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If you're trying to make a profit by trading BTC... fine, I get it. What other reasons are there to trade BTC?

  • 1
    Why do people trade other currencies? – Pieter Wuille Jul 24 '14 at 22:17
  • You're not limited. Any product or service you can imagine, you can buy with Bitcoin. – Meni Rosenfeld Jul 25 '14 at 8:05
  • Ok I think I finally understand. Here's my best shot at it. Criticisms welcome: -There are two types of exchanges: peer2peer like Bitstamp and direct to consumer like Coinbase, which also provides a gateway for merchants. Merchants don't want to deal with volatility so they need Coinbases guarantee BTC to USD price and so are willing to pay 1% fees. On the other hand, Coinbase needs a peer2peer like Bitstamp so it can stock up on its own stock of BTCs. It's a supporting economy. Both exchanges are need at this point considering the volatility. Capitalism at its finest. Thoughts? – HipsterGlasses Jul 25 '14 at 13:34
  • Going off my last post. Coinbase also needs peer2peer exchanges so it can sell its BTCs for USD. Overall, the exchanges support one another. – HipsterGlasses Jul 25 '14 at 13:44
  • @MeniRosenfeld Any except for most. Haven't seen a single store near me take them. – user5107 Jul 25 '14 at 13:46
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Well I guess there are three reasons I personally trade for.

  1. Make a profit by buying BTC/fiat low and selling fiat/BTC high.
  2. Potentially increasing the profitability of Bitcoin by increasing the coin volatility via trading.
  3. Being a stakeholder in the currency of the 21st century.

Does this give you an idea of some of the motivations?

1

As the industry matures the general consumer will find it easier to use the underlying technology, Bitcoin. It might be as simple as swiping a card in the near future.

You can buy for speculative purposes or because you believe it will be useful in the future.

0

Well you might not be able to buy everything you want with it yet, but every day new merchants announce they accept bitcoin. Overstock and Expedia are just two of the biggest names I can recall right now. If the trend goes on like this, it won't take long for a lot of other big names to jump in. Once adoption grows larger the value is obviously going to go up. So you might want to do it as a long term investment too.

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