A lot of people are committed to building Bitcoin network to be a better payment network.
However, why would anyone spend it if it is a store of value and the price is quickly going up, which make it bad as a currency?
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1Hi Jem, I think your question may be answered in this topic already: bitcoin.stackexchange.com/q/408/5406– Murch ♦Commented Aug 30, 2021 at 2:05
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Thx @Murch, great reference and answers. Seems the topic is long-lasting. Maybe bitcoiners just hope to see it as an currency, not just a hoarding assets. However, volatility is bad for currency and there seems no way to make bitcoin stable relative to fiat.– JemCommented Aug 30, 2021 at 9:44
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1 Answer
However, why would anyone spend it if it is a store of value and the price is quickly going up, which make it bad as a currency?
Exchange rate of BTC going up in terms of USD does not make it a bad currency. Other way to look at it is USD going down in terms of BTC or purchasing power.
Consider an example:
Alice has 10 BTC in cold storage and 1000 USD in bank account. She uses 100 USD per month to pay some bills. After 10 months (Jan 2017 to Oct 2017) she has no cash and 10 BTC.
Bob has 10 BTC in cold storage and 1 BTC in hot wallets. He uses BTC from hot wallet per month to pay some bills. After 10 months he has 0.38 BTC (1- (0.125 – 0.1 – 0.083 – 0.085 – 0.058 – 0.043 – 0.052 – 0.023 – 0.03 – 0.0175)) in hot wallet and 10 BTC in cold storage.
Above example only works when BTCUSD is going up and trend continues for few months which happens in each cycle during bull market.
If you want to avoid volatility and still use bitcoin for payments, this is possible with lot of services that do instant conversion to fiat. Example: https://strike.me/
Few other reasons to use bitcoin for payments: https://bitcoin.stackexchange.com/a/106603/