Why Bitcoin is needed in simple words

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Why do you need bitcoin

For about ten years, the media sphere has been entertaining us with news about Bitcoin, having buried it more than 300 times and not planning to stop. The secret of bitcoin cannot be revealed even to self-proclaimed experts. However, this does not stop investors from investing in what is often called the largest bubble in modern history.

If you happen to ask these investors why Bitcoins are needed, most likely you will see only embarrassed looks and raised eyebrows. Gold, for example, is used in mints, in jewelry, as a conductor for high-precision electronics and material for medical implants. With the definition of the spectrum of use of bitcoin, things are somewhat more complicated. If Bitcoin is a true commodity, its value should not only consist of the value of an investment instrument. So what is bitcoin used for?

As an alternative means of payment

If you spend enough time online, you may have noticed a growing number of projects accepting bitcoin as a means of payment. Major market players, including Overstock.com, Expedia, Newegg, DishNetwork and Microsoft, are not disdain for this.

Some companies accept Bitcoin exclusively. Why? Sometimes entrepreneurs engage in something that contradicts the principles of traditional financial institutions, whether it is providing VPN traffic, selling marijuana or showing videos for adults. Since Bitcoin uses a p2p system, such services may not be afraid of blocking their accounts. It makes sense for their users to get a bitcoin wallet.

In general, bitcoin has become quite popular. It is accepted by more than 100,000 sellers on the Internet and offline, and their number is growing every day.

Alternative to a debit card

Bitcoin provides opportunities similar to banking services. In some regions, people already have access to bitcoin ATMs, where you can withdraw funds from your wallet or transfer them to a bitcoin card. Such cards can be an alternative to debit bank cards. There is even a tangible bitcoin coin, however, it is rather an expensive souvenir than a practical thing.

As a permanent transaction register

In January 2009, when Satoshi Nakamoto mined the genesis block of Bitcoin, he left the following entry in it: “The Times of January 3, 2009: Chancellor on the verge of another rescue of banks.”

This reference to the modern banking system reflects one of the main elements of bitcoin. The blockchain captures all transactions of this cryptocurrency. More importantly, due to the fact that third-party data can be entered into the record, bitcoin can be used to exchange information and values ​​that are not related to it. This mechanism is much better implemented by altcoins like Ethereum, but it was Bitcoin that first proposed such a concept.

 Instead of fiat currency

Bitcoin is a turnkey solution for those who do not want or cannot use fiat currency, who have lost faith in central banks, live in a country with a degrading economy, or in a region where there is no stable currency. If we omit the recent over-volatility of bitcoin, at the moment it is a good investment and a healthy alternative to fiat currency.

Of course, no one knows what the future holds for bitcoin. However, the use cases described above are valid at the moment and, apparently, will be valid for some more time.

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