Uses of Bitcoin
Many new to the idea of cryptocurrency may still ask what is Bitcoin. Today, Bitcoin is the world’s top cryptocurrency and it has become a major part of the online economy. The ease of use and its growing value has increased its importance through the years. Though introduced only in 2009, the cryptocurrency has spread quickly. People are still hesitant in using it, though. For those who want to start their Bitcoin adventure, here are some general uses for Bitcoin.
All products need a killer “app” or application to succeed. What this means is that there should be an attractive reason for people to use a product. For Bitcoin, it is online gaming or, more specifically, online gambling. There are several aspects of Bitcoin that make it ideal for betting on the Internet. First of all, it is possible for people to make Bitcoin transactions anonymously. Next, Bitcoin transactions can be done cheaply. Finally, Bitcoin deposits and withdrawals are done quickly.
All these three factors are important because of the special position that online gambling occupies. Gambling is illegal in a lot of countries and is heavily regulated. This stops a lot of people from gambling. However, with the anonymity that Bitcoin provides, players can gamble without worries over restrictions or legalities. Additionally, because of Bitcoin’s legality being in the grey area, gambling with bitcoins is not technically illegal.
The speed and inexpensive nature of Bitcoin transactions also helps a lot. Normal online gambling transactions can sometimes take days and cut into profitable winnings with high transaction fees. With Bitcoin, online gamblers can be sure that they get all of their money and do so quickly.
Another use for Bitcoin is investment. People can buy Bitcoin and keep them in reserve to be redeemed later. When it started out, bitcoins were worth just cents. Nowadays, a single Bitcoin is now worth hundreds of dollars. The price volatility serves Bitcoin well since it encourages more and more people to buy it as an investment. Thanks to Bitcoin’s limited amount, it is similar to gold in that it does not suffer much from inflation. This is why a lot of people buy it so that they would reap the rewards in the future.
Another investment reason for buying bitcoins is asset protection. Thanks to the fact that it is not supported by any government, Bitcoin is mostly protected from a rough political climate that can affect the economy. Investors worried that their money would lose value often take shelter in Bitcoin.
Bitcoin has also become popular enough to be used as a means of payment for various online stores and services. People can now buy everything from domain hosting to food with the use of Bitcoin. As the cryptocurrency spreads, more and more people will start to use Bitcoin.