Although Bitcoin has recently reached all-time highs, the currency is ironically becoming more and more difficult to spend.
Back in 2010, the famed story of Laszlo Hanyecz purchasing two Domino’s pizzas for 10,000 bitcoins is now something that makes investors cringe. Given that the currency is now trading at around $6,600 per coin, that was one expensive pizza. While bitcoin is something that can be used for purchasing goods, it is definitely not easy.
According to a report from a reporter named Pittis, bitcoin is no longer on the same train it started on. Pittis stated that “for all intents and purposes, a bitcoin has become the currency that’s hard to spend.”
Pittis also stated that the wage economy we currently live in gives currency two different purposes. The first of those is money storage. This essentially implies that currency is for the storing of wealth. The other purpose is for growth. Pittis states that the currency has not managed to be a solid store of value like it once wanted to be.
He further stated that “trying to price your goods or services in bitcoins is a fool’s errand.” This is one of the main issues of bitcoin being adopted into the economy. Because it is so volatile, the price action means that no store can accurately price goods. If the coin goes from $6,500 to $5,000 in one day, that could mean a complete disaster for any good that bases its value off of it. Pittis stated that “it is well known that stable pricing is essential to a healthy economy.” This is something that is not the case with bitcoin. For bitcoin to become widely adopted, it needs to leave the speculation train and move on to a more stable method of growth.