WHAT CAN WE DO WITH BITCOIN?

(Approximate reading length: 7 minutes)

I have finally purchased Bitcoin! But what are the things I can do and can’t do with it?

This is one of the most common questions. The user purchases Bitcoin but does not know the reason they bought it. A lot of people just buy it simply because it is popular. This phenomenon is very similar to buying trendy clothing or shoes. For this reason, before purchasing Bitcoin, it is important to learn what we can do, and what we cannot do with it. This will make it much easier to set a goal for ourselves for the future.

First and foremost, we must analyse the areas Bitcoin is used. But before that, let us try to understand the logic behind Bitcoin. If you would like to know the general understanding behind Bitcoin and how to purchase it, you can find our article on it right here.

If you have a general understanding of Bitcoin, you can continue reading this article.

You can purchase Bitcoin to use in these 4 areas.

1)For purchasing Goods and Services

The number of Businesses which consider Bitcoin as a currency keep rising considerably as we speak. So much so that there are some businesses which accept only Bitcoin -and nothing else, as the method of payment.

Among these firms which accept Bitcoin as payment are; WordPress, Famsa, Reddit, Tesla, Microsoft, Incikitap, Mygroupsigorta, and Expedia.

But what are the fields of activity of these firms?

With WordPress you can create and customize your very own website as you wish.

Famsa is an online shopping site based on Mexico. We could think of it as Amazon’s Mexican counterpart. You can purchase several types of goods from this website, most notably technological goods.

Reddit is a social media website similar to Facebook. You can share, or follow sub-reddits or other users to browse their posts. Premium reddit accounts can be purchased with Bitcoin.

Elon Musk’s famous Tesla brand cars are now available for purchase with Bitcoin.

Microsoft also accepts payments for its services like Office, 365, Xbox etc. with Bitcoin.

Incikitap is a Turkish online bookshop which offers brand new or used books, now available for purchase with Bitcoin.

Mygroupsigorta is also a Turkish insurance company, which offers health, vehicle, and travelling insurances.

Expedia is an online booking website which lets you book rental cars, cruise tours, and most notably hotel rooms.

2)Commerce

Bitcoin can also be accepted as payment for products. This can make your products more available for international trade, without having to worry about other countries’ exchange rates or fees. The only question you might have is “Why should I use Bitcoin while we already have US dollars or Euros?”

US dollar and European Euros are under control of Federal Reserve and European Central Bank respectively. Regulating said currencies is the responsibility of their respective organisations. Especially for US dollars, since it is also under the influence of Trump’s protectionist policies, this makes things a bit difficult for foreign states. On the other hand, Euro is affected by the economic crisis in Italy and Greece. In conclusion, if one wants to be truly independent from these factors, they should use Bitcoin.

3)Money Transfer

Transferring money to a recipient abroad will be an easy process. Furthermore, South Africa has found a system called “payfast.co.za” to transfer Bitcoin to their own currency. With this system, the incoming Bitcoin will be transferred to the local currency and delivered to the recipient inside an hour.

4)Preserve it!

Another option is preserving your Bitcoins. While some draw a negative image around Bitcoin, some other economists predict that Bitcoin’s market value will exceed 100 thousand dollars by the end of 2021. Therefore, some experts find it reasonable to use it as an investment tool, similar to gold for example.

For those who are curious, some optimistic economists’ predictions for Bitcoin’s future values are provided below:

Year Estimated value by the half of the year ($) Estimated value by the end of the year ($) Increase in percentage (%)
2019 10767 $ 28750 $ + %145
2020 49633 $ 59458 $ + %407
2021 68091 $ 87875 $ + %650
2022 100503 $ 103634 $ + %784
2023 111943 $ 130012 $ + %1009
2024 134349 $ 152092 $ + %1198
2025 170504 $ 189558 $ + %1517
2026 209228 $ 229491 $ + %1858
2027 250328 $ 271720 $ + %2218
2028 277209 $ 298404 $ + %2446
2029 320079 $ 342221 $ + %2820
2030 352572 $ 374841 $ + %3098
2031 397530 $ 420630 $ + %3489

But what about Bitcoin’s value in previous years, and how much did it increase? If you are curious, these values are provided below:

(Note: The values of each year are taken from 1 January of the respective year)

Year Value ($)
2011 0.29 $
2012 5.2 $
2013 13.56 $
2014 746.89 $
2015 315.69 $
2016 432.32 $
2017 997.72 $
2018 13812.18 $

As we can see, there is a tremendous increase in Bitcoin’s value since the past years. Especially the value “boomed” in percentage between 2011 and 2018. The difference in percentage is approximately %47600, which carried Bitcoin to the top of the most valuable investment tools. However, during the years 2011, 2012, and 2013 no one expected such a rapid increase in value.

What is Bitcoin’s future?

              Of course, only time will tell if these predictions are accurate. However, some central banks are quite pessimistic about Bitcoin. Because if the situation keeps going like this, Bitcoin will become a threat to the central banks’ existence. For example, in Bazel, Switzerland; International Payments Bank criticized Bitcoin heavily in their 2018 annual report. Among these criticisms were Bitcoin’s security issues and possibility of fraud. Despite this we can see that Bitcoin is a currency whose usage is increasing day after day. Moreover, Bitcoin keeps improving as a part of our lives with both benefits and downsides. People are providing demand despite the said security issues. This phenomenon can be seen as a reaction to the continuous intervention by central bank or government controlled currencies. After reviewing all of this process, the first question that comes to our mind is “Is Bitcoin a currency or a speculative entity? How can we describe it?”

Ümit Sönmez

My name is Umit Sonmez. I am studying a double major program in Istanbul University; my fields are Management and Tourism. I am an author for “sosyalvekulturelarastirmalar.com” and “hackyourdream.com” websites. I am a member of the board of management of Social and cultural research club. My enthusiasm about finance and crypto currencies keeps growing with each day. If you would like to contact me about ads, sponsorships, suggestions, ideas, or any other reason; you can contact me through the addresses below: Instagram: https://www.instagram.com/finansyardim/ Hotmail: [email protected] LinkedIn: https://www.linkedin.com/in/%C3%BCmit-s%C3%B6nmez/

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