Bitcoin - Store of Value or Method of Payment

[Ctn]

People only use it as a store of value and not as a method of payment it's because they are just here to make money and not actually popularizing and increasing widespread adoption of Bitcoin. I don't blame people sometimes because Bitcoin is pretty slow as a method of payment and can also prove to be costly sometimes. So it's better to think of Bitcoin as a successor of Gold.

[owengtam09]

I've recently meditated on this thought. We all want businesses to adopt bitcoin as a payment method and people to pay with it, but I think most people are rather avoiding to spend their BTC as they see it more as a store of value that will bring wealth to them over the next years. So they are more likely to keep their BTCs and spend the fiat currency, thus the use of BTC in day-to-day transactions won't probably go up until people actually get their wages in Bitcoin denomination. But in order for companies to enable that so it will be convenient for both the employee and the employer we need to have the infrastructure in place, including regulations and major stores in the cities accepting BTC.

What're your thoughts on this? Do people prefer to spend their BTC or do anything( maybe even taking a loan) to protect them?

We all wanted to hold our BTC so it will give us a good future but there were also times that there is an emergency that we also need to prioritize today than to think of our future. Once that emergency comes our future purposes will also lessen or maybe gone (depend on what we need on that moment) so if there is a chance for you to invest right now and never use it for years then that's a great idea, although at the same time we also wanted to have bitcoin for method of payment because we all know that it is very convenient at all but I think, FUTURE is way better important.

[Kyraishi]

It really depends on your way of thinking about Bitcoin, obviously there are going to be people that are only interested in the currency purely for monetary gain, and other people who actually support the currency.

I am personally of the second type of people, and haven't really been very interested in the price movements side of BTC, but more the adoption and media attention it recieves, which is very interesting.

[ivakar]

It really depends on your way of thinking about Bitcoin, obviously there are going to be people that are only interested in the currency purely for monetary gain, and other people who actually support the currency.

I am personally of the second type of people, and haven't really been very interested in the price movements side of BTC, but more the adoption and media attention it recieves, which is very interesting.

may I ask a question, how the one can support the bitcoin by owning it? if I have, say, 10 btc how strong my support for bitcoin is?
and if I have 1000 btc will my support of btc become stronger? I'm not quite get how it is working?
if I'm trading with bitcoins- I can see how I support bitcoin - I create turnover, exchanges are earning fees, because of huge turnovers , bitcoin attracts attention of media, researches, traders and so on.
but just holding bitcoin you do nothing.

[hypersonic1]

I regularly transact in bitcoin. This includes purchases as well as cashing out for fun.

If you're talking about strict definitions. Bitcoin is currently a store of value as people accrue and store it.

It is in fact however a currency as well. It's just that in order for it to be used it still for the moment has to be convverted in most parts of the world.

[aysg76]

Welcome to 660th thread on "Bitcoin is asset or money"

I don't think you're adding anything new to this on-going debate so I really don't see any need why you created this thread. There are hundred of threads here in 'Bitcoin Discussion' section and 'Economics' section on this topic already.

[rahmatullah9305]

Bitcoin is an electronic payment system based on a mathematical system. The idea is to produce an independent currency not bound by a certain central authority, with very low transaction costs. Bitcoin should be categorized as a currency based on the concept of money and how the three main international monetary institutions (IMF, WTO, World Bank) respond to its presence with a basic analysis using the concept of cyberpolitics.

[jhonjhon]

Bitcoin is both a store value and a method of payment. The reason why some people would keep their bitcoins is that bitcoins price is changing from time to time even with just holding it if it hits the bull then the value will increase. Bitcoin is also a mode of payment because it is faster and convenient to use it, not only that it is also secure because it is place on a hard wallet that has high authentication rather than using fiat money.

[Nhor1011]

I've recently meditated on this thought. We all want businesses to adopt bitcoin as a payment method and people to pay with it, but I think most people are rather avoiding to spend their BTC as they see it more as a store of value that will bring wealth to them over the next years. So they are more likely to keep their BTCs and spend the fiat currency, thus the use of BTC in day-to-day transactions won't probably go up until people actually get their wages in Bitcoin denomination. But in order for companies to enable that so it will be convenient for both the employee and the employer we need to have the infrastructure in place, including regulations and major stores in the cities accepting BTC.

What's your thoughts on this? Do people prefer to spend their BTC or do anything( maybe even taking a loan) to protect them?

For me ,Bitcoin is both a store of value and method of payments. I think there is no problem about that. Anyway this topic is always asked repeatedly. Bitcoin is valuable and volatile.People earning more profit through holding bitcoins while waiting their target price. Also others use it to pay as a mode of payments like here in our country. For me the more things we can do with bitcoin is much better.

[Arsenyo]

It will eventually function as a store of value and as a means of payment, but today it is considered more like investment, unfortunately. Majority of people think only of prices and pumps to make profit and they don't really care about adoption, technology or development.

[hulla]

On a general perspective, Bitcoin as a store of value is not very feasible regarding the fact that it is very volatile.  It's more of a method of payment even though it is not accepted on a broad scale.  To me, based on the fact that Bitcoin is grossly traded, it is can be seen as a speculative assest. The volatility makes it fall short of being a store of value and method of payment to some extent.

You're right when you said bitcoin can be seen as a speculative asset but you're wrong when you said "Bitcoin as a store of value is not very feasible regarding the fact that it is very volatile." because every asset that can be exchanged, save and be useful in future (profit) is a store of value.
Don't use the current situation of the market to justify the promising future of bitcoin.

[Artemis3]

I've recently meditated on this thought. We all want businesses to adopt bitcoin as a payment method and people to pay with it, but I think most people are rather avoiding to spend their BTC as they see it more as a store of value that will bring wealth to them over the next years. So they are more likely to keep their BTCs and spend the fiat currency, thus the use of BTC in day-to-day transactions won't probably go up until people actually get their wages in Bitcoin denomination. But in order for companies to enable that so it will be convenient for both the employee and the employer we need to have the infrastructure in place, including regulations and major stores in the cities accepting BTC.

What's your thoughts on this? Do people prefer to spend their BTC or do anything( maybe even taking a loan) to protect them?

It is both. As with any deflationary coin, people will tend to save as much as possible, and only spend the absolute minimum. Of course, if people still have earnings in inflationary fiat, they would spend that first, and exchange the rest.

Loans are a bad idea, just live managing your current income. You have to learn to go from a debt mentality to a savings mentality, it is a big shock in the western hemisphere, especially in America where the school of Chicago reigns supreme.

If your income is in bitcoin, its even easier, if not exchange what you can save for long term into bitcoin is good.

But, do not think it will bring you "wealth over the next years". Those bitcoins are first preserving the purchasing value of your money, and only slightly possibly give you a bit of profit, unless you are trading, but that's another subject entirely. For "holders", the right mentality is to stay cool and wait the years to pass, use only what you must.

Think of gold, it if wasn't dangerous to store and handle your own gold, you would buy gold and keep it safe by yourself, only selling small amounts from time to time for daily use. Well Bitcoin is like gold, but much much safer, and you can probably remain hidden from criminals if you do things in moderation.

[dnprock]

Bitcoin is predominantly a Store of Value. It's working as designed. We're trying too hard to make it do both.

I advocate Bitflate, a Bitcoin fork with 7% constant inflation. We need to separate these two use cases.

I've written longer posts to explain my point of view. Bitcoin is a Store of Value. Bitflate, a parallel chain with inflation, is used for transactions.

The Next Big Thing in Crypto: Using Inflation to Create Stablecoin
https://bitflate.org/post/2019/10/10/the-next-big-thing-in-crypto-using-inflation-to-create-stablecoin.html

Bitcoin's Missing Link to the World
https://bitflate.org/post/2019/08/26/bitcoin-missing-link-to-the-world.html

Join Bitflate community: https://discord.gg/utnEyp8

[MicroGuy]

Bitcoin was initially designed to be both.

But thanks to the wisdom of blockstream and their small block 'theory' it's become a settlement layer.

[dnprock]

Bitcoin was initially designed to be both.

But thanks to the wisdom of blockstream and their small block 'theory' it's become a settlement layer.

It's easy to blame. We have BCH and other chains with big blocks. They can do as many transactions as we want. We've been focusing on the wrong problems. When you have limited supply and SoV, people hodl.

Join Bitflate community: https://discord.gg/utnEyp8

[pixie85]

It will eventually function as a store of value and as a means of payment, but today it is considered more like investment, unfortunately. Majority of people think only of prices and pumps to make profit and they don't really care about adoption, technology or development.

I also see it as a store of value not the payment system Satoshi had dreamed of.

Bitcoin with its deflation will never be a popular payment system because people want to spend what loses value and hold what gains it. You don't spend your gold and hoard cash. That would be counterproductive.

[rodel caling]

Well" actually bitcoin is very useful for fast payment transaction they guve convinient for those busy people for their day yo day work so bitcoin guve this opportunity to use it via onlin paymeny without traveeling and wasting of time. But of course if they have an opportunity to keep bitcoin and wait for the new all time high the way to become rich or the way to get huge profits as bitcoin treated store value. So is obvious bitcoin both is important and useful.

[barabarian1]

I think bitcoin can do both. as a store of value and a means of payment. it's just that not all countries allow bitcoin as a means of payment. so most bitcoin holders only use bitcoin as an investment or trading tool. but for countries that have accepted bitcoin as a legal payment tool. some users already use bitcoin for many things like buying property, cars and others. I am sure that over time there will be more countries and companies that will legalize bitcoin as a means of payment.

[Lmaooo]

The bitcoin is both. Bitcoin was originally invented as a digital store of value and also a payment system. You are the one who gets to decide whether to use bitcoin as a digital store of value or a payment method.

[skarais]

The bitcoin is both. Bitcoin was originally invented as a digital store of value and also a payment system. You are the one who gets to decide whether to use bitcoin as a digital store of value or a payment method.

Bitcoin as a means of payment, that is the true reason for making bitcoin. Over time, bitcoin has become an expensive investment asset. But to be used as a bitcoin payment tool also continues to get support from various groups.
Until now, adoption of bitcoin continues to increase in various countries. Countries that have crypto-friendly regulations will make it easier for citizens to use bitcoin for payment, but not a few countries have regulations that prohibit bitcoin as a means of payment.