At this stage it's higher risk/reward than what would typically be classified as a savings vehicle. Therefore it's more of an investment than savings, however, it's unique because it's scarce and has such great monetary properties. So if you hold it for a long enough period (5 years) the risk can be reduced so it becomes good for savings.
At what point does it switch to becoming classified as a savings vehicle? It's proven to do quite at that despite its social perception over the years, and at this point denying Bitcoin isn't a mainstream view anymore.
When a bunch of people who put money in over the last couple years have substantially less money now then they did at the time, it's a stretch to think of it as a savings vehicle. Certainly it is for those people.
I've considered getting super concrete with this, e.g., getting the time periods for which this "savings" concept would and would not make sense. Haven't got around to it, though.
I'd say this is a function of societal memory. Think "years since last x% crash". From this we could do a comparison of accepted savings vehicles and come up with a threshold. Anybody wanna do the math? Might be a good bounty subject.
At this stage it's higher risk/reward than what would typically be classified as a savings vehicle.
Irrelevant. People saving money in volatile fiat currencies e.g. the Turkish Lira are still "saving" money.
Bitcoin is money. So it's saving. In Bitcoin jargon we could use the word "stacking".
But "investing" is objectively wrong. "Investing" means you want something to become more. This isn't what Bitcoin is designed to do. And people using this word are embarrassing themselves by demonstrating that they still think in a fiat mindset or haven't understood what Bitcoin is about.
I always thought the distinction was whether you are accumulating money (saving) or accumulating assets that are expected to appreciate in the money you intend to cash out in (investing). Or something like that.
USD is money. So I'd save in USD, not invest in it. The S&P500 is an asset. I'd invest in the S&P500, not save in it.
BTC is also money. So I save in BTC, not invest in it.
BTC is seen as an asset in many countries, that's why you pay capital gains tax for what you earned in your investment.
BTC is also money because you can pay goods and services with it, so you can save it as well. This is specially true in El Salvador where you don't pay capital gains tax because it's legal tender there.
I would say that I am saving. BTC that i purchase will never turn in to fiat again as long as it is in my custody. Therefore, I am saving in BTC to spend BTC in the future.
Not always. If that were the case, under hard money there would be no investing, only saving. But people will still want to invest, e.g. in the stocks of promising companies, to beat saving, which can only return as much as the economic growth rate (and growth has to come from somewhere; it won't come from saving).
Investing is putting capital where it can actually work; saving is deferring that until a good opportunity arises.
Both. In addition to hodling I also have a small amount in my brokerage account.
Technically bitcoin is money so it's a form of savings, but since it hasn't reached wide adoption yet, its purchasing power will increase over time so in some ways it's an investment.
It all depends on how well you understand Bitcoin.
The majority of those who buy Bitcoin today are investing with the hope of making an x10, x20, ...
Those who have understood why Bitcoin is the best savings technology - and they're bound to be in the majority here on SN - save the fruits of their labor within the Bitcoin system.
We are saving within the world's most secure decentralized network, with the aim of participating in the development of a circular economy centered on the Bitcoin system for the future.
I’m not sure of the difference. I hope I can remain successful enough in life and retirement I never need to spend my satoshis and I can pass them down to my children.
Hmm... now that you mention it, I never use either word when talking to people.
I don't use "invest" because I don't see it in the same class as other investment vehicles, like stocks or real estate. Investment implies some centrally directed venture by which you hope to earn a return, but Bitcoin is more of a movement than a venture.
I also don't use "save" because it just feels weird to use the word "save" in the context of buying something. But "save" is probably more accurate.
The words I usually use are "I do recommend putting some money in Bitcoin" or "It's wise to keep Bitcoin as part of your portfolio".
investing is for bankers and other useless wastes of life.
If no one invested, there would be no economic activity and your corn stack wouldn't grow in purchasing power beyond the point of 100% adoption.
elaborate
At this stage it's higher risk/reward than what would typically be classified as a savings vehicle. Therefore it's more of an investment than savings, however, it's unique because it's scarce and has such great monetary properties. So if you hold it for a long enough period (5 years) the risk can be reduced so it becomes good for savings.
At what point does it switch to becoming classified as a savings vehicle? It's proven to do quite at that despite its social perception over the years, and at this point denying Bitcoin isn't a mainstream view anymore.
When a bunch of people who put money in over the last couple years have substantially less money now then they did at the time, it's a stretch to think of it as a savings vehicle. Certainly it is for those people.
I've considered getting super concrete with this, e.g., getting the time periods for which this "savings" concept would and would not make sense. Haven't got around to it, though.
I'd say this is a function of societal memory. Think "years since last x% crash". From this we could do a comparison of accepted savings vehicles and come up with a threshold. Anybody wanna do the math? Might be a good bounty subject.
Irrelevant. People saving money in volatile fiat currencies e.g. the Turkish Lira are still "saving" money.
Bitcoin is money. So it's saving. In Bitcoin jargon we could use the word "stacking".
But "investing" is objectively wrong. "Investing" means you want something to become more. This isn't what Bitcoin is designed to do. And people using this word are embarrassing themselves by demonstrating that they still think in a fiat mindset or haven't understood what Bitcoin is about.
I always thought the distinction was whether you are accumulating money (saving) or accumulating assets that are expected to appreciate in the money you intend to cash out in (investing). Or something like that.
USD is money. So I'd save in USD, not invest in it. The S&P500 is an asset. I'd invest in the S&P500, not save in it.
BTC is also money. So I save in BTC, not invest in it.
BTC is seen as an asset in many countries, that's why you pay capital gains tax for what you earned in your investment.
BTC is also money because you can pay goods and services with it, so you can save it as well. This is specially true in El Salvador where you don't pay capital gains tax because it's legal tender there.
Well… you can actually invest in Bitcoin, or invest with Bitcoin in something else
I use bitcoin.
saving is using!
I would say that I am saving. BTC that i purchase will never turn in to fiat again as long as it is in my custody. Therefore, I am saving in BTC to spend BTC in the future.
hodl
I save money
The better money
investing is a mere attempt at replicating what proper money should do
Not always. If that were the case, under hard money there would be no investing, only saving. But people will still want to invest, e.g. in the stocks of promising companies, to beat saving, which can only return as much as the economic growth rate (and growth has to come from somewhere; it won't come from saving).
Investing is putting capital where it can actually work; saving is deferring that until a good opportunity arises.
Investing is taking on more risk to get a higher return
Good luck competing with BTC in the initial stages of a new global money
Once Bitcoin reaches 100% adoption, it will only be able to grow at the same rate as the global GDP.
And if people only hodl, GDP growth will be zero and therefore the growth of BTC's purchasing power will be zero.
We are a LOOOONG way from that point.
Gradually, then suddenly :)
does it matter?
depends on your timeframe
I think I will die, and I will left some bitcoins after that . I guess I'm saving :D
Both. In addition to hodling I also have a small amount in my brokerage account. Technically bitcoin is money so it's a form of savings, but since it hasn't reached wide adoption yet, its purchasing power will increase over time so in some ways it's an investment.
It all depends on how well you understand Bitcoin.
The majority of those who buy Bitcoin today are investing with the hope of making an x10, x20, ...
Those who have understood why Bitcoin is the best savings technology - and they're bound to be in the majority here on SN - save the fruits of their labor within the Bitcoin system.
We are saving within the world's most secure decentralized network, with the aim of participating in the development of a circular economy centered on the Bitcoin system for the future.
Life savings and 100% savings on my end lol hear people say it's too crazy I'm like....wtf u talking bout
Bitcoin is money, hence saving.
I’m not sure of the difference. I hope I can remain successful enough in life and retirement I never need to spend my satoshis and I can pass them down to my children.
Both as well
Both.
I save in bitcoin. Investment is a side effect of the savings. In other words, as I save in bitcoin, at the same time I am investing in bitcoin.
Save in Bitcoin
Invest in the future
No yield - its not investment
Hmm... now that you mention it, I never use either word when talking to people.
I don't use "invest" because I don't see it in the same class as other investment vehicles, like stocks or real estate. Investment implies some centrally directed venture by which you hope to earn a return, but Bitcoin is more of a movement than a venture.
I also don't use "save" because it just feels weird to use the word "save" in the context of buying something. But "save" is probably more accurate.
The words I usually use are "I do recommend putting some money in Bitcoin" or "It's wise to keep Bitcoin as part of your portfolio".
Save a lot spend a little.
deleted by author