The Uncomfortable Truth

[CryptoBry]

Bitcoin as we know it is supposed to be utilized like money for everyday transactions but aside from this, just like the physical gold, it is mostly known as a store of value that can increase and decrease suddenly in a matter of some blinks of the eyes (well, literally and figuratively). Now, that bitcoin is on the rise, so does speculations though I see nothing wrong with this but the problem can be the imbalance.

It is estimated that "only 1.3% of economic transactions came from merchants in the first four months of 2019, little changed over the boom and bust cycles of the prior two years."

Personally, I would rather hold my bitcoin that spend it because I am looking forward that soon it can go beyond the $20,000 (or almost) reached in 2017. I am sure that am not alone with this mindset right now.

Is there really something wrong with this scenario for bitcoin?

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[Haunebu]

There is nothing surprising here. Majority of the people that I know don't even know what Bitcoin and crypto actually are. They are happy with FIAT and payment processors like Paypal, mobile wallets etc and never thought about researching BTC.

Among the crypto investors, majority of them treat it primarily as an asset and secondarily as a currency due to the monetary opportunities available which is something that will be reversed only through higher adoption rates which in turn requires low TX fees, faster payment speeds etc.

[NeuroticFish]

1. I expect most "use" come from payment processors, not actual merchants. It's a difference. And payment processors can bulk the transactions so you won't see a difference.
2. In the same way you hold waiting for the rise, many others do that. If nobody is spending, why expect better numbers?
3. News papers use big words for useless posts. If you read a bit more around you'll see that reality is never as bad as depicted by news.

[arcmetal]

Is there really something wrong with this scenario for bitcoin?

No, because we are not at full adoption yet.  Once we get to full adoption (and full usage) all will be forgotten of what happened today.

[Genemind]

I think it's because most merchants and business establishments aren't accepting Bitcoin yet so people have no choice but to use fiat instead of Bitcoin.
If merchants and businesses would adopt and accept cryptocurrency, there will be a big change and people will switch to crypto.

[mk4]

It's pretty pointless to use Bitcoin right now for transactions, besides a small niche of merchants mostly in the bitcoin markets, and the gaming markets. I'm pretty sure almost everyone knows that already. Bitcoin is simply really not ready for merchant transactions yet, but that can come in the future.

I somewhat agree a bit with this image posted by Murad Mahmudov on Twitter:



Source: https://twitter.com/MustStopMurad/status/1022169639386836992

[Fred3030]

In my own opinion the current uptrend in the price of bitcoin is not as a result of speculation but as a result of numerous news of crypto adoption by top establishments.
I think we will see bitcoin surpass previous all time high. This might not happen quickly as in the case of 2017 but it will gradually go past 2017 all time high.

[Lucius]

It is not Uncomfortable Truth, I personally do not see any problem in fact that people are more focused on holding, then spending. Bitcoin is a currency, but also store of value in which many see long-term safety. It is also quite understandable that people pay less with bitcoin in time where price is low, and we are just recently finished long bear market in which every smart investor is buying more coins.

I think most of those who own bitcoin actually have no way to spend it on something, especially if they wanted to do it in their country. We are far away from that we can take our mobile wallet and buy some common things like newspapers, bread, milk or pay for haircut.

[Artemis3]

Bitcoin as we know it is supposed to be utilized like money for everyday transactions but aside from this, just like the physical gold, it is mostly known as a store of value that can increase and decrease suddenly in a matter of some blinks of the eyes (well, literally and figuratively). Now, that bitcoin is on the rise, so does speculations though I see nothing wrong with this but the problem can be the imbalance.

It is estimated that "only 1.3% of economic transactions came from merchants in the first four months of 2019, little changed over the boom and bust cycles of the prior two years."

Personally, I would rather hold my bitcoin that spend it because I am looking forward that soon it can go beyond the $20,000 (or almost) reached in 2017. I am sure that am not alone with this mindset right now.

Is there really something wrong with this scenario for bitcoin?

Because you are in a position of comfort. People with money will tend to make more money. The simple fact that you can afford to "hold it" and not sell most of it for food, like some of us have, ensures you will have a better future, at least from a financial point than most.

It is what it is, don't pretend Bitcoin is going to change this, it gave a chance to the few that jumped in and believed in it back when almost nobody did, but with maturity these chances diminish for the masses.

As always, those taking the higher risks can (potentially) make it bigger than those who doesn't...

[pakhitheboss]

No body wants to treat Bitcoin as a currency for day to day payment, it more treated like a commodity, like a digital gold. People are comparing it with actual Gold and are treating it in the same way. You do not use Gold for everyday purchases or for everyday transaction. Rich and influential people from unstable financial countries like South Sudan, Libya, San Marino, Yemen, Greece, Venezuela, Ukraine, Central African Republic and Puerto Rico are investing more in Bitcoin. Why? I am sure you know the answer.

Leave mass adoption aside, If mass adoption happen also people will tend to use Bitcoin as an assest. No one wants to sell Bitcoin if it has the potential to reach more than $19k.

Will you? ask that question and you will get the answer.

[LogitechMouse]

I'm not surprised with this.

With the complexity of Bitcoin and crypto in general and the lack of adoption, its obvious that there are less merchants who are using Bitcoin. One reason too is they are being feared that they will end in a loss because we know that Bitcoin is volatile. It can go up to $1000 but it can go down $1000 too. This is what the merchants are being feared of so they are preferring fiat money rather than crypto.

[nutildah]

Speak for yourself. I use it all the time. I quite regularly use it to buy phone plans (mainly mobile data) for myself and others, and as a vehicle to exchange currency. We're talking 3-5 times a week.

I do agree that more real-world transacting and use case scenarios would help it gain more respectability in the minds of many, and help it get away from the whole "Ponzi scheme" image problem it frequently has.

Its just not practical to use in some situations where cash can accomplish the same thing, and is even moreso in periods of high volatility. However, as was mentioned above, its still relatively in its early stages and it might be a while before relatively crazy price fluctuations begin to subside.

[davis196]

Bitcoin is and will always remain a financial gambling tool for the market speculative gamblers.
The bitcoin core dev team should do something about this issue and stimulate mass adoption.Like:
1.Using satoshis instead of bitcoins,when measuring prices and value.
2.Using usernames or email addresses instead of long and ugly btc wallet addresses.
3.More p2p decentralized crypto exchange platforms(the devs can't change this,but it's important).

[Gozie51]

I'm not surprised with this.

With the complexity of Bitcoin and crypto in general and the lack of adoption, its obvious that there are less merchants who are using Bitcoin. One reason too is they are being feared that they will end in a loss because we know that Bitcoin is volatile. It can go up to $1000 but it can go down $1000 too. This is what the merchants are being feared of so they are preferring fiat money rather than crypto.

Fluctuations to me is not exactly the major reason that merchant stay out but regulation. And regulation will definitely bring volatility down because it will determine buying and also selling but we are yet to see regulation.

I'm already using bitcoin in different ways as we all investors are doing.

[pushups44]

Bitcoin as we know it is supposed to be utilized like money for everyday transactions but aside from this, just like the physical gold, it is mostly known as a store of value that can increase and decrease suddenly in a matter of some blinks of the eyes (well, literally and figuratively). Now, that bitcoin is on the rise, so does speculations though I see nothing wrong with this but the problem can be the imbalance.

It is estimated that "only 1.3% of economic transactions came from merchants in the first four months of 2019, little changed over the boom and bust cycles of the prior two years."

Personally, I would rather hold my bitcoin that spend it because I am looking forward that soon it can go beyond the $20,000 (or almost) reached in 2017. I am sure that am not alone with this mindset right now.

Is there really something wrong with this scenario for bitcoin?

This article conveniently ignores the store of value/digital gold use case of bitcoin. Currently, layer two solutions are being built that will facilitate mass adoption. Also, on-chain transaction volume is hitting new records.

[BullishBrother]

What do you mean nobody uses it? I use it to buy electronics or exchange currencies. I also use it for recharges. Internet, Mobile etc. I dont think it really matters how many people "use" it. It only matters if people think it has any intrinsic value. Even if people just store it for the future, it still works in favor of BTC. 

[Haunebu]

Bitcoin is and will always remain a financial gambling tool for the market speculative gamblers.

You seem to know what will happen with Bitcoin in the future? Can you accurately tell me the value of BTC by the end of this year? Its pointless stating such statements since no one can accurately predict what will happen with BTC in the future.

Confusing trading with gambling in the crypto market is outright silly. I am a pretty bad gambler, but a decent crypto trader thanks to my experience in this field. Both are different and not the same.

[gentlemand]

Nothing uncomfortable about it. It's obvious as fuck. In its current state it's unusable if the world arrived. The people who are here are busy figuring out what it's for and what it's worth. While that's going on most aren't going to be throwing it around.

[xvids]

To be honest people would rather pay in Fiat rather than to use crypto because they see's it as an investment that could give them profit.
People would always choose Fiat as long as there would be a transaction fee that could cost them more than their regular payment.
There are people who see's it or wants to use it as a regular currency to be able to pay for anything,
And we have a great history because of him (Laszlo Hanyecz) .

[xWolfx]

Personally, I would rather hold my bitcoin that spend it because I am looking forward that soon it can go beyond the $20,000 (or almost) reached in 2017. I am sure that am not alone with this mindset right now.

Is there really something wrong with this scenario for bitcoin?

I don't believe that anything is wrong with it. In the current state of Bitcoin that primary use is precisely the best possible use to be brutally honest, for now. Those like me still want to use it to buy stuffs, even sometimes. Which is perfectly fine and in fact helps a lot in another way that not that many is doing right now.