More than 10 years after its creation, Bitcoin still fascinates even the most educated on cryptocurrency. The generalization of bitcoin has caused some changes in the mode of global consumption. Indeed, bitcoin is a new form of currency or virtual currency to improve existing online payment solutions.. However, the use of bitcoin, or even cryptocurrencies, is no longer restricted to payments for purchases made online. Moreover, many still wonder about the real uses of cryptocurrency like bitcoin. We will give 5 examples of the use of bitcoin in this article.
Bitcoin, what is it and how does it work?
Created by the mysterious Satoshi Nakamoto, bitcoin is the most popular cryptocurrency on the market. Even though bitcoin is presented as a kind of currency, cryptocurrencies like bitcoins do not work like traditional currencies. Bitcoin is actually a virtual currency or cryptocurrency created by miners during mining. Bitcoin is a digital monetary unit and does not depend on any authority and any bank. Moreover, cryptocurrencies are all decentralized. The miners who create bitcoins use very powerful computer equipment. The mining carried out by miners for the creation of bitcoins consumes a lot of energy.
Cryptocurrency like bitcoin has a very volatile price, but as currencies, bitcoins are subject to certain rules. Indeed, its value depends on supply and demand, which is why the price of bitcoin remains very variable. Nevertheless, bitcoins have established themselves as real currencies since a bitcoin fulfills the three functions of money, namely:
- A medium of exchange (bitcoin is used to settle transactions);
- A unit of account (bitcoin is used to measure the value and prices of products);
- A store of value (bitcoin can be stored).
Given the concept of cryptocurrency or virtual currency, one would think that transactions made with bitcoin leave no trace. However, this is not the case since the inventors of bitcoin developed the blockchain or blockchain. In fact, the blockchain is a database containing all transactions made in bitcoin by users. A bitcoin transaction, also called a block, via the blockchain system, is immediately transcribed on the blockchain network (block chain) before being locked. This blockchain therefore makes it possible to record and exchange transaction information in a transparent and secure way.. Moreover, be aware that bitcoin is not the only cryptocurrency that works thanks to the blockchain system.
What are bitcoins used for?
Since its first appearances, the use of bitcoin has continued to expand in many areas. Indeed, this cryptocurrency is now used for many transactions. However, it should not be forgotten that bitcoin and cryptocurrencies are not legal tender.
Pay for online purchases
Of all the known uses of bitcoin, paying for online purchases with bitcoins is the most widespread.
Like conventional currencies (euros or dollars), bitcoins are commonly used as means of payment on specialized platforms. Moreover, cryptocurrency, especially bitcoin, is a legal and official currency in some countries (Salvador, Central African Republic). However, although bitcoin transactions are very secure, some people with wallets full of bitcoins still prefer traditional transactions.
Convert to another cryptocurrency or state currency
As a currency, bitcoin, like other cryptocurrencies, is convertible into conventional currencies (euros or dollars) on platforms dedicated to this purpose. Cryptocurrency has no fixed price, and the price of bitcoin depends on supply and demand.
Transfer money from one country to another cheaply
Knowing that transferring money from one country to another incurs often high transfer costs, bitcoin presents itself as a more advantageous alternative for such a practice. Transferring a cryptocurrency like bitcoins only requires a small fee, regardless of the amount of bitcoins sent and the destination country. The time factor also works in favor of cryptocurrencies, as sending bitcoin only takes a maximum of 10 minutes.
Store and secure your currency
Currently, almost half of adults do not have a bank account. After this finding, cryptocurrency such as bitcoin seems to be the ideal solution to keep your currency safe. In addition, be aware that it is easier to create a Bitcoin wallet than to open a bank account. No need to move, a simple phone and an internet connection are enough to place your bitcoins and assets in a safe place.
Create practical and functional registers
Beyond being virtual currencies, bitcoin is also a currency characterized by the blockchain which contains all the transactions carried out in bitcoin in the world. As a decentralized ledger, this blockchain can be viewed by anyone. As a result, bitcoin can be used to create registers that will be used to validate any type of document, or even to identify people or objects.
The use of bitcoin and cryptocurrency in general is still confined to transactions of a financial nature due to the complexity of the concept, especially the blockchain. However, it is only a matter of time before bitcoins and cryptocurrencies are used in other applications.
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Bitcoin: 5 examples of its real usefulness
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