Should Bitcoin become a medium of exchange, a medium of value storage, or both?

The future of Bitcoin: a medium of exchange or a store of value? The debate continues to ferment in the core Bitcoin community, and the latest remarks by Twitter co-founder and Block Inc. CEO Jack Dorsey have sparked new discussions.

Is Bitcoin a payment tool, a storage means of value, or both? This issue has always been the focus of fierce debate among industry insiders. Dorsey's recent remarks have ignited the debate again.

Disputes about the use of Bitcoin

Dorsey believes that if Bitcoin is stored as a store of value only, it will fail. He pointed out in a recent podcast that Bitcoin’s success lies in its payment capabilities.

This view is in contrast to the current major narrative of Bitcoin. Many people, including the Winklevoss brothers, are optimistic that Bitcoin, as a store of value asset that is comparable to gold, will continue to grow, and are less concerned about its payment capabilities.

However, Dorsey believes that it is "insignificant" to position Bitcoin primarily as a store of value at present. He stressed: "Bitcoin must have daily payment functions, otherwise it will be just a buy-hold, and will only be used in emergencies or when cash is needed. If it cannot become a daily payment tool, its importance will gradually decline."

To solve scalability and volatility problems, Dorsey advocates priority in developing simple and easy-to-use payment solutions, focusing on speed, privacy and security. He believes that with the improvement of payment convenience and the return of the original intention of cryptocurrency, the volatility problem will eventually be solved.

Dorsey seems to think that Bitcoin’s current development is deviating from its original vision. "We still have a long way to go to really return to the 'peer-to-peer electronic cash system' proposed in the white paper," he said.

Dorsey's views sparked widespread discussion.

For example, Bitcoin developer Ben Kaufman refuted Dorsey's view that he believes that Bitcoin needs to be more a store of value than a payment tool. "Bitcoin's value lies in its attributes as a store of value, especially in the context of governments' continuous erosion of the value of currency. The payment function focuses more on avoiding financial scrutiny," he wrote.

Interestingly, Satoshi Nakamoto, the anonymous creator of Bitcoin, also foresaw the future of Bitcoin as a store of value, once said: "In case you grab something, it may make sense."

Ultimately, which view will dominate, or whether the two can coexist, time will give the answer. But at present, speculators seem to be confident about the future of Bitcoin.

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