Is Bitcoin a store-of-value or a payment system?

[Guest jlight]

To get a long term perspective on bitcoin read my blog https://www.finextra.com/blogposting/14734/is-bitcoin-a-store-of-value-or-a-payment-system

 

In it I explain the spectrum of uses for bitcoin - a store-of-value system at one end and a high volume payment system at the other end. I explain how the bitcoin network is kept alive by the miners, and the bitcoin economics which ensure miners participate.

 

However, bitcoin rewards for miners halve every 4 years, and I conclude that because of this, miners revenue in the long term has to come from transaction fees for them to continue, therefore bitcoin has to become a high volume transaction, or payment system to survive. Bitcoin has a transaction capacity limit, already reached - the inability of the Bitcoin community to solve this constraint must be a cause for concern.   

[Caseynotes]

Hi ,  very interesting blog piece Jeremy (Accenture PLC), thanks for posting. The future is indeed unclear, add to your points the factional infighting leading to the possibility of future forking issuing the 'sons of bitcoin' not being bitcoin at all.