Government regulations discourage Bitcoin payments

[B2Z]

So of encouraging people to spend Bitcoin these regulations seem to encourage people to hold Bitcoin. Do you think Satoshi would be happy with Bitcoin today or would Satoshi be disappointed that Bitcoins original purpose as peer-, to-peer electronic cash is no longer the focus?

Bitcoin will gain the most popularity from transactions, because gradually accepting this payment makes it possible for everyone to reach the message of Bitcoin. Bitcoin holding and Bitcoin transactions are the processes through which Bitcoin has gained the most popularity, that is why Bitcoin will gain the most popularity now and it is true that Bitcoin will gain more popularity in the future. However, for me, Bitcoin transactions and holding are the two most popular,
because Bitcoin holding will protect you from inflation. As a result, you will not have to face any trouble regarding transactions, within a moment you can congratulate the stream of Bitcoin from one end to the other using only an internet connection.

In the case of transactions through Bitcoin, I think transaction fees will be a big obstacle for users. Now, as we can complete small transactions through mobile banking, it will not be possible for us to complete those small transactions because if we go to do a small transaction, we will see that we have to pay transaction fees more than the amount of money we are transacting. Another big fact in the case of Bitcoin transactions is that we may have such an idea in our mind that if we transact through Bitcoin and if Bitcoin increases later, then we will have a place to regret it.

So I think mobile banking or stable coins are fine for our transactions for now because these will not be a reason for regret later.

[LUCKMCFLY]

We shouldn't give this too much importance. Governments will always discourage opportunities for progress for the people. Governments will always use their regulations and powers to seize money for themselves and not for others. That's something many should understand, which is why politics will always be dirty to me.

On the other hand, if people don't want to pay with BTC, that's their problem. Some prefer to pay with USDT because they feel bad about spending their valuable BTC. I'm someone who prefers to accumulate rather than spend it.

As long as the culture of accumulating and having more BTC for ourselves is present, I believe that each of our individual economies will grow. Once the collective or the masses see it, they will begin to do it, late but they will begin to do it.

[Abu-Naim]

For example capital gains tax in some countries says that even if Bitcoin is used for payments Bitcoin can be taxed if Bitcoins value has gone up. So of encouraging people to spend Bitcoin these regulations seem to encourage people to hold Bitcoin. Do you think Satoshi would be happy with Bitcoin today or would Satoshi be disappointed that Bitcoins original purpose as peer-, to-peer electronic cash is no longer the focus?

I personally don’t want using Bitcoin for payment because I feel like it is main to be saved for future purposes not to be used just for transactions like the currencies. If everyone who own Bitcoin can just hold Bitcoin or exchange if one want, it will maintain its value even though some people will think that it’s adoption might be slow, but with how people already known Bitcoin, using it to pay bills or to purchase goods can make you pay taxes, it is better to hold on to your Bitcoin and use your fiat for your daily needs.

[Davidvictorson]

Because Bitcoin was originally designed for peer-to-peer transactions I think that as more people use Bitcoin for payments demand will grow and Bitcoins value will rise and eventually people will see Bitcoin as a store of value.

Now it seems that we are focusing more on Bitcoin as a store of value than on Bitcoin as a payment method. I feel that governments have ruined Bitcoins transaction side with their regulations.

For example capital gains tax in some countries says that even if Bitcoin is used for payments Bitcoin can be taxed if Bitcoins value has gone up. So of encouraging people to spend Bitcoin these regulations seem to encourage people to hold Bitcoin. Do you think Satoshi would be happy with Bitcoin today or would Satoshi be disappointed that Bitcoins original purpose as peer-, to-peer electronic cash is no longer the focus?

I do not think that Satoshi would have been surprised by what is happening today with bitcoin especially with the regulation from the government and people using it more as a store of value than as a payment method. These are already some of its fundamental principles. Personally, since the last couple of years when bitcoin transactions was banned in my country, it became more as a store of value for me than a payment method. All the same, we are still hoodling bitcoin which is very essential.

[BitBakerr1]

For example capital gains tax in some countries says that even if Bitcoin is used for payments Bitcoin can be taxed if Bitcoins value has gone up. So of encouraging people to spend Bitcoin these regulations seem to encourage people to hold Bitcoin. Do you think Satoshi would be happy with Bitcoin today or would Satoshi be disappointed that Bitcoins original purpose as peer-, to-peer electronic cash is no longer the focus?

I personally don’t want using Bitcoin for payment because I feel like it is main to be saved for future purposes not to be used just for transactions like the currencies. If everyone who own Bitcoin can just hold Bitcoin or exchange if one want, it will maintain its value even though some people will think that it’s adoption might be slow, but with how people already known Bitcoin, using it to pay bills or to purchase goods can make you pay taxes, it is better to hold on to your Bitcoin and use your fiat for your daily needs.

Using bitcoin for payment is actually nice, especially when you have accumulated enough bitcoin.
Some people actually use bitcoin only for investment purposes they accumulate and hold for a very long time and they don’t use it for any kind of payment, that does not mean that those who are using it for payments are doing the wrong thing.

What makes bitcoin interesting and what will give bitcoin more popularity is if people use it for transaction.
People are being paid through bitcoin in this forum and that is how people use it for other payments also and it has not stopped bitcoin from growing bigger and better.

[Z-tight]

We shouldn't give this too much importance. Governments will always discourage opportunities for progress for the people.

I am not sure what the authorities have done in this case. You didn't think crypto wasn't going to be regulated and it would be the Wild West, did you? Governments around the world were always going to regulate the industry, it was inevitable.

Now irrespective of regulations, you can spend BTC when you want to, if you get a merchant that's ready to accept payments in it. Except the authorities explicitly ban BTC as a medium of exchange, like the Russian government, then i don't see any reason to blame them for how people choose to use their coins, which is as a store of value.

[Rabata]

Because Bitcoin was originally designed for peer-to-peer transactions I think that as more people use Bitcoin for payments demand will grow and Bitcoins value will rise and eventually people will see Bitcoin as a store of value.

Now it seems that we are focusing more on Bitcoin as a store of value than on Bitcoin as a payment method. I feel that governments have ruined Bitcoins transaction side with their regulations.

Bitcoin was not created for a single purpose. The reason why Bitcoin is successful is that people are trying to use it differently than for the purpose for which it was intended. In fact, the governments' opposition to Bitcoin is actually influencing Bitcoin to be used differently. If governments had allowed transactions through Bitcoin, people could have used it to complete daily transactions, but when users are deprived of this opportunity, they consider Bitcoin only as a store of value, which is why people now consider accumulating Bitcoin as the main purpose.

Users can accumulate Bitcoin for a long time and can also sell it when they need it. In the future, Bitcoin can also be allowed to be traded subject to government permission. I think the purpose for which Bitcoin was created has been successful. People have started to trust Bitcoin. freely transactions in the global financial arena are possible only through Bitcoin. Among the main objectives of Bitcoin, peer-to-peer transactions are of great importance. However, people can also use other features for their needs. Above all, the more people gain financial freedom by using Bitcoin and get real benefits from using it, the more Bitcoin's real success will continue to grow.

[legiteum]

Because Bitcoin was originally designed for peer-to-peer transactions I think that as more people use Bitcoin for payments demand will grow and Bitcoins value will rise and eventually people will see Bitcoin as a store of value.

Now it seems that we are focusing more on Bitcoin as a store of value than on Bitcoin as a payment method. I feel that governments have ruined Bitcoins transaction side with their regulations.

[...] The reason why Bitcoin is successful is that people are trying to use it differently than for the purpose for which it was intended. [...]

This! This cannot be emphasized enough as far as I am concerned.

[Z-tight]

If governments had allowed transactions through Bitcoin, people could have used it to complete daily transactions, but when users are deprived of this opportunity, they consider Bitcoin only as a store of value, which is why people now consider accumulating Bitcoin as the main purpose.

I am not sure what you mean by this, but if you didn't know, BTC is censorship resistant and permissionless. And as long as you are spending BTC on-chain and not through a custodial or centralized service, e.g an exchange, you do not need the permission of the authorities or any entity to move your coins, you simply use it as you will!

[lionheart78]

We shouldn't give this too much importance. Governments will always discourage opportunities for progress for the people. Governments will always use their regulations and powers to seize money for themselves and not for others. That's something many should understand, which is why politics will always be dirty to me.

You are describing a corrupt government.  I beg to disagree that all governments are corrupt.  There are some who really serve their people and it can be seen on how developed and progressive a country is.  Governing a country and politics are two different things.  So we should not get confused about this two.

On the other hand, if people don't want to pay with BTC, that's their problem. Some prefer to pay with USDT because they feel bad about spending their valuable BTC. I'm someone who prefers to accumulate rather than spend it.

True that, people are skipping BTC as a mode of payment because they think of it as cashcow where they just need to hold and wait until the price hits their target.

As long as the culture of accumulating and having more BTC for ourselves is present, I believe that each of our individual economies will grow. Once the collective or the masses see it, they will begin to do it, late but they will begin to do it.

That is if Bitcoin price eternally uptrend.  we should know when to sell so that we won't end up regretting because we haven't sold when the price were at its peak.

[moneystery]

The government also can't be completely discredited because Bitcoin isn't widely used for payments. It's true that government regulations play a role in how people use their Bitcoin. But it also comes down to each holder because they have their own reasons for holding Bitcoin, whether as a long-term investment or for storing value.
Most holders tend to see Bitcoin as an opportunity to make a profit, rather than spending it like a digital currency. It's their right, whether they want to spend it or not; we can't say they're wrong if they prefer to keep their Bitcoin.

So, in the end, whether someone wants to treat it like a digital currency or prefers to hold it is their business. What's important is that Bitcoin continues to function as a decentralized digital currency, and that won't change regardless of government regulations or more people choosing to hold it.

[Just Say]

Of course, it is certain that Bitcoin was designed as peer-to-peer electronic cash for direct transactions without intermediaries but it seems that everyone knows that apart from peer-to-peer transactions, Bitcoin had many other purposes such as eliminating dependence on banks or third parties, financial freedom and protecting privacy. But I don't think government regulation is ruining the bitcoin trading side because of devaluation of fiat currency and high inflation rate people are investing their money in this Bitcoin as this asset is not affected by inflation. As a result, I personally don't want to use Bitcoin for payment either.

Also many people are able to provide their employment by investing in this electronic currency so it can be assumed that Satoshi would not be disappointed with Bitcoin today as it appears people are gaining financial freedom by using Bitcoin and they are holding this currency with a long term mindset.

[snowpega]

<...>

What point you raised, no doubt this is true. But you should also know that this is the beginning of this game.
Government and political leaders around the globe now really know the potential of the crypto space. Which is why they are trying their best to design rules under which they can impose taxes on crypto space users. But the rules are not very advanced yet, and there are still many ways to escape the traditional system, to the best of my knowledge. (DYOR!)

In some countries, governments are ordering exchanges to share users' data with them so that they can also know how much earnings their country residents are making on a monthly or annual basis. Their main intention is what I already told you above, which is the collection of tax from every individual crypto space user. And in this case, exchanges have no other way to say no, because they don't want to face any legal problems or close their service in any country, and this is why, in such cases, they have to compromise with what the government of that country is asking for or ordering them to do.

[goldkingcoiner]

Because Bitcoin was originally designed for peer-to-peer transactions I think that as more people use Bitcoin for payments demand will grow and Bitcoins value will rise and eventually people will see Bitcoin as a store of value.

Now it seems that we are focusing more on Bitcoin as a store of value than on Bitcoin as a payment method. I feel that governments have ruined Bitcoins transaction side with their regulations.

For example capital gains tax in some countries says that even if Bitcoin is used for payments Bitcoin can be taxed if Bitcoins value has gone up. So of encouraging people to spend Bitcoin these regulations seem to encourage people to hold Bitcoin. Do you think Satoshi would be happy with Bitcoin today or would Satoshi be disappointed that Bitcoins original purpose as peer-, to-peer electronic cash is no longer the focus?

Government regulations definitely stand in the way of innovation, and obviously, the innovation of a new generation of money. The old generation (fiat) can be easily controlled and the value inflated/deflated artificially. And who decides this? The corrupt politicians of course.

It is absolutely not in their interest to abandon the old fiat system for a better system like Bitcoin.

But Bitcoin as a payment method is not as cheap as with other cryptocurrencies. So the transaction fee is still a problem. Especially if you don't want to pay 3 dollars for a 2 dollar coffee.

[ZAINmalik75]

For real, you can not force people to spend their Bitcoin when they don't want to and I don't think that government regulation is the only reason why people are not spending their Bitcoin in daily purchase of various need, I think the main reason is value appreciation, with the high inflation rate and devaluation of fiat money, people are transferring their money into a good asset which will not be affected by inflation and that's one big reason why people are holding their Bitcoin instead of using it for payment.

Bitcoin is decentralized, can still be used for p2p payment when both parties agrees, so Satoshi wouldn't be disappointed that people are holding Bitcoin, P2P transaction was not the only purpose of Bitcoin. One of the reasons for Bitcoin is so that individuals can have control of their money, so when you have a large percent of your money in Bitcoin, you are in total control of it, you don't need the bank to spend your money.

I agree with you on the part about why people are more into holding their bitcoins instead of spending them, because regardless of the taxes or fees, people nowadays want to make money, and if Bitcoin can allow them to do that since it has a volatile value, then they are not going to miss that opportunity. Bitcoin is not the only asset that has become a store of value or an investment asset, Gold was also once used as a exchange of value or a payment method in ancient times, but nowadays, it is only used either as a store of value or an investment asset apart from it being used for jewelry and such.

When it comes to Satoshi and his purpose behind creating Bitcoin, I think he didn't create Bitcoin to actually become a payment method which people can use to make purchases or pay for their goods and services they are purchasing, but he wanted to give them a system where they can send money to one another without any involvement of a third-party monitoring or controlling everything, which means that if you and I have a deal, we can use Bitcoin for the payment and there will be no risk of us getting inquired for our spendings, etc.

[r_victory]

Here in Brazil, regulations and taxes only address cryptocurrency investments and the profits generated from those investments. As far as I know, there is currently nothing that mentions a tax on a payment transaction for a good or service. Perhaps, due to the fact that it's not so widely used, investments are more common here than payments.

[Natalim]

We shouldn't give this too much importance. Governments will always discourage opportunities for progress for the people. Governments will always use their regulations and powers to seize money for themselves and not for others. That's something many should understand, which is why politics will always be dirty to me.

That's exactly the total opposite of their promises they make every time there is election. That is why the government is often called two-faced, because in the end they only stick to their personal goals and interest, not for the people's progress. And using bitcoin as a payment is never an exception, they will do everything to block the adoption of bitcoin, so that people will only focus on traditional fiat, so that the government's corruption will not be stopped.

[Anayochukwu]

Government regulations is not a problem and it's definitely not the only reason why Bitcoin isn't used for payments purposes because everyone have different reasons and choose to use their Bitcoin as they like. Using Bitcoin for payment depends on your location, the country you are in and how much Bitcoin is known and accepted regardless of its volatile nature, I have seen a story somewhere that a Bitcoiner went to purchase some item in a shop and use his Bitcoin to make payments and the owner of the shop accepted it at first and the transaction was made but a few minutes later he changed his mind saying that it (Bitcoin )has dropped as Bitcoin usually goes up and down so he was expecting the Bitcoiner to make another transaction to him since the first one has dropped and his money has dropped too, so using Bitcoin for payment for the depends on your location and how known it is.

[Woodie]

Totally agree, regulation is becoming a thorn in people's **** and if anyone has tried getting a crypto card.. you will agree with me that it's not as easy as it was back in the day because we now have anti money laundering laws guiding these businesses such that they want source of funds, proof of income and a whole list of requirements which you don't get with fiat and for this reason crypto won't get to it's full potential!

[Roggeredek]

Governments in many countries believe that because the price of Bitcoin fluctuates and lacks stability, people might face difficulties when using it to purchase everyday necessities. Consequently, they implement regulations that discourage the use of Bitcoin for payments.  This approach is arguably unnecessary. In many nations, Bitcoin is already accepted for a wide range of transactions, from payments at restaurants to purchases at large supermarkets and shopping malls. Countries are gradually moving toward the adoption of Bitcoin payments, a shift that I personally view as a very positive development.