Post
Topic
Board Bitcoin Discussion
Re: Bitcoin - Asset Or Currency?
by
BVeyron
on 20/06/2023, 15:47:44 UTC
Currently, bitcoin has a very high price. I don't know why the bitcoin price can move so fast. Is it possible that there are brokers playing with bitcoin prices?

The little that I know about bitcoin is:

1. Bitcoin is the founding father of blockchain technology.

2. Bitcoin is purely decentralized. No entity, company, country or individual is affiliated with bitcoin. Only Bitcoin is like that, another coin was born from the company

3. Bitcoin is the antithesis of fiat

Initially, fiat money was born on the basis of gold reserves. But now it's not like that. Many people disagree when the US prints money massively without considering gold reserves. However, bitcoin was born without any guarantees, only the trust of the community makes bitcoin have value. Isn't that the same?

Today many people oppose the dominance of fiat. People who are against fiat will turn to crypto. But would you be happy if the bitcoin price is expensive?

If yes, then:
You still like fiat, because it costs a lot if bitcoin is converted to fiat, but if the bitcoin conversion becomes 1btc = 1000 eth or 1btc = 2000bnb then you don't have to worry about how much bitcoin is worth in fiat exchange. But you have to worry if 1btc = 500 eth. But we never discuss the price of bitcoin with eth or bnb, more people compare the price of bitcoin with fiat rates

In your opinion, bitcoin is an asset or a currency?

If bitcoin is an asset, it is now. Most people will hold bitcoin as an asset and take advantage of the rising price of bitcoin. If so you are still dominated by fiat

If bitcoins were currency, it would be complicated if bitcoins were used to buy cheap things, transaction fees would be very expensive

I have many questions in this thread. Sorry if my argument isn't comprehensive, I don't have a deep understanding of bitcoin yet

You are right! That's actually a problem: BTC can't be used for small purchases, moreover, nearly none of the business initiatives accept payments directly in crypto. That's why cryptocurrencies are not real currencies. I think, it's an asset: cryptocurrencies are a new form of digital assets.