Bitcoin is still a digital currency

[Amphenomenon]

Most people being introduced into bitcoin sees bitcoin as a means of investment, precisely since 2018. They don't even care of knowing what it is use for, all they care about is that they can make money from it and this flaw has been exploited by the government and now most countries legalising Bitcoin, legalised Bitcoin as an asset instead as an digital currency.

 I was once among these set of people who just sees Bitcoin as a means of investment not until I joined this Forum, where I saw a reason to read the Bitcoin Whitepaper and did research about how it helps in the field which it was created for.
Bitcoin as digital currency was created to make online payments to be sent from one party to another without the need of an intermediary.

I know people have various view of Bitcoin as some view it as an alternative to digital gold so they see it as a means of investment , some sees it as something that gives them total control of their money while they are other views but this is the most common aside from what it was created.
Though, they have a solid reason to justify their claims but in the end this is not the main reason or use for Bitcoin. It is just a part feature that bitcoin offer as a digital currency.

I don't really know how feasible is this my theory but this is how I see Bitcoin.
I see bitcoin Blockchain as a country, where those who  works there are paid with Bitcoin "just like how every country pays their citizens working with the country currency (those who receives salary in other currency in a country, obviously works in an organization that is not from their own country)" and this is when the worker validate a block.

Just like how there are those who are unemployed, unable to get a job done or are caught lying to have completed done a job are not paid, so it's on Bitcoin Blockchain, those who are unable to validate a block (unemployed), unable to get a job done or are caught lying to have completed a job earns nothing. This are the proof of work mechanism.

When converting from one currency to another, the one with the highest value have a better edge (like if am converting from naira to dollar, I will be having less), Bitcoin is just another currency having higher edge than the other currency but just like how the rate from converting naira to dollar or any other currency may change, Bitcoin price also changes (though more volatile).This covers why bitcoin is seen as an investment.

Then the wallet is a unique bank, that is to say, it gives you total control of your money (except when you using a CEX, which though still gives you more control of your money than the Physical banks but not total control of it). Just as some physical banks are more secured and better than the others, so is it for the wallet so you have to find the most effective and secure option for you. Aside from this the rate anonymity depends on the wallet you use. This covers why bitcoin is view something that gives total control of one's money.

Like I stated before, there are various ways people view aside from the main reason it was created but if you check, you would see that all this are features that physical currency offers but with Bitcoin having more unqiue features to it.

Now Bitcoin as a means of payment:

When Bitcoin first came out, there where alot of criticism some saying it will make criminal activities such as money laundering, financing terrorism, Kidnapping easier and others speaking of how it not be accepted.There are other criticism which Bitcoin face, the criticism stood a ground at that time but not all are still standing and those critics of then and now, always try to find issues to speak against it and also not wanting to speak of uses of Bitcoin.
Bitcoin as a means of digital currency has covered almost everything of it field (if not all)  as  a means of payment with the off chain and on chain protocol which has been use to aid payment like multi sig wallet, Lightning network, Schnorr Signature, SegWit wallet and others makes transactions faster.

The multi sig wallet helps offer security, make not just a single person to get total control of an organization funds and also offers other benefits that helps the organisation. While the Lightning network, Schnorr Signature, SegWit wallet and some others are fixing the scalability issues.
Bitcoin core members are working hard to make bitcoin the best means of payment and though Bitcoin still have some issues but they will be fixed. I prefer to see bitcoin being accepted as a digital currency and not as an asset or anything because that what it is.

[Plaguedeath]

I have no idea why you're creating a wall of text, it's really hard for me to read your post, other users might feel as well.

After all Bitcoin can be viewed as a currency or as a speculative asset, for country which accept Bitcoin as a currency, we can use Bitcoin for both. But for most people which not accept Bitcoin as a currency, we can still trade and hold Bitcoin.

Actually Bitcoin stored in centralized exchange and banks are same, you're don't have full control over your money.

[aryana42]

Bitcoin is a currency, an investment. Its use is up to the individual, and there is nothing wrong with people just seeing it as an investment. If you don't like to use it for investment, then you can use it as currency, you don't need to care about others. You just have to remember that, as long as bitcoin creates value and benefits people, that's bitcoin success.

[Cantsay]

Nice write up, but the whole text is clogged up making it difficult to read through so when next you're composing a text make sure you give it some space so that it won't looked all jammed up.

Remember that Bitcoin has not yet being accepted as a legal tender in most countries so it's still going to take a long time before everyone will start to view it as a means of payment but it still doesn't matter to much if they take it as a means of payment or as an investment scheme so long as they grasp the idea behind Bitcoin which is Freedom according what I read the main reason for bitcoin's creation was to give the common people the power for them to own their own wealth and not just to leave everything in the hands of government and I think majority of those involved in Bitcoin understand that fact.

[pakhitheboss]

WOW! Such a huge post with zero paragraph. Looks like a wall of text. Definitely not easy to read it on a mobile device as I using one now. @OP can you please edit it with paragraphs as that would be very helpful. Do check this thread to understand what I trying to say.

[GUIDE] Bitcointalk forum etiquette

[Obito]

What if I own a silver dollar? Technically, it's still a currency but most people see it as an asset. I get your point OP but is the distinction really important? You worry too much what the government can do, it's not like they have full control, unless you consented control of your bitcoins to them.

[leonair]

Bitcoin is a currency, an investment. Its use is up to the individual, and there is nothing wrong with people just seeing it as an investment. If you don't like to use it for investment, then you can use it as currency, you don't need to care about others. You just have to remember that, as long as bitcoin creates value and benefits people, that's bitcoin success.

Yes true. Bitcoin is not used for any specific purpose.  The price of Bitcoin is always fluctuating so it is profitable to invest in it and anyone can use it as a payment medium or as a means of saving money. many people also use Bitcoin for gambling  But I think it is used more as a potential investment. however, based on the population of Bitcoin, it can be predicted that Bitcoin can be used as an international payment method like USD in the future and many places have already started accepting payments in Bitcoin and it only needs to spread.

[Party24*7]

however, based on the population of Bitcoin, it can be predicted that Bitcoin can be used as an international payment method like USD in the future and many places have already started accepting payments in Bitcoin and it only needs to spread.

Given bitcoin's volatility, it is still more suitable as an investment or commodity than as a payment method. Many places are trying to accept bitcoin as a method, but not as many as you say, and they aim to make an impression, not make bitcoin a natural means of payment. Even on this forum we are discussing investment more than currency.

[Solosanz]

If I live in a country where Bitcoin can be used as a currency, I will use Bitcoin as a commodities and currency at the same time.

I will not hold any cash anymore, I will convert all of my cash into Bitcoin and make some diversifications to other commodities e.g. gold and stock. If people are saying Bitcoin is better being a commodities than a currency, what's the reason to have cash when there's always inflation happen every year. If you don't have cash and you only have Bitcoin, but you want to buy a burger to eat, would you only hold Bitcoin and not spent it just for a burger? that's not make sense.

[drwhobox]

Bitcoin was a digital currency. bitcoin is a digital currency and bitcoin will be a digital currency no doubt. Forget what people now think bitcoin is, focus on how many of people around you know about bitcoin. If people do not know about bitcoin they cannot use it as a currency or alternative of fiat. All I can say is we are on right track to establishing the goal of bitcoin.

[ethereumhunter]

Bitcoin is a currency, an investment. Its use is up to the individual, and there is nothing wrong with people just seeing it as an investment. If you don't like to use it for investment, then you can use it as currency, you don't need to care about others. You just have to remember that, as long as bitcoin creates value and benefits people, that's bitcoin success.

It's better to use bitcoin as an investment if you can't use it as currency, especially if your country doesn't allow it as a means of payment. At the very least, by using bitcoin as an investment, you are already trying to prepare your future to improve. And when your country allows bitcoin as a means of payment, you already have more bitcoins and I don't think you want to use them because you must feel that bitcoin is too valuable to be a means of payment.

[Frankolala]

Bitcoin was created to give users financial freedom for them to bypass banks,have a fast transaction with low transaction fee. It is an alternative method of payment because not everybody will use bitcoin,even if it is legalized by all countries.

Bitcoiners don't see bitcoin as an alternative method of payment anymore,they have come to understand that bitcoin is an asset due to its volatile nature,and this is the fact. Everyone knows what bitcoin is to them,either they see it as a digital currency which they use daily due to the high level of privacy and the fastest means of payment. Some take it as an asset which they invest in to make profit at the long run and some as a store of value to keep their funds save from inflation.

[Stalker22]

It is interesting to see how the usage of Bitcoin has evolved over time. While originally designed as a digital currency and payment system, it has now become a popular investment tool. It is difficult to predict whether Bitcoin will continue to succeed as an investment, but it is important to remember that there are still practical uses for it. There are still merchants and businesses that accept Bitcoin as a form of payment. I do not think that this will change in the near future. And I do not think that it is wise to completely ignore the possibility that Bitcoin could become a widely adopted currency.

[Zaguru12]

The main purpose of bitcoin is to act as an alternative currency to the fiat as a payment method or gateway. But recently Due to the devaluation of the fiat and the ability of bitcoin to hedge against inflation has drive many to use the bitcoin as an investment tool. And with the way the fiat crises and bank crises are growing gradually it will remain so. Also bitcoin has a limited supply which makes a huge advantage to been use as a store of value.

[blackened515]

The main purpose of bitcoin is to act as an alternative currency to the fiat as a payment method or gateway. But recently Due to the devaluation of the fiat and the ability of bitcoin to hedge against inflation has drive many to use the bitcoin as an investment tool. And with the way the fiat crises and bank crises are growing gradually it will remain so. Also bitcoin has a limited supply which makes a huge advantage to been use as a store of value.

Devalue fiat currency is absolutely the cause of poor economy infrastructure and low budgets estimated for the citizens. Bitcoin will surpassed fiat currency in the future, it have already stand out to portrayed profits to the investors and it's really a good news for those that have access to purchase bitcoins. It's popularity is growing and we ought to stand our ground and invest wisely because this is cryptocurrency, one never can predict what will happen next.

[thecodebear]

Yes of course Bitcoin is a currency. People can view it as an investment because it is a hard currency and is in the early stage of adoption and so therefore beyond just being a currency it is also the best investment in the world and will continue to be that for some years to come.

I guess it is a little concerning how many people only view Bitcoin as an investment and they don't realize it is a currency. Like my mom (who even owns bitcoin) thought I held my bitcoin on Coinbase and I was like what no I hold it myself. And she literally asked me how is that possible lol. She didn't even know you can store bitcoin yourself, cuz she just thinks its an investment like a stock that only exists on exchanges.

It's an education problem. The price movement and growth is the most public thing about Bitcoin so people just think of it as some financial asset like a stock. You can even see this in how it trades lately - Bitcoin being affected by Fed interest rate changes even though interest rates have no effect whatsoever on Bitcoin, because lots of people who buy and sell Bitcoin just think about it as some sort of stock, and stocks area affected by interest rates because companies are affected by interest rates.

The general public probably won't think of Bitcoin as a currency until it is actually easy to use as a currency to buy things. And we're probably a decade away from that.

[KiaKia]

Well, all you need to do is compare Bitcoin to your local currency, you should already have the answer because Bitcoin is simply a better store of value than Fiat, it was created to have better value, it's limited in max supply is enough to confuse you or anyone, unlike Fiat currency that's been printed anytime they like, the scarcity of anything will automatically creates value, if this is why people want to buy and hold bitcoin, there is nothing bad in this.

Bitcoin caught the government red handed, and that's they the government doesn't want Bitcoin to be a store of value because it's stealing the people away from Fiat and the government doesn't want that.

[Fiatless]

People have different reasons for joining the Bitcoin industry. Some intend to use it as a currency to promote their privacy while others see it as an investment platform. Sometimes the transaction fees of using bitcoins as a currency might discourage people from using it for paying for goods and services. And people prefer to use fiat to buy mostly petty goods.

The rate of inflation and constant loss of value of the currency of most countries have made many people use Bitcoin as a hedge against inflation and devaluation. Many countries restrict the use of Bitcoin as a means of payment thereby forcing citizens to embrace Bitcoin only as an investment opportunity.

NB: Using headings for large posts like this will make it easier and faster to read. But I commend your effort Op.

[hatshepsut93]

The number one reason why people don't use Bitcoin as a currency is its volatility. Imagine you are a business and you accept Bitcoin, and suddenly it crashes by 30% and now you are short on money for your operational costs. Or the opposite - you took a Bitcoin loan, Bitcoin jumped up by 50% and now you owe more money than you took, basically suffering a loss. A partial solution could be tying Bitcoin prices to its market price, but it would create problems too. Someone can order an item, then cancel it after a week and the seller will have to return a different amount of money.

[Aikidoka]

I see bitcoin Blockchain as a country, where those who  works there are paid with Bitcoin "just like how every country pays their citizens working with the country currency (those who receives salary in other currency in a country, obviously works in an organization that is not from their own country)" and this is when the worker validate a block.

OK, I've read all what you said, and while most of what you say is correct, I don't think it's accurate to refer to blockchain as a country, while it may be useful to compare blockchain to a local currency, I see it more as a large database that records all Bitcoin transactions. Its primary function is to serve as a proof of transaction and prevent fraud.

I'm not exactly sure what you're trying to explain here or to add to the forum, but if you're suggesting that Bitcoin is not meant to be used to earn money, then I think that's wrong. Bitcoin is a digital currency that can be used just like any other currency to buy goods and services or to send to someone. The advantage of Bitcoin is that it offers more control and faster transaction times compared to FIAT. You can send BTC to anyone in the world within seconds, with fees that you can choose to set. So, it's possible to earn Bitcoin by accepting it as payment for products or services rendered, or by trading it on exchanges like any other currency.