Correct me if am wrong, the main idea behind Bitcoin creation was a clear peer to peer electronic cash system, a system where you and me could send money directly to ourselves, and use it for our everyday life, such as buying food, paying bills, and handling daily transactions without relying on on banks.
This is exactly what is stated in the white paper:
"A purely peer-to-peer version of electronic cash would allow online
payments to be sent directly from one party to another without going through a
financial institution. "but looking at it today, that vision has not fully played out.
I would say it wasn't realized at all.
But it was distorted and took on other forms.
People still prefer to hold Bitcoin, instead of using it for their daily spending. I think Bitcoin has gradually shifted from digital money, to something more like a digital gold.
Bitcoin has become a speculative financial instrument (for long-term purposes - investing, for short-term - trading).
This particular question has been on my mind to ask long time ago. if Bitcoin never becomes everyday money, does that mean it failed or did it simply evolve into something better?
Hmm, quite a complex question despite its apparent simplicity.
If bitcoin failed to fulfill its goal of becoming electronic digital money, then that looks like a failure. But I tend to look at it from a positive perspective, and believe that bitcoin simply evolved (people found a different use).
In fact, I'd be curious to hear the Creator's opinion on what's happening around us (bitcoin didn't become money and is used for speculation and enrichment).
Because, those of us who are using Bitcoin, treat it more like a store of value, instead of spending currency, we prefer to hold Bitcoin for long term, rather than spending it on our daily needs. But are we to blame ourselves? I think the answer is no, but if yours is yes state your reasons. it is said that ones people discover an asset with a long term growth potential, they are likely not to spend it, because spending it feels like giving up future value.
For people to spend bitcoin, it needs to be profitable (for example,
bonuses with purchases). In the current situation, holding is more profitable.
volatility is also one of the biggest challenges, Bitcoin price is not stable. And a currency meant for daily spending should be relatively stable. but Bitcoin price fluctuate dramatically within a short period of time. Meaning volatility has now become a barrier to everyday use of Bitcoin.
Volatility is precisely a consequence of short-term speculation - trading.
A few days ago, I went to purchase some stuffs from a shopping mall, and when it was my turn to make payment I calmly asked the seller, why are you guys not accepting Bitcoin? Her reply was my boss said she don't want to under receive, likewise the buyers they don't want to overspend. Should it be the reason why Bitcoin is still finding it difficult to function as everyday money, at least for now?
This is exactly an example of what I wrote above: it should
be profitable for buyers and sellers to use bitcoin as a means of payment.
But here is the truth, even if Bitcoin is never adopted for daily payments it has already proven to be a big hedge against inflation, a decentralized way to store wealth, and a financial alternative for people in unstable economies. And that is a big achievement for me, not a small one.
There's no such thing as a bad financial instrument, but rather the inability to utilize its benefits. Bitcoin is a unique financial instrument that allows to achieve a variety of goals (depending on needs), and not just as a means of payment.
Although, some people argue that, Bitcoin didn't achieve it goal. while others argue otherwise, that Bitcoin adopted to what the world actually needed, feel free to give your two cents on this discussion.
I spoke out while writing this post.
