Bitcoin has to be a store of value first. If there’s not incentive to hold it, any merchant that accepts bitcoin will likely just sell into fiat straight away if bitcoin doesn’t hold it’s value.
The order of operations is important
Thread
Login to reply
Replies ()
Here's one who doesn't understand anything.
View quoted note →
Bitcoin will continue to rise steadily due to its deflationary nature.
When will it become a store of value for you? When it's worth $200k? Or when it's worth $1M?
Do you think it will stop at $1M? Has gold stopped rising since 1913?
When will it become a store of value? When will its volatility decrease? Bitcoin will always be more volatile than other assets because it is inelastic; you cannot increase its production when there is high demand, nor can you reduce its production when there is low demand.
Stop listening to Saylor and siren songs, and use Bitcoin as money now. Bitcoin is the present.
Or you can keep listening to Saylor, delay the adoption of Bitcoin by 50 years, and die an asshole.
View quoted note →
In fact, in some places it can be medium of exchange first, and a store of value later. Let me explain – there are places on this planet where people need Bitcoin to get certain things. So, they get Bitcoin just because they want to use it to buy something. And little by little they notice that they need less and less Bitcoin to buy those things, and that’s when they start to see it as a store of value too.
It seems to me that bitcoin makes more sense to people when you compare it to a fiat currency. Instead of cells on your banks spreadsheet that can be edited arbitrarily to give or take money, it is an immutable spreadsheet that cannot be edited arbitrarily. They can't create more money and they can't take it without a legitimate transaction.
Sure, this argument would not work when talking about a money that you can drop on your foot like gold or silver, but people would rather carry a debit card or paper money with them making gold and silver unspendable at your coffee shop or auto mechanic.
Short time frame Fiat thinker detected
Bitcoin's power lies in giving people the ability to self-custody and to make private transactions between self-sovereign individuals without surveilling and controlling rails. The store of value narrative is a misleading maneuver; it gives power to the exact fiat control that needs to be made irrelevant.