The dual purpose of bitcoin.

[uchegod-21]

Then as an asset for investment, when you invest your money in bitcoin, the value of your money increase as bitcoin increases, bitcoin is a store of value as some countries, organisations and individuals use bitcoin to diversify in their investment.

What is your take on this very discussion.

You are right on this. However, you should also add that same way the value of their investment increases as bitcoin's price increases, is thesame way the value of the investment will also reduce as the price of bitcoin declines. Every investor should be aware of this, especially newbie investors. A proper understanding of this about their investment will help them make healthy projections about Bitcoin and also shape their expectations of Bitcoin.

I have had an encounter with someone who said he wasted his time investing in bitcoin simply because he lost a huge amount of money during the bear season and couldn't wait for the value of bitcoin to rise again. This can be painful, but those who understand that volatility is a major part of bitcoin will know how to plan well against losses.

[Byebyebtc]

Bitcoin is an asset that is not controlled by any government or authority, and peer-to-peer transactions can occur without intermediaries. Also bitcoin has limited supply of just 21 million, which makes it scarce and with the introduction of more investors and buyers the value of the coin will increase over time, As an investor the best strategy to be involved in in investing in the coin is to buy at a dip and hold, as the value of the coin increase you money will increase as well over time. also know that new bitcoins are created trough mining, this is a process which specialized computers solve complex puzzles to verify and add new transactins to blockchain. and miners are rewarded with new bitcoins. bitcoin is a very productive coin it has proven productivity constantly in its past results and still has potentials for more productivity. So its advisable for investors to invest in bitcoin.

[john_egbert]

Then as an asset for investment, when you invest your money in bitcoin, the value of your money increase as bitcoin increases, bitcoin is a store of value as some countries, organisations and individuals use bitcoin to diversify in their investment.

What is your take on this very discussion.

You are right on this. However, you should also add that same way the value of their investment increases as bitcoin's price increases, is thesame way the value of the investment will also reduce as the price of bitcoin declines. Every investor should be aware of this, especially newbie investors. A proper understanding of this about their investment will help them make healthy projections about Bitcoin and also shape their expectations of Bitcoin.

I have had an encounter with someone who said he wasted his time investing in bitcoin simply because he lost a huge amount of money during the bear season and couldn't wait for the value of bitcoin to rise again. This can be painful, but those who understand that volatility is a major part of bitcoin will know how to plan well against losses.

Such a person didn't look at previous cycles then.

He needs to learn more and see that to see results, around 4-5 years are needed.. And you need to stay patient!

[Man of peace]

As a digital currency, bitcoin is used for peer to peer transactions, allowing the users to send and receive money without the need for our local banking system, and you can equally use bitcoin to make international transactions and at a very low rate.
As a digital currency bitcoin is also used to purchase digital goods and some other services, and their a some individuals and organisations that even accept payment in bitcoin.

Bitcoin is effective in all aspects, it is not only for transactions and investments, but also for keeping yourself more private internationally and controlling money properly. You look at faraway El Salvador, they are doing everything with Bitcoin. And humanity is living its life from small to big, all kinds of children to adults are using Bitcoin and learning about Bitcoin.

Then as an asset for investment, when you invest your money in bitcoin, the value of your money increase as bitcoin increases, bitcoin is a store of value as some countries, organisations and individuals use bitcoin to diversify in their investment.
What is your take on this very discussion.

You can also observe and see that currently different countries and other individuals are holding Bitcoin, using Bitcoin as a reserve to strategize for the future and economic strength of the country. So here the demand for Bitcoin is rapidly building and the price is increasing drastically, it is only possible to buy Bitcoin and hold it for a long time and earn the most profit.

The existence of Bitcoin is indeed a welcome development to every individuals and government who believes in it ,government who really understand it has come to play ,the impacts of it existence in any country  that accepted Bitcoin and for those who are ready to utilize the Bitcoin 's financial breakthrough  are the one who are making a mega money in Bitcoin,the purpose of Bitcoin serving as an alternative means of transaction has helped some many people'in terms of transaction especially the transaction between the two different countries which has been so difficult before has automatically easily and fast , when you talk about investment it has become the most valuable asset when holding for a long period of time,so in every aspect of Bitcoin it more advantage than the disadvantage..

[Antona]

Then as an asset for investment, when you invest your money in bitcoin, the value of your money increase as bitcoin increases, bitcoin is a store of value as some countries, organisations and individuals use bitcoin to diversify in their investment.

What is your take on this very discussion.

You are right on this. However, you should also add that same way the value of their investment increases as bitcoin's price increases, is thesame way the value of the investment will also reduce as the price of bitcoin declines. Every investor should be aware of this, especially newbie investors. A proper understanding of this about their investment will help them make healthy projections about Bitcoin and also shape their expectations of Bitcoin.

I have had an encounter with someone who said he wasted his time investing in bitcoin simply because he lost a huge amount of money during the bear season and couldn't wait for the value of bitcoin to rise again. This can be painful, but those who understand that volatility is a major part of bitcoin will know how to plan well against losses.

Good point, but I'd phrase it carefully. The "loss" is only realized if you sell. A lot of newbies see their portfolio value drop and panic-sell, locking in the loss. If you understand the cycles, you see a dip as a potential accumulation phase, not just a setback. The mental shift from "I lost money" to "my buying power just changed" is crucial.

[Ojengonggu]

Bitcoin is a cryptocurrency with several use cases, and it will interest you to know that bitcoin is serving two purposes, which is both as a digital currency and as an investment asset.

As a digital currency, bitcoin is used for peer to peer transactions, allowing the users to send and receive money without the need for our local banking system, and you can equally use bitcoin to make international transactions and at a very low rate.

As a digital currency bitcoin is also used to purchase digital goods and some other services, and their a some individuals and organisations that even accept payment in bitcoin.

Then as an asset for investment, when you invest your money in bitcoin, the value of your money increase as bitcoin increases, bitcoin is a store of value as some countries, organisations and individuals use bitcoin to diversify in their investment.

What is your take on this very discussion.

Bitcoin’s killer app is its dual nature. It’s like having a Swiss Army knife for money.

One blade: Digital Cash. Peer-to-peer, borderless, cuts out the banks. Cheap, fast, and permissionless.

The other blade: Digital Gold. A hard-capped, scarce asset that stores value and beats inflation over time. Your hedge against everything.

Most assets do one thing. Bitcoin does both—and that’s why it breaks all the old rules. It’s spendable cash today and a rock-solid savings plan for tomorrow.

My take? That’s its superpower. Use it, save it, stack it. Bitcoin is whatever you need it to be

[Mpamaegbu]

What is your take on this very discussion.

Well, for context – the original purpose for which Satoshi created Bitcoin was just one – As a payment option. I just needed to put that out there. I acknowledge that I'm also one of those who believe Bitcoin has an asset side to it. It's even obvious that the asset angle which later came on has given Bitcoin more exposure than its original P2P purpose. There are so many cryptos now that present the P2P option and some of them have faster confirmations than Bitcoin but when it comes to the investment part, Bitcoin still holds the crown. Beyond this, I don't think there's any other further discussion.

[davis196]

What is your take on this very discussion.

My take is this. You don't add anything new to a discussion, that has ended years ago. Bitcoin has 2 real purposes(if you ask me).
1.Be a deflationary and speculative investment asset. 2.To help you "be your own bank" and to store your wealth in a wallet, which is under your control, so you don't have to rely on banks, brokers, hedge funds or any other sorts of middlemen to store your wealth.
Yes, Bitcoin can be used as a digital currency, but spending a deflationary currency for goods and services seems like a dumb move, since the value of the currency would most likely increase in the long run.

[sleepfirefly]

Then as an asset for investment, when you invest your money in bitcoin, the value of your money increase as bitcoin increases, bitcoin is a store of value as some countries, organisations and individuals use bitcoin to diversify in their investment.

What is your take on this very discussion.

You are right on this. However, you should also add that same way the value of their investment increases as bitcoin's price increases, is thesame way the value of the investment will also reduce as the price of bitcoin declines. Every investor should be aware of this, especially newbie investors. A proper understanding of this about their investment will help them make healthy projections about Bitcoin and also shape their expectations of Bitcoin.

I have had an encounter with someone who said he wasted his time investing in bitcoin simply because he lost a huge amount of money during the bear season and couldn't wait for the value of bitcoin to rise again. This can be painful, but those who understand that volatility is a major part of bitcoin will know how to plan well against losses.

Such a person didn't look at previous cycles then.

He needs to learn more and see that to see results, around 4-5 years are needed.. And you need to stay patient!

hate people who go dive into investing in bitcoin but have not made any proper research about it

if he knows better, he would have bought bitcoin during the bear season so that he can wait for the bull cycle without losing so much of his money i bet he bought bitcoin when everyone else was buying

[Rustam Meraj]

My take is this. You don't add anything new to a discussion, that has ended years ago. Bitcoin has 2 real purposes(if you ask me).
1.Be a deflationary and speculative investment asset. 2.To help you "be your own bank" and to store your wealth in a wallet, which is under your control, so you don't have to rely on banks, brokers, hedge funds or any other sorts of middlemen to store your wealth.
Yes, Bitcoin can be used as a digital currency, but spending a deflationary currency for goods and services seems like a dumb move, since the value of the currency would most likely increase in the long run.

You have shown very intelligent and straightforward opinion on why Bitcoin is mostly used in two things. As saving tool that goes up in value and as method of becoming your own bank. Since coins will never be more than 21 million, it is good decision to keep it instead of spending it on other things that lose value such as food or cars. When you have your own keys, you will have complete control of your money without having to depend on banks or other middlemen who may freeze your account. Most people now agree that Bitcoin is digital gold to be stored for future unlike normal money that should be used since it loses value with time.

[Antona]

What is your take on this very discussion.

I think both of these aspects of Bitcoin are important but most people still see it primarily as an investment asset (even me). Many people think of it as digital gold where they expect the value to increase in the long term. While there are advantages to peer to peer transactions in reality very few businesses or individuals still accept Bitcoin as a payment method. Especially, in this forum I only see Bitcoin being used for payments or transactions most of the time. And what I see outside or in marketplaces is that people are more comfortable transacting in stablecoins.

However, technically it is true that Bitcoin has opened the door to unbanked transactions which could play a bigger role in the future especially for those outside the banking system. So I would say that it is still primarily an investment vehicle but its practical side is also gradually growing.

 I think the practical side for everyday spending might not grow much on the base layer. Fees and speed aren't ideal. The growth is happening on layers like Lightning. So the practical use may evolve into using Bitcoin to access these faster systems, not spending BTC directly. As an investment, you hold the base coin. For spending, you might use its derivatives. Two sides of the same coin, pun intended.

[Pauldesaints]

Bitcoin duals purpose usage makes it more interesting,where one can make a seamless transactions across borders both local and international with easy and  as an investment.since the emergence of Bitcoin as the store of value that is guaranteed of less risk or loses every other investment has been obsolete, all focus now is on Bitcoin as the best investment destination hub of the current generation.

[The Cryptovator]

I think the practical side for everyday spending might not grow much on the base layer. Fees and speed aren't ideal. The growth is happening on layers like Lightning. So the practical use may evolve into using Bitcoin to access these faster systems, not spending BTC directly. As an investment, you hold the base coin. For spending, you might use its derivatives. Two sides of the same coin, pun intended.

Everyday spending would be quite complicated unless we start using the Lightning Network. But for big businesses and big payments, the transaction fees or delay time won't be a factor. Merchants just need to have a strong intention to accept Bitcoin and implement the Lightning Network so we can even spend direct Bitcoin for daily uses.  If you are just talking about faster payment, then a centralised wallet system stands for that, but these won't be on-chain transactions. If we can't spend directly like an on-chain transaction, then I'm not sure how it does add value into the Bitcoin ecosystem.

Nowadays people are more interested in investing in Bitcoin rather than considering it as a payment method. Due to the complicated system, a lot of people aren't using the Lightning Network. But recently even bigger exchanges started supporting the Lightning Network, and that's how very soon we might be familiar with that network. We just need mass adoption among merchants to implement Bitcoin payment methods.

[laspol65]

Then as an asset for investment, when you invest your money in bitcoin, the value of your money increase as bitcoin increases, bitcoin is a store of value as some countries, organisations and individuals use bitcoin to diversify in their investment.

What is your take on this very discussion.

Bitcoin plays this role in all areas, but it plays the biggest role in investment. Because people prefer Bitcoin the most to eliminate economic shortages, different countries accept Bitcoin as a strategic reserve to eliminate their economic shortages. I agree with you because people are preferring Bitcoin the most in these few ways. However, Bitcoin will gain more popularity in the future, so I think it is best to hold Bitcoin.

[tbct_mt2]

Bitcoin plays this role in all areas, but it plays the biggest role in investment. Because people prefer Bitcoin the most to eliminate economic shortages, different countries accept Bitcoin as a strategic reserve to eliminate their economic shortages. I agree with you because people are preferring Bitcoin the most in these few ways. However, Bitcoin will gain more popularity in the future, so I think it is best to hold Bitcoin.

Bitcoin in many years has been a favorite investment asset for many people as individual investors. Recent years, there are more institutional investors joined Bitcoin market after realizing Bitcoin potential. Governments, nations only participate in the Bitcoin national treasury party recent months and that big party has only just started.

I believe more countries will do that at their national scales and also there will be unions do this at regional scale. Bitcoin has shown its advantages, and strengths even a long time before participation of institutional investors, governments and nations.

Its adoption curve is something makes governments can not stay outside the big party.
https://woocharts.com/bitcoin-adoption-s-curve/

[Jeorgejs]

Bitcoin is alternative to the centralized third party government controlled financial system where everything is controlled, Bitcoin gives it users and holders the freedom to be their own Bank and control their finances.

Freedom comes from the understanding that Bitcoin is self custody and as long as you keep your own coins  away from centralized parties you have the freedom of your own assets and currency.

Looking ahead, Bitcoin could be seen as a glimpse into the future of money, not only enabling a world where financial transactions happen seamlessly across borders without intermediaries, but also driving entirely new forms of digital wealth and economic interaction, suggesting a future where currency, investment, and technology merge into a single, ever-evolving ecosystem.

[pliego]

Bitcoin’s dual purpose is one of its biggest strengths because as digital money it allows permissionless and borderless payments without relying on banks or centralized systems that can censor or freeze funds and as an investment asset its fixed supply and predictable issuance make it attractive in a world where fiat money keeps inflating both use cases rely on the same foundation decentralization there is no central authority controlling BTC which reduces censorship risk and single points of failure that is why people can use it today for transactions and also hold it long term as an alternative to centralized monetary policies

both use cases reinforce each other. People hold BTC long term because they trust the system, and they can transact with it because it’s censorship-resistant. If either part failed, the whole thing would be weake

[Antona]

Then as an asset for investment, when you invest your money in bitcoin, the value of your money increase as bitcoin increases, bitcoin is a store of value as some countries, organisations and individuals use bitcoin to diversify in their investment.

What is your take on this very discussion.

Bitcoin plays this role in all areas, but it plays the biggest role in investment. Because people prefer Bitcoin the most to eliminate economic shortages, different countries accept Bitcoin as a strategic reserve to eliminate their economic shortages. I agree with you because people are preferring Bitcoin the most in these few ways. However, Bitcoin will gain more popularity in the future, so I think it is best to hold Bitcoin.

The strategic reserve angle for countries is a big deal, it changes the whole demand profile, but for the average person, holding as a personal reserve against inflation or bank failure is the more immediate use both are valid reasons to stack.

[Cgrexp]

Bitcoin is seen as a digital currency and an investment asset at the same time, and Bitcoin's peer-to-peer structure is its greatest strength, which means it does not have to rely on banks or financial institutions. It also allows for international transactions at low cost. However, Bitcoin has not yet become effective for daily transactions due to its price volatility because its high price fluctuations in a short period of time will create a price difference during the transaction. Currently, Bitcoin is being discussed more as an investment asset. I think you should set goals based on your financial capacity and risk-taking ability because using or investing in Bitcoin should never be based on emotion.

[vanesha]

Initially, Bitcoin was created as a means of payment, not as an investment asset. In addition, because of its decentralized nature, some people began using it for transactions involving files (at first, these were dark or illicit transactions) until someone discovered Bitcoin’s key advantage: its scarcity. There will only ever be 21 million coins in total. Eventually, an unknown entrepreneur brought this idea to the public, leading to the situation we see today.