Bitcoin was never meant to sit idle. Its revolutionary potential isn’t locked in cold storage—it’s unleashed through use. While much of the current narrative glorifies Bitcoin as “digital gold,” a passive store of value to be hoarded and forgotten, this perspective risks undermining its most transformative feature: its function as a medium of exchange.
This article challenges the dominant obsession with Bitcoin purely as a store of value—particularly as promoted by figures like Michael Saylor—and reasserts that true monetary power comes from circulation, not stagnation. To understand Bitcoin’s full potential, we must recognize that value storage and transactional utility are not mutually exclusive—they are interdependent.
The Illusion of Passive Value
Michael Saylor’s strategy of treating Bitcoin as an untouchable reserve asset has influenced countless institutions. He argues that Bitcoin outperforms flawed legacy assets—real estate, bonds, gold—because it is scarce, durable, and censorship-resistant. And he’s right—on paper.
But here’s the catch: an asset that cannot be used is not money. Money derives its value from network effects—its ability to move, to facilitate trade, to connect people across borders and economies. Consider real estate: valuable, yes, but illiquid. You can’t buy groceries with a condominium. Gold? Historically revered, yet largely inert in daily commerce. These are stores of value—but they fail as mediums of exchange.
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Bitcoin, however, was designed to be both. It is not just a vault—it is a global settlement layer, operating 24/7, permissionlessly, across jurisdictions. Its blockchain processed over $3.4 trillion in on-chain transactions in 2024 alone, surpassing its market cap at the time. When we add Lightning Network activity—microtransactions, cross-border remittances, instant payments—the real volume of economic motion is likely far higher.
This isn’t speculation. It’s evidence: Bitcoin is already being used as money.
The Hierarchy of Monetary Functions
Let’s revisit basic economics: for something to be considered money, it must fulfill three roles:
- Medium of exchange
- Unit of account
- Store of value
Crucially, the medium of exchange comes first. Without widespread use in transactions, there can be no stable unit of account—and without trust in its usability, no durable store of value.
Imagine losing your private keys. Technically, your Bitcoin still “exists” on the ledger—but if you can’t sign a transaction, does it hold value? The market says no. Value collapses the moment utility disappears.
Even gold’s so-called 5,000-year legacy as a store of value is misleading. Today, gold accounts for only 1.78% of global value storage markets. Its $16 trillion valuation pales against claims that it could hold $120 trillion. Why? Because it lacks frictionless exchangeability. Most gold trading occurs via derivatives—financial abstractions—not physical transfer.
In contrast, Bitcoin’s annual transaction volume relative to its market cap suggests active economic engagement, not passive hoarding.
The Cost of Exclusion
Traditional financial instruments—bonds, stocks, real estate—exclude the majority. Only 10–20% of the world holds bonds, mostly through pension funds. Stock ownership reaches perhaps 25%, concentrated in developed economies. For the remaining billions, these assets are inaccessible.
This creates a structural imbalance: those closest to the financial system (central banks, institutions) benefit first from monetary expansion—the so-called Cantillon Effect—while the rest face inflation without recourse.
Bitcoin flips this model. It doesn’t require permission. It doesn’t demand credit scores or bank accounts. A person with a smartphone and internet access can receive, send, and secure Bitcoin—directly, instantly, globally.
When Bitcoin is used for remittances, small business payments, or peer-to-peer trade, it stops being an abstract investment and becomes a tool for financial sovereignty.
The Myth of “HODLing” as Strategy
The mantra “just HODL” has become dogma in parts of the Bitcoin community. But perpetual holding risks turning Bitcoin into a new kind of gated asset—one controlled by early adopters and large holders, detached from real-world utility.
Yes, saving matters. But saving without earning—or spending—is unsustainable. No economy grows by burying its currency in vaults.
Think of it biologically: an organism stores fat for survival, but only after securing food through action. Exchange precedes storage. You must first participate in the economy to have something worth saving.
Saylor’s accumulation strategy may work for a billionaire with dollar-denominated income and institutional leverage. But for someone in Argentina, Nigeria, or Lebanon—facing 100%+ inflation—it’s not about storing value for decades. It’s about preserving purchasing power today, using a currency that doesn’t devalue overnight.
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Toward a Transactional Future
Bitcoin’s protocol stability—often cited as a reason to avoid upgrades—is not incompatible with broader use. In fact, network effect drives ossification. The more people rely on Bitcoin’s rules, the less incentive there is to change them.
But that effect only emerges when the network is used. The U.S. dollar became dominant not because Americans saved it—but because they spent it globally, creating demand through trade, aid, and military presence.
Bitcoin needs its own version of that distribution: not through coercion, but through voluntary adoption, microtransactions, and integration into daily life.
Projects building on Lightning Network—like Strike, Sphinx Chat, or Breez—are proving this possible. From tipping content creators to paying for coffee in El Salvador, Bitcoin is moving.
A Final Challenge
To those who say “I’ll spend Bitcoin when it’s stable”: stability comes from usage, not before it. Network resilience is built through transaction volume, node distribution, and real demand—not speculation alone.
And to those who believe converting Bitcoin into stocks or ETFs advances adoption: ask yourself—are you building a decentralized future, or reinforcing the old system?
When you trade self-sovereign money for regulated securities—paying fees in fiat, relying on custodians—you’re not escaping the machine. You’re feeding it.
Frequently Asked Questions (FAQ)
Q: Can Bitcoin be both a store of value and a medium of exchange?
A: Absolutely. In fact, it must be both to succeed as money. Historical assets like gold failed as exchange tools; Bitcoin was engineered to avoid that fate.
Q: Isn’t volatility a barrier to using Bitcoin for transactions?
A: Short-term volatility exists, but layer-two solutions like Lightning enable instant settlements at stable fiat rates—users pay in BTC, merchants receive dollars.
Q: Doesn’t selling Bitcoin erode long-term wealth?
A: Using Bitcoin doesn’t mean abandoning it. Spend small amounts (sats) while holding long-term reserves—a balanced approach supports both personal use and network growth.
Q: Is the “HODL” culture harmful?
A: As a mindset, saving is wise. But taken to extremes, it discourages adoption and centralizes control. Circulation strengthens the network; hoarding isolates it.
Q: How does transaction volume impact security?
A: Higher usage increases fee revenue for miners, making the network more secure against attacks—even post-halving when block rewards decline.
Q: Can Bitcoin scale for global use?
A: On-chain transactions handle high-value settlements; off-chain layers like Lightning process millions of microtransactions per second—scalability is already here.
The goal isn’t to build digital vaults. It’s to build a new financial ecosystem—one where value flows freely, where individuals control their wealth, and where participation isn’t dictated by geography or privilege.
Bitcoin’s power lies not in how much you hold—but in how much you use.
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