Friday, 30 September 2016

Will Bitcoin scale to be exclusively used as a store of value?


Almost everyone in the world can access gold in some way. Some more easily than others, through jewelry or gold bars.Bitcoin its value comes from its first mover adventage and its simplicity. It is what makes it the most trusted, secure and most widely accept cryptocurrency.However, imagine it never properly addresses its scaling issues and stays stuck at 1MB or even some more with the SegWit tricks.This capacity is way too low to function as any sort of world currency. So the only thing left that it could potentially do well in that scenario is to end up as a store of value. Where transactions are almost exclusively people moving big chunks of value between various storage methods and across exchanges.The question is then, what is the minimum required transaction throughput needed to allow it to grow towards such end? And more importantly, is that required throughput lower than what the bitcoin network supports?If not, then I don't see how Bitcoin will not eventually reach a valuation of zero due to it not being able to meet the demand for even the least technical demanding use case.Does anyone have some data that could be used to get an idea of the minimum required network throughput to have it function only as a store of value? Something like, how often are people moving money into their saving accounts? Or perhaps rather, how often are people buying physical gold to store themselves? via /r/Bitcoin http://bit.ly/2diPTUh

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