However, the first cryptocurrency is not very suitable for buying a cup of coffee. Bitcoin has technical limitations that do not allow for a very large number of daily transactions, this number is limited
as soon as you said "coffee" i could tell that you have been taught stupid rhetoric by a group that promotes other networks as "the solution".. let me demystify the crap they filled your mind with
bitcoin can handle more transactions. even before scaling the blocksize, transactions could be made leaner to give a proper 6x boost to the current block space vs current tx count. yep 4mb current blockspace could allow 16,000tx instead of current average of 2700tx
then it must be cleared up that the network has no technical limit that stops the blocksize from scaling further, yep even a 8mb block wont slow things down for nodes. we are in a different technical era than 2015.. it was 10 years ago not 10 days ago.. the arguments of a decade ago did not apply then nor now
yet we still see the rhetoric chimed and chanted about even now(facepalm)
average world wide internet speeds of 2015 was 5mbps now its not 20mbps nor 50mbps but way higher at over 100mbps. so no problem to move forward by multiples.. should dev politics stop bowing down to their sponsors that want people to use other networks so they can claim middlemen payment processing fee's by pretending bitcoin has technical problems
and with more transactions able, means less fee costs needed individually so we could get back to low penny/cent level onchain fee's, where by even 3rd world countries can become interested in using bitcoin again
anyway back to the topic..
fiat money is inflationary currency, so by design the less time you hold onto it the better. the faster you can spend it to get products you want the better,
bitcoin is deflationary currency, so by design the longer you hold onto it the better, the less times you spend it the better.
its better to use fiat to get your daily groceries. its better to use bitcoin to bulk buy your monthly groceries
its better to use fiat to pay you weekly monthly bills asap. its better to use bitcoin to pay up a years worth of rent/utilities in one go during the high season
fiat by design needs people to spend money multiple times a day as it benefits both spender and receiver.
bitcoin by design is better to accumulate in the low season and hold, to then sell on the high season and then pay off bills, utilities in bulk/lump sums
bitcoins spending habits should be different than fiat spending habits be default and by design. changing peoples habits helps people learn more about economics and how to make gains from the different mindset
you dont need to use bitcoin to buy daily coffee, instead wait for ATH and transfer enough to get a starbucks giftcard to cover a year+ of coffee, knowing you saved alot of money compared to doing it the inflationary fiat model way of getting rid of it fast and often(daily)
Even if it were technically possible to increase the number of daily transactions in the Bitcoin network, who cares about it now? Institutional investors do not seek to conduct a large number of daily transactions at all, they prefer to accumulate Bitcoin and then store it centrally.
They do not care about the decentralization of the first cryptocurrency at all. They are more accustomed to the turnover of derivatives than real Bitcoin transactions from one address to another address.
Smaller investors also do not seek to increase the number of daily transactions.
As you rightly noted, this is due to the fact that Bitcoin is good money, and fiat money is bad money. People seek to save good money and spend bad money. At one time, this happened with silver coins, which were completely withdrawn from circulation as a result. Currently, this is happening with Bitcoin.
