CryptoHow Relevant Is Bitcoin Now? What Can We Use It For?

How Relevant Is Bitcoin Now? What Can We Use It For?

Bitcoin is a cryptocurrency and it has been used as an alternative to traditional currencies. In fact, the concept of Bitcoin was originally described in 1998 by Wei Dai on the cypherpunks mailing list, suggesting the idea of a new form of money that uses cryptography to control its creation and transactions, rather than relying on central authorities.

The first Bitcoin specification and proof of concept were published in 2009 in a cryptography mailing specification (Bitcoin: A Peer-to-Peer Electronic Cash System) paper written by Satoshi Nakamoto. Bitcoin became more widely known when usage spiked with people who were buying products from vendors such as Microsoft and Dell during December 2017’s holiday shopping season. However, many are starting to question if this currency will still be viable and popular in the future.

Bitcoin is mostly used as a method of payment or exchange, but it has also been used to buy other cryptocurrencies. The price of Bitcoin skyrocketed throughout 2017 and peaked at $17,900 on December 17th for one unit of Bitcoin, which makes people wonder if they should invest now after this massive spike in value.

Despite this recent climb in value, some people are predicting that it is just a bubble that will soon pop. It is very volatile and easily influenced by the media’s coverage of it. For example, after the coverage of Bitcoin skyrocketing to $19,000 USD on December 15th on CNBC, people were rushing to buy Bitcoins. But the surge in demand for Bitcoins also pushed up the price, causing it to reach a new high before quickly dropping back down. There is no telling how much it will rise or fall next, but if people are rushing to buy it now, others predict that the value will soon drop again.

In fact, some have even gone so far as to say that Bitcoin is a scam. The lack of a dedicated regulation team around it has given Bitcoin a bad reputation in the past. In 2013, Bitcoin’s value reached over $1,000 USD but then people started losing confidence when its value dropped back down to less than half of its peak from various hacks and scams related to Bitcoins. As well, it is not governed by any central agency and there is ambiguity surrounding the number of Bitcoins that will be created.

“There’s a lot to like about it as a currency — because you don’t have to actually buy whole coins you can purchase fractions of coins, allowing access to the market for more people,” said David Yermack professor of finance and business transformation at New York University Stern School of Business.

“But what we’ve learned is you need regulation; these exchanges where Bitcoins are traded can be hacked, and there’s no recourse.”

Another reason why some people think Bitcoin has a bleak future as a currency is because as soon as it became popular enough to be noticed, governments and banks started trying to crack down on it. China, for example, has been cracking down on cryptocurrency by banning initial coin offerings (ICOs) which are used to generate Bitcoins from thin air.

In addition, Japan declared that Bitcoin would be recognized as a legal payment method in April, but since then they have been considering imposing stricter regulations on it. This makes people wonder if Bitcoin is already too big to fail, but its legality remains uncertain.

How Relevant Is Bitcoin Today?

Many companies and businesses have been accepting Bitcoin as their payment option. This proves that Bitcoin is still relevant and not going away anytime soon. Even with the issues mentioned above, Bitcoin is adding more credibility as a currency. It can be used by merchants for international transactions without having to pay pricey transaction fees charged by other currencies such as dollars or Euros, and Bitcoins’ relatively stable value makes it possible for people to use it like cash.

As for the future, no one knows if Bitcoin will crash and burn or continue to rise. One thing is certain; it’s here to stay and people are starting to accept that despite its volatility.

What Can We Use Bitcoin For?

Many companies and businesses have started to accept bitcoin as a form of payment for their goods and services.

Here are some other usages of Bitcoin:

1) Bitcoin can be used for international transactions without having to pay the hefty transaction fees charged by other currencies such as dollars or Euros.

2) Bitcoin is an investment:  People are buying bitcoins with the hope that their value will rise in the future. Some people buy bitcoin because they expect to get rich quickly, others treat it as an investment and if they trust Bitcoin to become more valuable in the future, it makes sense to start investing in Bitcoin early before its price skyrockets.

3) Bitcoin can be used for digital payments:  Digital payment means that you can make online transactions without sending an actual physical object. For example, you can pay for your lunch via Facebook messenger or Whatsapp with bitcoin if the restaurant doesn’t accept cash or debit/credit card.

4) Bitcoin is good for businesses that are having trouble accepting credit cards because of fraud rates, chargebacks, or user identity theft.

5) Bitcoin can be used for betting online: There are online betting sites that accept bitcoin among other payment methods. Bookmakers accepting Bitcoin is popular nowadays and the number is increasing day by day. Thanks to the implementation of crypto, especially Bitcoin, online gambling is safer than ever, as well as feaster and arguably cheaper. With more complex collaborations, many security measures are put in place, which is a plus for the customers and punters.

Conclusion

Bitcoin has become increasingly relevant, but it still needs some polishing. Many people are optimistic that Bitcoin will continue to rise in value if more people invest in it and use it for transactions online, which I think is true given the fact that its value has steadily increased over time.

If you want to invest in Bitcoin or any other cryptocurrency, make sure you do your research and understand what you’re doing before investing in anything because of one wrong move and might be all gone in an instant.

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