El Salvador proved it. Legal tender status didn't change behavior. People still defaulted to dollars. Bitcoin as payment requires a mental shift that regulation can't force and freedom can't guarantee. The technology is ready. The psychology isn't.

The good news is that Bitcoin is currently being traded as a medium of exchange in many countries. The government is creating obstacles, this is also a reality because if the government finds out, you may be put under surveillance at that time. El Salvador is an example before us, where Bitcoin has been accepted as legal tender and Bitcoin is being used freely in transactions. Children are being taught Bitcoin there.

Despite the government restrictions, Bitcoin is known worldwide and people are holding Bitcoin and they are transacting and the use of Bitcoin is increasing gradually. This has been possible due to the dedicated efforts of individuals. It has now become difficult for the government to control because most people want financial freedom.

I think Bitcoin can serve both purposes, but right now it makes more sense to see it as a long-term store of value rather than a currency for everyday purchases.

The comparison with gold isn't unreasonable. Bitcoin has a maximum supply of 21 million coins, and no central bank can simply decide to increase that limit. However, I wouldn't say it has all the advantages of gold either, mainly because its price is still extremely volatile.

As a payment method, Bitcoin definitely has its uses, especially for international transfers. The problem is that transaction fees and confirmation times can make smaller payments impractical, although solutions like the Lightning Network are helping address those limitations.

For me, the interesting part is the difference between what Bitcoin was originally designed to do and how people actually use it today. It started as a peer-to-peer electronic cash system, but many people now treat it primarily as an asset to hold for the long term.

That said, I think Bitcoin still needs to demonstrate greater stability across different economic cycles before we can confidently call it an established store of value.

Do you guys think the Lightning Network could eventually make Bitcoin more practical for everyday payments, or will its future be mainly as a reserve asset? 

Why doesn’t it make sense for pricing to depend on the laws of supply and demand? Because of its volatility—which makes me feel that Bitcoin is a currency unlike any other—combined with the fact that it operates 24/7 without any holidays that would cause the market to close.
As a hedge, I think it’s appropriate to refer to Bitcoin as “digital gold”—and even when I compare it to physical gold, Bitcoin has outperformed physical gold.

IMO, in the beginning, Bitcoin was a form of digital currency, created to fight the bad monetary system that had been around for years. But the volatility of this coin indirectly gave people a chance to make money from capital gains. People tend to hold it and treat it as an investment instrument rather than using it for payments. And since then, the idea of Bitcoin as a digital currency has died, replaced by a new narrative, Bitcoin as a store of value.

If you read the Bitcoin whitepaper https://bitcoin.org/bitcoin.pdf, it positions Bitcoin as a digital currency.


However, in the Incentive section, it clearly states the analogy of Bitcoin as digital gold.

Literally, it is how you use Bitcoin. I consider Bitcoin a store of value because I am a long term investor and it may surpass gold in the future. I am not just saying this for the sake of saying it, there are many arguments in favor of it, such as gold being a metal that is globally accepted and valuable, similarly Bitcoin is accepted and its demand will more increase in the future. Since the supply of Bitcoin is limited, the price will likely increase much more than gold. Gold is a physical asset and requires additional money to strengthen security measures in transportation and maintenance. The amount of additional money you spend on holding and maintaining Bitcoin is very limited and almost non-existent. Investors are leaning towards Bitcoin compared to investing in gold.

It started as a purpose of digital currency but is now converted into many features because it has enough for everyone who is using it for its own and also accumulating because things are getting amazing with the use of Bitcoin. Satoshi did things to make it good and easier for people who were facing restrictions and never thought about financial freedom; this was under the control of few people.As time passes now, it's also having the tag of digital gold because many are accumulating this for the long term, and it's going to be helpful for them due to its features. The price is increasing, and security also means its purpose is having all things for investors never disappointed after having this into my life. Things are going easier for digital currency, and also having enough to live with this in the long run because it's keeping me safer as gold.

Even this volatility is one of the biggest challenges of Bitcoin as a store of value. Because Bitcoin can drop by 20-30 percent or more in a very short time. Therefore, it becomes difficult to maintain value in Bitcoin in the short term. What makes Bitcoin a store of value is its limited supply.

Again, you have to accept that just because someone has a large amount of Bitcoin, it does not become a store of value. One person may have 0.01 BTC, another may have 10 BTC, but that does not mean that the characteristics of Bitcoin change because he has a large amount.

Everybody have the title they are referring Bitcoin to as based on how important they value it, calling it digital gold or sage heaven is all because of how important it is to them and the value it holds, but no matter how it is to others, you have to make effort to be among people that will get the benefit it comes with which can happen simply by investing in Bitcoin.

The popularity Bitcoin gains is due to global adoption, and for it to be accepted globally as means of payment is what we are always after so that more people will adopt Bitcoin which will bring more demand, and the value of Bitcoin will keep increasing with time. Invest now, and enjoy letter.