INTRODUCTION
A few days ago, I had the pleasure to have a Skype call with a good friend of mine. A business owner from Switzerland, who has been involved in the cryptocurrency space for quite sometime. He mentioned his recent interesting conversations with some of his own business partners. They talked about cryptocurrencies and BITCOIN in particular.
His goal was to encourage those people to look closer into bitcoin and treat it as an asset class worth investing in. However, he seemed to fail and wasn't able to get much of their interest. Which made me wonder, what was his mistake?
I've asked him then, how did he approach this topic. I wanted to know how he explained the benefits and risks of moving some of our savings (in FIAT currency) into crypto. After all, building the right mindset is necessary to be able to build our listeners' interests and trust.
And one can have a very different mindset when it comes to bitcoin and cryptospace. This I know for sure.
Today, I would like to discuss this topic and I'm very curious about the replies I hope to receive.
STORE OF VALUE vs GLOBAL CURRENCY?
Many people out there still seem to consider crypto as a new digital currency. Often dreaming about BTC being used as the world reserve currency.
Personally, I do not look at BTC as a currency and I probably never will. Mostly because the majority of BTC holders seem to treat it as a store of value. We buy BTC either to speculate and trade, to exchange for other cryptos, or simply to hold long term. Not many people out there seem to use BTC (or other cryptos) to pay for goods and services. We simply do not want to spend any of our bitcoin.
Also if we would like BTC to become a currency, then very different (and super strict) laws and regulations would have to be introduced and applied. And that could cripple the entire industry, which is still quite at an early stage of development. Therefore, in my opinion it's best to present BTC as a store of value. One, which in so many aspects are better than gold.
Once we have this part out of the way, then let's move to my main question:
- would you promote Bitcoin as an investment or wealth protection against inflation?
AN INVESTMENT OR WEALTH PROTECTION AGAINST INFLATION?
I've learned that people react very differently if we would talk about investing (most are losing their interest) or focus on a different aspect and change their approach. Instead of talking about investing their money into some assets, it seems to be more efficient to talk about "protecting their hard earned money".
The idea of investing scares many, however talking about protecting our wealth attracts more attention. That's at least my impression so far. Would you agree?
I've realized that more often than not, this is the key if we want to hold our listeners' interest and attention. And I wonder, how many of you had a similar impression and similar experiences?
What is your approach towards bitcoin? Do you see it as an investment or hedge against potential high inflation? If you were to talk to a friend of yours with the purpose of getting him/her interested in the cryptospace - how would you play it out? Which path would you choose?
Please, share your views and experience with me. I read all comments.
Yours, @crypto.piotr
@project.hope founder
Our PH community: https://steemit.com/trending/hive-175254
As much as we are advocating for crypto adoption, it is worthy to note that cryptos are very volatile and as such may not be predictable. That not withstanding, I think many people are interested in transacting and trading with btc than using it as a long term store of value. In my own opinion, having btc as world reserve currency may come with laws that may not be welcomed within the crypto space.
well, that's my opinion.
Nice piece buddy
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Hi @crypto.piotr
Will tell you what I think, I particularly think that somehow it works like a two-sided coin on the one hand it is an investment and on the other hand it is a protection of an investment.
Each country has its own economic reality and when a country is from the third world like the country where I live, we should see BTC as an investment but also as a protection of my own wealth which is not much, but to the extent of my possibilities I do my best to place or exchange my FIAT money for BTC.
So I simply see it from a double lens, it is an investment and also an economic support.
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Appreciate your comment @lanzjoseg
Thanks for dropping by and sharing your thoughts with me :)
And indeed. It does works like a two-sided sword. I just wonder which side do you prefer :)
Have a great weekend,
Piotr
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There is this theory of the good money. People tend to spend the bad money and keep the good money. When I look at myself, my btc have been sitting in my wallet with hardly any movement. Why? Because I believe that BTC will keep it's value. So yes I consider it as a store of value in the first place.
What do you do with a coin that seems to have no value, first thing you will try to get rid of it and swap it into something useful. It's the useful stuff that will become the currencies of the future. Things that are relatively stable in price, easy and cheap to use. I would but btc into this package at all.
BTC can be a store of value but it is not designed to be something to pay stuff with (scalability, transaction costs). If I had to promote BTC to people I would do it as a secure store of value in the first place.
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I too believe to store BTC as store of value and really like the use of the synonym "Good Money" for BTC perhaps I am going to borrow this phrase and use it a lot
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No problem, I haven't invented the term ;-)
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Thanks for dropping by and taking the time to sharing your thoughts with me @achim03
I truly appreciate it.
Have a great weekend,
Yours, Piotr
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Dear @crypto.piotr
A very interesting question about a topic that is very close to my heart #Bitcoin infact it is so life changing and for a lot of people our lives revolve around it.
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i think it can be used both ways. Right now though the vast majority of people are using it as a store of value if you ask me, that's why they call it the digital gold!
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Hello @crypto.piotr Very interesting approach on a topic that I think has very personal points of view.
For me, this depends on countries with very fragile economies or that suffer from hyperinflation (such as Venezuela), It is often seen as an "investment".Personally for me it is, and I think very specific laws are needed to improve it.
First I would try to focus my speech on the area of attention to which my friend dedicates himself, for example if you are a "gamer" I would tell you about the benefits of the blockchain and all the possibilities of being able to generate an income playing his favorite game (or one developed by him), and the virtually endless possibilities of acquiring various currencies.Then I would talk about the security it provides and the way it generates trust through transactions, and how useful and fast it is.I would also show you and talk about my experience on steemit and other platforms,telling you how they have allowed me to be a source of income in the last 5 years.I think this would motivate him and make him decide to have the new purpose of investing in this, and also how this idea would help him pursue a promising future.
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Thanks for this valuable feedback @reinaldoverdu
Very wise suggestion.
Enjoy your weekend,
Cheers, Piotr
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I don't think right now people want to buy and sell with Bitcoin. But I see the future to be cable of making that change even though I don't know how. The prices of Bitcoin fluctuates too much for it to be traded off for a commodity that is fixed.
People have plans of holding Bitcoin for their children and for future generations to come. I was talking to my brother a few weeks back about a company that has bitcoin bought with the intentions of holding it for 500 years. Imagine that.
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Thanks for dropping by and sharing your thoughts with me @ebingo
I also don't know how :P It could only happen if people would consider spending their bitcoin to be better option than hodling it. Wouldn't you agree on that?
Have a great weekend,
Piotr
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Hello @crypto.piotr, I really liked the intention of seeing it as a reserve of value, which may well exceed "gold".
However, introducing the concept of crypto assets in certain social environments is still difficult because the desires prevail in society to "simply" have a high value currency at hand and this is not the fundamental premise of the crypto world.
This is the impression that I have received when I deal with the subject with a certain audience. One thing is what it really means to have reserves in cryptoassets and another thing is what "people" understand in their own way.
I think that in the near future, this topic should be taken as a subject at universities in economics career.
See you soon..!
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Thanks for dropping by and sharing your thoughts with me @tocho2
Appreciate it.
Piotr
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If I was talking to my friend Bob who knows nothing about crypto, global fiscal or monetary policy, or the technicals of wealth building. I would say this if asked:
Bob: What's Bitcoin?
Me: Internet money, like digital gold, you can trade it, send it and exchange it for dollars.
Bob: Do you have some?
Me: Yeah, I thought what the hell, put $100 in several years ago, and watched it go up, made some good money, what do I have to lose except for $100, ya know?
Bob: That's a good point.
Me: I can send you some Bitcoin if you want, so you can see how it works, then we can go out for Mexican food.
Bob: Sure why not.
Sustainable crypto adoption goes in stages. And it also depends on who you're talking to, how sophisticated they are, their background, etc… If they have a background in computer science and finance, crypto is an easy sell most of the time. If the person is in marketing and spends the rest of their time playing with their kids, crypto is much more difficult to convey.
I'm making this up on the fly, but we'll say explaining crypto goes in five stages. The first stage (introduction), the Bob example; it's an investment, digital gold that you can trade, throw $100 into it, see what happens, explain how it works later.
2nd stage would be explaining how money (the history and function of it) works.
3rd stage would be explaining how the computer science of Bitcoin works.
4th stage would be how do you combine the two.
And 5th stage would be how it's better than the current system.
I think the trick to convincing someone of BTC's usefulness and investment properties is not to get ahead of oneself. Meaning, don't start out with "Bitcoin's immutable blockchain, decentralization and digital signatures offer a compelling alternative to our current fiat monetary system." Instead talk about it casually (above example), as if its normal and no big deal.
If anybody else has anything to add, I'm all ears, because I'm making this up as I go.
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Appreciate your amazing (and lengthy) comment @fijimermaid
Thanks for dropping by and taking the time to sharing your thoughts with me.
I would like to have this conversation with you. Free satoshis, good company and mexican food? Paradise! :D
Have a great weekend,
Yours, Piotr
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Hi Piotr
Quite interesting questions you leave at the end of the post. When I have talked to friends about cryptocurrencies, about Bitcoin, I always try to tell them when and why it was created, and its evolution over time. I never fail to tell them that it is a very volatile asset, and that is one of its main characteristics.
But it has a deflationary component that is one of its characteristics and that can certainly make the price catapult, unlike the common inflationary process of the Fiat currency, in addition to the devaluation.
But I always argue that it can be used as a store of value and protection against an inflationary process, but I also talk about market speculation based on cryptos.
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Thanks for dropping by and sharing your thoughts with me @josevas217
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In my opinion, bitcoin can't be treated as currency rather it is somehow store of value. When we want to buy something with btc, the moment we reach the store, btc value may have changed. On the other hand, the currency value has not such fluctuations. Bitcoin is a bubble and it can explode any time.
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From my point of view I also see it as a way to protect wealth, mainly because of what you mentioned, that those who own BTC do not spend them, they trust that it will not lose value and on the contrary continue to accumulate hoping that it will continue to take value and grow their investment. And I really think it would work better to talk to a friend about protecting his money in an unstable economy by converting it into BTC than to tell him to invest it, because it sounds like he has to spend it buying something.
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I guess good reason why people don't like the idea of crypto currency and bitcoin in particular is lack of proper understand of how the system works insecurity is another problem officially bitcoin is not yet accepted globally which can make it very difficult for people to hold for now.
In my own point of view I see bitcoin as an asset worth holding as an investment.
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Greetings dear friend, I consider that the bitcoin in my country, can be seen as a means to safeguard their income and not be devalued by inflation, it happens to me that before changing any cryptocurrency I think a lot, I make a previous planning, so that after changing immediately buy what I want that way I avoid my money is devalued.
So, if a friend would ask me about bitcoin, I would answer that it is a financial alternative to invest with the intention of safeguarding your capital and why not to increase it in the medium or long term.
See you later, have a great weekend !
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Thanks for dropping by and sharing your thoughts with me @amestyj
That's exactly my point.
Have a great weekend as well :)
Piotr
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Hello @crypto.piotr
In answer to your questions:
Do you see it as an investment or hedge against potential high inflation?
For those in emerging countries with unstable economies, it is seen as an investment.
If you were to talk to a friend of yours with the purpose of getting him/her interested in the cryptospace - how would you play it out?
Which path would you choose?
y explaining very briefly the basics of cryptocurrency, its definition, origin and evolution. As well as a brief summary of its trajectory over the last few years up to the present day.
Finally, what does it represent today.
We must bear in mind that ignorance of this world is one of the main obstacles to scepticism.
Best regards
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Thanks for this valuable feedback @janettyanez
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Wealthy protection
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short reply, but right to the point :)
thanks @botefarm for dropping by
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I do fully agree with you that bitcoin is designed to be used as a store of value, not as a currency
Aside from its poor scalability problem (Which I really hope to be solved in the future), I think that Bitcoin's fixed supply is the main reason that it can serve as more of a store of value than it's as a currency or a medium of exchange.
If I think that Bitcoin will be more valuable in the coming years (which I really do), then I'm unlikely to spend it now. This is the same mentality of most bitcoin holders and gold holders too.
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Appreciate your comment @qsyal
Thanks for dropping by and sharing your thoughts with me :)
You nailed it.
Have a great weekend,
Piotr
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Woah!! I like the way you write, free spirited, let it flow from inside out. Really nice, loved the read.
For me, I see BTC as an investment and partially a currency that can be used to purchase goods but never as a store of value. I don't see it that way and will never, I think.
@crypto.piotr, I wouldn't market BTC as a protection plan or insurance plan. BTC is too volatile to be telling friends that it is a store of value, what if it dumps? Your friends will never forgive you and they won't have patience to wait for it to bounce back, that's the issue with newbies in the crypto world. Once they get hit badly, they take their lost and run, I did that with sushi, @menoski told me about it and it was one of our worst investment for last year. I was furious with @menoski, but I knew he only wanted to help, but it were someone else, I wouldn't have forgiven the person. Now, sushi is pumping, if we had waited, we would have been making huge profits by now.
So, I won't market BTC as a store of value or protection plan, because it is way to volatile.
I'm tagging @menoski, because he likes this kind of topics a lot.
Thanks for the share @crypto.piotr
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Thanks for the mention
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Late thank you for this amazing comment @kenny-writes
That's interesting. Any reason why you don't see BTC as a store of value? (this is exactly how I look at BTC).
Have a great weekend ahead of you,
Cheers, Piotr
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BTC is too volatile to be a store of value. We are smiling now as BTC is have a bullish run but when it starts it bearish run, which it will, soon or later, you might reconsider BTC as a store of value.
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hi dear buddy @crypto.piotr
I live in a country with hyperinflation, I came to the crypto world to protect myself from inflation, however cryptocurrencies will always be an investment because they have a variable price, if I told someone that it is to protect their money without mentioning the word investment, I run the risk that the price falls and get into trouble, I try to explain to people the best that I can many don't understand and sad for them.
so we have to take some time and explain in detail to people the benefits of BTC.
greetings
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Very interesting topic. For me, I see BTC as investment. I buy, hodl, get my targeted profit, sell. I don't see it as store value. We don't know what laws may come up tomorrow, and BTC starts crashing down. So I won't introduce someone into the BTC world with tactics. I will tell them it is where you can earn nice profit and also them of volatility of the market, if they like it they come in and if they don't they stay out. They are the ones missing out.
Great read @crypto.piotr
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Very interesting topic. I like it a lot. Well written, Piotr.
For me, I would not hodl BTC as a store of value, it is way too volatile to do something like that. Only one man's tweet affected the entire market, this thing was positive, what of when a negative tweet comes in by a major influencer? BTC should be seen only from the investment viewpoint. You make your profit and you pull out some of your profit. The whole point is about making money with BTC not saving with BTC. No one knows tomorrow. Regulations could change the market, no one knows. I rather have steem and hive as a store of wealth instead of BTC.
Steem and Hive are at their lowest, so buying now, will be a wise decision and also you would be able to help others through your vote power and earn curation rewards while your initial capital seats there as you bought but appreciating if even the price doesn't pump. Hive and Steem is the best store of value for me.
Also, I would say you shouldn't introduce BTC to your friends in such manner. I have deleted the person contact that told me to buy Sushi when it was $10, I lost a lot of money, I can't say here. I also told some of friends too, and they lost too and are still angry with me. I have learned a lesson from that, always them of the risk involved first and if they still have want to risk to make huge profits, it's their choice.
This is already an article(hahahaha). Nice topic @crypto.piotr
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Thanks for sharing your thoughts with me @menoski
Enjoy your weekend buddy,
Cheers, Piotr
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@crypto.piotr, such an interesting topic. Personally I see BTC as an investment.
Investing in cryptos especially BTC which is the chief of all cryptos is a big plus and something everyone should consider.
Although from this part of the world which I came from, exchanging goods for BTC is not really rampant, I would love to do that, if there is need for that.
Meanwhile, BTC is a good investment, as far as I am concerned.
Thanks for sharing this inspiring article.
Best regards
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Personally, I too believe that Bitcoin will become a store of value rather than a payment currency. if we had to give an example we could compare it to the gold
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It is a bit of both. Just like you, I can't regard it as a currency for many reasons that includes the absurd network charges. However, as an investment with value that will rise in the near future, it is a solid one.
It's hard to see it as a store if value due to its volatility but if a time comes when the dollar is backed by Bitcoin, rather than vice verse, who knows?
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Bitcoin can be seen as both an investment and a safe haven against inflation. First, the fact that investors and consumers already gave value to bitcoin gave it a price, and the fact that it has a finite amount to be produced makes it good as a safe haven just the same way people hold gold as a safe haven since it is scare (not finite) and just like bitcoin it is mined which makes it difficult to get but it becomes an investment security as people now bet it against fiat currencies such as the US Dollars, its regular halving every four years makes it very difficult for miners to mine more thereby reducing inflation and when the entire BTC is mined, it would be left to remain in the hands of the very few people who own it and are willing to keep it as both a security for value and for wealth security.
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Dear @elity-sitio
Late thank you for your valuable feedback. And allow me to wish you to have a great weekend :)
Cheers, Piotr
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Great article that you share with us in this opportunity related to BTC, in recent days I have heard many things related to BTC due to the great rise it has had in recent months, this has made people interested in BTC as an investment, but in reality this expression for a person not used to business will not be attractive.
Although BTC can certainly work as a double-sided currency, that is, as an investment and as a protection for certain capital, I personally agree that the best way to attract the attention of a friend or any other person interested in BTC, is to focus our recommendation as a protection for certain FIAT capital or any other type of capital.
It is also important to make you aware of the fluctuations that cryptocurrencies experience and that if at a certain moment their value drops, it is advisable to wait for it to increase again, but the investment will be protected and even if we are patient we will have solid earnings.
In fact, an extraordinary content that allows us to go deeper into the world of cryptocurrencies, especially BTC.
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Late thank you for this amazing comment @rbalzan79
Have a great weekend ahead of you,
Cheers, Piotr
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Hi @crypto.piotr
Thanks for above interesting discussion.
Well I think BTC as a Store of Value.
Recently I wanna buy some goods for my new home than I withdraw my BTC which I invested 7 months ago.
I seen BTC as a Store of Value when I need I swap with my currency.
🥰🥰🥰🥰🥰
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Thanks Piotr for raising timely discussion. I've had Bitcoin since the beginning so seeing the rise has been very pleasing. I do wish I still had some I've sold along the way. I see Bitcoin as an investment and a store of value. As a Fiat currency it has a long ways to go but I believe the increased governmental discussion on the cryptocurrency space takes us another step closer to that eventual reality. Governments will always sniff out where they can increase their revenue streams just as the individual does. Also PayPal and Square help move the idea of using Bitcoin for purchases.
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Dear @tsharpaphi
Late thank you for your valuable feedback. And allow me to wish you to have a great weekend :)
ps. how come you never posted anything? just commenting?
Cheers, Piotr
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Thanks Piotr. Time is the biggest issue. I'd like to be consistent in doing so. However, I have resolved to start posting in 2021.
Stay well!
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@tipu curate 3
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Upvoted 👌 (Mana: 0/3) Passive income - now with TRON rewards! || Compare APR
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