Bitcoin: the first purpose built currency

I see the arguement often that Bitcoin has no value and therefor it is worthless, it can't be used as an investment, it can't be relied upon and it won't last. However, I beleive that we have never seen anything like Bitcoin before; it is the first of its kind and therefor it is not possible to compare it to existing assets or stores of value.

When you think about Gold for example, it has always been used as a store of value and as a medium of exchange and sure, it has some intrinsic value because it has properties that make it really useful -

1. It is the most malleable and ductile of all the metals.
2. It is an excellent conductor of heat and electricity.
3. It is resistant to attack by air, heat, moisture and most solvents.

It is also very hard to aquire, there is not much of it available and it looks nice. Because of those facts it was very good when used as a store of value. However, when we borrow those qualities from gold we are stopping it from being used for the exact reasons why it is valuable. If you take this to the extreme and all gold in the world was used as a store of value then all of those qualities that make it valuable would be nulified because gold would no longer be in use. Thus we are borrowing an item, to use as a form of money, when its true purpose belongs elsewhere.

However, when you think about Bitcoin, it has been purpose built as a currency - using mathmatics, computing and cryptography, Satoshi designed Bitcoin from the ground up to have all of the qualities neccesary for it to act as a medium of exchange and a store of value. The best part is; Bitcoin does not have some other intended purpose, its sole purpose and its best implimentation is to act as a currency - it was literally built for that job. It is really this lack of "value" that makes it a perfect fit to be used as a digital currency and it is the perceived "value" of other currencies that make them inferior.

Exactly.
In my opinion, FIAT currencies such as the Euro or Dollar have no real value when you look at the activities of central banks - but most people simply don't realize this.
I can also recommend the book “The Bitcoin Standard” to anyone who wants to learn more about it.

Can't be destroyed, can't be printed, is scarce.

All good.

davids355 said:

it is the first of its kind and therefor it is not possible to compare it to existing assets or stores of value

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I dont know. Nokia 3310 was cool some time ago as well. Or Nokia in general, amazing phones, good quality, reliability etc.

For me, and I know this is highly subjective, any stable coin beats the BTC, I trade mostly and exclusively in USDT only. I'm aware of the risks with it too, yes.

lucky.sparks said:

I dont know. Nokia 3310 was cool some time ago as well. Or Nokia in general, amazing phones, good quality, reliability etc.

For me, and I know this is highly subjective, any stable coin beats the BTC, I trade mostly and exclusively in USDT only. I'm aware of the risks with it too, yes.

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But stable coin isn't store of value like bitcoin. It doesn't raise like bitcoin. Bitcoin has too high transaction fees to be used as a daily coin.

reaaski said:

But stable coin isn't store of value like bitcoin. It doesn't raise like bitcoin. Bitcoin has too high transaction fees to be used as a daily coin.

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"A store of value is an asset, commodity, or currency that maintains its value without depreciating."

RoiBox said:

"A store of value is an asset, commodity, or currency that maintains its value without depreciating."

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For next 10 years bitcoin will rise, so for next 10 years good as store of value.

Bitcoin will close government money printing more and more.

reaaski said:

For next 10 years bitcoin will rise, so for next 10 years good as store of value.

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Still not a store of value as it is a highly insecure speculative instrument.

RoiBox said:

Still not a store of value as it is highly insecure speculative instrument.

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Was splishsplash (top earner) wrong...?

reaaski said:

Was splishsplash (top earner) wrong...?

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Has nothing to do with the fact of what a store of value is.

MrT131 said:

Exactly.
In my opinion, FIAT currencies such as the Euro or Dollar have no real value when you look at the activities of central banks - but most people simply don't realize this.
I can also recommend the book “The Bitcoin Standard” to anyone who wants to learn more about it.

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Very true - especially when you consider that originally the dollar was fully backed by GOLD but over time the government and central banks took away that backing.

lucky.sparks said:

I dont know. Nokia 3310 was cool some time ago as well. Or Nokia in general, amazing phones, good quality, reliability etc.

For me, and I know this is highly subjective, any stable coin beats the BTC, I trade mostly and exclusively in USDT only. I'm aware of the risks with it too, yes.

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reaaski said:

But stable coin isn't store of value like bitcoin. It doesn't raise like bitcoin. Bitcoin has too high transaction fees to be used as a daily coin.

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RoiBox said:

"A store of value is an asset, commodity, or currency that maintains its value without depreciating."

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I would say that BTC is the best store of value out of all cryptocurrencies because it is the first one of its kind, it has the longest history and track record of all cryptocurrencies, it is fully decentralised and it is fundimentally simple. Of course BTC is not great (Currently) as a form of exchange unless you are using a layer 2 implimenation such as lightning network.

RoiBox said:

Still not a store of value as it is a highly insecure speculative instrument.

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If you look at the short term then it would appear to be instable and speculative, but if you look at Bitcoin over its entire history you will see one thing - it goes up in value over time. I beleive that makes it a supreme store of value (And to put it simply, a correctly functioning store of value). If you compare that to any FIAT currency you will find that it consistently loses value over time.

davids355 said:

If you look at the short term then it would appear to be instable and speculative, but if you look at Bitcoin over its entire history you will see one thing - it goes up in value over time. I beleive that makes it a supreme store of value (And to put it simply, a correctly functioning store of value). If you compare that to any FIAT currency you will find that it consistently loses value over time.

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As philosophers we could argue that something like store of value doesn't exist...

It is a good investment for me to buy it when it's low and sell when it's high but i just can't use it for buying anything because the fees are very high.
Look at BTC like an investment

lucky.sparks said:

For me, and I know this is highly subjective, any stable coin beats the BTC, I trade mostly and exclusively in USDT only. I'm aware of the risks with it too, yes.

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BTC is not controlled by a central authority. Research on - "How Bitcoin solves distributed consensus". USDT operates with a centralized entity, Tether; holding the reserves, issuing the assets, and maintaining the peg.

USDT is a fly that can be crushed by a gov anytime they wish. It's good for temporary transactions, not for store of value.

RoiBox said:

Still not a store of value as it is a highly insecure speculative instrument.

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It's store of value derives from it's sound mathematical algorithm. That "knowledge" is the trust that people have on it. Those who understand it trusts that there are more people like them who see the same value in it.

Sunya said:

BTC is not controlled by a central authority. Research on - "How Bitcoin solves distributed consensus". USDT operates with a centralized entity, Tether; holding the reserves, issuing the assets, and maintaining the peg.

USDT is a fly that can be crushed by a gov anytime they wish. It's good for temporary transactions, not for store of value.



It's store of value derives from it's sound mathematical algorithm. That "knowledge" is the trust that people have on it. Those who understand it trusts that there are more people like them who see the same value in it.

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Maybe they just prefer to do phone calls for 80 years. Leave them hard workers alone.

Lazy people like us unite and hold bitcoin long term together with whales.

Once you get problems like health problems you can't work. If you hold bitcoin, everyone who's into btc will help you cashout.

davids355 said:

If you compare that to any FIAT currency you will find that it consistently loses value over time.

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Well, that mostly has to do with inflation. Anyway, we have different views on what a store of value is.

RoiBox said:

Well, that mostly has to do with inflation. Anyway, we have different views on what a store of value is.

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You are welcome to post your own.

What do you use? Old cars? Houses?

reaaski said:

You are welcome to post your own.

What do you use? Old cars? Houses?

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Since you are so smart, you must be very rich at this time. I´ll rest my case.