The original intent of bitcoin was to be a currency so that's how it was evaluated. The point of this thread is that despite it's increasing popularity it has never functioned as a currency. Calling it an asset is dubious since it carries no equity nor pays a dividend nor is it tied to the performance of any institution. That's why I say commodity since it trades most akin to gold although gold (like most commodities) can actually be physically used for things.
The first step in the growth of any medium of exchange is to prove itself as a stable store of value. Otherwise it can't be used as a unit of account. And the first step in proving itself a stable store of value, is to begin storing value which is where bitcoin is at right now.
How does an asset prove itself to be a capable store of value? I say the first condition is that it must have a stable (non-speculative) demand, which bitcoin notoriously lacks, and can never have because it doesn't do anything. It doesn't exist physically, therefore it can't be consumed or used as raw material. And as a financial asset it's nobody's liability, so like an IOU that promises to pay nothing. In conclusion, bitcoin's market value is driven 100% by a speculative demand and that's not a basis for a reliable store of value.
a) it has to have the fundamental properties of a good store of value
b) it requires the time it takes for most people in the world to realise this (or at least simply accept that it is a good store of value, based on the price history)
Bitcoin has far better fundamental store-of-value properties than any other asset the world has ever seen. Now we bitcoiners are just waiting for the rest of you to catch up. As you do you will store your wealth in it too, increasing the price. While it's growing like this, it experiences volatility as all growing assets do - it's called "price discovery". The waves get shallower and shallower the bigger it grows. It has the potential to store the majority of the value in the world.
To say it has no use is a big mistake to make. Possibly the biggest in your life depending on how long it takes for you to realise. It took me 10 years and cost me millions.
Incorrect - the term inflation is rooted in the inflation of a money supply, which leads to devaluation of the monetary unit and therefore a rise in prices.
Bitcoin is deflationary as at some point in the future the total supply will decrease each year (through people dying with their money etc.)
