is not lost. And 2025 should be a good year for sure.

Things in the government level is not as easy as we think.  There are lots of legal factors need to consider.  Unlike a personal matter, government needs to adhere with the constitution, the foreign relation, the economics of the country, the companies that will be negatively affected and so on.  They need to study how it will impact their "backers" and at the same time how it will affect their financial laws.  So it will really take sometime unless the leader does not care any other things but just to invest in Bitcoin like what El Salvador leader had done.  Invest first and all the needed things will follow.  That what I believe the government of El Salvador did when they decided to invest in Bitcoin.

As for being a store of Value or a Legal Tender currency, Bitcoin is best suited for Store of Value, the government will have a hard time implementing Bitcoin as Legal Tender Currency because they don't have control over it.

[betswift]

Let me make this short, Bitcoin is undoubtedly a store of value, the evidence is all over, it's an asset and a very appreciative asset for that matter. It continues to hit new ATHs, so it's logical. But the legal tenderness is so unclear yet, there are still enough to unravel over time before hope can be seen in that regard. I suspect that if the US strategic reserve plan could work, many countries would follow and that could cause many more countries to make further adventurous plans about Bitcoin, of which the legal tender is inclusive. However, if it fails, I am sorry for what will happen afterwards, it can't be easy on the coin.

Given what has been happening, it is clear that the world is looking at bitcoin as a store of value rather than a currency. Even early investors like us, who understand the purpose of bitcoin being created are looking at bitcoin as an investment asset. Not too many people want to use it as a currency, so don't expect the world to consider it as a currency.

Even if the US succeeds with its plan to make it a strategic reserve, I don't think they will make it a currency because that would somewhat threaten the dominance of the USD. The power of the United States comes from the USD and they will never allow any currency to threaten the dominance of the USD.

Bitcoin found its use in something different than it was envisioned - and that's fine.
It's a first step to something bigger - and it will be an example set to all of the world and for the crypto world in general, in the case of success.

[nondormomai]

As for being a store of Value or a Legal Tender currency, Bitcoin is best suited for Store of Value, the government will have a hard time implementing Bitcoin as Legal Tender Currency because they don't have control over it.

Totally agree.

[Ale88]

Very interesting post. Do you think the association of crypto with fraud/crime will ever completely go away?

I think that this type of association will keep showing up for a good while, mainly because there actually are people who actually use cryptocurrencies for illegal activities so whoever wants to try to talk shit about bitcoin this is one the main arguments. Of course the percentage of people using bitcoins for illegal payments is minimum but in this case it doesn't matter since the goal is spreading misinformation, not actual facts.

[EarnOnVictor]

Let me make this short, Bitcoin is undoubtedly a store of value, the evidence is all over, it's an asset and a very appreciative asset for that matter. It continues to hit new ATHs, so it's logical. But the legal tenderness is so unclear yet, there are still enough to unravel over time before hope can be seen in that regard. I suspect that if the US strategic reserve plan could work, many countries would follow and that could cause many more countries to make further adventurous plans about Bitcoin, of which the legal tender is inclusive. However, if it fails, I am sorry for what will happen afterwards, it can't be easy on the coin.

The world, and the governments for that reason - are very slow in taking and digesting something new for themselves, when they have something else, and tested it, - already, through and through, bit by bit.
However - we still see that some talk about Bitcoin and how they would try to do something with it, so hope is not lost. And 2025 should be a good year for sure.

Of course, the hope is not lost but one thing that makes me sceptical is that, hope can be dashed just as it could be kindled, as we experience now. The only difference between the two is the events happening around the subject matter. As we all know, optimism and hope are always kindled around Bitcoin during the bullish season, but don't let us hope too much, the opposite happens during the bearish season.

I look forward to seeing what the coming bearish season holds to balance things. This can prove to us how willing/unwilling most governments are towards Bitcoin adoption in strategic reserve and legal tender.

Trump woke this call, still, can he sustain it? I hope it doesn't backfire.