What Is Bitcoin Used For? Bitcoin is a virtual currency that is considered a high-risk investment. High risk or not, it is an investment that has grabbed the attention of consumers and investors alike from around the world as it has gone from a value of pennies per coin from its first release in 2009 to a present value of around $600 a coin. The inflation of the coin is real; however, the coin itself is a virtual coin.
As a virtual currency, Bitcoins are stored in an e-wallet through a platform, and used online; however, there are Bitcoin kiosks that allow Bitcoin owners to cash in their Bitcoins for real money. Bitcoins can also be stored in a software wallet but the software needs to be purchased, as well as disk space on the user’s computer is necessary.
Bitcoin is the world’s first and most popular cryptocurrency, and since its early days where it could only be used on the net, and not through all net market sites, it can now be used for buying and selling everyday merchandise; as well as, can be exchanged for real dollars through Bitcoin kiosks.
Bitcoin is considered a high-risk currency; but, as of today it is predicted to be a stable currency that will gradually and predictably increase in value; however, it can rise and drop. Since its release, it has become a usable currency with no capital controls. This has its downfalls, as unlike banks where your money is insured should there be theft or fire or the like, your Bitcoin currency is not. Also, the lack of government regulations of the currency has led it to be a likable currency in the underworld such as with drug dealers. With no regulations, as well as owners being a number and not a name, drug dealers, etc. can exchange a high volume of Bitcoins without any recourse. If they were to take money in and out of the country, the government would have regulations and limits, as well as records of the personal information of the person, banks, amounts, etc. With Bitcoins, they can be exchanged from users in one country to another without any record.
As for the question of “what can Bitcoins be used for?” The answer is many things. Bitcoin is a virtual currency that needs to be accepted by online storefronts to use the currency. That is not to say that you’ll only find stores that you haven’t heard of accepting the currency. There are many top manufacturers like Dell that accept Bitcoin. Dell is possibly the largest retailer that accepts the virtual currency, allowing Bitcoin users to buy computers and accessories through their Dell site, and to pay for their purchases in Bitcoins. However, there are processing fees when using Bitcoin currency, which can reach up to 2.75 percent.
What else can Bitcoins be used for? How about that new trip you’ve been dreaming of? Mine a few Bitcoins and the trip is paid for. AirBaltic, a flag carrier of Latvia airlines now accepts Bitcoins as a source for airline tickets. Air Lituanica is also another airline that accepts the currency, so you can get up in the air, heading towards your vacation getaway. You can also have your room waiting and fully paid for when you arrive as many Hotels like can be purchased through sites like CheapAir, using the virtual currency.
There are also merchandisers like Prague Espresso Bar and Bitcoin Coffee that accept Bitcoins as payments. Pizza from Dominos Pizza and other like pizza chains can be purchased through PizzaForCoins. In 2010, a pizza purchase by Laszlo Hanyecz was among the first pizza for Bitcoin transaction where Laszlo exchanged nearly 10,000 Bitcoins he had mine for two piping hot pizzas. Today, those 10,000 Bitcoins would be worth over 4 million dollars.
Consumers have a wide selection of merchandise they can purchase with Bitcoins with merchandisers like OverStock and TigerDirect currently accepting the digital currency.
What Is The Future of Bitcoin
The Bitcoin digital currency is a high-risk investment; and, while the digital currency is predicted to continue to steadily inflate in value, there is no telling the future of the coin. There are many wealthy investors that are predicting that it will continue to rise, eventually being worth large values.
There are only 21 million Bitcoins that can be mined. As of today, 10 million Bitcoins have been mined, leaving 11 million unmined. Bitcoins have come a long way from a value of pennies per coin to hundreds of dollars per coin. They have also “hit the big time” with large corporations like Dell Computers accepting the digital currency, as well as Bitcoin kiosks where bitcoins can be exchanged for cash. As of today, the currency is not regulated by the government; however, in some countries like Australia, they are trying to change this. It is likely that more and more merchandisers will begin to accept the currency as it is a currency that is predicted to steadily increase in value.
For all newbies to Bitcoin currency, before deciding as to whether to invest in the currency, do your homework as there is plenty to learn about the currency.