Is Bitcoin as money becoming obsolete?

[Ambatman]

Okay maybe obsolete is a strong word.

A lady from X posted something that entails that she thought Bitcoin was meant to be held.
I believe this is now one of the most popular attribution of Bitcoin in accordance to being a speculative asset.

The Government label it Digital Gold hence should be held to bypass the notion it's money
Institutions label it as Digital gold too. I'm not talking about strategy (okay I'm talking about strategy)

We only see minority that call it money. Yes I won't deny the fact that it's playing the role of store of value well
But majority don't even know it's money.

Does Holding Bitcoin stop it from being money? No. It just limits it's function as a medium of exchange
But stays true to its role as a store of value
Which is a criteria of being money something Fiat is proudly failing at.
Unit of account is something I believe we relatively poor at since most time we subconsciously associate it's value to dollar.

Would I stop holding? No. Gresham Good and bad money explains that
People hoard good money (rises) and use bad money (falls)
But I'd use my Bitcoin rather than Fiat for international or cross border transactions
Too lazy to go through banks and protocols.


I know some people may argue why spend your Bitcoin when you know it would rise
But what's the essence of money or growing wealth if it won't be spent. Biased POV. Not a financial advice.

[Dogedegen]

Okay maybe obsolete is a strong word.

A lady from X posted something that entails that she thought Bitcoin was meant to be held.
I believe this is now one of the most popular attribution of Bitcoin in accordance to being a speculative asset.

Most people that invested into gold are holding it. Does that make gold speculative asset? Saying that somebody is using gold somewhere in industry or jewelry does not invalidate this argument. You can't have it both ways. Either some groups of people using Bitcoin as money makes it a non speculative asset and the same goes for gold, or they are both speculative assets through this reasoning.

We only see minority that call it money. Yes I won't deny the fact that it's playing the role of store of value well
But majority don't even know it's money.

Bitcoin is many things, just because the population is not aware of them or does not know how to comprehend it that does not invalidate what Bitcoin is.

Unit of account is something I believe we relatively poor at since most time we subconsciously associate it's value to dollar.

I don't think so, people are also seeing this very wrong. Let's say you move from the USA to a foreign country. You have your savings or even your jobs in USD. You look at retail estate there and it's in the local currency. Whenever you are browsing things you are converting the value of that local currency to the USD value. You do this so you have a better understanding of the market values and can more easily compare things because you are used to USD. Does this mean that the local currency is an unit of account even if I am bypassing? What about people who list property in USD even if they live in a foreign country, does that mean the local currency is not an unit of account? People who live in this country don't do this because their reference point of view is that local currency, they are used to this being the way of communicating value.

I will agree with you partially but explain why. The reason why we don't list in Bitcoin besides of these reasons of habits and reference comparison, because how would I know if paying 0.34 BTC today for a car is too expensive or not if it is the only car listed in a BTC price... what do I compare it to if not USD value??,  is the fluctuating value of Bitcoin. Bitcoin is not volatile as it used to be but it is still trending upwards. If I don't think about the USD price for a few months I can easily overpay or be underpay for whatever I am selling. Secondly the thing that I am selling could be a product which is made using things I bought with the dollar. Because of this I must always ensure that the end price is above my costs!

Would I stop holding? No. Gresham Good and bad money explains that
People hoard good money (rises) and use bad money (falls)
But I'd use my Bitcoin rather than Fiat for international or cross border transactions
Too lazy to go through banks and protocols.

Yes. I know so many people who are doing everything they can to avoid touching their BTC. The best money is the one that is spent the least. Modern economic theory got things backwards because it is corrupt.

[retaur]

I think it makes me more likely to both store and spend it. Why have all your money in falling assets when you can put them in assets that rise in value as you hold them.

That whole thing of selling bad money and storing good money ignores the idea you can put all your assets in good money. It doesn't have to be Bitcoin, anything else that's diversified and grows in value is good enough but storing more than a few months of expenses in fiat (unless you're speculating a drop) is just throwing money away that could be earning value elsewhere (or at least retaining and not losing it).

[PostQuantumBTC]

We only see minority that call it money. Yes I won't deny the fact that it's playing the role of store of value well
But majority don't even know it's money.

Who do not see bitcoin as money in 2025 is just a critic. You can easily see it on the chart that it is money.

[GhostRider25]

until the world, which is about on fire now, some one touches off a few emp's and wipes out the internet for 6 months,  along with your access to, if not your actual 'money'.

if it's not physically in your hand, it's worthless.   bitcoin you can't access. means nothing.  just like regular fiat money stuck in an atm, can't get it, it ain't yours.

aaron

[FinneysTrueVision]

A lady from X posted something that entails that she thought Bitcoin was meant to be held.
I believe this is now one of the most popular attribution of Bitcoin in accordance to being a speculative asset.

This is the mindset of many Bitcoin influencers like Michael Saylor. Even during Bitcoin Pizza Day, he made a point of letting everyone know that he celebrated the day by buying pizzas with USD.

I don’t hold much fiat so I primarily use Bitcoin for spending. Bitcoin will always be money, but the monetary use case has stagnated. We have not seen the level of merchant adoption that we might have expected.

It still works really well as a store of value. With the state of global politics it isn’t surprising. The dollar is losing dominance and people are looking for alternatives like gold and Bitcoin.

[GhostRider25]

With the political climate, bitcoin might be one of the most riskiest places to put your coin.  this is why for thousands of years.  gold / silver, something REAL that you hold in your hand, has value.  Digital noise.... not so much.

Aaron

[Agbamoni]

I just came back from a similar topic. Bitcoin is still being used as money to make transaction. The last time I checked, in some places the Bitcoin ATM still functions. Big companies recently integrated Bitcoin as a payment gateway, car auctions online and onsite can now use Bitcoin for payment, crypto casinos accept deposits and withdrawals in Bitcoin, and many more. These are examples of everyday use of Bitcoin as money. Individuals are not just storing it because of its value, they are also spending it.

[pooya87]

That's not new. Remember that bitcoin price was once a low as $0.01 and it went up to $1 which is a 100x rise in a short time. Today that same 100x rise would mean reaching $10 million which is a lot harder and slower. In other words there have always been some people who think they should only hold bitcoin as an "asset" or investment, less now than early days when rises were much bigger.

More importantly, the fact that bitcoin is seen a a "store of value" means it is money more than ever.

[Darker45]

Of course, not. If I don't spend my money, it doesn't cease to be money.

The qualities of being a sound money remains intact despite Bitcoin not commonly used for payment. It can be used as a unit of account. It stores value. It's accepted as a medium of exchange.

Furthermore, all the properties are also there like scarcity, fungibility, portability, durability, and so on. If people are holding on to Bitcoin, it's not because it doesn't anymore function as money. It's because it's the better money. It's an alternative to the conventional money which isn't as good and should be disposed first.

[Luzin]

I know some people may argue why spend your Bitcoin when you know it would rise
But what's the essence of money or growing wealth if it won't be spent. Biased POV. Not a financial advice.

Do you not hold any Bitcoin? Do you not spend a small portion of your Bitcoin? Everyone has a different perspective. From the most basic standpoint, I want to hold all the Bitcoin I have and sell at certain positions. This is because I understand how the Bitcoin cycle moves. But that is just a desire because I am fairly flexible. I will sell some when I have needs that I cannot meet, then I reduce my Bitcoin.

[SilverCryptoBullet]

That's not new. Remember that bitcoin price was once a low as $0.01 and it went up to $1 which is a 100x rise in a short time. Today that same 100x rise would mean reaching $10 million which is a lot harder and slower. In other words there have always been some people who think they should only hold bitcoin as an "asset" or investment, less now than early days when rises were much bigger.

More importantly, the fact that bitcoin is seen a a "store of value" means it is money more than ever.

With smaller market cap and smaller trading volume in the past, it was more easily to rise in price for Bitcoin in past years and market cycles. It's very normal to see Bitcoin has more difficulty to rise in recent years and in the future and realistically, it's impossible for Bitcoin to have very high ROI like past years. Your insight is very right as with much bigger market cap in 2025 than past years, to rise more, Bitcoin market must need more money, more capital gets in the market.

It means Bitcoin already passed hardest years in its history and from now it will continue its growth but surely with slower growth and exploration rate.

[X-ray]

Basically it's already answered with the Gresham's law.

If a money is a good money it kinda become an asset too, holding it will be beneficial and less people will be spending it.

Bitcoin acts as both because bitcoin is good for both. Doesn't mean bitcoin become obsolete as a money nor it reduce any bitcoin's worth as a money.

It just that holding it more profitable than using it.

What's the difference between asset and money anyway. If both party accept, even the shittest valueless commodity can be used for means of exchange.

[Text]

I agree that it hasn’t stopped being money, it’s just that its use case as money has evolved. Early adopters were using it to buy pizzas, now it’s more of a long-term value reserve or a tool for borderless transfers. The medium of exchange part isn’t dead, it’s just overshadowed by the store of value narrative. I see Bitcoin’s digital gold status as a phase, not its final form. Once scaling and Layer 2 adoption hit maturity and once people stop thinking of every sat as a future fortune, we might see it swing back into daily use especially where traditional rails keep failing so yeah, not obsolete, just evolving.

[Mhizlove]

Does Holding Bitcoin stop it from being money? No. It just limits it's function as a medium of exchange
But stays true to its role as a store of value
Which is a criteria of being money something Fiat is proudly failing at.
Unit of account is something I believe we relatively poor at since most time we subconsciously associate it's value to dollar.

That's is a very thoughtful question that really get to the heart of what money truly is because you see money is meant to be circulated and traded.
Once people hold bitcoin instead of using it for daily payments or transaction, it's start acting less like  money and more like commodity or store of value.
But that do not stop it from being money rather people only choose to treat it differently like digital gold and believes that's it's future value will rise so rather spending it they save it . So holding bitcoin doesn't take away it's nature as money rather it just alters how it works in practice or it's functions in the real world. This becomes a store of value rather than a means of transaction.

[Joy- maker]

Basically it's already answered with the Gresham's law.

If a money is a good money it kinda become an asset too, holding it will be beneficial and less people will be spending it.

Bitcoin acts as both because bitcoin is good for both. Doesn't mean bitcoin become obsolete as a money nor it reduce any bitcoin's worth as a money.

It just that holding it more profitable than using it.

What's the difference between asset and money anyway. If both party accept, even the shittest valueless commodity can be used for means of exchange.

I find this you comment very interesting because there is sense in it, and Just as the "Gresham's law stated that if money is good it will definitely going to become an asset" and bitcoin is a good money, that's why it has become an asset today. So automatically bitcoin is acting as both money and as an asset, because it is a store of value with potential returns. But I put it to you that people treat bitcoin more like an asset than money, only few person's who are holding bitcoin are transacting with it, while majority are holding bitcoin as an asset for long term, I know definitely that some person's will argue this, but that is not my business they can argue with their keyboards with their mere words, but the reality still remain the same only few person's are transacting with bitcoin, while majority are holding bitcoin as an asset.

[Dogedegen]

Basically it's already answered with the Gresham's law.

If a money is a good money it kinda become an asset too, holding it will be beneficial and less people will be spending it.

Bitcoin acts as both because bitcoin is good for both. Doesn't mean bitcoin become obsolete as a money nor it reduce any bitcoin's worth as a money.

People are confused because they fall into false dichotomies. They think that something can be either money or an asset but not both because they have been taught or conditioned to think this way. Bitcoin is its own monster, something unique and radical and infinitely more complex than anyone gives it credit for. It is everything at the same time and so much more!

What's the difference between asset and money anyway. If both party accept, even the shittest valueless commodity can be used for means of exchange.

The difference is a text book definition and if you can repeat it accurately you will be a top candidate to be the next president of the ECB. 

[joniboini]

I mean, you're looking at a single comment that doesn't reflect how the 5% or 10% of people who use Bitcoin think. Let's say the post got a lot of comments or likes. How can we accurately deduce whether that shows the status quo or not? I'm sure merchants would drop Bitcoin payment if nobody used it, but I haven't seen any major retailers do that (those that I use at least). I'm sure some predictions or data about Bitcoin also show some growth related to Bitcoin usage.

At the end of the day, social media posts driven for engagement and ragebait are probably not the best place to look for the general usage of Bitcoin, or anything in general.

[Ucy]

If you want people to spend Bitcoin more, they will need to be earning Bitcoin or making  profits from their bitcoin investments. People are unlikely to convert their fiat money to bitcoin to make local purchases unless they're buying from international businesses that accept Bitcoin which is very unlikely since people will prefer to deal with well known international businesses, and such typically deal (or prefer to deal) with fiats.
The best way to make buying and selling with Bitcoin more common is to create a Parallel Society that's sort of built around the Bitcoin system/currency, rather than trying to compete with fiat system... Fiat governments won't find that funny atall unless they control Bitcoin which won't be allowed to happen.

A Bitcoin based parallel society will allow people in remote communities around the world to buy and sell physical goods and services(which include physical works) with Bitcoin while international trades will generally be virtual goods and services(including virtual/online works).
You'll have to develop such society to have reliable law, community governance, dispute prevention and resolution mechanisms, etc.

And if we want to maintain Bitcoin as a Store of Value or Inflation resistance, (which is actually part of what makes Bitcoin what it is) while also using it more as Medium of Exchange you'll have to find a way to get people to spend it without regretting their expenditures in the future that shows worthless purchases compared to more valuable Bitcoin. The best way to do this is to make very valuable/profitable products and services top priority in marketplaces and stores. Users will find buying such goods and services as attractive as holding Bitcoin, and the purchases will less likely be regretted in the future if they really become as useful or profitable to the buyers as Bitcoin. .

So, this is what we are to focus on now:
* Building a parallel society with remote communities that mostly focus on physical goods and services (including physical works) for Bitcoin. While the virtual goods and services(including online works) can be mostly allowed for international communities
* Creating reliable law, governance system, dispute prevention and resolution mechanisms, etc for the parallel society

* Ensuring that valuable goods and services are top priority in the society's marketplaces and stores

This is basically how we can encourage more spending with Bitcoin currency. It's a bad idea to compete with fiat system

[adultcrypto]

Perhaps we have used the world HODL so much that people now see bitcoin only as something to be held to make big profits. In other words, the number of people that see bitcoin from the aspect of money for payment of goods and services have drastically reduced because we are all preaching HODL so that the price can go higher. Just few people are thinking in the direction of the utility that bitcoin offers and that is a major problem that is hindering the spread and adoption of bitcoin. Unfortunately, there is little anyone can do about it because bitcoin offers one of the easiest and safest way of amassing wealth and there is no way we can blame anyone who choses to HODL and use other means to pay for goods and services