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I’ve had 2 revelations about bitcoin which I’m quite proud of:

1. There are 2 headlines in the genesis block. One about chancellor printing money and the other about Israel invading Gaza again. I’m sure Satoshi wanted to highlight money printing and its consequence which is cheap forever war.

2. The “store of value” vs “medium of exchange” debate is a nonsense. As people store their value in Bitcoin and as it goes up, and they realise it is amazing, they’re going to demand to earn in it and shops are going to want to sell in it and will even offer discounts to be paid in Btc. Ie. it will inevitably become a medium of exchange.

#bitcoin #nostr #nsfw

BitcoinStu 1y ago

People don't use Bitcoin as a medium of exchange because fiat is better at it, so they have no reason to switch. People use Bitcoin as a store of value because fiat is terrible at it, so they have a good reason to switch.

If a person absolutely needs to transfer value in a censorship resistant way, Bitcoin can do that for them. But you do not need to evade government censor to buy coffee so why would you mess with your bitcoin for that?

You're right the argument about medium of exchange is stupid.

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Discussion

unknown 1y ago

Agreed but what happens when you want to earn in bitcoin. Small business are going to want to accumulate bitcoin easily and the easiest way is to sell their wares in bitcoin. I think one leads to the other.

Jon 1y ago

All my businesses would primarily use bitcoin if reporting for accounting and taxes wasn’t absolutely horrible . . .

BitcoinStu 1y ago

fiat and bitcoin are interchangeable

BitcoinStu 1y ago

I don't think it will. Bitcoin will only be the primary medium of exchange when fiat is gone, and that might be awhile, if ever.

A decentralized ledger is the most inefficient way of computing in the history of computing and to use such a method must be justified with a very good reason. The reason is censorship resistance, that is the only reason bitcoin is used as a means of exchange. And in the vast majority of cases this is unnecessary. So all the extra redundant computing is pointless if you do not need to protect yourself from censorship.

I don't think people are going to use bitcoin as a method of payment anytime soon. Only ideological bitcoiners who want to drive adoption would spend their time and energy doing such a thing. The vast majority of humans will simply use the cheapest and easiest way, and that is with a centralized database. If you do not need censorship protection, you will not use it.

unknown 1y ago

I’ll use myself as an example. I been in bitcoin for about 4 years but only truly started understanding it in the last year. Now I’ve bought as much bitcoin as I can safely buy and now I’m stuck. So because I see it going up in the future I now want to acquire more. And I’m now wondering why I can’t be paid in bitcoin. I spoke to my boss who laughed. I’m also thinking there must be some way to earn it. I’m looking into small internet businesses which I can start and earn in bitcoin. So I’m not even considering censorship resistance or tax implications. I just want the better money. Other are going to go through this same process.

BitcoinStu 1y ago

I don't see the problem. Get paid in fiat, buy bitcoin. It's like a few mouse clicks to do this. You want your boss to change his whole accounting system to accommodate you're lack of desire to set up an auto-buy with river or some other exchange?

You can set it up so it just autobuys. I really don't see the problem. You make it sound like it's impossible to just buy bitcoin with fiat.

BitcoinStu 1y ago

it seems like this issue you are having boils down to "I want my boss to buy the bitcoin for me instead of doing it myself" and I really have no idea why it matters to you who does the actual buying, you or him.

I dunno, I'm quite confused by your dilema.