You might be surprised by how popular this question is and the fact that most people who own bitcoin don’t have an answer to it either. Yes, bitcoin is a currency, but right now most people are treating it as an asset. People are buying bitcoin to wait for its price to increase so they can sell it for a profit.
However, that doesn’t mean that you cannot use bitcoin as a currency. On the contrary, bitcoin’s usability has been increasing day by day. You can use bitcoin at more locations today than you could previously, and that is a statement that will hold true for a long time, as new places keep opening up to bitcoin.
Why Bitcoin is important
Bitcoin is a currency unlike any other. It is not controlled by any government. This makes it a very valuable currency as it is able to do things other currency does not allow you to do. When you buy things online, you can only buy the things that the government allows you to buy. It is your money but it is the government’s prerogative where you can spend it. If they don’t want you to buy something there is no way for you to buy it.
Many people do not understand why this is so important, and these are mostly people who live in countries with good governments. If your country has a good government and you fully trust it, then you will not face many problems. However, think of the people for whom this statement isn’t true. There are many governments in the world that censor any information they don’t like and stop people from buying things for no reason whatsoever. They basically hold your money hostage and only allow you to do with it what they want.
This is where bitcoin wins. Since bitcoin isn’t controlled by any government and is not the property of any government it can be used anywhere you want. Want to go online and pay for something your government doesn’t allow you to have? You cannot pay for it with your bank account – it will be blocked or it will be traced back to you and you will be arrested. If you pay with bitcoin, however, the money cannot be traced back to you. This is essential in countries where books and news sources are often blocked. For example, WikiLeaks was banned in many countries, but people from those countries could still donate to WikiLeaks through bitcoin.
Another big advantage is that a bitcoin price is the same for everyone – people from different places don’t have to pay different prices for the same product. Thus many people now like paying for their online services through bitcoin. The same will be true in the future for tourists. As it becomes normal for bitcoin to be accepted everywhere you wouldn’t need to exchange currency anymore.