Real purpose of Bitcoin

[Wysi]

When you talk about Bitcoin first thing which most of us thinks either it's a get rich quick scheme or an investment scheme. Did Satoshi Nakamoto created Bitcoin as an investment scheme? No, it was supposed to be a peer to peer payment transaction across borders without involvement expensive money exchangers or regulators but it has been turned into an investment scheme, where are we heading ? Do you think Bitcoin is losing its original purpose of its invention?

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[Coyster]

Okay, true that prolly all Satoshi had in mind was a payment system without a third party, but isn't it great that the network has evolved and now Bitcoin can be used for multi-purposes; from a currency (money) and by extension a payment system to being an investment plan, a reserve asset and hell yeah even "digital gold"; there's absolutely 'no bad' in all of that and in how people choose to use the Bitcoins in their wallets, all this diverse uses is even advantageous for the network and it's walk to mass adoption.

[BlackHatCoiner]

Overtime, I believe that bitcoin is looking less and less as a currency. The combination of the blockchain and the way bitcoin price goes is making it look more as an investment and store of value rather than a currency. Transaction's cost is also an issue that makes it even less currency looking. As for what satoshi wanted back in 2009 I have to say nothing, but this. He had no clue of what was coming! He left the community on December 2010. How fluctuating was bitcoin back then? It didn't even cost a dollar if I'm not mistaken. IMO, a currency that has fixed supply and makes demand the only responsible for its value is clearly not a currency.

Do you think Bitcoin is losing its original purpose of its invention?

It may loses its original purpose of its invention, but not generally its purpose. Some people consider it investment and some others currency. That's because Bitcoin is freedom.

[Pffrt]

If I'm correct, satoshi had once speculated this price increase at some point when he was active in the forum. Anyway, I think the purpose will be achieved eventually. Have you seen gradually top giants are getting into crypto? With paypal, now wherever paypal is accepted, users can pay through crypto and paypal is accepted in a lot of stores etc. Eventually everyone will accept it.
The volatility is inevitable. You can't do anything against thag because the supply is limited. If the price was stable, you may not even use bitcoin cause with stable price, people would barely forced to sell. Due to the volatility, the limited BTC are getting movement.

[Casdinyard]

Bitcoin is basically a digital currency and its purpose should be in line with such category but the only difference is decentralisation. Well, indeed, Bitcoin and other cryptos are being used more as an investment and not as a digital currency. But are we really not using it right from doing so? I think we are still using it and it is just that it's users saw another aspect of it which is more beneficial, which is profit. Its volatility which should be a downside for a currency, became an advantage because it generates profit to its users and now, investors. I believe satoshi did not also expect such thing. Due to the limitations of its usage, users have discovered an alternative way to make use of this technology and I think there's nothing wrong with it.

[death69]

Bitcoin centainly loses it's primitive purposes after many years of existence. People are using bitcoin to enhance their capability of earning money in a short time. And as you say, they also consider, bitcoin as an investment tool. People manipulate bitcoin for their own purposes without realizing they destroy bitcoin slowly from the inside.

But we can't blame people. If they all dislike bitcoin,  we can never see bitcoin as famous as it is.  If bitcoin does not become a p2p currency,  it will be fine with me that bitcoin becomes the digital gold

[Fesatmas]

In my opinion, we have never lost the direction and purpose of making bitcoin. The origin of bitcoin was created by Satoshi for the purpose of a payment system without the interference of third parties. Hasn't that been achieved, both satoshi goals and the current investment have both achieved goals. In my opinion, the essence of the purpose of satoshi will always stick even though it is called an investment, but still in bitcoin investment when making payments there is no third party in it.

[mk4]

Bitcoin is whatever you want to use it for, and I couldn't care less if you only look at it as an investment. As long as the network is up and running and I'm able to use Bitcoin for my needs, then I'm good.

[Smartprofit]

When you talk about Bitcoin first thing which most of us thinks either it's a get rich quick scheme or an investment scheme. Did Satoshi Nakamoto created Bitcoin as an investment scheme? No, it was supposed to be a peer to peer payment transaction across borders without involvement expensive money exchangers or regulators but it has been turned into an investment scheme, where are we heading ? Do you think Bitcoin is losing its original purpose of its invention?

This is a very interesting discussion!  

I think Satoshi Nakamoto understood that using bitcoin as money would not get regulatory approval.  The deflationary asset is a very strong competitor to government money.  

However, he could have assumed that human greed and a passion for profit would lead to Bitcoin being used as an investment asset.  At the same time, Bitcoin will not die, but will develop.  

Satoshi looked far into the future.  If Bitcoin is not being used as money now, then the situation may change in the future.

[Wysi]

Bitcoin centainly loses it's primitive purposes after many years of existence. People are using bitcoin to enhance their capability of earning money in a short time. And as you say, they also consider, bitcoin as an investment tool. People manipulate bitcoin for their own purposes without realizing they destroy bitcoin slowly from the inside.

But we can't blame people. If they all dislike bitcoin,  we can never see bitcoin as famous as it is.  If bitcoin does not become a p2p currency,  it will be fine with me that bitcoin becomes the digital gold

You nailed it, there will be no Bitcoin if people dislike it. But what concerns me here is the fact that the institution and whales pouring in money into Bitcoin and holds a good amount of Bitcoin which they might use anytime for their profit by pumping or dumping it by cashing in or out and those normal users like us will initially earn more profit when they pour in more money but our greed will make us lose it when they dump, there are exceptions wherein well versed user will control his greed but newbies and less tenured users will end up losing more than they earned. There is a postive as well as negative effects but sometimes it feels bad that the primary objective of creating Bitcoin has been abolished.

[Twentyonepaylots]

As of now? We cannot stick to the sole purpose of bitcoin being a currency for peer to peer transaction, I know you know what I already want to imply, you can just ask yourself why you are not spending your bitcoins in your wallet, that's how simple the answer to this question. It's inevitable for a currency built in decentralized network to be this way, people are not silly to pay transaction fees to use bitcoin as their daily driver when you can just use cash directly to everything.

[Jemzx00]

For me, bitcoin have evolve from it's original purpose rather than stray afar from it's main purpose. Bitcoin main purpose was for a p2p transaction which is still its purpose but due to its widespread adoption as payment and/or currency, transaction fee's raised and which made its users to only transact when higher transaction is needed and used other crypto for small transaction.
But yeah, a lot of people treat bitcoin as an investment, currency, and a way to transact anonymously which is not wrong as each users can treat bitcoin as how they see it. The important thing is people using bitcoin and as long as bitcoin is being used, it will always has it's purpose. It may not be the same as it was but better.

[Upgrade00]

IMO, a currency that has fixed supply and makes demand the only responsible for its value is clearly not a currency.

• While having a fixed supply, Bitcoin is also highly divisible, to 8 decimal places. This can also be adjusted if a consensus considers it necessary. A fixed supply is also what makes bitcoins resistant to inflation and lack of it is what makes fiat currencies prone.
• Fiscal policies could be advantageous and also detrimental to an economy. Some would argue that a free market which is not under regulation and isn't politicized, but rather under the influence of market forces is better than a highly regulated one.

All these does not mean bitcoin would eventually be a perfect fit for a currency, but it clearly can meet the requirement to be one in the future.

No, it was supposed to be a peer to peer payment transaction across borders without involvement expensive money exchangers or regulators but it has been turned into an investment scheme,

Telling people how to use it is a sort of regulation and I do not think that was what Satoshi had in mind; He created a purely decentralized network, and as such the community decides what they do with it without any regulatory body or authority to control or define it.

[Cryptoababe]

When you talk about Bitcoin first thing which most of us thinks either it's a get rich quick scheme or an investment scheme. Did Satoshi Nakamoto created Bitcoin as an investment scheme? No, it was supposed to be a peer to peer payment transaction across borders without involvement expensive money exchangers or regulators but it has been turned into an investment scheme, where are we heading ? Do you think Bitcoin is losing its original purpose of its invention?

Bitcoin is not loosing is original purpose. Its also gonna serve its purpose for creation and serve as investment opportunity for people. Mobile devices are once created for making and receiving calls only. But now there are used for different purposes. So bitcoin will still serve more purpose with time.

[wxa7115]

When you talk about Bitcoin first thing which most of us thinks either it's a get rich quick scheme or an investment scheme. Did Satoshi Nakamoto created Bitcoin as an investment scheme? No, it was supposed to be a peer to peer payment transaction across borders without involvement expensive money exchangers or regulators but it has been turned into an investment scheme, where are we heading ? Do you think Bitcoin is losing its original purpose of its invention?

Bitcoin is not losing its original purpose, in fact this was bound to happen and I'm pretty sure that satoshi knew it, take a look at the Forex market in which every single currency around the world is traded against each other, if bitcoin is to become a form of currency used all over the world then it needs to be traded just like all of those other currencies, or take a look at the market of precious metals and you will see the same.

The truth is that if something is valuable enough a market is going to be generated around it, besides it is not as if you cannot use bitcoin as a currency, you can still buy products and services and everything that makes bitcoin special it's still there, so I think all of those people that think that bitcoin is losing its original purpose are probably overreacting.

[cr1776]

When you talk about Bitcoin first thing which most of us thinks either it's a get rich quick scheme or an investment scheme. Did Satoshi Nakamoto created Bitcoin as an investment scheme? No, it was supposed to be a peer to peer payment transaction across borders without involvement expensive money exchangers or regulators but it has been turned into an investment scheme, where are we heading ? Do you think Bitcoin is losing its original purpose of its invention?

1. Think about the genesis block: Chancellor on brink of second bailout for banks.  
2. Think about the decaying reward, capping the number of bitcoins that will be created.
3. Think about the mining reward itself.
4. Read some of SN's messages on here and elsewhere.

A peer to peer transaction scheme is merely one facet of the design, there are many others, including protecting oneself from the ravages of authoritarian (socialist, fascist, communist, totalitarian etc) policies.  Inflation, confiscatory taxation, confiscation of assets, currency controls, border controls and the like.

Until bitcoin reaches a fiat<->bitcoin price stability it is going to be a growing investment.  That won't occur for another ~1-2+ orders of magnitude at minimum.  There is barely any widespread investment in it.

So if you think if bitcoin narrowly merely as a "peer to peer payment" system, perhaps it isn't fulfilling its "original purpose".  If you read what was discussed at the time, it is fulfilling a much broader purpose.

Bitcoin is a tool, like a hammer or screwdriver.  People will use it for what it is useful for.

[Zanab247]

Bitcoin is a digital currency which was created by Satoshi Nakamoto to assist the world unemployment. Many graduate are now engaging their self with bitcoin to know more about digital currency since they are use to fiat money in all transaction in the country.

[Kakmakr]

When you talk about Bitcoin first thing which most of us thinks either it's a get rich quick scheme or an investment scheme. Did Satoshi Nakamoto created Bitcoin as an investment scheme? No, it was supposed to be a peer to peer payment transaction across borders without involvement expensive money exchangers or regulators but it has been turned into an investment scheme, where are we heading ? Do you think Bitcoin is losing its original purpose of its invention?

No, not at all.... Remember one thing, fiat cash can also serve two purposes... namely being a currency or being an investment option (Forex currency trading)

Most governments does not want other currencies to compete with their own reserve currencies, so they defined Bitcoin as a Commodity to stop that. Nothing is stopping you to use it as a currency, but from a government perspective it will always be a Commodity.  

It is for this reason that people are looking at Bitcoin as a Commodity and also because it has had phenomenal growth and profit potential.  

[BlackHatCoiner]

• While having a fixed supply, Bitcoin is also highly divisible, to 8 decimal places. This can also be adjusted if a consensus considers it necessary.

I don't think that such consensus will ever be needed. Only if lightning network gets way too wide spread in the next decade. Wouldn't this change the dust amounts, though?

A fixed supply is also what makes bitcoins resistant to inflation and lack of it is what makes fiat currencies prone.

Yes, bitcoin is deflated because of its consensus rules. What I wanted to say on my post is that it is highly fluctuating which makes it looking more like as an investment than a currency like dollar and euro.

Satoshi probably wanted a peer-to-peer currency that no one controls and he implemented it. But since it was that much free to the people, it was worthy of its fate. I will always say that bitcoin is the safest heaven, after gold, for keeping someone's wealth. (but also the smartest)

[Asuspawer09]

When you talk about Bitcoin first thing which most of us thinks either it's a get rich quick scheme or an investment scheme. Did Satoshi Nakamoto created Bitcoin as an investment scheme? No, it was supposed to be a peer to peer payment transaction across borders without involvement expensive money exchangers or regulators but it has been turned into an investment scheme, where are we heading ? Do you think Bitcoin is losing its original purpose of its invention?

I get your point since Bitcoin was created as a digital currency but people are not really using it as a mode of payment, I mean it was used as a mode of payment in some transactions but most of the time it is used in investing. Personally, I think that bitcoin is best when it comes to investment and most people could agree because of the high potential profit of it. And as a digital currency, yes it can be used but still but reliable than a fiat currency because the value of fiat money depends on the country that regulates it compared to the bitcoin that has a volatile value.

For me, it's not losing its purpose still but for now, bitcoin value is just so volatile and its best used was for investment, It is still in the process to become a digital currency.