Opinion

Why Use Bitcoin?

Caroline Bowler

Since its launch in 2009, Bitcoin has become a word synonymous with cryptocurrencies. As the first and largest digital currency, Bitcoin has transformed the way we interact online and has paved the way for a future cashless society. Early adopters of Bitcoin were drawn to the decentralised nature of the digital currency, with many eager to move away from the central authority of banks.

But despite the popularity of Bitcoin in the zeitgeist of cryptocurrencies, there is still a wider lack of understanding about where to use Bitcoin. You may have begun researching cryptocurrencies and started to ask yourself ‘what can Bitcoin be used for?’ and “How can I use Bitcoin?”. Once you’ve decided to purchase Bitcoin, you can begin to benefit from the many uses of cryptocurrency and how it can effectively change the way you manage your funds.

At BTC Markets we can help you set up your wallet ready for you to build a portfolio, purchase goods, trade, transfer money and invest.

1. Purchasing

Why use BTC (Bitcoin) for your online payments? These days an increasing number of retailers and vendors are adopting cryptocurrencies as an accepted form of payment. If you’re unsure how to use Bitcoin to buy things there’s a very simple and safe process to follow that will revolutionise the way you purchase goods online.

Firstly you’ll need to set up a wallet via a designated marketplace — effectively, this will be your account that keeps track of your Bitcoins in a secure digital location. At BTC Markets you’ll be able to create an account, deposit money to your wallet, purchase Bitcoins and start using Bitcoin to safely spend online. If the merchant you wish to purchase from accepts Bitcoin, all you need to do is copy their Bitcoin address to the designated field in your wallet, include the price and hit send. The transaction should then be securely completed within a matter of seconds.

The number of merchants accepting cryptocurrency is trending upwards, with plenty of retailers and businesses listening to customers requesting more diversity when it comes to payment options.

2. Transfers

One of the many perks of Bitcoin is the ability to safely and quickly transfer funds anywhere in the world. Gone are the days of international money transfers chewing up costly fees, being unprotected and taking far too much time to hit the other account. As the Bitcoin founder Satoshi Nakamoto once noted, this form of digital currency is intended to act as a “peer-to-peer digital cash system”, thus alleviating many of the issues users once faced when transferring money to another party.

Traditionally these kinds of remittances will include clunky processes using electronic payment systems, wire transfers or physical mail — but with Bitcoin, you’ll be able to control your finances and transfer with ease without getting caught up in unnecessary fees and time delays. Through your BTC Market account, you’ll be able to spend as much money as you want, anywhere in the world, whenever it suits you. It’s the new flexible, cost-effective and reliable way to get your funds exactly where you want them.

3. Day trading

Much like the stock market, there is an emerging trend in the world of crypto to make profits from day trading. So why use Bitcoin to trade? Jumping into the trading exchange of cryptocurrencies is not for the faint-hearted and requires a considerable amount of research and understanding to bolster the bold trades needed to turn a profit. There’s no denying that Bitcoin is highly volatile but if you can take your insights and create an effective trading strategy, you’ll be able to observe the crypto market and act quickly.

Through your BTC Market account, you’ll be able to buy and sell digital assets securely using market orders which will complete the transaction immediately at the best available price. The use of Bitcoin in day trading is not without its complexities but can pay great dividends when approached with a keen eye for detail.

4. Investing

Whether you’re looking to create a self-managed super fund or you’re interested in understanding how you can use Bitcoin to benefit your long-term financial goals, investing with cryptocurrencies could be a great way to finance your future.

At this stage it is widely understood that the number of Bitcoins available will cap at 21 million — so while the market may be volatile, if you purchase now then in a few years the assets may be more valuable as the demand will grow while scarcity increases.

Through your BTC Market account, we will help you manage your portfolio, where you’ll be able to purchase Bitcoin and build depth across 21 markets with ease.

What are the advantages of using Bitcoin?

If you’re still wondering ‘what is the use of bitcoin?’ and how it can benefit not only your day-to-day transactions but your long-term finances, let’s take a look at some of the advantages of using Bitcoin.

Decentralised entity

One of the driving forces behind Bitcoin’s creation was a real yearning to move away from a centralised system of banking and shift towards an entire network being responsible for the accuracy and validity of the currency — also known as decentralisation. Someone who uses Bitcoin can feel safe knowing all transactions are recorded via a ledger called a Blockchain — this is the main defence against fraud and hacking, which are often the main downfalls of traditional banking. Another issue people take umbrage with when it comes to how banks govern is their collective ability to manipulate the value of a currency. Bitcoin’s algorithm ensures that the value of the supply is tightly controlled within its ecosystem.

Flexibility

Bitcoin allows users the ability to have total control and autonomy over their money, making it an incredibly flexible way to manage funds. For example, if you need to get money to a second party overseas as a matter of emergency, you have the functionality to transfer funds securely within seconds. You can also be assured that the peer-to-peer interactions will be completely transparent via the Bitcoin Blockchain which adds another level of security to your transfers.

What are the disadvantages of using Bitcoin?

With any platform, some pros and cons need to be considered especially when it comes to your finances. So why use Bitcoin if there are downsides? It’s important to understand both the advantages and disadvantages of using Bitcoin before you invest. Once you’ve reviewed the variables you might find the advantages of investing in Bitcoin outweighs the disadvantages.

Volatility

Given the limited number of Bitcoins available, the demand for stock makes it a volatile currency. For example, you’ll find the value of Bitcoin can increase and decrease quite rapidly throughout the day. For those wanting a safe bet when it comes to their investments this kind of volatility may not necessarily be appealing. Crypto commentators suggest that over time this kind of volatility will ease as the market evens out.

Infancy

When you look at the impressive uptake of Bitcoin by the public, it’s hard to believe it was only launched in 2009. As with any emerging technology, it’s understandable that there have been some teething issues. Many of these have contributed to why the wider community has been reluctant to adopt Bitcoin. Despite tech and functionality issues constantly being developed and improved, there is still a way to go in changing the public perception of digital security. And whilst plenty of merchants and vendors have set up Bitcoin as accepted forms of payment, there will still be instances where this isn’t available and therefore users will need to select another way to purchase goods. Managing your funds across multiple digital platforms may seem annoying now but hopefully, we are moving towards a future where Bitcoin is widely accepted across the world.

If you’re interested in setting up an account with BTC Markets and learning more about our features, feel free to reach out. You can also learn more by visiting bitcoin.org and downloading the Bitcoin Whitepaper.


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