Bitcoin as a speculative asset or as currency

[Abiky]

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.

It's all about money these days. As long as Bitcoin continues to go up in price, people will only use it as an investment tool than a currency for day-to-day payments. What's important is that Bitcoin stays true to its roots by being a decentralized and censorship-resistant cryptocurrency. Bitcoin is more than just a store of value. It's a revolution where people can finally gain financial freedom. A currency which is not controlled or owned by the state, brings many benefits to its users. People can rely on Bitcoin as an "escape route" from the current monetary system controlled by central banks and governments alike. But not everyone understands what Bitcoin is all about.

Considering how long people have been relying on Bitcoin as a speculative asset, it seems to me that everything will remain unchanged in the future. I wouldn't worry about this as long as Bitcoin has strong community support. Just my thoughts

[1714752349]

1714752349

[perfect999]

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.

You are right, the power that government has over their people is the currency that they are making use of, and they wouldn’t like to lose that power. They are not going to let bitcoin replace the fiat currency we are making use of, since they know very well that they cannot control it (BTC), so they won’t let that happen at all.

I see bitcoin heading towards becoming a store of value mainly, but we are still going to continue making use of it for transactions online just like we do now, it’s going to be for people who wants to make use of it that way.

[jaysabi]

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.  

People who are against bitcoin and say it doesn't deserve to be called an asset because bitcoin doesn't have a physical form and is very volatile (decentralized), of course it will be a problem if bitcoin is accepted as an official payment system because the price goes up and down in a day can reach 10% or more, but I'm sure if the bitcoin community is increasing, more and more countries will legalize bitcoin just like fiat currency.

People who say bitcoin isn't an asset are factually wrong. An asset is literally anything that has value, and there are plenty of non-physical things that have value and are therefore assets.  Intellectual property is a classic example, including patents.  Also, 5G spectrum has no tangible existence and yet the major telecoms are buying swaths of it for billions of dollars, which they then own to build their 5G networks on.  This is another obvious example of a non-tangible asset.  And of course, any crypto- not tangible, has value = is an asset, according to the literal definition of the word.

[Ozero]

Can it be both because I believe that bitcoin is comprised of factors that is unique to currency and speculative asset. Plus there's nothing wrong with both because it adds some character of some sort to bitcoin being debated whether it's an asset or a currency.

Unfortunately, the higher the price of bitcoin became, the more solidly it became a speculative financial asset. It can sometimes be used as a means of payment, but in general it is not beneficial for market participants. I do not think that the price of bitcoin will go up indefinitely, as many believe. This is not possible in our material world. However, if the price growth of bitcoin stops, then the cryptocurrency market will change dramatically, and this will be a real shock for him.
States will also strengthen the regulation of cryptocurrency, it is not profitable for them to use it as a means of payment. Already in October, we may see new recommendations from the FATF regarding the regulation of the circulation of cryptocurrency. This could have an impact on bitcoin as well.

[Abiky]

People who say bitcoin isn't an asset are factually wrong. An asset is literally anything that has value, and there are plenty of non-physical things that have value and are therefore assets.  Intellectual property is a classic example, including patents.  Also, 5G spectrum has no tangible existence and yet the major telecoms are buying swaths of it for billions of dollars, which they then own to build their 5G networks on.  This is another obvious example of a non-tangible asset.  And of course, any crypto- not tangible, has value = is an asset, according to the literal definition of the word.

Bitcoin is both a speculative asset and a currency. It's the best of both worlds. Most people don't know this, so they rely on Bitcoin only as an investment tool (or speculative asset). They're only in it to make a lot of money, instead of believing in its core technology to change our world for the better. Only a very small minority uses Bitcoin as a currency for day-to-day payments.

Of course, Bitcoin has its limitations. High fees and slow transaction confirmation times makes it a terrible alternative to existing Fiat. But that's not a concern if you care about decentralization and censorship-resistance. Some may say Bitcoin doesn't have intrinsic value because it's "made out of thin air". But that's completely wrong since time and energy is spent in order to generate new Bitcoins. Intangible assets are as valuable as tangible assets, in my own opinion. Consider how your digital data is valuable to companies and governments alike. If there's demand for something, you can expect it to gain value in the long run. With how far Bitcoin has gone since its inception, it's unlikely it'll become worthless in the future. Just my opinion

[oHnK]

With how far Bitcoin has gone since its inception, it's unlikely it'll become worthless in the future. Just my opinion

Like other currencies, Bitcoin is a currency that has 3 functions, including as a medium of exchange/payment, store of value and speculation.  So, the currency should have those 3 functions.  Otherwise it can be a speculative asset for what is called currency. But there are many who may think that speculation does not have to be owned by a currency.  Though it is the part of the currency.

[Abiky]

Like other currencies, Bitcoin is a currency that has 3 functions, including as a medium of exchange/payment, store of value and speculation.  So, the currency should have those 3 functions.  Otherwise it can be a speculative asset for what is called currency. But there are many who may think that speculation does not have to be owned by a currency.  Though it is the part of the currency.

We could say Bitcoin is a multi-purpose currency. It's the first of its kind, opening up a world of possibilities. Most people use Bitcoin as a speculative asset since they only care about making money from it. Only a very small minority use it as a currency. Ultimately, it's all about Bitcoin's underlying technology. Blockchain is what'll change our world in many ways that were never imagined. Price per coin doesn't matter if the same is useful. What's important is that Bitcoin stays decentralized and censorship-resistant. As long as it stays that way, there should be nothing to worry about. Just my opinion

[Levero]

Bitcoin is a combination of speculative assets and currency.
Now many companies have accepted bitcoin as a payment method, and some countries are gradually accepting it as payment, especially in El Salvador which has already used bitcoin as legal tender.
The original purpose of bitcoin appeared as a payment currency, but with the passage of time and the development of bitcoin, more people realize its value and profitability, and they are more inclined to hold it as a speculative asset for a long time and obtain profits.

[ampu]

It's true, it's also how we use Bitcoin in the past. Pay with Bitcoin in places that accept Bitcoin or hoard it as an investment.
The truth is that many people have gotten rich by hoarding Bitcoins in the past.

[dimox]

Bitcoin is a combination of speculative assets and currency.
Now many companies have accepted bitcoin as a payment method, and some countries are gradually accepting it as payment, especially in El Salvador which has already used bitcoin as legal tender.
The original purpose of bitcoin appeared as a payment currency, but with the passage of time and the development of bitcoin, more people realize its value and profitability, and they are more inclined to hold it as a speculative asset for a long time and obtain profits.

agree. maybe some companies want to, or introduce crypto at once. or they want to adapt on small to big scale, and its good.
and there are some companies, can do that and supported by country but prefer to pay with usual method because bitcoin is too valuable.
people will find way to satisfying their desire, developing technology around or developing own needed

[Rasa nanas]

It's true, it's also how we use Bitcoin in the past. Pay with Bitcoin in places that accept Bitcoin or hoard it as an investment.
The truth is that many people have gotten rich by hoarding Bitcoins in the past.

If people got rich by hoarding in the past then we just follow the same thing, we are hoarding bitcoin now then 5 or 10 years from now to be rich, but I'm sure few people dare to do this, most people will always say its too late and no dare to take risks.

The reason is true, but it has nothing to do with the risk of buying at a high price. Currently the price of bitcoin is so high that the price cannot be reached by most people. I'm sure there are many people who want to invest in bitcoin but are financially constrained and they end up only collecting bitcoins from bounties and airdrops.