What Is Bitcoin Actually Used For?
Bitcoin has come a long way in history; it has gone from an obscure concept from the deep web to a mainstream name and a regular headline on the news. Virtually everyone knows about it, and millions of people have taken part in the “craze”, from simply owning some, to actually trading it.
However, the “use” of Bitcoin itself tends to be ignored, as people seem to care more about its value and numbers than how it could really be used.
So here, we are listing the uses Bitcoin has seen in its history and what people do with it right now.
1. Misuse: Store Of Value
Before we even start talking about how it could be used, it’s worth noting that most people don’t understand what Bitcoin is supposed to be.
Today, a lot of people use it as an asset similar to gold (and even developers say it is). People use it as a store of value, or a way to “freeze” the value of their money so that it can be retained over time.
This is a horrible misconception, which leads to its overinflation and subsequent downfall that we saw in 2018.
2. Dark Coin For Deep Web Transactions
In the past, people used it on the dark web for purchases and trade without the authorities overseeing their activity. The most popular use was that of Silk Road, an online black market for drug trading.
The site was disbanded after its creator was captured, and authorities managed to trace his operations after his laptop was taken away.
3. Sending Money Privately
The reason why the previous use was possible is that tracing Bitcoin transactions to individuals is very hard. It is virtually impossible without having direct access to one of the wallets that were part of the transaction. That means first gaining access to their PC or mobile device, just to be faced with a password.
4. More Efficient Transactions
Bitcoin operations not only last less than a day, but they are also much easier than using bank transfers or even credit cards.
For long-distance operations, the user only needs to receive the wallet address of the receiving person to copy and paste it into their own wallet, select an amount, and hit “send”.
In person, let’s say if you’re purchasing at a store, you only need to open your wallet, scan a QR code, and set the amount to be paid.
5. Avoiding High Transaction Costs
Bitcoin transaction fees are much lower (depending on trading volume, that is) than several options for bank transfers and PayPal. And for overseas transactions, this is much more obvious, making it a perfect solution for international commerce.
6. Currency Exchange and Trading
Since Bitcoin is meant to be a currency - albeit a digital one - it has the same uses as regular fiat currencies, and this includes trading on the Forex market.
Today, Bitcoin is actively traded around the world and even if its price falls by thousands of Dollars, its features and qualities that we listed above remain as efficient as ever.
So, no matter at which price Bitcoins settles in the end, maybe lower than where it’s trading now, but still, it’s unique advantages will still remain and people will still continue to use it for those reasons.