Explain the bubble

[DK13]

Hi guys,

So I was wondering about this huge boom of bitcoin price. I know that Bitcoin was created with a purpose as a individual financial mechanism which would allow people to trade anonymously with no 3rd parties involved. But what we see today? I only see it as investment instrument which is not used as its primary function, except dark markets. Also knowing the fast growing Bitcoin price now, it is not worth to purchase anything, as  the value of bitcoin might be much higher tomorrow than yesterday's.

So, do you think Bitcoin is used as it primary purpose often enough? Or when will people understand that if Bitcoin is not used as it should be, then we are investing into nothing? Please tell me if I am wrong

[aardvark15]

Hi guys,

So I was wondering about this huge boom of bitcoin price. I know that Bitcoin was created with a purpose as a individual financial mechanism which would allow people to trade anonymously with no 3rd parties involved. But what we see today? I only see it as investment instrument which is not used as its primary function, except dark markets. Also knowing the fast growing Bitcoin price now, it is not worth to purchase anything, as  the value of bitcoin might be much higher tomorrow than yesterday's.

So, do you think Bitcoin is used as it primary purpose often enough? Or when will people understand that if Bitcoin is not used as it should be, then we are investing into nothing? Please tell me if I am wrong

A few years ago, it seemed that there were 3 main potential purposes of Bitcoin:

1) method of payment
2) way to send money cheaply and quickly anywhere in the world
3) store of value

With the price very high now and increasing, people are holding rather than trying to spend. So apparently the first purpose is not happening at least right now. With fees increasing, Bitcoin probably won’t ever be used for small purchases.

The high fees and slowing transaction time may also prevent Bitcoin from being used as a way to send money.

This leaves ‘store if value’ as possibly the only use for Bitcoin. But as long as the price keeps going up, that’s probably okay.

[gentlemand]

This leaves ‘store if value’ as possibly the only use for Bitcoin.

It was always the most logical use.

No usable currency deflates, that's baked into BTC. Capacity is still extremely limited. Fees were always going to be an inevitability. Store of value is by far the most powerful use case anyway.

[mrcash02]

No, it's not being used as its primary purpose. But anyway, I don't think it should be used this way or that way, people are using it to supply their necessities and at this moment the profitable investment Bitcoin turned in is their primary necessity.

For now it's a speculative market, many people invest on it because they know it will generate generous profit for them, but it's not an "empty" investment, not like fiat that is just paper money. Bitcoin represents a change in financial system and a change on the way we make transactions, very innovative and inedit, too far from nothing...