Reasons why bitcoin like bitcoin cash is not just a store of value

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Avatar for JohnMannel
2 years ago

My current holdings and bias

I hold bitcoin since 2013 and I hold bitcoin cash since the fork and have purchased more of both. Currently the value of my bitcoin holdings is more than my bitcoin cash, but due to the cheap nature currently of bitcoin cash I have purchased more sats in bitcoin cash then I have in bitcoin.

I don't view myself as biased towards bitcoin or bitcoin cash.

I would be happy if either becomes more adopted.

I also hold some alt coins but I have more attachment to bitcoin cash and bitcoin than my alt coins.

Everyone knows bitcoin cash is for more than storing value

It is commonly touted and I also believe that bitcoin cash is for using to do many things and not for just storing value. On this site bitcoin cash does have use, on noise.cash and many other sites there are many uses. It is commonly used for peer to peer payments and is adopted by many merchants.

There is no common narrative disputing this.

Not everyone knows bitcoin is for more than storing value

There is a common narrative in the cryptocurrency space that says that bitcoin is only a store of value and useless for everything else.

This is only true if you consider only the main chain and is not true and becoming less true as time progresses if you consider the level 2 and side chains for many reasons.

Below are some of the non store of value use cases for bitcoin.

FPS games

You can play FPS games that use the lightning network to reward winning players.

Betting

You can gamble on the lighting network at various sites on roulette wheels etc.

Defi and smart contracts

A person may participate in defi and smart contracts by wrapping the bitcoin on to ETH or TRON etc.

It is also possible to participate in defi and smart contracts by using the rootstock side chain.

Cheap and fast trading with self custody

It is possible to trade bitcoin now cheaply using the lightning network as several exchanges now accept deposits and withdraws via the lightning network.

There are also sites where atomic swaps are possible using the lightning network.

Cheap and fast payments

You can pay for many things quickly and with almost no fee using the lightning network.

Cash back and store bonus

There are shops that will send you sats to a lightning wallet as a bonus for buying their products. This can accumulate over time and be used to buy something on the lightning network.

Non-fungible tokens (NFT's)

These are coming to bitcoin via the Rootstock sidechain.

Paid by the second

Strike allows scheduled super quick lightning network payments even by every second for little fees. You could pay people or get paid by the second in bitcoin on the lightning network.

Conclusion

Most of the time I am using bitcoin cash and I am not using bitcoin.

Doing things on the main chain is still easier and better adopted than using level 2 or side chains.

However to say that bitcoin is useless except for store of value ignores all of what is happening and particularly for micro-payments like what is often used in gaming or sats cash back from buying items, then off chain solutions are very good.

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-In the pipe five by five-

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Avatar for JohnMannel
2 years ago

Comments

Yes, but. LN (-coin) is not Bitcoin and BTC is not store of value. Store of value is a fairy tale.Store of Value has always been something that had a use in human history. Gold, for example, was used as jewellery. Now it is used in electronics. Then it became Store of Value. The use of BTC is almost zero.

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2 years ago

LN network is not the Bitcoin main chain but it does use the asset bitcoin. And it gives bitcoin extra use case which was my point that it has use cases other than store of value. I was referring to the asset rather than the main chain only. As far as store of value, bitcoin is the first asset that has a known max supply and that is what the store of value narrative comes from.

Store of value can be a ledger that every one agrees to use and does not have to have previous particular demand in other areas, for example Rai stones were used as a ledger to store value and they had no particular use other than that before. https://en.wikipedia.org/wiki/Rai_stones

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2 years ago

I updated Bitcoin in the title to bitcoin as the topic is focused on the asset bitcoin use cases rather than the Bitcoin main chain.

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2 years ago