What is Bitcoin for – a means of payment or financial speculation

Empowering Young Entrepreneurs in Ghana through Bitcoin

What is Bitcoin for – a means of payment or financial speculation

What is Bitcoin for

We’re sure you’ve often come across various articles in recent months about people who invested in Bitcoin 7, 8 years ago and are millionaires today, but Bitcoin wasn’t created as something to invest in and make money, but was created as a means of payment. Our goal is to explain some other opportunities where we can use Bitcoin either as a means of payment, investment or something else.

Bitcoin as a means of payment

In the midst of universal digitalization, informatization and globalization, it is logical that people try to pay for goods and services in one (crypto) currency. With Bitcoin, it is possible to make payments from one corner of the world to another within seconds, completely anonymously and for a small fee. Also, the commission charged by Bitcoin is much lower than any bank in the world, which is more favorable for the end user.

Bitcoin payments are made with the help of Bitcoin wallets where you do not have to leave sensitive private data as in all banks when creating an account. That is why this form of payment is much more discreet than the others. This discretion is the reason governments oppose its use, as it allows individuals to hide a trail of money. However, on the one hand, this is true, because Bitcoin originally gained its popularity on the dark web, where it was traded in all kinds of illegal things, from drugs and weapons, to selling people or buying murders.

That Bitcoin is becoming an increasingly popular form of payment is also shown by the data that more and more companies are accepting Bitcoin as a means of payment. Here are some of the most popular: Microsoft, KFC Canada, Wikipedia, Reddit, Namecheap, Playboy and others.

The only drawback of Bitcoin and all other cryptocurrencies as a means of payment is their volatility, ie large deviations in value in the short term. For example, if a seller keeps the price in US dollars, and for the same goods / service offers the ability to pay in Bitcoins, he must update the price every few hours because it can easily happen that his price falls below profitable or otherwise, to become too expensive for the buyer all because of the fall / rise in the price of Bitcoin.

Bitcoin as a means of investment

Bitcoin is perhaps best known for this. As already written in the introduction to the article, many people have become rich at the expense of Bitcoin and timely investment. Bitcoin can be bought on one of the many cryptocurrency exchanges, and recently it has been included in the offer of some of the most well-known online exchanges whose focus so far has been on stocks, bonds and foreign exchange. Learn how to buy it here.

Of course, every investment carries with it a certain risk. You can make money, but you can also easily lose money. That is why people who accept risk more easily, while those who prefer savings more, I advise bypassing Bitcoin due to too much volatility or to invest less money and simply keep it.

The future of Bitcoin

According to all experts and people versed in Bitcoin and cryptocurrencies in general, it is certain that Bitcoin will easily move from an investment medium to a global means of payment due to its simplicity, security and ease of payment. Volatility and amplitudes in the price will gradually decrease, but this does not necessarily mean that investors will stop speculating on its price. One thing is for sure, online buyers and sellers will be happy to rub their hands because they will pay with the means of payment that takes the least commission.

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