March 17, 2020 -

The Usage Of Bitcoin


Such hype boosted Bitcoin’s popularity in April 2013, where one bitcoin was quoted an equivalent of $266. So far, its highest market value reached $2 billion. However, its value fluctuate after a 50% setback. Such decline started a public discourse about bitcoin’s undertaking in the coming years. Many question its future and how to fit it is to survive a tight environment. Moreover, are these alternative currencies enough to replace the traditional ones, or are these just a fleeting trend that will only thrive when people deem it so?

It was almost a decade now since the first-ever cryptocurrency called Bitcoin was introduced to the public. It was made available back in 2009 by a particular figure named Satoshi Nakamoto with a primary aim of facilitating a new system of financial transactions free from intermediaries like governments and banks. 

As a form of virtual currency, Bitcoin employs a user-to-user system allowing investors to access currency, process transactions, and payment personally, and verify the information. As it stands true to its purpose, its primary goal is to replace a conventional banking system. With this, many prominent companies have already subscribed to Bitcoin as a means of payment. Some of these companies are:

  • Amazon
  • Victoria Secret
  • Microsoft
  • Sears
  • Gap
  • Kmart
  • Subway
  • Reddit
  • Dell
  • Tesla

With an estimated 100,000 users utilizing bitcoin as a mode of payment, this indicates that bitcoin and its value are highly-regarded in both the financial market and online world. People who use bitcoin have laudably grown four times in just one year, extending from 2014-2015. To support this claim, in the recently conducted study released by Cambridge University, there are an estimated 5.8 million users with a cryptocurrency wallet, the majority of which are using bitcoin.

When it comes to payment, the catch in using bitcoin is the granted allowance to subscribers. Consumers have so much to enjoy with a smaller percentage of fees meant for a transaction. A person can take advantage of 0% to not higher than 2%, which is more considerate than credit card charges. However, one disadvantage of this is that bitcoin remains to be unregulated by any authority. Thus unprotected transactions subject to fraud may be encountered.

With Japan’s legislation honoring bitcoin as a legally binding method of payment and Russia’s legalization of such, it is of no doubt that this will then again boost bitcoin’s popularity and permanence. As lack of acknowledgment and moderation are considered as the sticking point, Japan and Russia’s move will further validate the value of bitcoin and its feasibility. More so, a domino is expected since there are countries that face money laundering concerns.  This is highly beneficial to bitcoin bulls mentioning that bitcoin value hit 8% and is roughly quoted to 1 billion dollars. 

Bitcoin’s Future Conflict

We are yet to learn what to make out of bitcoin, and other cryptocurrencies have given that they still face limitations up to this date despite laudable progress. Some of these restrictions include technological malfunction that may wipe off one’s digital funds and the pressing problem of security that hackers may access one’s online wallet. Though measures are created to address these issues, its popularity attracts tighter authority and policies completely diluting its initial and fundamental premise. 

With the amount of attention it is getting, it’s not long until regulators minimize bitcoin’s transaction volume giving more opportunities for traditional payment methods. Despite ambition, system upgrade thrived on being central banks’ sticking point allowing bitcoin to become the primary payment method. 

However, bitcoin would not be held accountable for nor sway monetary blueprint. Banking systems are engaging in studies that would fully integrate cryptography to their system to utilize the decentralized way of archiving or popularly named as the blockchain.

Once central banks discovered and achieved how to implement such a system, this indicates the power that central banks hold. However, many crypto-evangelists believe that it is hard to develop, acquire a similar system, or produce even just a prototype. 

Countries That Subscribe To Bitcoin

Regardless of the surrounding issues bitcoin faces, various countries treat bitcoin as a legitimate system of payment. 

  • The United States- This country tallies the most number of crypto subscribers, bitcoin automated teller machines, and tops the board with the highest bitcoin trading volume.
  • Finland- This country leads when it comes to bitcoin transactions as regulators validate it as a financial service completely excluding it from tax.
  • Sweden-This country also looks forward to switching to virtual currency following the central bank’s interest rate cut-off scheme. This has led to a higher demand for bitcoin to arm capital funds. 
  • Denmark-The government publicized its interest in using digital currency as its method of payment. However, Denmark’s central bank denied bitcoin’s value and viability.
  • Finland- This country leads when it comes to bitcoin transactions as regulators validate it as a financial service completely excluding it from tax.
  • The Netherlands- Bitcoin is very popular in the Netherlands as it can be gleaned from the number of bitcoin ATMs existing and the establishment of the Bitcoin embassy.
  • South Korea– As there is no authority watching over bitcoin, people access it through 7-Elevens.
  • Japan- Japan’s most laudable move is its legislation making bitcoin a legitimate currency. With bitcoin hitting a $1 billion mark, the Japanese government deemed it necessary since retailers accept it as a method of payment. Bitcoin and yen trading is considered one of the most volatile markets up to date. 

Technological improvements and policy de-establishments demand intensive attention to see bitcoin’s potential. But with governments and mediators’ attempt to negate issues of money laundering, bitcoin’s viability of becoming the next highly regarded payment mechanism is not to be underestimated.