By Michael Moskie
Over the last decade Bitcoin has positioned itself as the new “digital gold” from what was once mockingly considered “magic internet money.” Ultimately Bitcoin has found its way into many average investors’ portfolios as the asset most likely to earn substantial gains. Bitcoin however is much more than an asset that is held for appreciation and can be used to purchase goods and services by everyday people around the world.
Table of Contents:
- Introduction
- Scaling
- Acceptance
- Living on BTC
- Conclusion
Intro
Originally dubbed as “peer to peer electronic cash” by Satoshi, Bitcoin’s derived value has dramatically shifted over the years. Once bitcoin began onboarding many users, opinion on bitcoins use case shifted. The community has now Acknowledged that bitcoin’s network limitations hinder its acceptance as cash. The problem is being solved through network upgrades intended to allow companies to adopt and use the currency. Shifting the narrative and real-world use case back towards currency.
This post is intended to answer some of the questions people are asking about Bitcoin and cryptocurrencies in general.
Scaling
What does scalability mean in cryptocurrency?
When we talk about a company being able to scale, we refer to the ability of their business model to grow to a large scale without losing the effectiveness it achieved on a smaller scale.
In cryptocurrency scalability refers to a block chains ability to improve the speed and stabilize the cost at which it processes transactions (Transactions Per Second) while the number of transactions and users increases dramatically.
Some cryptocurrencies have done this well (Cardano) while others have experienced great difficulty (Solana)
Can Bitcoin get faster?
Yes, Bitcoin will get faster and better because of something known as “BIP” or Bitcoin improvement proposal. These ideas are floated by the community to be voted on and implemented or rejected. Anyone interested in helping to improve Bitcoin and make a recommendation for a BIP (Bitcoin Improvement Proposal) can change bitcoin. Currently there are several upgrades for Bitcoin. Taproot and Lightning are two well-known BIP’s being worked on for Bitcoin.
Acceptance
Can Bitcoin be used for business?
The answer to this question is yes, but let’s face it, the number of businesses that are set up to do it are small. As time goes on the adaptation will continue and get easier. This was similar to the release of the fax machine. When the fax machine was first invented, everyone thought it was an amazing idea. The only problem was that in the beginning, no one else had a machine! This made the use of them a slow process at first. With time, and skillful marketing, these machines became part of almost every business and many homes. Bitcoin will make its way through the business community in much the same way.
Bitcoin is a block chain and the further development of block chain is leading to many different and unexpected uses. Bitcoin was meant to be used to create greater levels of trust for all participants in a business transaction. This improved trust leads becomes part of the overall customer experience of your product or service.
Who accepts Bitcoin as payment?
At this point Thousands of businesses will accept Bitcoin for purchases. These companies range from online sales such as Etsy, PayPal, to major corporations like Microsoft. The travel and entertainment industry have been an early adopter of using bitcoin. Companies in industry segments like airlines and hotels and even entertainment venues such as movie theaters have been among the first companies willing to help its customers more by adopting the use of Bitcoin.
What companies benefit from Bitcoin?
Simply any company willing to accept payment. This is because as we enter more uncertain economic times Bitcoin could be seen as a hedge. Bitcoin could potentially improve companies’ earnings. In addition, there will most likely be a boost in social popularity when a business accepts Bitcoin.
Is Bitcoin getting more popular?
Bitcoin is getting more popular each year. Like most trends there are up and down times and Bitcoin is no exception. Observing google trends associated with searches for Bitcoin we can see Bitcoin has more sustained searches over time indicating more sustained popularity.
Living on BTC
The ability of a person to live their daily life using only BTC is an intriguing one. While conceptually it is possible. We believe at this point in its development, it would represent a substantial increase in the difficulty of some day to day actions, but it is possible.
As time goes on, this process will become easier and easier. As you will see in the following paragraphs, many retail businesses are now accepting Bitcoin for payment. The industries that have had acceptance are wide and varied ranging from tech companies to movie theatres.
It’s only a matter of time where the majority of companies that the public interreacts with on a daily basis will accept Bitcoin.
Can bitcoin be exchanged for money?
Yes, centralized exchanges allow for consumers to receive fiat (government issued legal tender) to their bank account. Bitcoin is however money itself and should be seen as a peer to fiat when buying goods or services.
Can you use Bitcoin to order food?
At this moment Burger King, Starbucks, Subway and Quiznos are four large chain food options when using Bitcoin. Other options include the ability to purchase gift cards to expand food choices such as Uber Eats, Dunkin Donuts, Dominos and even Whole Foods.
Can you pay rent with bitcoin?
Yes, it is possible to enter into an agreement with a landlord that is willing to accept bitcoin as an acceptable form of payment. Although this is unlikely to be provided as the primary form of payment, anyone seeking an apartment should consider talking with their landlord. It should also be known different companies and rules regarding country.
Can you buy a house with bitcoin?
Sellers may be few and far between however it is entirely possible to acquire a house with bitcoin. If someone selling is able to accept and willingly keep bitcoin they may do so at their discretion. There are multiple platforms to help leverage deals using crypto funds converted into fiat to help facilitate buys.
Can you travel using bitcoin?
It is possible to pay for multiple forms of transportation using bitcoin. You can rent or even buy vehicles to travel by road, Amtrak gift cards can be purchased with bitcoin while other smaller train lines may accept bitcoin for travel by rail. Expedia and other airlines allow the booking of both hotels and flights for travel by air. Finally, least popular is the possibility of buying ferry tickets or even a boat outright for travel by water.
Conclusion:
When bitcoin is discussed currently it is often seen as a “buy and hodl (hold on for dear life)” situation. Yet the true purpose of bitcoin was to remove yourself from the current fiat structure while maintaining the validity and purpose of money. This means that bitcoin should allow anyone using it to live their lives with a new payment option in their pocket. If by chance you are unable to utilize the dollar then bitcoin is the strongest alternative way to source income and resources. From the analysis made here it is possible to spend bitcoin as a currency to live on a daily basis. This is expanding as time progresses and more companies provide newer options for consumers. If you feel you want to get paid or pay in bitcoin always ask.
Sources:
Food options for BTC
https://giftsolutions.wpengine.com/buy-gift-cards/
What is purchased with BTC
Rent a car
https://cryptwerk.com/companies/rent-car/
Airlines and Hotelhttps://www.expedia.com/?utm_source=cryptwerk