Bitcoin as a speculative asset or as currency

[dimox]

Probably neither.

Fact of the matter is that bitcoin is a long term store of value asset due to its disinflationary properties. It might not be a currency in the truest sense, at least not right now, given its long-ish confirmation times.

But certainly it's not just a speculative toy. The short term fluctuations are going to be present, but in the long run, you'll find that BTC preserves value a lot better than fiat or even gold.

yeah, some of them use bitcoin as currency. maybe just for people that know each other, than deal to use it as payment method.
most of us just collect and trade when the price is good enough.
and im sure if bitcoin still be good asset as long as it have good demand.

[jaysabi]

It's more of a speculative asset these days.  Nobody is using it for commerce, people are only interested in the gains from holding it.  And there is a great deal of FOMO driving the speculative frenzy.  Nobody wants to miss out on being a "crypto millionaire."

[iv4n]

Probably neither.

Fact of the matter is that bitcoin is a long term store of value asset due to its disinflationary properties. It might not be a currency in the truest sense, at least not right now, given its long-ish confirmation times.

But certainly it's not just a speculative toy. The short term fluctuations are going to be present, but in the long run, you'll find that BTC preserves value a lot better than fiat or even gold.

yeah, some of them use bitcoin as currency. maybe just for people that know each other, than deal to use it as payment method.
most of us just collect and trade when the price is good enough.
and im sure if bitcoin still be good asset as long as it have good demand.

We have big companies buying Bitcoins for their hedge funds in the recent period, let's not forget that! It's about how someone uses Bitcoin, and I think Bitcoin can be and it is a speculative asset, currency, store of value...
And it's what I see in this thread, many different opinions and different ways of using Bitcoin! So I can't agree with Kyraishi with his "probably neither", it's more like "probably both and a lot more"!

[shogun47]

Probably neither.

Fact of the matter is that bitcoin is a long term store of value asset due to its disinflationary properties. It might not be a currency in the truest sense, at least not right now, given its long-ish confirmation times.

But certainly it's not just a speculative toy. The short term fluctuations are going to be present, but in the long run, you'll find that BTC preserves value a lot better than fiat or even gold.

That only counts if enough people believe your statement to be true. You are right in the sense of course that the amount of Bitcoin is truly limited, but the common agreement is what ultimately gives Bitcoin value. I do agree though that from what we know today, Bitcoin is most likely going to be a store of value for the future.

[Rruchi man]

This topic has been up for debate for a while since as to whether the original purpose for the creation of bitcoin is for it to be a currency or an asset as many see it to be today. But truth is the original creator of bitcoin, never intended for it to become a speculative asset as many see it today.

In my opinion, because of the decentralised nature of bitcoin, it was created as an alternative mode or currency that offers its users freedom from the centralised nature of the governments fiat. But as a result of its ever fluctuating value, folks have now turned it to a speculative asset.

As of now, people prefer to HODL their bitcoins rather than use it as a medium of exchange (currency).

[Pokapoka124]

Bitcoin is a digital currency, that's a fact. Whether it is popularly used and recognised for that purpose is a question that is everyone's mind. Businesses are beginning to accept bitcoin as a means of payment. But here is the challenge most people that hodl bitcoin do not really buy bitcoin to use as a currency but rather they bought as an investment.

[kapalmabur]

Bitcoin is a digital currency, that's a fact. Whether it is popularly used and recognised for that purpose is a question that is everyone's mind. Businesses are beginning to accept bitcoin as a means of payment. But here is the challenge most people that hodl bitcoin do not really buy bitcoin to use as a currency but rather they bought as an investment.

Basically Bitcoin was created to be a digital currency but so far not all countries have legalized Bitcoin as a legal tender,
Bitcoin is currently being used more for investment because of its high value and we can see that it continues to rise every year

[kapalmabur]

Bitcoin is a digital currency, that's a fact. Whether it is popularly used and recognised for that purpose is a question that is everyone's mind. Businesses are beginning to accept bitcoin as a means of payment. But here is the challenge most people that hodl bitcoin do not really buy bitcoin to use as a currency but rather they bought as an investment.

Basically Bitcoin was created to be a digital currency but so far not all countries have legalized Bitcoin as a legal tender,
Bitcoin is currently being used more for investment because of its high value and we can see that it continues to rise every year

[inoes]

if the choice is a speculative tool or currency, then honestly I feel that bitcoin is just a speculation tool for me.  I feel how he greatly influences the cryptocurrency market price.  besides that I also don't have enough bitcoins if used for payments, apart from the high fees, the transaction speed is also volatile in price.  it all comes back to us as users who feel it

[lalabotax]

When it comes to my life in my country, Bitcoin is not a currency currently. Well, it is because Bitcoin is not legal as a currency. But it is legal as a commodity asset. SO, I will rather say that Bitcoin is a digital asset only, but a speculative asset? Well, it may be for people who don't really believe in Bitcoin, so it is based on speculation without any basis.

[AndySt]

For me bitcoin is both because I am holding it for long term as an investment source and also want to use it as a currency when local stores near me start accepting bitcoin and then just by scanning qr code and with LN transactions can be made at ease.But for most of the people at this time bitcoin is being recognised as store of value and asset which can give high profits in the long run but with btc becoming mainstream it will be used as currency.

but this will not change the extension of bitcoin itself because bitcoin will still be an asset that is used for the long term. even though it is used for currency but this is only an alternative option and will forever be like that because basically even though here it is volatile, but this is what makes it more interesting and when you know more you will realize that this coin is valuable.
and when people start using it as a currency it can affect existing extensions because it will be much profitable if it is still used for future assets not as a currency

The use of bitcoin as a digital currency and as a means of saving are quite mutually exclusive concepts in modern conditions. Therefore, if we want bitcoin to become a digital currency in the classical sense of the meaning, then we should forget about the huge volatility and, accordingly, huge profitability, because this should not happen with a currency for mutual settlements. Therefore, we see at this stage that bitcoin is a speculative asset, which in its current state is quite satisfactory for both state authorities and investors. Therefore, even when bitcoin becomes mainstream, I am not sure that it will successfully embody both hypostases. As they say, either this or that.

[Rasa nanas]

Bitcoin is a digital currency, that's a fact. Whether it is popularly used and recognised for that purpose is a question that is everyone's mind. Businesses are beginning to accept bitcoin as a means of payment. But here is the challenge most people that hodl bitcoin do not really buy bitcoin to use as a currency but rather they bought as an investment.

well that's true, most people buy bitcoin for investment because many people believe bitcoin price will keep increasing. only a handful of people buy bitcoin as a currency because few places accept bitcoin as a means of payment. although they find a place to shop that accepts bitcoin I'm sure they will prefer to pay with cash rather than pay with bitcoin.

[Victorycoin]

Bitcoin is a digital currency, that's a fact. Whether it is popularly used and recognised for that purpose is a question that is everyone's mind. Businesses are beginning to accept bitcoin as a means of payment. But here is the challenge most people that hodl bitcoin do not really buy bitcoin to use as a currency but rather they bought as an investment.

well that's true, most people buy bitcoin for investment because many people believe bitcoin price will keep increasing. only a handful of people buy bitcoin as a currency because few places accept bitcoin as a means of payment. although they find a place to shop that accepts bitcoin I'm sure they will prefer to pay with cash rather than pay with bitcoin.

I can say most of domain and hosting service sell with bitcoin think that it is fontline "namecheap.com" accepted bitcoin payment and others many site can domain hosting reseller used bitcoin only for the payment, but i hope bitcoin is most investable section invest proper waye in bitcoin so not losses.  Investing in Bitcoin is much more risky if not analyzed. So I think if you want to make a profit you need to do analysis if it is for a long time.

[King Khaizan]

in some official institutions and central banks of many other countries, view cryptocurrencies as speculation.

This digital currency cannot be used as a legal tender, so it is not recognized as an asset. As a currency, crypto clearly has no fundamental value if it cannot be accepted as an official medium of exchange.

As an instrument of speculation, the price can soar indefinitely, but it can also fall freely. This happens because the price is completely dependent on supply and demand in the market. Some well-known investors also provoked them to reap big profits.

but on the contrary, there are also some countries that legalize the use of bitcoin as a legal tender, such as several other countries in South America.

[dezoel]

I don’t really think that bitcoin having a high transaction fees has anything to do with it not becoming a currency. It’s not every time that you will see that the fees for the transactions are high. Although a lot of people do think that, because whenever the fees are high people tend to avoid it and make use of other cryptocurrencies with lower fees for transactions.

But, if that was to be the case here, then I believe that a lot of people would have moved on to choose those other cryptocurrencies and start using them for transactions and even start investing in them and put bitcoin out of the number one position but that never happened. We really can’t tell. But there are still lots of people who use bitcoin more than there are those that use altcoins.

[Assface16678]

if the choice is a speculative tool or currency, then honestly I feel that bitcoin is just a speculation tool for me.  I feel how he greatly influences the cryptocurrency market price.  besides that I also don't have enough bitcoins if used for payments, apart from the high fees, the transaction speed is also volatile in price.  it all comes back to us as users who feel it

It depends on the person, remember that Mr. Lazslo Hanyecz used it as a currency, I think right now it's hard to see that it's a currency because a lot of us are speculating in prices and the prices are far too high to be used as a currency to buy products and sometimes services. When the time comes, we will see to it that bitcoin's going to be on the used for both, just a matter of time.

[nightxglow]

I don’t really think that bitcoin having a high transaction fees has anything to do with it not becoming a currency. It’s not every time that you will see that the fees for the transactions are high. Although a lot of people do think that, because whenever the fees are high people tend to avoid it and make use of other cryptocurrencies with lower fees for transactions.

But, if that was to be the case here, then I believe that a lot of people would have moved on to choose those other cryptocurrencies and start using them for transactions and even start investing in them and put bitcoin out of the number one position but that never happened. We really can’t tell. But there are still lots of people who use bitcoin more than there are those that use altcoins.

Yes i agree. Actually transaction fee is not really a problem, however it is one of the problem. Not most of the time that the transaction fee is high, however if the fee is high, of course people will prevent themselves to transact with bitcoin, avoid using it like you say.

And I guess, other reason why people prefer altcoin to bitcoin while using for transaction it might be because altcoin doesn't have high value as bitcoin. It's such a waste if we use bitcoin for transaction, while we can hold it and the price might increase highly later on. Unlike altcoin, that might not have that high value so we can use it freely without having to worry the price might go up and up.

[breathlessz]

if the choice is a speculative tool or currency, then honestly I feel that bitcoin is just a speculation tool for me.  I feel how he greatly influences the cryptocurrency market price.  besides that I also don't have enough bitcoins if used for payments, apart from the high fees, the transaction speed is also volatile in price.  it all comes back to us as users who feel it

It depends on the person, remember that Mr. Lazslo Hanyecz used it as a currency, I think right now it's hard to see that it's a currency because a lot of us are speculating in prices and the prices are far too high to be used as a currency to buy products and sometimes services. When the time comes, we will see to it that bitcoin's going to be on the used for both, just a matter of time.

right, time will tell, maybe it is not suitable for use in the current situation and conditions, but the times will continue to advance, so when the time comes, I think it will be suitable to be used as currency. but now it is more suitable for making money because it has the potential to invest in it

[bryant.coleman]

right, time will tell, maybe it is not suitable for use in the current situation and conditions, but the times will continue to advance, so when the time comes, I think it will be suitable to be used as currency. but now it is more suitable for making money because it has the potential to invest in it

Just because the exchange rates are going up every year, we can't assume that Bitcoin is not suitable for usage as a currency. Gold is a perfect example of some asset that has been used as a currency for long. A few decades ago, fiat currency used to be backed up by either gold or silver. And even now, in some cases, gold coins are being used in payments. I am not saying that Bitcoin will rise to that level anytime soon, but it shows that being a speculative asset is not a barrier to being used in payments.

[shogun47]

This topic has been up for debate for a while since as to whether the original purpose for the creation of bitcoin is for it to be a currency or an asset as many see it to be today. But truth is the original creator of bitcoin, never intended for it to become a speculative asset as many see it today.

In my opinion, because of the decentralised nature of bitcoin, it was created as an alternative mode or currency that offers its users freedom from the centralised nature of the governments fiat. But as a result of its ever fluctuating value, folks have now turned it to a speculative asset.

As of now, people prefer to HODL their bitcoins rather than use it as a medium of exchange (currency).

I would say that this topic will stay up for debate for a very long time. The reason for that is that Bitcoin changes over time. On the one hand because of development, on the other hand because of adoption. Both might go hand in hand of course. When Bitcoin was cents and even low in transaction fees, it wasn't really a way to transfer significant value over the internet as it lacked liquidity. It was a real speculative asset back then you could say unless you were willing to only transfer very tiny amounts, like paying a pizza!

When Bitcoin increased in price, gained adoption and gained liquidity, it could also be used as a means to transfer value, even huge amounts of value as we know about a couple of transactions of hundreds of millions of dollars for a zero fee I think. Still it was too volatile to act as a currency, but it is getting closer although we are far away from that and nobody knows whether we'll ever get there. It is more likely that another coin will likely fill that function. A coin that is a stable coin but also decentralized, which is possible but much harder to achieve in a reliable and secure way than with centralized stable coins.