Is Bitcoin a currency are store of value?

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Is Bitcoin a store of value are currency?

Hello everyone i was going to do the holding report today but had the thought i might be better to release that on Saturday, the day before SPI tokens move from teem-engine to hive-engine.

The question above has been an ongoing debate within the crypto world from even before i got into it in 2013. Is Bitcoin a store of value are currency? There are many smart minds on both sides of the fence and both make good points but all the evidence shows that Bitcoin started out as a currency and then become a store of value. Its whitepaper says it's a currency but actual use case in the past few years says it's a store of value. Let's have a look at both sides.

Bitcoin as a currency

The bitcoin whitepaper stats it's a peer to peer currency without the need for a central controller. In Bitcoins early days, it was undoubtedly currency. During 2012 when Bitcoin's total supply was around 10 million, there were over 9.5 million BTC spend through one site alone and the website earned around 600k BTC in fees from commissions. Bitcoin was proving it's use case, the only problem was all the BTC was being used to buy drugs, weapons and fake IDs on the Silk Road tor website. Bitcoin is hidden(ish) money and perfect for criminals to use and boy did they and still do.

Since the Silk Road, many have tried to replace it and im sure the dark web market overall has grown but many sellers now prefer Monero is it's more hidden than Bitcoin. We see in the news that this company are that chain of stores is going to start accepting Bitcoin but mostly it's cheap marketing and helps with branding a company as edgy are up to date with the times. Unfortunately many report that bitcoin payments account for <1% of total sales in most cases.

Next, we have the lightening network, something i have never looked into so i can't really comment. From an outsiders view, it's been launched over 2 years and looks to pointless as it still does not complete was other blockchains in terms of transaction speed and fee. Will build something that's worse than is already available? Once again, i don't know what im talking about, just an outsider's viewpoint.

To sum up, i think that Bitcoin started out as a currency because that's why it was created. Ross Ulbricht seen that Bitcoin could be used for anonymous transactions and build an empire for 2 years. The silk road to this day is still the best use case evidence to show that Bitcoin as a currency. The silk road also made the Bitcoin world known for the first time to the masses in 2011. Since 2013, Bitcoin has been used to less for transacting and more for saving as it's value increased insanely. That does not mean there are fewer transactions taking place on the blockchain but less are being used for commerce.

Can bitcoin even be a currency? If the price stabilizes, we get rid of silly 60 character jibberish addresses, people can get paid with it and spending Bitcoin becomes as easy, fast and free as using a contactless visa debit card, it can be a currency but.... people, in general, will spend the currency they get paid and i don't ever see the day when the masses are getting paid in Bitcoin. Bitcoin can never be a mass used currency for 1 reason. Thinking otherwise is not thinking, it's dreaming. Thinking and believing the banking system will collapse has been a dream from the 1930s and im not hopeful it'll happen in our lifetimes. Nothing wrong with dreaming but not with my retirement fund.

Bitcoin as a store of value

For a lot of the reasons that make Bitcoin a good currency make it an even better store of value. The 21 million max supply is perfect, controlled programmed inflation that reduces every 4 years until all 21 million are issued in the 2040s sometime. Its the price has been increasing the past 12 years and with Bitcoin at $9800 today, from its almost 4200-day history, there are less than 130 days were your investment would be worth less.

As a store value when compared with gold, it's pretty good. It's mined (whoever termed it that term was a genius), it's value comes from the cost to mine as does gold and it's has a limited supply. On the downside, all of the value of Bitcoin is contained with a 26-35 jumbled mess of characters and if you get one wrong either by copy/pasting error is a human error when writing to the paper, bye-bye Bitcoin. It's only hope of getting out that wallet is if someone else hacks it.

I think the vast majority of people nowadays would stat that Bitcoin is a store of value. Instead of me blah, blaming, let's look at some stats that hope to show will Bitcoin is no longer a currency.

Random facts and stats i have found, probably all wrong but fun to look at anyways.

• As of end Feb 2020, there were roughly 200 million created Bitcoin address's. Guessing each person user holds at least 2 address (exchange and wallet) means at best 1 in every 45,000 people has held in the past are holds bitcoin now. Very, very small niche numbers
• More than 10 million Bitcoins have not moved in over 1 year
• The number of people holding more than 0 bitcoin in Jan 2011 was a mere 70,0000. Today that number is north of 28 million
• To date, the BTC network has seen 487 million confirmed transactions that have moved over $7.5 trillion in nominal value
• 21 million total BTC will be created. 18.3 million have been mined, 4 million are estimated to be lost, whale and exchange wallets hold around 5 million, 1 million were stolen from exchange's and sit in wallets being watched by the FBI which leaves us with only 8 million to play with.

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