What if Bitcoin never becomes everyday money?

[serjent05]

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.

Bitcoin is often compared to Gold due to its limited supply (scarcity) and decentralized design. But it can also be used as a currency. In fact, merchants these days accept BTC as payment method for goods and/or services. You don't see them accepting Gold directly as a sort of payment method. I mean, who pays in Gold these days? People pay in BTC whenever they feel the need to.

Bitcoin is initially created to be a peer to peer digital payment system, yes? So by default Bitcoin can be used as currency, it is that the volatility of Bitcoin made investors and traders see it as a trading item that can benefit them thus, instead of using it as a mode of payment, they tend to hoard it for future profit.

With L2 networks and sidechains aimed to address scaling issues, it's now possible to send satoshis (fractions of a Bitcoin) fast and cheaply. The only issue would be dealing with market price volatility. Stablecoins help solve this problem. We have many options to choose from. If you don't want to use BTC as a currency, there are plenty of alternatives that will get the job done. Just my two sats.

Market volatility will eventually become less of a concern when the price of Bitcoin becomes stable.  As the liquidity getting stronger, Bitcoin market high volatility will eventually be minimized, thus Bitcoin will then proceed to its supposed initial usage, being a currency.

[uneng]

I'm willing to use Bitcoin as everyday currency, but it's not my fault that sellers don't accept it as payment, so there is nothing I can do about it. Most people in everyday life aren't interested in Bitcoin (neither as investment), and even if you try talking to them about it, there is going to be little effect, because they think it's something beyond their reality.

So, the only alternative left for me is to keep BTC as investment. And I'm not really expecting this fact is going to change anytime in the future.

[Satofan44]

So what do you think about adopting Bitcoin in El Salvador?
President Bukele has made Bitcoin legal tender, but according to several surveys, 92% of Salvadorans do not use Bitcoin for daily transactions. Only about 7-8% of people use Bitcoin for payments instead of traditional currency. So, is it true to say that the government is the main enemy of bitcoin?

Yes it is true, read a book about basic statistics and how statements are made. The existence of exceptions do not invalidate statements. The governments are the biggest obstacles/enemies of Bitcoin. If they weren't, it would be widely adopted as legal tender anywhere. People are mostly sheep, they will obey what they are told. If the governments were to force Bitcoin worldwide, in a few years everyone would be using it.

It can be said that government is one of the obstacles preventing Bitcoin from becoming a method of payment. But they are not the only obstacle, and we are contributing to it as well. We also do not want to use our Bitcoin, and most people prefer to hold it for the long term.

The decisions of an individual do not create obstacles for the whole in this case. If you are using Bitcoin wrong, that does not have impact on anyone else except you. So you are not contributing to the "obstacles" for Bitcoin to become a daily method of payment. With every thing there are people like this. There are people who have bank cards just in case and they never ever use them unless there is no choice. Learn the difference.

Bitcoin doesn't need to be accepted everywhere but it needs to be accepted in major economy like in the US. Can't please everyone so it is predictable that some countries will refuse to accept bitcoin.

If bitcoin could be accepted widely in the Europe and the US alone, that's already such a big economy to be accepted in and even if bitcoin got banned in asia or china on the other hand, we're already in good position so that wouldn't do much harm to the bitcoin ecosystem.

Arbitrary and generic statements with no validity or data behind them. Bitcoin does not need to be accepted in any major economy for anything at all. Furthermore, a generic statement of "needs to be accepted" makes no sense at all. Bitcoin is already accepted by many merchants in the USA. There is no obstacle for individual merchants to adopt them, it is entirely up to them. Legal tender is another topic, but it does not need to be a thing unless the government is extremely pro-Bitcoin but that is completely different from "needs to be accepted".

[ZAINmalik75]

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.

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.

Small businesses are running tight on the money they make, they can't take such risks because they know if they start accepting BTC, then maybe customers will also start paying in BTC, and if BTC dumps, they can make a huge loss and may not cover the expenses for the next month to run their mall.

Although mall owners are usually rich, the manager is not the owner usually, so they avoid giving such ideas to owners, but they should do it. But nobody wants to take extra risk if they are already doing fine. Even if they are not, they think it is not good to take extra risk at this point because if it does not work for them, then it becomes a problem which they can't afford in inflation.
But Steak n Shake is accepting BTC, they are doing good because it is not a small business.

[Dunamisx]

Perhaps we may not all have been so fortunate as to have had the opportunity to run a decentralized economy that is free from government or any centralized regulatory institution, if not for bitcoin.

People have decided to use Bitcoin because of its day-to-day applicability, whereby we can utilize it to earn the opportunities we have always wanted in the financial economy. We will always be grateful for the unique opportunity Bitcoin has brought our way.

[Abiky]

I'm willing to use Bitcoin as everyday currency, but it's not my fault that sellers don't accept it as payment, so there is nothing I can do about it. Most people in everyday life aren't interested in Bitcoin (neither as investment), and even if you try talking to them about it, there is going to be little effect, because they think it's something beyond their reality.

So, the only alternative left for me is to keep BTC as investment. And I'm not really expecting this fact is going to change anytime in the future.

Sellers want stability (in terms of price/valuation), so they will choose Fiat over Bitcoin anytime. It's this reason why merchant adoption is so limited for BTC these days. With reduced merchant adoption, people will just hoard BTC instead of spend it as a currency. The deflationary design of Bitcoin exacerbates the problem.

At this point, there's nothing we can do to change this. Altcoins, on the other hand, are more suitable for use as "everyday money". They're fast, inexpensive, and some of them are relatively-stable. There's also the choice of stablecoins which bring the convenience of Fiat and the security/reliability of crypto. Bitcoin is free (as in liberty) for anyone to use it how they see fit. Keep it legal, and you'll have nothing to worry about.

[Minor Miner]

Bitcoin will still be the bitcoin, and who wants to use it for payments can use it that is the benefit that we have an alternative to the system that we consider as rigged. I am also agree that bitcoin will never become the currency that we use on daily basis like paying for coffee because the network is not designed to handle thousands of transaction per second so it will do the job that one who prioritize it.

If I remember correctly, Bitcoin can only process about 5-7 transaction per second, which is much lower than traditional payment system like Visa . Furthermore, volatility is also a drawback when we use Bitcoin as a means of daily payment. That is very inconvenient and poses risks for both the seller and the buyer.

Clearly, Bitcoin itself is not perfect for use as an everyday currency, and it is not just the government's fault as many people are complaining.

[SquirrelJulietGarden]

Sellers want stability (in terms of price/valuation), so they will choose Fiat over Bitcoin anytime. It's this reason why merchant adoption is so limited for BTC these days. With reduced merchant adoption, people will just hoard BTC instead of spend it as a currency. The deflationary design of Bitcoin exacerbates the problem.

At this point, there's nothing we can do to change this.

If it is purely for receiving payments from customers, the sellers, merchants will prioritize price stability because they will need their business treasury as most stable as possible for their business operational plans. If they have no intention of investment in Bitcoin, they very dislike the high volatility of Bitcoin price especially price decrease in bear market.

With companies that understand about Bitcoin and want to use part of their business revenue for investment in Bitcoin, if they attribute part of customer payments for their Bitcoin investment portfolio accumulation, it will be good as they can save trading fees for puchasing bitcoins, and withdrawal fees from exchanges to their non custodial wallets. Surely companies have to manage their business treasuries very well and separately between Bitcoin investment part and business operational part.

Altcoins, on the other hand, are more suitable for use as "everyday money". They're fast, inexpensive, and some of them are relatively-stable.

Altcoins can give very cheap transaction fees but not always as sometimes altcoin blockchains have crazy expensive transaction fees.

In addition, altcoins can die anytime, their prices can be divided many times like Terra or FTT tokens, so even holding altcoins for one hour does not make me feel safe at all.

[Cryptoprincess101]

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

Satoshi never meant to create bitcoin as everyday money as the fiats are. It is an alternative means of payment. You have the freedom to choose between using the banks for your transactions and face endless complains, glitches, frauds, manipulations and unnecessary charges or you choose bitcoin and have your money at your own custody without suffering any of those experiences that the fiat currency suffers. Have you ever been charged any fee for storing your bitcoin in a self-custody wallet? NO right?
Keep using the fiat currency and continue to be charged unnecessarily, even when you didn't perform any transaction.

[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.

Bitcoin is often compared to Gold due to its limited supply (scarcity) and decentralized design. But it can also be used as a currency. In fact, merchants these days accept BTC as payment method for goods and/or services. You don't see them accepting Gold directly as a sort of payment method. I mean, who pays in Gold these days? People pay in BTC whenever they feel the need to.

With L2 networks and sidechains aimed to address scaling issues, it's now possible to send satoshis (fractions of a Bitcoin) fast and cheaply. The only issue would be dealing with market price volatility. Stablecoins help solve this problem. We have many options to choose from. If you don't want to use BTC as a currency, there are plenty of alternatives that will get the job done. Just my two sats.

Layer 2 networks such as Bitcoin's Lightning Network solve the problem due to their speed and low fees, but the problem is that they do not spread widely due to the difficulty of using them somewhat.

Stablecoins help address volatility but are not part of Bitcoin's decentralized ecosystem, so perhaps we need a new system that integrates Bitcoin (as a store of value and safe haven) with non-volatile stablecoins for use in payments.

[shinratensei_]

Bitcoin will still be the bitcoin, and who wants to use it for payments can use it that is the benefit that we have an alternative to the system that we consider as rigged. I am also agree that bitcoin will never become the currency that we use on daily basis like paying for coffee because the network is not designed to handle thousands of transaction per second so it will do the job that one who prioritize it.

If I remember correctly, Bitcoin can only process about 5-7 transaction per second, which is much lower than traditional payment system like Visa . Furthermore, volatility is also a drawback when we use Bitcoin as a means of daily payment. That is very inconvenient and poses risks for both the seller and the buyer.

Clearly, Bitcoin itself is not perfect for use as an everyday currency, and it is not just the government's fault as many people are complaining.

Lightning network exist and there are bitcoin L2 that can handle high throughput, Rootstock is able to handle 300 TPS and that is enough for an everyday money considering there are tons of other L2 as well.
This is the scenario where it become legitimate to use L2 because even Ethereum won't be able to handle high throughput if not for the existing L2 that offload thousands of transactions from Ethereum's blockchain.

[Iamgoat]

It was created for the use of payment of goods and services. So if those services aren't done daily that doesn't mean Bitcoin has fallen short of what it was created for. You said it yourself that it's a hedge against inflation. So this alone is doing something that wasn't stated in the White paper, after all we know it's just meant to be free of outside interference so there you have your answer. However people want to make use of Bitcoin is their choice. It's better than not making use of it, isn't it?

Yes bitcoin was actually created for the use of payments of goods and services based on the information available but we have seen how over time, people have started to evolve and it is now seen as a hedge against inflation does not means people found another strong use case for it. This is how most new technologies grow. It does not really matter what people are using it for currently, being it for payments or for store of value for a long term savings, it does not matter. What matters the most is we are using bitcoin and it is adding up to the popularity of the coin, its value and its longevity. It is already obvious bitcoin has come to stay and will remain like this.

[HONDACD125]

I'm willing to use Bitcoin as everyday currency, but it's not my fault that sellers don't accept it as payment, so there is nothing I can do about it. Most people in everyday life aren't interested in Bitcoin (neither as investment), and even if you try talking to them about it, there is going to be little effect, because they think it's something beyond their reality.

So, the only alternative left for me is to keep BTC as investment. And I'm not really expecting this fact is going to change anytime in the future.

There are two hurdles in the way of Bitcoin becoming an everyday currency that could be used for customers to make payments with it and merchants to accept the payments. The first hurdle is on the side of the customer, where the customer has to pay the transaction fee for every payment they make in the day, which means that if you are making multiple purchases at multiple places in a single day, you will have to pay fees for every transaction that you make, and that fee is obviously higher than the fee you have to pay when you are paying with a fiat card like Visa or Mastercard, and with cash, there is no fee at all.

The second hurdle is on the merchant side, where the merchant has to then convert their bitcoins to fiat in order to use the money either for restocking or anything else like paying salaries, etc. And to do that, the merchant will also have to pay some fees, which means that you have to pay a specific amount in fees to convert what you have earned in Bitcoin for the day, and no merchant would want to do that, actually.

So, this could only be possible if the whole system starts using Bitcoin only, and there should be a way for customers to make payments without having to pay fees with POS machines. And if everyone accepts Bitcoin, the merchant won't need to sell their bitcoins for restocking or paying salaries to their employees.

[Satofan44]

Small businesses are running tight on the money they make, they can't take such risks because they know if they start accepting BTC, then maybe customers will also start paying in BTC, and if BTC dumps, they can make a huge loss and may not cover the expenses for the next month to run their mall.

This generic bullshit counterpoint could not be more wrong. The way that most merchants accept Bitcoin creates zero risk and it has zero relevance to them whether BTC will dump or not. The money is instantly converted to a stablecoin or fiat at the time of acceptance, therefore every merchant who is under the pressure of "risks" can adopt Bitcoin today this way.

Sellers want stability (in terms of price/valuation), so they will choose Fiat over Bitcoin anytime. It's this reason why merchant adoption is so limited for BTC these days.

Most fiat currencies are less stable than Bitcoin.

Layer 2 networks such as Bitcoin's Lightning Network solve the problem due to their speed and low fees, but the problem is that they do not spread widely due to the difficulty of using them somewhat.

Wrong, using LN is extremely easy these days and much easier than using a bank app. If you don't know how to use something, that does not necessarily mean that the thing in question is difficult -- it could just be you that is stupid. The current state of some mobile and custodial LN wallets is that they could not get any simpler at all without completely removing Bitcoin from the equation, which would not make sense at all.

Lightning network exist and there are bitcoin L2 that can handle high throughput, Rootstock is able to handle 300 TPS and that is enough for an everyday money considering there are tons of other L2 as well.

This sentence does not make sense. Rootstock's 300 TPS is tiny, and having "tons of other L2" does not create a case that confirms that their total capacities are sufficient for everyday money. It is entirely possible to have a "ton of other" L2s that have low capacity like Rootstock, and that they sum is insufficient. Instead, if you had actual knowledge on this topic you would understand that the Lightning Network is able to process millions of TPS without a known, objectively defined limit at this time. Therefore, LN alone is sufficient for everyday money.

This is the scenario where it become legitimate to use L2 because even Ethereum won't be able to handle high throughput if not for the existing L2 that offload thousands of transactions from Ethereum's blockchain.

The shitcoin Ethereum is extremely centralized and so is even L2 on it, don't make a false comparison here. The main L2 on Bitcoin i.e. the Lightning Network is completely decentralized, they are pure opposites.

[DanWalker]

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

Satoshi never meant to create bitcoin as everyday money as the fiats are. It is an alternative means of payment. You have the freedom to choose between using the banks for your transactions and face endless complains, glitches, frauds, manipulations and unnecessary charges or you choose bitcoin and have your money at your own custody without suffering any of those experiences that the fiat currency suffers. Have you ever been charged any fee for storing your bitcoin in a self-custody wallet? NO right?
Keep using the fiat currency and continue to be charged unnecessarily, even when you didn't perform any transaction.

I dont know what country you are from or what problems you have been having with the bank. But honestly, neither I nor my friend and family have ever encountered any problem throughout our years of using the bank. Even the transaction fees are not as high as you say. They charge an annual service fee, but in return, most domestic transactions are completely free, even if you make thousands of transactions every day. Are Bitcoin transactions free?

We need to be realistic that we are attracted to Bitcoin because of its profit potential, not because of free storage, fast transaction,...And I guess you are still using the bank, right? So, let's not speak ill of them while we still need them.
Banks, fiat, and Bitcoin all have their own advantages, disadvantages, and different use case.

[Gladitorcomeback]

Perhaps we may not all have been so fortunate as to have had the opportunity to run a decentralized economy that is free from government or any centralized regulatory institution, if not for bitcoin.

I see absolutely no reason why any government would let that happen in any country. I mean, they might allow the use of Bitcoin and cryptocurrencies, but they are not going to let their whole economy or financial system to become totally decentralized, because that will make them lose a lot of power within the country because whether we know this or not, the government and the authorities have a lot of power because of how centralized the economic or financial systems are in our countries right now, they are able to monitor everything about every resident, but with Bitcoin, they won't be able to do that.

So, we can never be that fortunate to have completely decentralized financial systems in our countries as long as governments exist, because they are not going to let that happen. They don't even allow cryptocurrencies without strict regulations because they want a share of what we make from cryptocurrencies, and they don't want us to hide anything from them, this is also why they are never in favour of decentralized platforms and stuff.

[Majestic-milf]

Yes bitcoin was actually created for the use of payments of goods and services based on the information available but we have seen how over time, people have started to evolve and it is now seen as a hedge against inflation does not means people found another strong use case for it. This is how most new technologies grow. It does not really matter what people are using it for currently, being it for payments or for store of value for a long term savings, it does not matter. What matters the most is we are using bitcoin and it is adding up to the popularity of the coin, its value and its longevity. It is already obvious bitcoin has come to stay and will remain like this.

Bitcoin could have several uses but as long as there are people who regard it as poison or even worthless, Bitcoin will remain that thing that has come to upset the balance of the fiat and that means it can't be trusted. I have the belief that Bitcoin will expand more than it is now over the years but this thought might not be shared by the next person so that's it. The op fears that Bitcoin may never be everyday money but the question to ask is "will it achieve the aim for which it was created?" Yes it will. It has and is still working towards being much essential since it's creation.

[Cryptoprincess101]

Satoshi never meant to create bitcoin as everyday money as the fiats are. It is an alternative means of payment. You have the freedom to choose between using the banks for your transactions and face endless complains, glitches, frauds, manipulations and unnecessary charges or you choose bitcoin and have your money at your own custody without suffering any of those experiences that the fiat currency suffers. Have you ever been charged any fee for storing your bitcoin in a self-custody wallet? NO right?
Keep using the fiat currency and continue to be charged unnecessarily, even when you didn't perform any transaction.

I dont know what country you are from or what problems you have been having with the bank. But honestly, neither I nor my friend and family have ever encountered any problem throughout our years of using the bank. Even the transaction fees are not as high as you say. They charge an annual service fee, but in return, most domestic transactions are completely free, even if you make thousands of transactions every day. Are Bitcoin transactions free?

We need to be realistic that we are attracted to Bitcoin because of its profit potential, not because of free storage, fast transaction,...And I guess you are still using the bank, right? So, let's not speak ill of them while we still need them.
Banks, fiat, and Bitcoin all have their own advantages, disadvantages, and different use case.

Here in my country, banks charge card maintenance fee monthly, they charge service fee monthly and they also charge a small fee at every transaction made whether locally or internationally and they also charge stamp duty fee when you exceed a specified amount. It's so terrible because if you sum up those charges together, it can reach a reasonable amount annually. Of course, bitcoin transactions are not free but it's only when you perform a transaction that you get charged unlike the bank. Fine, you said that your bank charges service fee annually, does bitcoin charge you a service fee annually for holding? understand the point am trying to make.

[BitGoba]

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?

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.

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.

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?

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.

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.

From your question, it’s clear that you still don’t fully understand what money is. If you do not understand money, you cannot understand Bitcoin either.
That’s why I would recommend reading a few books on the subject.For example,  Bitcoin Standard by Saifedean Ammous, and also the excellent book Broken Money by Lyn Alden.

After reading these books, things will become much clearer, and you’ll likely find answers to many of your questions.I would also recommend Vijay Boyapati’s article “The Bullish Case for Bitcoin,” which later inspired the book of the same name.Or Satoshi Nakamoto’s article  Shelling Out: The Origins of Money Originally published in 2002


Every form of money goes through stages. First, it becomes a store of value. Only after people become convinced that it holds valueand that its value is growing does it begin to be accepted as a medium of exchange.

Imagine you’re a merchant. You don’t understand Bitcoin, but over 5 or 10 years you see that its value keeps rising. Naturally, at some point, you’ll start wanting to hold that form of money yourself and eventually accept it in exchange for your goods and services.

And eventually, it becomes a unit of account.

[BitGoba]

volatility is also one of the biggest challenges,  Bitcoin price is not stable. And a currency meant for daily spending should be relatively stable.

This is another misunderstanding of Bitcoin, and it’s very common.

In reality, Bitcoin is perfectly stable  1 BTC is always 1 BTC, and 1 satoshi is always 1 satoshi. Bitcoin has a clear monetary policy enforced by software  amount of Bitcoin entering circulation is known in advance.

What is actually unstable are fiat currencies. dollar is unstable because central bankers constantly engage in quantitative easing and tightening,which leads either to the injection of new dollars into the system or to a slowdown in that injection, and the market then reacts accordingly.


Imagine the dollar as a measuring stick, while Bitcoin is like a fixed ruler with 21 million units (or 2.1 quadrillion satoshis).

Now imagine a ruler that keeps changing today it’s 21 units long, tomorrow it’s 22, the day after 23, and it keeps expanding endlessly. If you measure things with that kind of ruler, it will look like everything is getting bigger. But in reality, nothing is growing the ruler itself is changing.

That’s how fiat works. Prices seem to rise, but what’s really happening is that the measuring unit (the dollar) is constantly being expanded.The dollar is unstable, while Bitcoin is extremely stable. We have never had a form of money with a truly fixed supply like this  even gold grows at around 2% per year.