They are increasingly popular and often palatable, but what can you buy with bitcoins?
The aspect that would make bitcoins real would be the concrete and direct possibility of being able to buy things from them. Yes, because when we talk about bitcoin, we discuss a coin, and all the articles and descriptions that illustrate its characteristics always use images of money, to give an idea back to readers. Yet bitcoins do not exist.
Even the ICO ( Initial coin offering ) – a method of crowdfunding through an unregulated token, standing since 2013 – does not provide money, real currency, but bets, promises to structure a cryptocurrency business and thus create income to be returned.
The development of the cryptocurrency and its ability to buy real goods and services should prove to be a crucial process during 2018. Still, at the moment, it is a rather uncertain system.
What can you buy with bitcoins?
At the moment, there are many more purchasing possibilities in Asia than in Europe and the United States. Koreans, for example, don’t have to buy yuan to buy products from China, but they can directly use Bitcoin or other cryptocurrencies. There are many mobile based bitcoin wallets.
The ATM cryptocurrency is already a reality, but often the greatest opportunities to offer only in developing countries and lack a stable currency, in priority to others.
Moving between different legal currencies such as the yuan and the yen always means going through the foreign exchange market, and currency exchange services are not cheap at all; on the other hand, on the cryptocurrency front, ether remains ether worldwide.
Very contradictory stories are told about the physical goods that can be purchased with bitcoins. Most of the assets that can be purchased directly with bitcoins are currently located outside of Italy, such as real estate in Dubai or university degrees in Cyprus.
The use of high-end merchants is beginning to spread, especially in some Las Vegas casinos, but it must be specified that these are always individual agreements.
In Korea, however, where 14% of workers have already had experience with cryptocurrencies, it is possible to use bitcoin to travel. The Ripple, a transfer system in real-time funds, was born in the wake of the manifestation of will on the part of a South Korean bank to initiate a process of international trade.
Is bitcoin useless for buying concrete objects?
The truth at the moment is that the main things that you can buy with cryptocurrencies are money. With a possible price stability – stability to which Ripple himself could contribute – there is an opportunity to extend the use of cryptocurrencies to international trade.
But laws and regulations are necessary in any case, and the current tendency to violate international sanctions with criminal phenomena makes the relationship between cryptocurrency and state complicated and conflicting.
Wells Fargo & Co, one of the major American banks, made a fortune by “following the money” and participating in the gold rush in California. Likewise, Chainalysis, a research company specializing in the study of the blockchain, tries to get rich by going to ride the boom in cryptocurrencies. It has already entered into a contract with a government agency, the Internal Revenue Service, and other federal agencies to track transactions.
They gradually managed to shed light on the disappearance of at least 20 billion in lost bitcoins on the blockchain and analyzed the criminal phenomena developed around cryptocurrencies. They have even noticed that “serious criminals” are abandoning bitcoins for coins like Monero, which makes anonymity their first feature.
What can be done with cryptocurrencies?
In theory, there are no limits, although, in practice, the available uses are not yet as wide as expected, the potential is enormous. However, even today, when referring to cryptocurrencies, experts talk more about what they could become than they are.
Bitcoin is the most popular cryptocurrency and is already used as a payment system in thousands of online transactions. In contrast, other cryptocurrencies try to win the battle of legitimacy, because a currency used by very few, is not a currency.
How to get a bitcoin?
Two options: the first and very expensive one is to become a “miner,” which involves a large investment in the latest generation computer with high computing power, applying specific software that “undermines” bitcoins.
The other option is to buy a bitcoin from another person using conventional money, usually through specialized Trading sites such as Coinbase, Binance, or Bitfinex.
Conclusion: Bitcoin is the trendiest cryptocurrency and is previously used as an expense system in thousands of online dealings.