Will bitcoin ever succeed as a currency

[omar]

When I first discovered bitcoin back in 2011, I was very excited about it and was telling everyone to check it out.
     http://arimaa.com/arimaa/forum/cgi/YaBB.cgi?board=other;action=display;num=1305495730

At the time I had been studying money for a couple of years and was writing a paper called "Sound Money Without Commodities", so I really appreciated what bitcoin was doing. I even mentioned bitcoin in an early version of the paper.
    http://arimaa.com/money/SoundMoneyWCOrig.pdf

Although bitcoin has many good properties, I was more interested in a currency which would be very stable and could be used to price other goods and services. A currency that could be used for purchases on a daily basis. It seemed that the limited amount of bitcoin would cause it to behave much more like a digital commodity rather than a stable currency. It would not be accepted by many merchants unless they could convert it quickly to a fiat currency.

So far that has proven to be true. Major merchants that accept bitcoin use a processor that can convert it for them. We know that bitcoin is currently being used mostly as a store of value and hedge against national currencies; similar to gold, but with much better properties. That's an awesome use case and that alone can lead to valuations of trillions of dollars for bitcoin.

But will bitcoin ever succeed at being used as a stable currency? I've been told many times that when bitcoin matures to the point that everyone knows about bitcoin and owns some the price will stabilize and it can serve as a currency that is stable enough to be used for daily transactions; assuming that scaling to handle millions of transactions per second is not an issue. I still think that the price of bitcoin will be volatile even at this stage, purely due to speculation and the limited quantity. I also think that the world will need another currency that is stable by design. I've written this paper to capture some of the key features of such a currency. It would be based on UBI and demurrage and would be fair to everyone regardless of when they discover it.
    http://arimaa.com/money/GETCoin.pdf

Do you think there is room for another currency to provide the use case for daily transactions; or will bitcoin eventually succeed at this? If you think bitcoin will succeed, how long do you think it will take?

BTW, if you are interested to help with GETCoin, please PM me.

[raidarksword]

Bitcoin came long enough to prove to the public eye that he's worth it to named as the first and father of cryptocurrencies. The progress and achievements of bitcoin today's price was already a statement of success and worthy of the throne as the king of digital currencies. More milestone to come for bitcoin as we set a new year ahead of us and as well as the bitcoin adoption.

[exstasie]

I've been told many times that when bitcoin matures to the point that everyone knows about bitcoin and owns some the price will stabilize and it can serve as a currency that is stable enough to be used for daily transactions; assuming that scaling to handle millions of transactions per second is not an issue.

Relative price stability, compared to these early adopter years of exponential growth, ought to come after the vertical swing of the adoption S-curve is complete. https://bitcointalk.org/index.php?topic=5265690.msg54906097#msg54906097

But that's probably not saying much. Gold is a very liquid market and still sees 5% days. Maybe Bitcoin can get there someday. But expecting it to trade like fiat currencies......that will never, ever happen.

I still think that the price of bitcoin will be volatile even at this stage, purely due to speculation and the limited quantity. I also think that the world will need another currency that is stable by design. I've written this paper to capture some of the key features of such a currency. It would be based on UBI and demurrage and would be fair to everyone regardless of when they discover it.

I like the idea, particularly the use of demurrage to deter hoarding. Still, it would be quite experimental and I'm not sure how it would pan out in practice.

Do you think there is room for another currency to provide the use case for daily transactions; or will bitcoin eventually succeed at this? If you think bitcoin will succeed, how long do you think it will take?

I think there will eventually be scalable and liquid Layer 2 protocols for daily transactions. It could take decades to get there though. Partially centralized solutions like Liquid may fill the gap during the interim years.

[Oshosondy]

Bitcoin has already succeded as a money and as an asset already, but know that bitcoin can be called a cryptocurrency but not a currency. Example of a currency are papar fiat, they have no value, it is money that they are called that make the paper money have value which is the value in them. That said, bitcoin is already an established money and asset, it has become a time of institutions and many whales that are investing in it, it is well circulated all through the world and having a marketcap more than $500 billion now. It is clear about how it is possible bitcoin will hit $1 trillion, it can be next year,  the marketcap will be growing more and more in a way bitcoin will be the most successful money and asset on earth.

[amishmanish]

For bitcoin to become a currency, it needs to become an option first. The initial phase of P2P cash for bitcoin was purely voluntary driven by the needs and ideals of a niche group of people. What is driving the current growth and acceptance is something that everyone is probably still figuring out. The SoV usecase has captured the imagination for most people, especially due to the uncertainty of these times.

Now that it has value, it is slowly becoming an option AGAINST currency. Scaling and sufficient distribution needs to be the next step. Scaling may still come in the form of Layer 2 solutions but distribution is something that won't happen anytime soon. That is why the ideas of fair distribution, fair launches and Decentralized governance are gathering steam.

Bitcoin is a re-definition of currency so it may yet beckmd a currency for widespread transactions. Despite the occasional price drifts.

[bitmover]

Cant you see people buying and selling stuff and services all over the forum? People from all over the world.
It already succeeded

[Imran232]

I do not think that we need any clarification about this topic. I think bitcoin is already a successful currency for the world. Though we are using bitcoin still as a share company in a share market but in a blockchain technology.  But i think it is able to becomes a site currency for any country. It is like another mobile banking wallet for anyone.  So if we get a chance to use this crypto in our country then it should be a useable for as a mobile banking wallet excluding carry any money. Like we use paypal, cash app, amazon pay, google pay, paytm, upi, bkash, rocket. So it will be a best thing for us. So i think it is already a successful currency.

[bits4books]

I will express an unpopular opinion - but BTC has not achieved any success as a currency. (Not to mention it TPS)
All this time and until now, the entire cryptocurrency has been solely as a gasket between the dollar and the user. After all, so smart people once decided to use BTC as money and shout about it everywhere, on every corner, but at the same time when they saying "Bitcoin" they mean "the number of dollars for 1 coin". In BTC, there is absolutely no sense in such a situation because it is a complication of life to yourself.
As a means of earning money through trade BTC is probably one of the best phenomena in the last 10-20 years, because of its exorbitant price.
But this price will not be eternal and it will not grow forever. If today my big mac costs $ 6 and tomorrow it will rise in price to $ 8 - this means that the day after tomorrow I will receive $ 2 more and in general it will suit me.
And if today big mac costs 0.00001 (conditionally) satoshi and tomorrow is already 2 BTC-then this is a reason to commit suicide or go into the wildest depression because all your savings are lost forever.

[Tstar]

I don't think that Bitcoin or any other cryptocurrency will ever succeed as a currency, as a stand-alone product.

If any of the big names in the fiat eco-system adopt crypto, like Visa or MasterCard, the mass user will use it even when the crypto is in the back-end. Without such collaboration, it will be impossible crypto to be mass adopted.

[dunfida]

Do you think there is room for another currency to provide the use case for daily transactions; or will bitcoin eventually succeed at this? If you think bitcoin will succeed, how long do you think it will take?

BTW, if you are interested to help with GETCoin, please PM me.

You're just trying to shill out GETCoin on here. Aside of these things on the question about bitcoin ever succeed as a currency then its evident even though not actually
on the side where fiat currencies do operate but rather as on the digital side and of course decentralization is always attached to it.
Its a different market but having the same target or goal but only on the anonymous and decentralized side of things.
Adoption is still on the move and lets see on how far it will go.

[adzino]

-snip-

Although bitcoin has many good properties, I was more interested in a currency which would be very stable and could be used to price other goods and services. A currency that could be used for purchases on a daily basis. It seemed that the limited amount of bitcoin would cause it to behave much more like a digital commodity rather than a stable currency. It would not be accepted by many merchants unless they could convert it quickly to a fiat currency.

-snip-

Sorry, if you are interested in a currency that would be "very stable" and be used to price other goods, then you shouldn't be using bitcoin. It was never intended to be made as a stable currency, hence the cap of the total supply. Merchants are still accepting bitcoins. In fact you will see that every site that supports crypto currency as a payment option will have bitcoin included.

-snip-
It would not be accepted by many merchants unless they could convert it quickly to a fiat currency.
-snip-

There are payment gateways that allows merchants to integrate and accept bitcoin from users while quickly converting it to fiat currency.

[Silberman]

Do you think there is room for another currency to provide the use case for daily transactions; or will bitcoin eventually succeed at this? If you think bitcoin will succeed, how long do you think it will take?

It seems to me that you are looking for a perfectly stable cryptocurrency and that does not exist, even the dollar is not completely stable and it moves when compared to other currencies and the worst part of all it moves negatively against all commodities and services, at least the volatility that bitcoin experiments is a net positive for the market and since most of that volatility is created by incoming money once the market is mature enough and the incoming money is a tiny fraction of the money already present then we could begin to see bitcoin flourishing as  a currency.

[sujon5]

Bitcoin succeeded as a currency 11 years ago, when one guy bought two pizzas and paid with Bitcoin. Will Bitcoin succeed as the world currency like USD? I don't think so. Bitcoin isn't the perfect medium of exchange because of several reasons.

[Lorence.xD]

Cant you see people buying and selling stuff and services all over the forum? People from all over the world.
It already succeeded

But is it capable of mass adoption like everyone circlejerks about? Considering the limited supply I do not think so. I think the people buying and selling stuff using bitcoin and other cryptocurrency falls more on barter or trading. I have to agree that it succeeded but not as a currency, I would say it succeeded on removing the middleman (sort of) in transactions online.

[Casdinyard]

The question is "How do you define a currency's success?"
'coz if being used and recognized as a currency is the basis, Bitcoin will have a chance to be in such state. But if it is Bitcoin being the only currency, I guess it won' t be possible. It's nature of decentralisation would be a factor because governments will more support centralised currencies due to regulations and taxation purposes, that's just how things work. Third party network would somehow aid this concern but economies work more than that. Bitcoin and other cryptos are indeed beneficial to its users but being the only one in the limelight is another thing in which even fiat based currencies did not even manage to do so, and I guess things will be the same in this industry.

[Coyster]

But will bitcoin ever succeed at being used as a stable currency? I've been told many times that when bitcoin matures to the point that everyone knows about bitcoin and owns some the price will stabilize and it can serve as a currency that is stable...

I think this is actually your question, the issue of stability, and not if Bitcoin is a currency, which we already know it is cause it's already used in the same way different currencies are used all over the world, processing buying and selling/payment for services. Imo, It'll take quite a long time for Bitcoin to attain stability, if it ever will; but I don't think it's going to be as stable as Fiat that you use daily, and I don't even want it to be, Bitcoin is an anti-inflationary currency and it's somewhat easy to evaluate its 'volatile' value either when it's appreciating in price or losing value, and in hindsight it's a plus and not a con to the network.

Having said that, $100 I know is $100, but the value never remains the same, inflation reduces/ devalues it's purchasing power without changing the paper note, but the truth is $100 today in a few years time could actually be half it's value in terms of what it can purchase, that's not stability for me, it's actually a misconception if you ask me, Bitcoin may not be stable, but you actually know it's worth at everytime cause 1Btc is 1Btc.

[Argoo]

I will express an unpopular opinion - but BTC has not achieved any success as a currency. (Not to mention it TPS)
All this time and until now, the entire cryptocurrency has been solely as a gasket between the dollar and the user. After all, so smart people once decided to use BTC as money and shout about it everywhere, on every corner, but at the same time when they saying "Bitcoin" they mean "the number of dollars for 1 coin". In BTC, there is absolutely no sense in such a situation because it is a complication of life to yourself.
As a means of earning money through trade BTC is probably one of the best phenomena in the last 10-20 years, because of its exorbitant price.
But this price will not be eternal and it will not grow forever. If today my big mac costs $ 6 and tomorrow it will rise in price to $ 8 - this means that the day after tomorrow I will receive $ 2 more and in general it will suit me.
And if today big mac costs 0.00001 (conditionally) satoshi and tomorrow is already 2 BTC-then this is a reason to commit suicide or go into the wildest depression because all your savings are lost forever.

I agree with your opinion. Bitcoin has really become very famous now. However, only a small percentage of people own it in their wallets. However, even among those who bought bitcoin, very few use it as a means of payment. The infrastructure for this has not yet been developed, and besides, why use it to purchase goods or services, if in general it is constantly growing in price and making a profit.
However, indeed, it will not constantly increase in price. There will come a time when it will stop growing and it will be pointless to just keep it in the hope of profit. After that, the attitude towards bitcoin will change.

[Mauser]

Do you think there is room for another currency to provide the use case for daily transactions; or will bitcoin eventually succeed at this? If you think bitcoin will succeed, how long do you think it will take?

BTW, if you are interested to help with GETCoin, please PM me.

I do think that Bitcoins will eventually succeed as an ordinary currency that is a serious alternative to FIAT currencies.

The demand for bitcoins is growing every year and we are seeing a higher number of institutional investors from around the world to switch into the crypto world. With all these new players the pressure on FIAT currencies will rise too.

In my opinion we will see more and more transaction being done with bitcoins.

[bits4books]

I will express an unpopular opinion - but BTC has not achieved any success as a currency. (Not to mention it TPS)
All this time and until now, the entire cryptocurrency has been solely as a gasket between the dollar and the user. After all, so smart people once decided to use BTC as money and shout about it everywhere, on every corner, but at the same time when they saying "Bitcoin" they mean "the number of dollars for 1 coin". In BTC, there is absolutely no sense in such a situation because it is a complication of life to yourself.
As a means of earning money through trade BTC is probably one of the best phenomena in the last 10-20 years, because of its exorbitant price.
But this price will not be eternal and it will not grow forever. If today my big mac costs $ 6 and tomorrow it will rise in price to $ 8 - this means that the day after tomorrow I will receive $ 2 more and in general it will suit me.
And if today big mac costs 0.00001 (conditionally) satoshi and tomorrow is already 2 BTC-then this is a reason to commit suicide or go into the wildest depression because all your savings are lost forever.

I agree with your opinion. Bitcoin has really become very famous now. However, only a small percentage of people own it in their wallets. However, even among those who bought bitcoin, very few use it as a means of payment. The infrastructure for this has not yet been developed, and besides, why use it to purchase goods or services, if in general it is constantly growing in price and making a profit.
However, indeed, it will not constantly increase in price. There will come a time when it will stop growing and it will be pointless to just keep it in the hope of profit. After that, the attitude towards bitcoin will change.

The problem is not even that BTC will not always become more expensive and will not always become more and more popular, but that everyone who uses it sees it exclusively as an intermediary between themselves and the dollar, arguing that it is "secure" and "anonymity".
Believe me, in the 21st century, it still possible to be anonymous and to do shady things if you use clean and official tools, mixing somewhere in the depths of some rare and totally impersonal transactions (big crimes in the world still do with fiat) or for real privacy they can use ZEC/XMR .
Until cryptocurrencies begin to act as money by themselves, in isolation from the dollar/euro/etc-they will remain as just another investment instrument of currency for geeks

[hugeblack]

I do not think that it is about stability, but rather volatile growth, and it is better to measure that to compare it with gold or silver instead of paper money.
When the market capacity increases, we will find that the currency is more stable and that the currency will begin to increase in a small way, which makes the use of the daily currencies well for many countries.

Generally, bitcoin will be the internet currency and will not be used for all countries or currencies for daily use and for purchasing products.