Bitcoin as a form of payment or an asset. What's the most appealing to you?
Just watched an interesting video lately from a pretty smart Belgian guy named youngandinvesting on youtube and he claimed in his video that the number one challenge for Bitcoin in 2018-2019 would be to be accepted as a form of payment. Unfortunately though he was contradicting his previous investor statements with this challenge that he wishes to see achieved by Bitcoin in the next year, but he has a point and a discussion theme for me on Steem.
If, for example, amazon would implement Bitcoin as a form of payment the first tough wall that the famous company would collide into would be its volatility which is what attracted many of us around. Now, even if the volatility would be passed on, the moment amazon would cash in, let's say $100 in Bitcoin payment, will have to automatically sell that Bitcoin to ensure that at the end of the month their revenue hasn't diminished due to the price of Bitcoin going lower than what it was the moment of the mentioned transaction.
Thus, according to the youtuber mentioned above, there will be a high pressure of selling upon Bitcoin considering the amount of transactions amazon has constantly all over the world. That situation, in my opinion, would affect the market a lot and prices will get even more volatile.
After thinking a bit upon the situation though, I asked myself what would I prefer Bitcoin to be in the next two to three years, and I am inclining towards the asset side of it. In the payment form of it I don't believe for the moment as there is not enough regulation and certainty around the crypto world and yeah that volatility would "screw" the world of Bitcoin even more if introduced as a world wide accepted form of payment. I know that there are some companies all over the world that accept it for years, but I assume there's an investor's mind behind that company that is thinking long term.
Another reason why I still want Bitcoin and other cryptocurrencies to remain trading and investing assets and not forms of payment is that I don't mine Bitcoin or any other cryptos, besides a few Steem a month, so I wouldn't have what to spend on amazon or on other shopping sites. In order to actually do that I would have to buy the currencies with fiat and then use them for payments, which I don't see as a practical idea at all. Hodling them for a while and then trade them on profit, for me, at the moment, would be the perfect use case for Bitcoin or any other cryptocurrency, thus I am a bit against the general trend of crypto enthusiasts who, most of them want to use cryptos anywhere anytime and trully believe in a decentralized world. Some of them might not even know what that mean, but that's another story.
I am sure, or should I say that I have an intuition, about a future time when cryptocurrencies will be our "actual money" world wide accepted, but as I said many times before that time is not right around the corner. Until then, I think, and I wish, that cryptos will remain as trading and investing assets along stocks and for the moment the "asset side" of them is more appealing for me and for sure others also.
What about you, how do you like Bitcoin more and how do you see it in the near future?
Thanks for your attention,
Ace
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This is a very contagious issue.
In my opinion, Bitcoin was always about payments. The success of Bitcoin hinges on it going mainstream for payments.
At the other hand, there is the 1MB block size limit, it puts an upper limit on the transaction flow, if Bitcoins are really used for payments by a critical mass, transactional fees will be insane and only a few transactions will actually go through.
Sometime around 2015/2016 the community started splitting, one part of the community wanted bigger blocks, the other part didn't want bigger blocks. We saw a huge and very dirty propaganda warfare.
One of the magic tricks used was to redefine Bitcoin from being a means of payment to being an asset. History was slowly rewritten, Bitcoin was never intended to be a means of payment.
In my opinion, the value of bitcoins hinges on its potential usability value as a means of payment. For the "asset" usecase - or, rather, "speculative asset class", I think Bitcoins are as usable as tulips.
The "small blockers" won the propaganda war, and we're stuck with small blocks forever. I'm concerned that we're losing the war against fiat due to the causalities and fragmentation we've ended up with in the block size war.
@acesontop, I'm waiting for the continuation of the topic
Don't know if it will be any, but stay tuned. Who knows what time brings.
@acesontop Thank you for not using bidbots on this post and also using the #nobidbot tag!