What if Bitcoin never becomes everyday money?

[macson]

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

Just read the abstract section of the Bitcoin whitepaper and you'll immediately understand that Satoshi never said Bitcoin needed to be "everyday money," as you claim. He said, "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." That should explain what Bitcoin really is.

I think Bitcoin has gradually shifted from digital money, to something more like a digital gold.

Regardless of whether people treat it as an investment, it will not change Bitcoin's function as a peer-to-peer system that allows transfers without intermediaries.

if Bitcoin never becomes everyday money, does that mean it failed or did it simply evolve into something better?

Why did it fail? It's absurd to assume that Bitcoin failed simply because it didn't become everyday money. In fact, Bitcoin is growing. It doesn't need to become "everyday money" to be considered successful. Judging by Bitcoin's current increasing adoption and value, it's already a success, in my opinion.

[GeorgeJohn]

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. but looking at it today, that vision has not fully played out. 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.

Do you know that before bitcoin cant be used for buying of items and paying of bills in a country without been legalise as a legal tender, without bitcoin been legalise as a legal tender, it can't be use generally as a payment option in a country, so that's why it will be difficult for bitcoin to be use as legal tender...

Except it's a situation whereby it's personal agreement between the seller and buyer to receive a payment through bitcoin.

Bitcoin were created as decentralized currency that's independent of its own, that will allow you to have your financial freedom without intermediary, so the purpose is also to act as a catalyst of finance, in a process whereby it's transactions will be done without a third part.

[Miles2006]

Bitcoin use as everyday purchase would be more appropriate during the early days of bitcoin invention as we all know back then many people had a lot to purchase using bitcoin as a means of payment. Currently now bitcoin has a higher value and in normal sense would you trade this value for anything when simply fiat is used common, everyone will love to hold bitcoin rather than purchasing items with bitcoin.
There’s nothing really serious aside the fact bitcoin is a major store of wealth and over the time people who learnt about bitcoin then held to it definitely they’re benefiting now. Bitcoin becoming everyday money might be difficult due to the rule, countries now see bitcoin as a major threat to the fiat system which is quite understandable although for the second time bitcoin enthusiasts will love to hold rather than purchasing items with bitcoin.

[kawetsriyanto]

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?

You can't solely conclude it. The statement of a single seller can't reflect the whole reasons. In some countries, Bitcoin can't be a payment tool because the regulation doesn't allow it. So, there will be no sellers who want accept it because they don't want to have a problem with the authorities. If the governments allow it, I am sure most sellers will accept the Bitcoin as a payment tool. Well, I'm sure this is still the main reason.

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.

As far as I know Bitcoin has been adopted as payment tool in some countries. Even if it isn't accepted in all countries yet, we can't conclude that Bitcoin has failed already.

[EFS]

It's up to you to change that. You complain that everyone sees Bitcoin only as an investment tool, yet you don't use it in everyday life. Then you ask why Bitcoin isn't used as money. I've been using Bitcoin as a form of payment for years. I've bought many goods and services with it and I'll keep doing that. But some people just hold it or trade it.

Buyers need to demand Bitcoin as a payment method and sellers will offer it as an alternative. It's a classic supply and demand. If buyers don't ask for it, sellers won't bother with it.

[MainIbem]

It's up to you to change that. You complain that everyone sees Bitcoin only as an investment tool, yet you don't use it in everyday life. Then you ask why Bitcoin isn't used as money. I've been using Bitcoin as a form of payment for years. I've bought many goods and services with it and I'll keep doing that. But some people just hold it or trade it.

Buyers need to demand Bitcoin as a payment method and sellers will offer it as an alternative. It's a classic supply and demand. If buyers don't ask for it, sellers won't bother with it.

Some people still dwell in Bitcoin being an alternative to fiat but don't want to realise that it is now very value and seen more as an asset, many people who understand would rather hold it than use it for day to day activities like fiat. However people buy and sell Bitcoin everyday so it's still being used as money even though it's not widely used globally for day to day trading in market places or buy business owners. As far as I know, demand and supply happens daily cause that's what controls the price movement of the coin and would never stop cause it's not a stable coin.

[Alonso_]

I really don’t think that bitcoin was just made for only one purpose which is sending money to someone and transferring money to someone, well you should know that bitcoin can’t be used as savings, else you might end up loosing all your money which would be a very difficult situation for you at some point, instead I think you can always buy bitcoin as well as you can be investing in bitcoin as well, bitcoin wasn’t just made for transferring money and making payments for commodities, Bitcoin was created for more better purposes than what you have just mentioned.

[Joy- maker]

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

Just read the abstract section of the Bitcoin whitepaper and you'll immediately understand that Satoshi never said Bitcoin needed to be "everyday money," as you claim. He said, "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." That should explain what Bitcoin really is.

Did you read what I wrote carefully? However, I never claimed that Satoshi said that bitcoin need to be everyday money. Beside, Satoshi don't have state it first on the whitepaper, before you would understand that bitcoin have to be use in our everyday life.

As history may have it, Before the creation of Bitcoin or before Bitcoin came into existence in 2009, something led to the creation of Bitcoin. Their was a global financial crisis (GFC) in the year 2008 when Banks collapse and government belled them out. After the crisis people no longer had trust in Banks, and Satoshi on the other hand wanted something different. A peer to peer electric cash system where people would send  money to each other without any intermediary, and Bitcoin was created.

The intent was a clear peer to peer electric cash system where people would send money to themselves without relying on banks and also use it in their daily life for buying food and paying bills. But the main idea changed when Bitcoin became more important.
@macson, did Satoshi wrote on the whitepaper that Bitcoin is a store of value? If no, why are you, me and others holding it in our wallets?

[Abiky]

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. but looking at it today, that vision has not fully played out. 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.

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?

...

Who says Bitcoin has to be used as money? Since it's decentralized and open source, it can be used however you like. The thing is mainstream media and "Wall Street" have spread propaganda that Bitcoin is "Digital Gold". Now almost everyone relies on Bitcoin as a store of value. Just like Gold. Not as a currency for daily payments. Add to this the market price volatility and limited transaction capacity, and Bitcoin's widespread use as a currency becomes a distant dream. Not even the Lightning Network helps (which turned out to be a huge failure).

At least, you can rely on Bitcoin as an "escape route" from the traditional Fiat money system. It enables freedom unlike any other currency on Earth. Hopefully, it stays this way forever.

[Donk1]

​Well if I may perhaps that's how you see it but I like to believe that the usefulness and purpose of Bitcoin is what we the users say it is which entails to be a digital store of value. We Bitcoin enthusiasts make use of the technology in many ways as its potential is one that has come to revolutionize the digital age as a decentralized system. That said we can’t be everywhere at the same time so we can’t 100% say that Bitcoin isn’t used for everyday life the probability of saying that is eventually down to zero.

​That said Bitcoin is still a digital money but with a vast potential. Basically it’s not only when you purchase something with Bitcoin that’s when you call it a digital money, no even when you convert it to your currency through an exchange eventually it has served a purpose which is you selling your Bitcoin. So yeah that’s still it being used daily.​If you think about it very well from a broad perspective we are always aware of how many people hold Bitcoin but when it comes to selling it in a day nobody talks about it So we can’t even know if people use it daily or not but they do. It’s just not something everyone is focused on. The main goals at mind is Bitcoin being a long-term financial asset that would help protect our money from the high inflation and devaluation of fiat currency. That’s all for me, bro though You aren’t correct but you aren’t wrong....

[Darker45]

Bitcoin has been around for 17 years. Thus far, it hasn't yet become an everyday money. Nevertheless, so far so good. Therefore, I don't see it as a big deal how Bitcoin specifically turned out, how it proved helpful to its users.

It doesn't mean, however, that users are deprived of the opportunity to use it as everyday money. Although not yet as widely accepted as desired, the number of businesses both online and physical that accept Bitcoin payment is rising. So, people are free in many places to pay Bitcoin for their cup of coffee.

[yhiaali3]

Even in this there is a similarity between Bitcoin and gold. I mean that people initially used gold as currency or as a means of exchange, as all exchanges and trades were done in gold. But after a period of time, people discovered that gold was too valuable to be wasted in daily transactions, and therefore they no longer used it as currency but as a store of value, a hedge against inflation, and a safe haven.

The same thing is happening to Bitcoin. The basic idea behind the invention of Bitcoin is that it is a means of peer-to-peer payment, but as Bitcoin grew and its price rose dramatically, people discovered that it was a mistake to waste their precious Bitcoin on spending in daily transactions, and so it also turned, like gold, into a store of value, a hedge against inflation, and a safe haven.

[m2017]

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.

[DanWalker]

Bitcoin use as everyday purchase would be more appropriate during the early days of bitcoin invention as we all know back then many people had a lot to purchase using bitcoin as a means of payment.

Is this true? I dont think so. Because in the early days, very few people knew about bitcoin, it wasnt trusted or popular. How could it have been widely used as a means of payment at that time?

Bitcoin becoming everyday money might be difficult due to the rule, countries now see bitcoin as a major threat to the fiat system which is quite understandable although for the second time bitcoin enthusiasts will love to hold rather than purchasing items with bitcoin.

The government is indeed a barrier prevents Bitcoin from being used for its original purpose. But in my opinion, the biggest obstacle is ourselves, because not many people want to spend their Bitcoin. Like El Salvador, where Bitcoin is legal tender, survey show that 95% of people are unwilling to spend their Bitcoin.

[TokenTikas]

..feel free to give your two cents on this discussion.

If we look at the early stage of bitcoin, we can see it was created to work as a system for transactions without interference. The main idea was to build a way to send and receive money freely but as time went on, even though it continued to function as a payment system, its popularity kept growing. As bitcoin became more popular, people started to see it as a trusted option for investment. In the beginning, it was used more for everyday transactions but over time, many people now prefer to hold it instead of spending it, mainly because they are making profit from keeping it.

In my opinion, if bitcoin was mainly used for everyday transactions then maybe it could have been called a failure but what we are seeing now is the opposite. It’s not a failure at all because bitcoin is now seen and valued as a digital asset.

[DubemIfedigbo001]

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,

This is the scope of what was used in the white paper,. To allow transactions be initiated and ended between peers and not trusting  intermediaries.

and use it for our everyday life, such as buying food, paying bills, and handling daily transactions without relying on on banks.

This is your own interpretation of the statement, Satoshi never mentioned using it for everyday life as such. If it is so, then it is here to replace fiat, but we know well that bitcoin is only an alternative payment system and not a direct replacement to fiat

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.

People are at liberty the use their bitcoin however the wish, that is the valid concept of total ownership. Some people still transact with bitcoin everyday, but maybe not in every use case, I would always prefer fiat for very little unit of purchases.

People hold bitcoin because it has proved valuable,. Remember not one wants to hold something worthless.

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?

I'll still quote you for other advantages of it which clearly validates the fact that bitcoin never failed

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.

Bitcoin in secure too,. No one has ever hacked bitcoin security till date, it is a secure way of making cross-border payments,. It is still censorship-resistant and give people total freedom over their finances unlike the traditional finance system. It is a heavy plus for me.

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.

Those people are wrong, Bitcoin has quite achieved and lot with only few years of existence, we can expected better as it progresses. Bitcoin is still young and already competing with gold which has over centuries of existence to it, I'm very optimistic of bitcoin's future, let's just give it time to continue proving itself.

[Danica22]

Even in this there is a similarity between Bitcoin and gold. I mean that people initially used gold as currency or as a means of exchange, as all exchanges and trades were done in gold. But after a period of time, people discovered that gold was too valuable to be wasted in daily transactions, and therefore they no longer used it as currency but as a store of value, a hedge against inflation, and a safe haven.

The same thing is happening to Bitcoin. The basic idea behind the invention of Bitcoin is that it is a means of peer-to-peer payment, but as Bitcoin grew and its price rose dramatically, people discovered that it was a mistake to waste their precious Bitcoin on spending in daily transactions, and so it also turned, like gold, into a store of value, a hedge against inflation, and a safe haven.

As I understand it, the world abandoned the gold standard because it was no longer suitable for the modern economy. The gold standard helped prevent inflation in the economy, but it limited the economy's ability to expand and grow. The economy is constrained and growing slowly due to the scarcity of gold supply.

Bitcoin, however, is different. It was designed to be a currency, but unfortunately, government and banks never acknowledged that. And in order to survive and thrive, it has evolved and adapted by transforming itself into a store of value.

Bitcoin and gold differ in this respect, imo.

[laspol65]

If Bitcoin is not suitable for daily purchases, then saving Bitcoin for the future is absolutely suitable. Because if you use Bitcoin for daily purchases or buying food and clothing and fulfilling daily needs, then it can cause you a lot of losses as a suitable payment, because the price of Bitcoin fluctuates in a short time and it makes a lot of difference.
But if you hold this Bitcoin for the future and save your money, then you will definitely play a significant role in eliminating economic shortages in the future. Because Bitcoin is most suitable for future savings, not for fulfilling daily needs.

[Somegory]

We all have different reasons why we choose Bitcoin

Bitcoin doesn't have to become everyday money, the option is available if you want to use Bitcoin as payment option, it's not created to replace the world money.

I use Bitcoin because it's a good store of value, it's good for escalating the matrix, centralised power and manipulation, the control is insane in my country, the perfect way to beat that is through Bitcoin.

[PrivacyG]

Bitcoin is very malleable.  It did not reach its goal for the people who expected it to become THE replacement of Fiat.  It reached its goal for the people who wanted to store their value in an Asset that is as Safe as it can be from the external world.  As in an Asset that can not be seized easily.  It reached its goal for the people who wanted to escape Inflation.  I believe your question about whether it failed its purpose or not can only come with a subjective answer based on what the Bitcoin user expected from it.

I do not think it was ever meant to be a replacement of Fiat.  Particularly before 2010 if someone told you that Fiat will be replaced by a Cypherpunk Asset you would call them crazy.  Now that you see the success of Bitcoin it does not seem AS crazy but it still is.  Fiat will never let a Decentralized Asset replace it.  The Fiat system is buried too deep in shit now to even think of allowing this to happen.  Not to mention the hunger of power coming from all Governments and Authorities, they would never let it happen, naturally or enforced.

It was rather meant to be an alternative to Fiat.  Yes it is a payment system but this does not mean it has to be a direct competitor of Fiat.  And if you ask me, it has achieved its purpose so far.  It is an alternative to Banking, it is an alternative to Gold as you say your self, it is an alternative to the Dollar and even to your physical vault.  This is why in my opinion it takes a LOT for Bitcoin to finally die unless the laws and regulations kill it by making it too difficult and too criminalized to use it.  Which I doubt will happen.  If Bitcoin loses its use case as an alternative to Gold, it still has the rest of the use cases.  It would need to run out of all use cases to finally be put down.  But if this ever happens, I really doubt that by that time we will not have a better Bitcoin standing by and taking the lead.

The purpose of it was to provide an exit from the system that enchained us only to Third Parties, institutions, Fiat supply controlled by the push of a button and a press release et cetera.  Has it failed so far in doing that?  I can send you a couple Bitcoin right now so can you.  Or we can both hold and defeat Inflation.  We can also purchase Gift Cards at the very least and use them in our daily spendings.  A judge could order that our Bitcoin is confiscated and if they can not find our Seed, they can not seize any.  I do not see where the failure is.