Riddle me this?

[brg444]

If the price value does increase, I assume at that point people are actually using it as a real currency and not just buying and hoarding which I think is not sustainable in the long run to drive further price increase. When the demand is natural for example using it as a cross border transaction mode of transfer, that is where I see bitcoin having the most potential.

Bunch of nonsense.

The entirety of Bitcoin's value sits in those who have bought it and are holding it.

I like to quote Wences whenever this comes up, OP this is relevant:

I think that something the Bitcoin community has to be honest about, at least amongst ourselves is what Bitcoin is about today and what we would like it to be. Sometimes we make it look like it's about things we want it to be in the future. The truth is when we look at the volume of people buying the "stock" of Bitcoin and the flow of people buying their first bitcoin. It's mostly about buying & holding. It's totally fine, it's a decent use case. It's not a two-sided market : for me to buy & hold it doesn't require a counterparty to accept Bitcoin. I simply have to agree to a price that someone is selling. It has been working for 3 years and I think we can depend on that. It's not some theory, some hypothesis, it's working and it can keep working.- Wences

[ANdr0id]

If the price value does increase, I assume at that point people are actually using it as a real currency and not just buying and hoarding which I think is not sustainable in the long run to drive further price increase. When the demand is natural for example using it as a cross border transaction mode of transfer, that is where I see bitcoin having the most potential.

That is what it's intention was from the start. It has to go through the cycle in order to be seen as a staple like any other currency. Then it will truly be accepted by the skeptics.

[robinarabia]

If the price value does increase, I assume at that point people are actually using it as a real currency and not just buying and hoarding which I think is not sustainable in the long run to drive further price increase. When the demand is natural for example using it as a cross border transaction mode of transfer, that is where I see bitcoin having the most potential.

Bunch of nonsense.

The entirety of Bitcoin's value sits in those who have bought it and are holding it.

I like to quote Wences whenever this comes up, OP this is relevant:

I think that something the Bitcoin community has to be honest about, at least amongst ourselves is what Bitcoin is about today and what we would like it to be. Sometimes we make it look like it's about things we want it to be in the future. The truth is when we look at the volume of people buying the "stock" of Bitcoin and the flow of people buying their first bitcoin. It's mostly about buying & holding. It's totally fine, it's a decent use case. It's not a two-sided market : for me to buy & hold it doesn't require a counterparty to accept Bitcoin. I simply have to agree to a price that someone is selling. It has been working for 3 years and I think we can depend on that. It's not some theory, some hypothesis, it's working and it can keep working.- Wences

Thanks for your answers everyone. I am in agreement with BRG444. It's mostly about buying and holding. However, I'm not quite sure if it's totally fine when taken in the context of Bitcoin wishing to be a real currency player.
I understand it functioning as an asset class operating on an exchange: however, there are issues that will ultimately erode the trust in this asset class in the long term, all of which you have heard before.
1. Pump and dump which drives instability
2. Lack of real life applications
3. Reduction of new buyers of Bitcoin due to 1 and 2 above.
4. Unrealistic expectations

I guess only time will tell how VC money transforms this in the future, if it does at all. Thanks again.

[btc_enigma]

It is true that most of the people are holding bitcoin hoping for a price rise. But there are lost of people spending it for remittance and other purposes. Most people I know buy back amount of bitcoin they spend

[dothebeats]

I'm a newbie to the site but bought Bitcoin about 6 months ago and like most am pleasantly surprised by the recent price increase. I tried to get an answer to this on other threads but can't find one. Here goes:

If predictions of a future Bitcoin, valued at multiples of it's worth today ...are common belief, why on earth would you use Bitcoin in the first place, let alone sell it?

Thank you in advance for all informed responses.

Not all people hold just to sell it off a bit later. Honestly, I also want to see bitcoin being valued hundreds of thousands because I know when that time comes, you don't need to sell/convert because you can use bitcoins directly to pay for many things.

[SFR10]

If predictions of a future Bitcoin, valued at multiples of it's worth today ...are common belief, why on earth would you use Bitcoin in the first place, let alone sell it?

I never sell bitcoin personally however I use it in a regular basis, why I do so? It's because bitcoin is the only online available payment method for me due to my geographical location plus the whole process is so easy and user friendly that as soon as I get a reasonable amount of bitcoin in my wallet, I use a local exchange for transfering the funds to my bank account so I could use it for buying things in the day to day life as well

[disclaimer201]

OP is raising a fundamental question that has been discussed on here since 2011. It is just as important now than it was back then.

I think we can agree that Bitcoin is technically a currency but in essence an asset. An asset that is in great demand not only to speculators but for anyone having their doubts in the financial system of today. Today it is very hard and risky or sometimes impossible to save/accumulate wealth in traditional ways. Bitcoin was invented around the time of the financial crisis for a reason, entire industries and perhaps societies have been screwed over by market manipulation.

One idea is that BTC will become something like a reserve currency and will mainly be used for large expenses in the future. It will not be a libertarian's dream making everyone "free" as some have dreamed of, but it will transform the way we handle "money" nevertheless.

I don't see Bitcoin to be anywhere near an everyday currency neither now nor in the future. This is not a catch 22 situation either because Bitcoin will be fine without becoming a currency used by "the masses". There are and there will be alternative currencies that are interchangable with Bitcoin to do that job, even if we won't know which one(s) it will be yet. While BTC can be an investment, an asset for retirement or wealth preservation or speculation for everyone, it will be enough if it becomes a currency only for big players/industries/insurances/NGOs, "banks" (we will still need a loan system in the future) or entire governments. Perhaps if governments and central banks started to use cryptocurrency instead of pumping ever more funny money into a corrupt system -that could have potentially healing consequences for all of humanity.

[Pierre 2]

I think these people you are talking about are just regular speculators who can be found in every financial aspects.
Bitcoin has potential to change all current finance. It just seeks for more awareness.
We may never need to sell our bitcoins again in future.

[zimmah]

I'm a newbie to the site but bought Bitcoin about 6 months ago and like most am pleasantly surprised by the recent price increase. I tried to get an answer to this on other threads but can't find one. Here goes:

If predictions of a future Bitcoin, valued at multiples of it's worth today ...are common belief, why on earth would you use Bitcoin in the first place, let alone sell it?

Thank you in advance for all informed responses.

well you can always buy things with bitcoin to increase adoption, and then immediately buy it back.

This helps the bitcoin economy and you won't lose out on value.

[Amph]

simply because it is not true for everyone, many think that bitcoin will die fast and they dump, other are just doing their tradin activity to have more bitcoin, and i believe those are the majority that cause these spikes you see

then you have the holders that look at this price and don't care at all and those other that have many coins and what to dump some to cover emergencies or personal whims and like that

[bct-user]

I'm a newbie to the site but bought Bitcoin about 6 months ago and like most am pleasantly surprised by the recent price increase. I tried to get an answer to this on other threads but can't find one. Here goes:

If predictions of a future Bitcoin, valued at multiples of it's worth today ...are common belief, why on earth would you use Bitcoin in the first place, let alone sell it?

Thank you in advance for all informed responses.

you will happy if you use bitcoin, don't worry about inflation. sell it? why not to spend it, it will make bitcoin usable, even try to introduce it to merchant, take a step for bitcoin goes to mainstream.

and about the price no one know if the value will be a worth as today, i think because bitcoin can use as currency and use as commodity too, the price still volatile and i think it will be volatile forever if the adopter growing.

in bitcoin
most smart people spend 40% save 60%
most wealthy people save 100%
most poor people spend 75% save 25%

now imagine this
imagine you had $500.. to buy 2btc at last weeks value $250, (next years imaginary price $500)

smart people spend 0.8btc, saves 1.2btc (next year=$600 saved)
wealthy people save 2btc (next year=$1,000 saved)
poor people spends 1.5btc, saves 0.5btc (next year=$250 saved)
everyone is happy.
even the poor person who spent $375 and still had $250 ($625 total funds) is happy that they got $625 out of $500


but now, in fiat
imagine you had $500.. to buy 500 bottles of water..
most smart people would search around for offers to buy at a discount 750 bottles today
most wealthy people will buy stock in the water company to get a constant supply of bottles
most poor people would just buy 500 bottles..

but with fiat there is no need or reason to save $100 for 5 years. because in 5 years due to inflation you wont get 100 bottles you will only get 50 bottles

so the short story..
even if your dirt poor and need the money. bitcoiners dont spend it all, only whats really really needed.. the hope is to save atleast some for future investment

well this is nice illustration!

[Blue_Tiger73]

Wow, that's a great question. I guess, for me, Bitcoin isn't just an investment. Bitcoin is also something I can use in day to day life. It is a investment, but not only that. It helps in day to day life, so you spend money but at the same time you are earning money. I have some bitcoin saved away in my hardware wallet, and some spare change in my online wallet.

[maokoto]

I'm a newbie to the site but bought Bitcoin about 6 months ago and like most am pleasantly surprised by the recent price increase. I tried to get an answer to this on other threads but can't find one. Here goes:

If predictions of a future Bitcoin, valued at multiples of it's worth today ...are common belief, why on earth would you use Bitcoin in the first place, let alone sell it?

Thank you in advance for all informed responses.

I assume people are looking forward to spend them when the price raises to a certain level, which will probably be coincidental with a mass adoption and easier opportunities to use it.

[bitcoin revo]

Wow, that's a great question. I guess, for me, Bitcoin isn't just an investment. Bitcoin is also something I can use in day to day life. It is a investment, but not only that. It helps in day to day life, so you spend money but at the same time you are earning money. I have some bitcoin saved away in my hardware wallet, and some spare change in my online wallet.

Basically, this. Also, if no one spent their coins and trade was nonexistent... bitcoin prices would also be nonexistent. Using your bitcoins is vital to the price increases. (And, by the way, I too am very happy about the price increases.)

[Light]

If predictions of a future Bitcoin, valued at multiples of it's worth today ...are common belief, why on earth would you use Bitcoin in the first place, let alone sell it?

Because it's not a commonly held belief - at least by those doing a majority of the trading. If everyone on the planet agreed that its value would be significantly higher in the future - everyone would rush to buy it leading to increased demand and therefore prices and therefore creating a self-fulfilling prophecy. The reason this doesn't happen is because aside from the few people here who have incredibly unrealistic expectations - most people don't expect any major valuation changes in the short term so spending it is perfectly viable.