Bitcoin was introduced in 2009 by Satoshi Nakamoto when legacy systems promised stability yet delivered crises. It positioned itself as a decentralized solution to centralized control, a peer-to-peer blueprint for value exchange that champions transparency, security, and autonomy in a world where innovation was too often stifled by bureaucracy. Since then, Bitcoin has disrupted financial paradigms, significantly influencing various aspects of the global economy and societal structures. It has brought both opportunities and challenges, empowering individuals to welcome innovation as the blueprint for success and success as a measurement of commitment, caution, and patience.
Many individuals have acknowledged its potential from the very first day, but that does not exclude those who have recently recognized Bitcoin’s intrinsic properties as fundamental traits for the future of money. To gain an advanced understanding of Bitcoin’s position in the market today, you can always check BTC futures. Furthermore, this article explores why so many crypto enthusiasts refer to Bitcoin as a store of value and analyzes its most common use cases.
Bitcoin And Its Plethora Of References As A Store Of Value
In a world where the value of fiat currencies is diminished by inflation and economies are constantly reshaped by politics and interest rate decisions, Bitcoin has become a compelling narrative for financial security. Through its limited supply of 21 million BTC, tamper-proof resistance to physical damage, portability, and fungibility, Bitcoin makes a great value store for many investors. Bitcoin’s cap has created a sense of scarcity akin to that of precious metals, influencing numerous individuals to approach it as an attractive option to preserve wealth and to believe it could become the 21st-century gold. Both Bitcoin and gold inherited their reputation as inflation hedges because of their limited supply, fostering a sense of trust, especially with investors who have long been satiated by being controlled by policymakers of any government.
What Are The Most Common Bitcoin Use Cases?
Online Purchases
Numerous online marketplaces have streamlined their practices and are now accepting Bitcoin as a payment method, with widely recognized e-commerce platforms such as Overstock and Shopify allowing customers to use Bitcoin for various purchases, from electronics and clothes to gift cards and home goods. Moreover, services like PizzaforCoins and Takeaway have inspired numerous restaurant and food delivery apps with their Bitcoin payment method, fostering a more convenient way to get food delivered without experiencing the hassle of converting your Bitcoin to fiat. While the biggest online retailer today, Amazon, still does not accept Bitcoin directly, you’ll soon be able to use Purse.io to pay with Bitcoin when shopping for anything on the site.
Remittances
Remittances refer to transferring money from one party to another, playing a fundamental role in sustaining families with members abroad and strengthening the economies of developing nations. As about 800 million people receive money from family members abroad, crypto is now a more effective method to send money across the border, eliminating the need for intermediaries and reducing the costs and time involved. The possibility of sending Bitcoin (BTC) to your family worldwide has fostered an avenue for a more inclusive and cost-effective remittance economy, eliminating the high costs associated with traditional banking services.
Travel
Crypto has unlocked a new era of travel, with market leaders such as Destinia, Travala.com, and Alternative Airlines integrating Bitcoin payment gateways to accommodate modern travelers. This effective payment system eliminates the need for currency exchange, reducing the costs and complexities usually implied in international transactions. Blockchain technology elevates the travel experience by offering greater payment access, where customers enjoy lower transaction fees and enhanced security measures.
Online Gambling
Bitcoin deposits are upgrading online casinos, offering players a new level of convenience and security. Unlike traditional payment methods, which exclusively require personal information, Bitcoin transactions can be structured to keep users’ identities confidential. They also provide instant account funding and no banking restrictions. Thanks to these features, Bitcoin has become a symbol of financial freedom and control, linking innovation and excitement.
Donations And Charities
Cryptocurrencies worth hundreds of millions of dollars have been donated to charities in the last few years, with donors enjoying reduced tax bills through charitable deductions. Let’s say you held a cryptocurrency for more than a year before donation. Under these circumstances, you’re meeting the requirements for a specific charitable deduction, which is considered a fair market value for your time of contribution. Here is an example:
- You buy 1 Bitcoin at $10,000.
- After four years, your Bitcoin is worth $50,000, and you decide to donate it.
- For this reason, you deduct $50,000 in itemized charitable donations.
Additionally, Bitcoin donations can potentially reduce your income tax liability per year, with the Internal Revenue Service (IRS) allowing you to relish in the rare elegance of a world not dominated by exorbitant taxes. The rise of cryptocurrency donations started 2017 on Reddit, when the landscape of charitable giving with cryptocurrency was forever changed. An anonymous user who called themselves “Pine” has shared their humble vision towards getting mega-rich, stating that their goals and motivations in life have nothing to do with it. Consequently, this individual made a series of donations that eventually resulted in 5057 Bitcoins, which were valued at USD 86 million.
Concluding Remarks
While Bitcoin has already been welcomed in numerous parts of the world, several countries remain devoted to their skeptical attitude towards this asset, nurturing a wary feeling regarding its volatility, decentralized nature, and potential to support illicit activities such as money laundering and drug trafficking. Several countries where Bitcoin is generally banned include China, Saudi Arabia, Pakistan, Tunisia, and Bolivia. This attitude, however, can change anytime, for it is not some doctrine that irremediably cancels the potential of Bitcoin to elevate regular activities and foster a better future overall.
