Biggest misconception in Bitcoin

[shawshankinmate37927]

Bitcoin: store of value.

Yes store of value and medium of exchange just like a baseball card.

Except more durable, more fungible, more divisible, more easily transportable, harder to counterfeit...

Stop calling it currency 

What's it matter, anyway?

Because if you can realize that bitcoin is not currency because it is not a UNIT then you can realize that the US dollar is not currency because it is not a UNIT.

That is what Ron Paul is really asking Ben when he asks can you define a dollar for me. He is really asking what is the UNIT called a dollar equal to?

Okay Einstein, why don't you enlighten us and give us an example of something that is a currency?

bytes, kilowatts, the dollar in 1970,oil, metals they can all  be currency. Because they all can be mediums of exchange, stores of value, and a UNIT of account.   

Bytes and kilowatts aren't scarce.  The dollar in 1970 was just a piece of paper that was supposedly backed by gold.  Of course Nixon let the world know in 1971 that the backing of paper with gold can be undone with the simple stroke of a pen.  Oil is a consumable commodity.  Precious metals are the only form of sound money the world has had before Bitcoin, but now the bankers have scammed the people into using their paper and managed to hoard most of the gold for themselves.  That rules out everything on your list.  Please try again.

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[TooDumbForBitcoin]

Nintendo games were not a good store of value either, but wait another 100 years and see how much people are willing to pay for a contra game.   

Glad I'm hanging onto my VHS tapes.

[Zangelbert Bingledack]

Sublime is actually right that thinking of Bitcoin as a currency now is the biggest misconception in Bitcoin. The "collectible" thing and many of his other arguments are silly, but he is spot-on that this is a crucial misconception. I reality, at present, something like 1% of Bitcoin's usefulness is as a currency, maybe 9% is as a way of sending money, and 90% is as a store of value based on the future promise of the other two functions (as well as others, like contracts, stocks, escrow, etc.).

Mandatory reading, the best explanation of this I've found on this subtle concept: http://www.reddit.com/r/Bitcoin/comments/1mb27q/bitcoins_vast_overvaluation_appears_caused_by/cc7i6y8

Without a precise understanding of this it is really hard to understand why Bitcoin is so highly valued today. It's Gold 2.0 and the ultimate investment because of ultimate future promise not yet realized today for reasons that are only temporary. That Bitcoin should be judged on its present-day utility as a currency is truly the most widespread misconception in Bitcoin, and it's a pivotal one to get right.

[Tirapon]

Mandatory reading, the best explanation of this I've found on this subtle concept: http://www.reddit.com/r/Bitcoin/comments/1mb27q/bitcoins_vast_overvaluation_appears_caused_by/cc7i6y8

I've read that post, and I think its the best summary of the current situation in bitcoin that there is. Everyone should read it, especially the 'I think bitcoin is overvalued because I can't spend it anywhere' crowd.

[vpitcher07]

whynotbothmeme.jpg

[sublime5447]

Nintendo games were not a good store of value either, but wait another 100 years and see how much people are willing to pay for a contra game.   

Glad I'm hanging onto my VHS tapes.

  I love you guys

[Arksun]

Dictionary definition of 'currency'


currency
  Use Currency in a sentence
cur·ren·cy
[kur-uhn-see, kuhr-] Show IPA
noun, plural cur·ren·cies.
1.
something that is used as a medium of exchange; money.
2.
general acceptance; prevalence; vogue.
3.
a time or period during which something is widely accepted and circulated.
4.
the fact or quality of being widely accepted and circulated from person to person.
5.
circulation, as of coin.


In my mind Bitcoin is fast becomming a fully fledged currency.

Especially with news stories such as:

http://www.coindesk.com/netherlands-food-delivery-network-bitcoin/
and
http://www.coindesk.com/shopify-integrates-bitcoin-payments/

[windjc]

The biggest misconception is that it is currency... it's not.

I have been harping on this for a while now, but here it is from the owner of  second largest exchange BTC-china.

 

"China has been known as a nation of savers, who are always saving for a rainy day,” says Lee.  ”Bitcoin is a digital asset, like real estate, gold, or stock. It is just one more option now. With Bitcoin hard-coded to be limited, it’s like a collectible.”"

It isnt currency.
It is a digital collectible.

Its becoming a currency. It's like an infant. What can an infant do when its a couple of years old? Crap on itself. That's about it.

How about when the infant is 20 years old. It can change the world.

You're just butthurt because you wanted the infant Bitcoin to be a way for you to have a currency on your ebay company. And bitcoin crapped on you. Or rather, the people that you used bitcoin with.

So get over it already.

Let's revisit this thread in 10 years.

[JungleBook]

The biggest misconception is that it is currency... it's not.

I have been harping on this for a while now, but here it is from the owner of  second largest exchange BTC-china.

 

"China has been known as a nation of savers, who are always saving for a rainy day,” says Lee.  ”Bitcoin is a digital asset, like real estate, gold, or stock. It is just one more option now. With Bitcoin hard-coded to be limited, it’s like a collectible.”"

It isnt currency.
It is a digital collectible.

i agree more on the subject http://www.youtube.com/watch?v=oHg5SJYRHA0

[sublime5447]

Sweet video.

http://www.financialsense.com/contributors/ron-hera/fifteen-fundamental-problems-with-fiat-currencies

[JungleBook]

Sweet video.

http://www.financialsense.com/contributors/ron-hera/fifteen-fundamental-problems-with-fiat-currencies

couldn't help myself