Bitcoin has become synonymous with cryptocurrencies, but for the purposes of this post, Bitcoin might be used interchangeably with crypto as a whole. Despite this, Bitcoin has many uses today, even if many people do not understand its intrinsic value. This post will provide some examples of what you can use Bitcoin for and some of the benefits surrounding its use.
What Is Bitcoin?
Before getting stuck into the uses for this and other tokens, it is worth getting a broad overview of Bitcoin and how it has spanned a range of other altcoins of varying value. Despite being hailed as the currency of the future, bitcoin is not without controversy. Bitcoin and other cryptocurrencies have been banned in some countries for possible use in illegal activities such as money laundering or tax evasion, while other countries are working on ways to regulate and incorporate the cryptocurrency market into their economies.
Bitcoin was first posted way back in 2009 by a person or group known as Satoshi Nakamoto. This person created the Bitcoin whitepaper, which describes how bitcoins are generated and how the system functions. It was first published on October 31, 2008, when bitcoin’s cost was nominal, and the core technology was the main focus. From its original valuation of zero per bitcoin, it has reached a height of over $65,000 per coin in 2021, demonstrating the popularity of this currency.
As a form of currency, bitcoins are decentralized and do not rely on banks or other financial institutions to function. The system is based on peer-to-peer transactions, which means that new bitcoins are not issued by any central authority or monitored in any way. They work using a blockchain, which is essentially a decentralized ledger that records all transactions related to its currency. Bitcoin’s blockchain was the genesis and has since spawned a raft of others, most notably the Ethereum blockchain; however, many others exist.
How Is Bitcoin Used?
You can use Bitcoin in a variety of ways. It is a digital currency used as a medium of exchange but can also be used as an investment tool and even a store of value (although its volatility makes it more useful as a hedge against inflation rather than value). It is currently the most significant crypto token and arguably the most well-used, even being accepted as legal tender in some countries. But what are its real-world applications?
You Can Use It At Some Specialist Online Casinos
Various factors have contributed to the explosion of online gambling in the past decade, but perhaps the most important is its convenience and fun. Nonetheless, many people have found themselves locked out of the gaming world for various reasons like geography, regulation, or simply being unable to use their country’s currency. Fortunately for these folks, crypto gambling sites have become increasingly popular, making it possible for those who want to participate. Bitcoin, or whichever other tokens they accept, allows for faster transaction speeds, enhanced privacy, and in some cases, more exciting bonuses.
It Is Used As An Investment Asset (Spend To Make Money)
People like to invest in cryptocurrency because it offers an alternative investment option accessible anywhere. There is no intermediary involved, and there are very low transaction fees. This is partly due to the large number of people who have access to the internet. All that is required is to sign up to an exchange and trade your fiat money for the crypto of your choice. While many crypto exchanges need you to verify your identity, that can pose a challenge for those in not accepted countries. Other exchanges bypass this step, opening up this world to almost everyone.
Buying Other Cryptocoins!
Following the previous point, some people will spend their bitcoin buying other more exciting assets. For instance, if you have a stash of Bitcoins (lucky you), you might be looking to diversify your holdings to hedge against the associated volatility. In this case, you would spend your Bitcoin on other tokens that you believe have a more promising future. There are several reasons for this, including the fact that bitcoin isn’t all that useful in regular transactions when compared with other tokens, such as:
- Ethereum: The second-largest by market cap and widely used in creating smart contracts and purchasing things like NFTs (but this might change due to the high cost).
- Litecoin: Developed as a fork of bitcoin, but with a dramatically faster transaction time and capacity, making it far more practical than bitcoin.
- Cardano: This proof of stake coin has become massively popular over the past few years due to its improved capability over Ethereum (although that remains to be seen once Ethereum 2.0 finally comes out).
- Tether: For investors with a lower appetite for risk, Tether makes investing in crypto more palatable.
Bitcoin has many uses, and it looks to stay current for the foreseeable future. It is also used to purchase a range of things, from gambling online to being used as an investment or buying other altcoins.