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The medium-of-exchange ship appears to have sailed for Bitcoin.

Bitcoin is a store of value, and this is how the story ends most likely. Yes there will be some niche medium-of-exchange use, and performative spend here and there (including nostr zaps), but for the most part Bitcoin will be bought and sold between those looking to hold it and those looking to cash out on their holdings.

To those saying it can be both the ultimate medium of exchange and store of value at once, that's simply the middle character in the IQ curve meme. You can't encourage people to stack and unstack at the same time.

I think the future of the lightning network and cashu are both bright, but as transport for stablecoins, which are coins that your average person will actually spend at the store.

SatsAndSports 3mo ago 💬 2

Whenever there is a transaction between two people who believe that bitcoin is a store of value, they will do the transaction in bitcoin. Why would they do otherwise, paying to convert the bitcoin into fiat and back again?

We see such transactions very rarely today, because so few people see bitcoin as the store of value, and hence it's still very rare that two both sides of a typical trade are bitcoiners. But that will change, especially as we deliver more tech that makes it easy to onboard people

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Discussion

Garbage nsec 3mo ago 💬 1

The vast majority of people who hold bitcoin now hold it as a store of value . Or most of it, minus the performative-spend budget.

And those new to bitcoin will purchase it as a means to add to their store of value.

Medium of exchange just isn't in the picture here, really.

nobody 3mo ago 💬 1

BTC is used in some countries extensively.

When the west fiat grift collapses even they will use BTC for transactions.

Garbage nsec 3mo ago

Bitcoin is not used in any country extensively. It is used in some towns and community hot-spots extensively, and if you never venture outside of those towns and hot-spots then it might feel like it's being used in that country extensively, but this is simply not true. Even in El Salvador use is pretty small overall and decreasing quickly.

SatsAndSports 3mo ago 💬 1

Actually, you're kinda agreeing with me now, even though you think you're disagreeing with me 😃, as you keep agreeing that more people are seeing it as a store of value

Imagine two people meet to trade something (a coffee, a car, a yacht, ..) for money

Both are huge fans of bitcoin, and therefore have all of their wealth in bitcoin

They will use bitcoin - not fiat - for the payment. The buyer of the item has only bitcoin to pay with, and the seller wants more bitcoin

This is already happening in some parts of the world. Many people are saving more in bitcoin

As I explained earlier, it'll be a slow process to get more people to see that bitcoin is the best store of value

And once more people realise that, then the medium of exchange is inevitable

Garbage nsec 3mo ago 💬 1

This is the middle of the IQ curve meme. In reality the seller will be happy to take bitcoin, but the buyer will not give up their bitcoin. Bitcoin will attain Patek Philippe status, you never really own it you just look after of it for the next generation.

And you certainly don't fritter it away on matcha lattes and trips to Bali.

People are selfish and instinctual, and they will always have other less valuable assets they can exchange for their matcha lattes. The trend of the past 5 years is abundantly clear.