Since its invention in 2008 and launch in early 2009, Bitcoin has been an incredible system of payment that is easy, affordable, and fast. It didn’t take long at all for Bitcoin to outpace traditional credit cards, debit cards, and even Paypal in these rights. For many who have a rudimentary understanding of Bitcion, that’s all there is to it. And while that certainly is plenty to make someone what to use cryptocurrencies, there’s actually a lot more to them than just these conveniences.
While cheap and easy instant data transfers are pretty awesome, they’re not exactly new. Text messages, emails, and even bank transfers can be sent within seconds from one person to another anywhere in the world. So, what’s so special about Bitcoin?
- 1 How To Spend Your Bitcoin
- 1.1 Donating To A Cause That Is Frowned Upon
- 1.2 Buying Items That The Government Frowns Upon
- 1.3 Gambling
- 1.4 Buying Services That The Government Frown Upon
- 1.5 Concealing The True Value of Personal Assets
- 1.6 Transferring Money Across Government Lines
- 1.7 Truly Borderless Collaboration
The bitcoin system, along with all of the alt-coin cryptocurrencies that operate on it, uses a form of technology called a blockchain. This technology uses complex algorithms to verify each transaction, and also creates an ongoing ledger of every transaction that has ever occurred in chronological order. This means that there is no need for a middleman to verify or vouch for transactions, and it also means that there is no way for a transaction to be reverse after it has been completed. This completely bypasses most laws regarding fund transfers, ensures that you won’t have to worry about chargebacks, and makes it impossible for someone to charge you without your permission.
In addition to all of this, you can enjoy all of these benefits completely anonymously. All of these combined make it pretty clear why Bitcoin was seen as such a revolutionary invention when it was first proposed.
How To Spend Your Bitcoin
The unique system that cryptocurrencies operate on make them much better for many specific uses than any other form of payment. Let’s look at some of the tip uses for bitcoin and alt-coins that make full use of the benefits listed above.
Donating To A Cause That Is Frowned Upon
One of the very first times that bitcoins were seen as the best way to pay for something was in 2011, when WikiLeaks was no longer able to accept donations through Paypal or credit cards. Often times individuals wish to support causes that either the government or major organizations make it difficult to send money to. In addition, there may be a need to make donations anonymously in order to not have your support for those causes affect your professional or personal life. These are the perfect times to use cryptocurrency in order to send funds without the need to worry about your identity being discovered.
Buying Items That The Government Frowns Upon
Regardless of the intentions in mind when the bitcoin system was created, there is one major use for cryptocurrency that was all but inevitable. Due to the nature of cryptocurrency, bitcoins and other alt-coins are seen as an ideal form of payment when purchasing illegal goods and substances.
This began in earnest in 2011, when highly publicized warnings about the possible use of Bitcoin to purchase drugs backfired, and instead drove more traffic to the questionable websites facilitating these illegal exchanges.
We now know and understand more about how bitcoins and the blockchain work, and it is actually much easier to trace these nefarious purchases than anyone originally thought. Despite this, the use of cryptocurrency for illegal purchases is still prevalent today.
This particular use for bitcoin is facilitated by the fact that cryptocurrency is a decentralized form of payment, meaning that it doesn’t belong to any government and is not subject to any government’s regulations. This allows users from all over the world to gamble online using bitcoin, regardless of what the laws regarding gambling may be in their particular location.
As of right now, users still have to create accounts and register on these gambling websites in order to partake in their digital games, but the technology used by cryptocurrencies is built in such as way that even more advanced and anonymous systems for placing bets and receiving payouts are possible. In fact, it’s entirely plausible that one day a user will be able to place their bet without registering at all, and winnings can be paid out directly to the correct party simply by sending them to the wallet address from which the original bet originated.
Buying Services That The Government Frown Upon
Just as cryptocurrencies can be used to purchase illegal substances and other regulated items, they are also commonly used to pay for services that are frowned upon, either because they are illegal or simply because they are seen as culturally unacceptable.
The most common unseemly services that fall under this category are escort and cam services. Users can pay for these types of services using cryptocurrency with very little risk of being discovered.
Concealing The True Value of Personal Assets
Because a person’s bitcoin wallet is not attached to them directly, it is possible to use cryptocurrency to remove funds from a person’s net worth without the person actually losing control over those funds.
One possible reason that a person may want to do this is to hide their net worth from a potential spouse or business partner. Instead of the awkward (but more up front) practice of asking for a pre-nuptual agreement, some people may opt instead to simply hide a large portion of their true assets by storing them as bitcoins.
Someone could also use this method to hide assets during any other circumstance in which a person’s net worth is in question and will mater to a specified outcome. An obvious example is in the case of hiding assets for tax purposes in order to avoid paying taxes on the hidden funds.
Transferring Money Across Government Lines
The true beauty of the Bitcoin system and all of the cryptocurrencies built from it is its decentralization. This not only means that it can’t be controlled by any government; it also means that its value is not tied to the rise and fall of any government’s legal tender. It also isn’t tied directly to the value of gold or any other means of deciding just how much a particular currency is worth. The value of a bitcoin is fairly insular, meaning that it isn’t back by outside sources and instead is determine by its own supply a demand.
Why does this matter?
Well, when an economy, or even an entire government, rises or falls, the value of cryptocurrencies will be largely unaffected. While it will still be effected in indirect ways, it will be much safer than all of the government tenders like the USD.
The indirect ways in which bitcoin would be effected are related the companies that may rise and fall with these governments or economies. For example, if there as a large fluctuation in the value of the USD, that change itself would not directly have much effect on the value of cryptocurrencies. However, this fluctuation would likely cause major issues for large companies like Microsoft. Because Microsoft accepts Bitcoin, and therefore affects the flow of supply and demand within the bitcoin environment, then any major changes to Microsoft’s value and prominence would also possibly have a major effect on the value of each bitcoin.
Truly Borderless Collaboration
The fact that cryptocurrencies are not backed by any government or its tender makes them perfect for sending funds from users in one country to those in another without the need to worry about any government’s regulations, the exchange rates of one currency to another, or even the location of the sender or the recipient.
Despite the many questionable uses for cryptocurrencies, the true beauty of them is that they allow for true collaboration between users no matter where they are in the world without any concern for regulations or currency exchange issues. This means that individuals and groups can work together on amazing projects without needing to be in the same country. In fact, they don’t need to know the locations, or even the identities, of the people who they are working with.
The fact that the true identity of the creator of Bitcoin, a person or group of people who go by the name Satoshi Nakamoto, is still a mystery is proof of the amazing possibilities of this concept. There are many who think that the creator is actually a group of people posing as a single individual, and the world may never know the truth about who invented this amazing technology.
Imagine collaborative projects existing online and involving hundreds or even thousands of individuals who work as a hive to bring ideas into reality and improve upon them by utilizing a limitless number of individual perspectives to solve problems and improve on features. This is not only possible, but is already happening thanks to the amazing technology of cryptocurrency. While Bitcoin does have features which make it ideal for certain nefarious uses, these features also make it a revolutionary system that has the power to destroy walls and blurred the boundaries that separate us.