What is the practical value of Bitcoin

[Caldear]

Bitcoin as a currency, exists in the Internet architecture and conducts peer-to-peer transactions through the network system. Bitcoin users can directly transfer Bitcoins to other users anywhere in the world through the network for the investment transactions. With the development of blockchain technology, the role and value of Bitcoin will become higher and higher, and investors will also pay attention to the development of Bitcoin, so the storage value of Bitcoin will continue to increase. But many people who just know blockchain will pay more attention to its practical value, so what is the practical value of blockchain?

[BlackHatCoiner]

It's actually ironic that you've covered it as an investment and store of value, but not as the one it was designed to be. 

Bitcoin is a currency in which

• You have complete ownership of your money.
• You can send money from one part of the planet to another within a second.^[1][2]
• Your transactions are irreversible.
• It's borderless.
• It doesn't require any identity for its usage. The addresses are brought by some cryptographic algorithms.
• You're escaping the inflation of centrally managed currencies!

Its usage as a currency evaluates it practically.


[1] As an unconfirmed transaction.
[2] As a confirmed transaction if you use the Lightning Network.

[tiCeR]

It's actually ironic that you've covered it as an investment and store of value, but not as the one it was designed to be.  

Bitcoin is a currency in which

• You have complete ownership of your money.
• You can send money from one part of the planet to another within a second.^[1][2]
• Your transactions are irreversible.
• It's borderless.
• It doesn't require any identity for its usage. The addresses are brought by some cryptographic algorithms.
• You're escaping the inflation of centrally managed currencies!

Its usage as a currency evaluates it practically.


[1] As an unconfirmed transaction.
[2] As a confirmed transaction if you use the Lightning Network.

I sometimes have the feelings that many people tend to make their final judgment over Bitcoin way too early. It is like going into a store, pointing at a tyre and saying "hey, wasn't this supposed to be a car?". And even that analogy lacks a bit of substance because a car is a final product, or maybe not because even that is going to evolve over time into whatever, I don't know...
We don't know how much of what is happening Satoshi was able to anticipate, or let's say partially anticipate. Bitcoin is an evolving system of which the underlying technology is constantly being worked on. I don't see why there shouldn't be the possibility that with a couple more years of development Bitcoin becomes indeed an electronic cash system. Who would have imagined even in 2013 / 2014 what this space could turn into by 2020. In my humble opinion, I guess almost nobody. Yes, we all had this vague idea that there is so much more to come, but what that could mean in concrete terms, there weren't so many to know that in advance.

All these threads here discussing "what is Bitcoin in 10 years from now" are kind of funny. I have this idea of a decentralized world, but I might be way behind with my idea and who knows, maybe we are already communicating over blockchain with a flying spaceship of Jeff Bezos, sending encrypted message with lightning speed to space.So much speculation, but one thing is for sure: we won't develop backwards technologically, unless we are facing a war in the meantime.

[Kakmakr]

The practical value of Bitcoin is linked to it's ability to being an alternative payment network. Now we have seen several instances where traditional payment systems like credit cards and PayPal have failed users in the past. (Instances where these centralized payment systems, blocked payments to organizations and services, based on their own decision making)

Having the ability to make payments without any third party intermediary is potentially one of the biggest advantages of using this technology and having no charge backs is very good for trust in a transaction.  

[Poker Player]

But many people who just know Bitcoin will pay more attention to its practical value, so what is the practical value of Bitcoin?

I think you have invented the concept. In economics and investment there is the concept of fair value, objective value and the like. But there is no such thing as practical value.

If you are referring to fair value, there is a theory that one thing is the intrinsic value of financial assets and another is the price fluctuations that usually differ from fair value. If you want to see something similar applied to Bitcoin, an example would be the S2F model, which predicts prices based on supply but now for example assigns a "target" value higher than the current price.

[Imran232]

There has 2 kinds of practical value of bitcoin such as investment tools and payment method. Yes i think bitcoin is the way by you you guys can build an investment empire plus we guys can use it also a payment method to anywhere in the world. Well bitcoin made it simple, easier to the people to grab it as a payment method plus their part time and full time investment platform. We have to agreed that bitcoin grab that position to get users or trust from users to invest in bitcoin.  I think its a real practical value of bitcoin. Others can be different thank you.

[mckinleeanael07]

I feel that the value of BTC depends on each person who values its value, if one has a vision of the future of technology and loves things that improve money storage in the form of virtual money, or cryptographic algorithms code then they will be willing to buy it or some of them are not tech savvy then for them BTC is just a scam one zero in their eyes.

[BrewMaster]

It's actually ironic that you've covered it as an investment and store of value, but not as the one it was designed to be. 

to be fair one of the functions of a currency is being store of value and depending on its future value (in case of bitcoin a deflationary currency in a world of inflation) it can also be considered an investment.
but to be more fair this topic is very weird to me, specially since OP starts it all off by calling bitcoin "virtual" and "exists in the internet"!

[BlackHatCoiner]

to be fair one of the functions of a currency is being store of value and depending on its future value

Yes. It's one of the functions derived from its main usage. But, generally a currency has to be used for exchanging goods. It can store value as long as its being seen as a medium of exchange.

but to be more fair this topic is very weird to me, specially since OP starts it all off by calling bitcoin "virtual" and "exists in the internet"!

What's weird about that? It is indeed available only in an electronic form and it happens to operate in the internet.

[BrewMaster]

but to be more fair this topic is very weird to me, specially since OP starts it all off by calling bitcoin "virtual" and "exists in the internet"!

What's weird about that? It is indeed available only in an electronic form and it happens to operate in the internet.

well then our fiat also exists in the internet since whenever we go to the grocery store for example and use a card to make the payment we are going through the internet and use the "virtual" fiat. but isn't really "virtual" though is it?

[BlackHatCoiner]

well then our fiat also exists in the internet since whenever we go to the grocery store for example and use a card to make the payment we are going through the internet and use the "virtual" fiat. but isn't really "virtual" though is it?

That's a bad analogy.

Fiat doesn't exist in the internet, it's represented in banknotes. What it does exist in the internet is the IOUs of these banknotes. When you make a VISA transaction, you aren't paying with fiat; you're just in debt of it. In other words, you owe fiat. When you make a Bitcoin transaction you don't owe anything, you're discharged.

It's like saying that casascius coins are bitcoins. They're not; they're IOUs of BTC.

[NicNacCoin]

Bitcoin is the best online virtual cryptocurrency which have enough popularity among the all classes of people but it is very difficult to know the real practical value of Bitcoin. If it possible then it should be stablecoin. But impossible to be possible it a stable coin.

[BrewMaster]

That's a bad analogy.

Fiat doesn't exist in the internet, it's represented in banknotes. What it does exist in the internet is the IOUs of these banknotes. When you make a VISA transaction, you aren't paying with fiat; you're just in debt of it. In other words, you owe fiat. When you make a Bitcoin transaction you don't owe anything, you're discharged.

It's like saying that casascius coins are bitcoins. They're not; they're IOUs of BTC.

i strongly believe that there is not a 1:1 relationship between those "IOUs" and the "banknotes" to be honest. they don't even have enough paper to print all of that money physically. which means the money does really exist only on the internet and in the bank's database. which is why i used that analogy.

[hatshepsut93]

The main practical value of Bitcoin is that it's digital money under your full control, unlike centralized payment systems that can freeze your accounts, reverse transactions, etc. If you had a lot of negative experiences with banks, PayPal, Venmo and other payment systems, then Bitcoin is definitely for you.

Another practical use is that Bitcoin operates without borders, while every payment company has to follow regulations, sanctions, etc., so it can be costly or impossible to send money to other countries.

[tabas]

The practical value of bitcoin lies on its concept through being adopted by most people from being a speculative asset, now it's becoming more of a store of value and that's what we're seeing today. Now, as you've mentioned about being used for transfers, it's also part of it.
Actually, most of those factors have already said with the above posts so do you still look for some better answers with those answers?

[Wind_FURY]

But many people who just know Bitcoin will pay more attention to its practical value, so what is the practical value of Bitcoin?

For Bitcoin’s “practical value”, you simply don’t have to look anywhere else, except its market that’s right in front of us. Based on that reply, you might say that its practical value is based on nothing but mere speculation. BUT I would reply, yes because Bitcoin depends on the open market for it’s current “practical value”. It’s value depends on US, collectively known as “the market”.

[davis196]

How do you define the term "practical value"?
If you think that there is such thing as "practical value",then what about "theoretical value"?
I assume that by practical value,you mean utility.Bitcoin is not a utility token and it never will be.
What do you mean by "storage value"?Simply storing Bitcoins in your wallet doesn't mean that their value will increase.Bitcoin is not a bank deposit or a savings account.
The value of BTC is defined by limited supply and increasing demand.BTC value=scarcity.

[rodskee]

Nothing today

This is literally the Practical value  and i think OP must have the idea on how to find it than asking us here.

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The market is the Place where to find it (Of course the legit Exchange) .

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Bitcoin is the best online virtual cryptocurrency which have enough popularity among the all classes of people but it is very difficult to know the real practical value of Bitcoin. If it possible then it should be stablecoin. But impossible to be possible it a stable coin.

Stable for Bitcoin does not exist , but the value is according to what the people who invests and use it , if the demand is high then the value is high as well.

[DarkIT]

Bitcoin as a virtual currency, exists in the Internet architecture and conducts peer-to-peer transactions through the network system. Bitcoin users can directly transfer Bitcoins to other users anywhere in the world through the network for the purchase of goods or investment transactions. With the development of blockchain technology, the role and value of Bitcoin will become higher and higher, and investors will also pay attention to the development of Bitcoin, so the storage value of Bitcoin will continue to increase. But many people who just know Bitcoin will pay more attention to its practical value, so what is the practical value of Bitcoin?

Bitcoin play a vital role in the crypto market.All the new traders will inverse in the bitcoin to get more profit.Some people will inverse in good altcoin,they get more profit by holding it.Patience is needed tool in the trading.The practical value of bitcoin will depends on the market and not on the immediate changes.

[Desmong]

One of the practical value of Bitcoin is for transaction of services, medium of payment and also as a source of investment purposes. Bitcoin is an assets not just ordinary digital currency whose value is static.

The price of Bitcoin is very volatile and can be traded if one has a good knowledge about it interface and how It works making it a good source of investment when compared to other volatile markets. Bitcoin is an asset which can be hold over long periods of time depending on one's motive. It is durable and does not expire or decay like Fiat currency that has a time limit.

 In general Bitcoin is a digital currency which the ultimate reason is for transactions.