Bitcoin - Store of Value or Method of Payment

[suzanne5223]

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

Firstly, bitcoin is for both (store of value and method of payment) but BCH was just another shit altcoin and it also not the solution to the issue of  the small block size theory. Mind you, we have SegWit and Lightning which are still better.

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[qiman]

I think the big hoarders are also the ones spending it. If you see, now they can purchase vehicles and houses/real estate with Bitcoin, so those miners and also early adopters who have thousands of Bitcoins sitting in their wallets can easily afford to splash out and spend a few BTC to purchase luxury goods and services. This is the new phenomenon now that the Super rich are engaged in and what the rest of us only can dream of right now with the few satoshis we currently own.

[Dabs]

One could even use BTC as collateral for a fiat loan. The fiat loan will charge interest and if you don't pay it back, they'll keep your BTC.

The smarter way would be to use those altcoins that are made for this purpose, like the DAI stablecoin with it's collateralized dept thingies, so you stuff it with ETH (or other collateral soon) and you get DAI, which is like worth $1 USD (or it's supposed to be close to a dollar)... But the interest rate for this has increased in the last few months relatively high. It started around 0.5% or something.

As to the original question, I've used it to buy all sorts of stuff on Amazon, and also to pay all sorts of bills everywhere. I'm inclined to keep it as a store of value tho and only use it when really needed. Or use it, then make sure to top it back up, sort of like a debit card.

[Mike Mayor]

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.

You could always just convert your fiat to crypto and keep a little crypto so you pay with crypto instead of fiat. If you want to keep some then buy some more. YOu not losing anything spending crypto if you were going to buy that item anyway. If you end up not spending all of it you will have some left that can act as your investment. You could even send your change to the same address after each purchase.

Honestly, any country that limits bitcoin payments is not worth living in, because that's not freedom.

[Dabs]

You could even send your change to the same address after each purchase.

That's not really recommended as you would be reusing addresses. It's not that hard to use different addresses and most bitcoin wallets do this for you automatically.

[Eugenar]

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?

Upon thinking about it, I've came out that for me, it shouldn't be both since bitcoin has a very good potential market value in the future, and we actually use other cryptocurrency such as XRP or ETH to buy goods why? since the transaction fee is quite better for each transaction that we are executing daily. In this case, I am in favor of bitcoin as a store in value rather than mode of payment for micro transactions.

[bounceback]

cryptocurrency or bitcoin is a digital currency that we can use as a payment method and also for valuable storage assets, but now we see governments in some countries unfortunately have not yet formalized crtptocurrency and bitcoin as possible payment methods because of this we can say people make bitcoin as valuable storage assets in the future.