It’s insane how impatient people are.

This statement applies both for price movement but also adoption. Much has been said about price movement, so I’m making this post to talk about adoption.

I’ve heard people say that Bitcoin as a store of value and digital gold has strayed from Satoshi’s vision of Bitcoin as a peer to peer digital currency. I think this is misguided thinking.

First, what is gold? If you were to ask our good friend (/s), Peter Schiff, he would say that gold is the soundest money known to man. So, if Bitcoin is becoming digital gold, that means Bitcoin is digital money. Wonderful. Mission accomplished?

So why aren’t people transacting in Bitcoin? Why is it ONLY a store of value right now? Well, let’s look at Gold. People used to transact in gold when the government issued paper certificates backed in gold, and gold/silver coins of standard weights. This was necessary for gold to be a medium of exchange as well as a store of value. Without standardization, it’s impossible to know how much gold you are receiving. One gold bar does not necessarily equal one gold bar.

One bitcoin, on the other hand, does equal one bitcoin. This is the power of Bitcoin that people don’t really see. It will always be peer to peer, even with investment banks joining the crowd, because there is no need for the government to standardize anything for the system to function.

As of now, there are two main reasons why Bitcoin is not a medium of exchange. First, it isn’t accepted by many businesses. This is only because we are so early. There is really no reason to sell bitcoin right now to pay for services from a business and it’s complicated for businesses to accept bitcoin. As more and more people start to own more and more bitcoin, eventually people will start spending it because that’s just what they have available, and they will use it to buy the things they need. Businesses will start to accept Bitcoin because people will want to pay with it, and also because technology will be developed to automate tax compliance.

Barring network failure, this seems inevitable, but it’s not going to take place in a year. This will take decades. Just stack. DCA and forget about it.