How to Use your Bitcoins

Bitcoin is a term that many people have heard bandied about in recent years. Many people still don’t know what it is. This is actually a result of the design of the digital currency. The manner in which it has mostly been used as a means of currency for online transactions. There is a negative stigma surrounding bitcoin. There are many other people that tout its many benefits over traditional forms of currency.

Bitcoin was first released to the general public in 2008. It was developed by a Japanese software developer. The true identity of this man or woman hasn’t been revealed. The software became open source in 2009. This is when the currency really started to gain in popularity.

The reason most people have heard of the currency is the Silk Road FBI investigation of a couple years ago. Silk Road was an extremely popular online marketplace. The website basically acted as an online black market. The investigation came as a result of the amount of drugs that were being sold on the site. The site used primarily bitcoin to do their transactions.

You may have heard of bitcoin but not tried to use it for yourself. You may have never heard of it. You may be very experienced with the cryptocurrency. Long story short, it’s not going anywhere in terms of the general public. It seems to only be gaining in value and popularity. If you are still on the fence about bitcoin here are 5 reasons that you should take it seriously going forward as a legitimate form of currency.

1. Value – Many people have used bitcoin as a form of investment. The currency has actually made some people a lot of money that invested in it wisely. There is a faction of futurologists that think that it will gain in value drastically in the coming years. These claims have some basis.

Bitcoin behaves much in the same way the precious metals like gold and silver do when it comes to market value. Precious metals usually perform inversely to how traditional currency is performing when it comes to perceived market value. Many people think that many major forms of currency are going to experience huge losses in the near future. This means that precious metals and cryptocurrency are due for some huge gains. Those that like to invest in currency might be able to benefit greatly from investing in bitcoin. If you don’t trust the stability of the global economy bitcoin may be a great option for you.

2. It’s actually pretty stable – Many shy away from bitcoin because of the perception surrounding it. This actually pretty understandable. Most people have never seen a new form of currency be invented in their lifetime. Because of this, many people view bitcoin as being unstable. This is actually not true at all. In fact, it has actually been more stable lately than the actual stock market.

This is especially true over the last 1.5 years. One of the best aspects of the consistency and stability of the currency is the fact that it usually experiences stable periods after growth. This is something that every investor looks favorably on.

3. There becoming less prevalent – The protocol for bitcoin has been to ha;ve 3600 new coins created on a daily basis. This amount was cut in half to 1800 coins per day in July. Any individual with at least a basic understanding of economics understands that a reduction in supply is going to cause an increase in demand. Increased demand will raise the value of bitcoin in the future. The protocol for bitcoin is that the production of the currency is going to be cut in half every 4 years. This is something to pay attention to for those that are considering investing in the cryptocurrency.

4. Digital Payment and the End Of Cash – Well, cash may not be ending forever, but there is a pretty large movement across the United States and Europe to reduce the amount of cash that is used in financial transactions. This is largely a result of the fact that digital transactions are becoming so much easier and safer to do. This is obviously a huge benefit for bitcoin as they fall squarely into this category.

There are people that prefer the privacy of cash to digital forms of payment like Venmo or Paypal. This is especially good for bitcoiners. This is because bitcoin basically functions as digital cash. The transactions are based off of peer to peer software (P2P). This is why it was so popular on Silk Road. Peer to Peer software allows to people on the internet to exchange bitcoin without a third party intermediary involved in the transaction.

5. It’s Young – Bitcoin gained a lot of popularity early in its existence. This means that people are still finding new ways to use the currency on a constant basis. There are new marketplaces and methods of payment being created all the time. There have even been physical ways of exchanging the currency invented called “bitcoin sticks”. As it becomes easier to use it will become more common and widely accepted. The negative stigma that surrounds it will gradually be lifted and this will increase its value.

Despite the negative perception that some have towards bitcoin, many other people have a very positive outlook for its future as a means of currency and an investment tool. Many people with a lot of experience and accuracy predicting the future actions of the market have a very positive outlook for the currency.

Change can be hard. This is true with the most menial things. This is why it can be hard to ask people to accept a new form of something that has been part of their daily life and completely unchanged for their entire lives. You don’t want to be last person to get on the train when it comes to bitcoin. If you have been insterested in using and investing in this form of currency now may be a perfect time.

Written by: Andrew Johnson

Andrew Johnson has been reporting for Blog.ca for more than 8 years. He studied journalism at UGC and has published two books on how journalism influences the world.

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