Bitcoin as a speculative asset or as currency

[romero121]

Bitcoin is more of a speculative asset than a currency. The speculative feature had provided value to it and caused multiple usage access. One among that is the usage as currency.  Bitcoin in simple is the freedom to own your asset without depending on a third party services. It is also true that the market have reached such a level high through the speculative process. Now this has turned to from speculative growth to influential growth.

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[Cindella]

Bitcoin has the characteristics of both, which can be both a currency and a speculative asset.
With the use of Bitcoin and the enhancement of its consensus, more and more countries now accept Bitcoin as payment and play the currency function of Bitcoin.
The high price volatility of Bitcoin makes it a high-yield investment product. Bitcoin investors can obtain more benefits when the price rises by holding Bitcoin for a long time.

[sapnu]

In our own observations, we can see that bitcoin plays as speculative asset and as a store of value at the same time. Its difference between fiat and CBDCs makes it more likely to be chosen by many people. We usually seek financial freedom and we don't want the government keep on watching the transactions we make and they would take advantage of it. It would be best if we'll encourage others to patronize bitcoin and other crypto more for the offers and the features it has. Also, let us use our crypto responsibly and avoid doing things that will give it a bad impression and reputation.

[Irenerty]

Bitcoin was originally used as a means of payment, but with the development of time, its price fluctuates greatly and it is more inclined to store assets in value. More than a decade of development of Bitcoin has made its technology more perfect and safer, and many investors in the crypto market choose to invest in Bitcoin. Long-term investment and holding of Bitcoin can obtain higher returns as its price rises.
With increasing awareness of it, bitcoin is now accepted and used as a payment method by many institutions and companies. Some countries even use it as legal tender for daily payments.

[freedomgo]

I would go with the current reality, it has become a speculative asset rather than a currency. Why? you can obviously see the high price volatility, and that is because people are speculating and they love to trade, we cannot deny that, and the more people will hold, the more the price will be volatile.

I can understand that investors just trying to benefit from the big future success of bitcoin, which is "adoption", but as a result, it makes bitcoin more volatile and unpredictable.

[Vaskiy]

I would go with the current reality, it has become a speculative asset rather than a currency. Why? you can obviously see the high price volatility, and that is because people are speculating and they love to trade, we cannot deny that, and the more people will hold, the more the price will be volatile.

I can understand that investors just trying to benefit from the big future success of bitcoin, which is "adoption", but as a result, it makes bitcoin more volatile and unpredictable.

As said above, bitcoin is truly speculative asset than a currency for different reasons. The market is more reactive to speculation made by the influencers. This we can't see with the currency. The markets won't react that easy on someone's words. This makes big money being poured in and taken out as very big money. Here the importance and the core for which the innovation is made gets hidden.

[zanezane]

~

both are functions and benefits that we can get from bitcoin, both as a speculative investment asset and as a digital currency, but as citizens of course we must follow all regulations issued by our country regarding the use of bitcoin, and in my country bitcoin it can only be used as an investment asset and will get punished if you use bitcoin as a currency (a payment/purchase transaction tool), and that's why I personally prefer bitcoin as an investment asset because there are state regulations that I have to follow, but it's different with other people who live in el salvador today, those who live in salvador already have the freedom to use bitcoin both as an investment asset and as a currency because the el salvador government has completely legalized cryptocurrency in their country.

That's a really harsh country that you're living in for them to not allow you to use it as a means to pay for your transaction. In my country though, I don't have to worry too much about it because the laws here are only enforced strictly for about 2 or 3 months and then people forget it and the enforcers don't care so we can use both, that is why I was asking why not both.

[Assface16678]

~

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

Even if it's just a matter of time as to when it becomes suitable or more like generally accepted, we shouldn't be boxed in that one idea that we have to wait when we can use it already like that, what if you contribute to the advocation towards using bitcoin for general transactions since you started early before it was cool/normal? It can be used, didn't Satoshi made bitcoin as a way to pay stuff?

[Rahman11]

Bitcoins can be used to purchase goods and services, and traded for dollars on web-based exchanges. ... In this paper, I show that the rapid increase and equally-rapid collapse in Bitcoin's price, valuation, and trade volume can be explained by regarding Bitcoin as a speculative asset.

[ReiMomo]

Since BTC just crossed $60k and everyone is hoping for $100k and more in down the line, everyone started to see it as an asset if they buy something now and hold it. Being here for a long time, I too would collect or earn as much as I can via any means available here and would love to hold and see great profit in future. In turn, holding the coin for a long term its self says, its an indirect asset to accumulate and get the revenue.

I would say, crypto currency, has a unique feature unlike fiats that holding the currency with us ourself (in our wallets) will yield a good profit. It will be used as currency and as an asset. Both will happen certainly.

[fullhdpixel]

Since BTC just crossed $60k and everyone is hoping for $100k and more in down the line, everyone started to see it as an asset if they buy something now and hold it.

No, I have been watching topic about whether bitcoin is an asset or not for long time like when it was testing $1k for very time itself. I mean testing $60k did not bring the status of being an asset to bitcoins. It has been treated as a digital asset for very long period of time.

I would say, crypto currency, has a unique feature unlike fiats that holding the currency with us ourself (in our wallets) will yield a good profit. It will be used as currency and as an asset. Both will happen certainly.

Yeah, nothing is going to stop bitcoin being used as currency and asset at a same time. Gold was being used as currency in olden days but now we treat it like an asset as we have something else to transact. Hence, bitcoin may remain as an asset until we find something elses to easier and cheaper transactions.

[Fortify]

I just read in a news that ASI president Rich Checkan said CBDCs were concocted in hell by Satan himself. Although, he has a good reason for saying this, it is distinctly obvious that CBDC transactions will be transparent in a way government can know how citizens are depositing and withdraw funds, it will even be worse if compared to fiat in relation to privacy. For privacy reasons, decentralized currencies like Bitcoin evolved to make privacy possible, Bitcoin gives freedom in a way your money (bitcoin) can not be monitored by the government, that void of privacy which could be horrible.

Bitcoin was compared to gold while Bitcoin is said to still be a speculative asset, gold that has been existing for long as a store of value. But Bitcoin adoption is increasing, the institutions that are offering their clients Bitcoin are increasing. Jamie Dimon, the Chief Executive Officer of JPMorgan Chase called Bitcoin a fraud in the past, but JPMorgan Chase are now offering Bitcoin to a range of clients. Although, if Bitcoin is still classified as a speculative asset, the institutions are investing in it because they know it will later certainly be a store of value.

It is said that the central banks are nervous about Bitcoin to be used as a currency but just as a store of value like gold and silver. That if Bitcoin is emerging as a currency, going mainstream and people using it as direct payment, this can still lead to governments trying all possible means to intervene which can be the biggest issue and threat towards Bitcoin adoption. That governments power and influence over their people are their currency, and government will not want to lose the control.

Is Bitcoin still yet a speculative asset or a store of value? I think people will have different opinions about this.
Also bitcoin high transaction fee, is it not related to this? Because the lower the fee the more Bitcoin will fit into the currency category.

The interview was quite interesting: https://m.youtube.com/watch?v=VUvp9X8UTws&feature=youtu.be
https://www.kitco.com/news/2021-07-27/-Central-bank-digital-currencies-were-concocted-in-hell-by-Satan-himself-Rich-Checkan.html

Do I think all cryptocurrencies will forever be a speculative asset? No. Do I think that Bitcoin itself is currently a speculative asset? A large majority of holders now are currently speculators and it is increasing every day. Bitcoin is very similar to gold in desirability terms, however it has a couple huge advantages - it is extremely liquid and it has a fixed (yet diminishing) supply. As it was first to market, it has captured the attention of almost everyone as the premier cryptocurrency and this will drive it's popularity for at least another few years. After that, we may see more interest developing in other cryptocurrencies which have more original features and also have a much larger supply available, which makes them harder to dominate.

[freedomgo]

I would go with the current reality, it has become a speculative asset rather than a currency. Why? you can obviously see the high price volatility, and that is because people are speculating and they love to trade, we cannot deny that, and the more people will hold, the more the price will be volatile.

I can understand that investors just trying to benefit from the big future success of bitcoin, which is "adoption", but as a result, it makes bitcoin more volatile and unpredictable.

As said above, bitcoin is truly speculative asset than a currency for different reasons. The market is more reactive to speculation made by the influencers. This we can't see with the currency. The markets won't react that easy on someone's words. This makes big money being poured in and taken out as very big money. Here the importance and the core for which the innovation is made gets hidden.

One reason is crypto is decentralized and less regulated, so any manipulation is possible and it's very obvious it's happening. Compared to fiat currency, the performance is definitely on how a nation's economy is doing, with bitcoin, we look forward on the future's adoption but even if it's positive, the price does not positively react to it automatically since it's very unpredictable.

Being unpredictable makes it a speculative asset than a currency, it's very simple to understand, why would an ordinary person use bitcoin for transactions when in an instant the value could drop, and it will lose the value of his/her money.

[Abiky]

If people use it as a currency rather than trading it, it becomes a currency.

Since people trade it more than using it as a currency, it is more like a speculative asset lately.

Most people I know don't want to know about bitcoin's use cases. They just want to get rich.

That's certainly true, mate. Most people are into crypto to make a lot of money, so Bitcoin's main use is more as a speculative asset than anything else. If people used Bitcoin as a unit of account instead of Fiat, things would've been a lot different than what they are right now. Imagine paying directly in Bitcoin without the need to know how much the coin is worth in terms of Fiat. It would enable a truly-decentralized crypto economy just like Satoshi envisioned. Always remember that 1 Bitcoin equals 1 Bitcoin no matter what. If people truly knew the meaning of crypto/Blockchain tech, they wouldn't been relying on Bitcoin as means for profit. Only Fiat's disappearance will make people use Bitcoin as a currency than all the other way around. But we all know this is very unlikely to happen anytime soon. Just my thoughts

[jaysabi]

If people use it as a currency rather than trading it, it becomes a currency.

Since people trade it more than using it as a currency, it is more like a speculative asset lately.

Most people I know don't want to know about bitcoin's use cases. They just want to get rich.

That's certainly true, mate. Most people are into crypto to make a lot of money, so Bitcoin's main use is more as a speculative asset than anything else. If people used Bitcoin as a unit of account instead of Fiat, things would've been a lot different than what they are right now. Imagine paying directly in Bitcoin without the need to know how much the coin is worth in terms of Fiat. It would enable a truly-decentralized crypto economy just like Satoshi envisioned. Always remember that 1 Bitcoin equals 1 Bitcoin no matter what. If people truly knew the meaning of crypto/Blockchain tech, they wouldn't been relying on Bitcoin as means for profit. Only Fiat's disappearance will make people use Bitcoin as a currency than all the other way around. But we all know this is very unlikely to happen anytime soon. Just my thoughts

"Always remember 1 Bitcoin equals 1 Bitcoin no matter what."  This is an empty platitude that doesn't mean anything.  1 dollar equals 1 dollar no matter what too.  It doesn't have any practical value knowing this.  You need to know the value of money in relation to things you want or need to buy.  Does 1 bitcoin buy a bag of groceries or a car?  Knowing it's worth "1 bitcoin" is meaningless.  Bitcoin is unusable as a currency because no one knows how much it's worth unless they convert it into USD first.

[freedomgo]

If people use it as a currency rather than trading it, it becomes a currency.

Since people trade it more than using it as a currency, it is more like a speculative asset lately.

Most people I know don't want to know about bitcoin's use cases. They just want to get rich.

That's certainly true, mate. Most people are into crypto to make a lot of money, so Bitcoin's main use is more as a speculative asset than anything else. If people used Bitcoin as a unit of account instead of Fiat, things would've been a lot different than what they are right now. Imagine paying directly in Bitcoin without the need to know how much the coin is worth in terms of Fiat. It would enable a truly-decentralized crypto economy just like Satoshi envisioned. Always remember that 1 Bitcoin equals 1 Bitcoin no matter what. If people truly knew the meaning of crypto/Blockchain tech, they wouldn't been relying on Bitcoin as means for profit. Only Fiat's disappearance will make people use Bitcoin as a currency than all the other way around. But we all know this is very unlikely to happen anytime soon. Just my thoughts

"Always remember 1 Bitcoin equals 1 Bitcoin no matter what."  This is an empty platitude that doesn't mean anything.  1 dollar equals 1 dollar no matter what too.  It doesn't have any practical value knowing this.  You need to know the value of money in relation to things you want or need to buy.  Does 1 bitcoin buy a bag of groceries or a car?  Knowing it's worth "1 bitcoin" is meaningless.  Bitcoin is unusable as a currency because no one knows how much it's worth unless they convert it into USD first.

Well said, why everyone is interested in bitcoin is because of its potential dollar value in the future, it's a very successful currency that has grown from almost worthless to the current price, everyone will be interested but it seems like the prediction in the past that 1 BTC could buy a Lambo would be happening in the future.

Before, 1 BTC = grocery items, maybe 5 years from now, 1 BTC = Lambo.

Also, don't forget about the hype, that makes it a speculative asset more.

[Baihaki Khaizan]

The pros and cons of crypto currency, bitcoin, are still rolling in when the price is still at a high level and with extreme volatility. The pros claim bitcoin to be the future for international transactions, while the cons are still strong if bitcoin is a speculative item, not even worthy of being called an asset. 

[_Miracle]

Is Bitcoin still yet a speculative asset or a store of value? I think people will have different opinions about this.
Also bitcoin high transaction fee, is it not related to this? Because the lower the fee the more Bitcoin will fit into the currency category.

The interview was quite interesting: https://m.youtube.com/watch?v=VUvp9X8UTws&feature=youtu.be
https://www.kitco.com/news/2021-07-27/-Central-bank-digital-currencies-were-concocted-in-hell-by-Satan-himself-Rich-Checkan.html

You would hope that bitcoin's speculative value is based on bitcoin's future ability to be used as digital currency (as it was created to be used ;-)).
*though there are plenty of speculative "investors" who don't have a basic understanding of what they are investing in (yes tulips, .com and real estate)


It's interesting that you bring up transaction fees:
In 2013 bitcoin was fast and cheap to use and I bought anything I could with it for a few years. When I tried to spend a few hundred dollars worth in 2018 (with a $20 tx fee) it took days.
I've kept a bit of mined coin and leave it but not as a "store of value", for that I think of precious metals and keeping the things I own well maintained.

[jaysabi]

Is Bitcoin still yet a speculative asset or a store of value? I think people will have different opinions about this.
Also bitcoin high transaction fee, is it not related to this? Because the lower the fee the more Bitcoin will fit into the currency category.

The interview was quite interesting: https://m.youtube.com/watch?v=VUvp9X8UTws&feature=youtu.be
https://www.kitco.com/news/2021-07-27/-Central-bank-digital-currencies-were-concocted-in-hell-by-Satan-himself-Rich-Checkan.html

You would hope that bitcoin's speculative value is based on bitcoin's future ability to be used as digital currency (as it was created to be used ;-)).
*though there are plenty of speculative "investors" who don't have a basic understanding of what they are investing in (yes tulips, .com and real estate)

You can hope that all you want, but it's demonstrably not the case. Almost nobody cares about using it as a currency. People buy it to speculate and try to get rich, and because they have major FOMO when they see others buying it. If it weren't for social media, Bitcoin would still be worthless. And a red flag about its true intrinsic value is that nobody knows what it's worth themselves, they depend on what others think it's worth (or worse yet, the perception of what others think it's worth) to inform their opinion of what they think it's worth.

[LUCKMCFLY]

The pros and cons of crypto currency, bitcoin, are still rolling in when the price is still at a high level and with extreme volatility. The pros claim bitcoin to be the future for international transactions, while the cons are still strong if bitcoin is a speculative item, not even worthy of being called an asset. 

The scope of the cryptocurrency or cryptocurrency is many, what governments and banks do not accept in general is volatility, in fact some countries are already taken into account as an asset or currency, such as El Salvador, there it is accepted and taken into account as normal currency, so far it has not gone bad.

Of course now the country has some problems of understanding with the World Bank and other organizations that do not accept BTC, but it is not something for which they should allow themselves to be extorted, it is something very normal that now the president of the country must know how to handle, however Other countries have as a project to accept BTC such as Paraguay, Argentina, among others, in the same way BTC represents money, and being money it is something that should be treated with the same importance.