By Stephen Maxwell
Since Bitcoin first went mainstream, there’s been so much debate about whether or not it’s more useful than ordinary currency that the whole conversation has become kind of jumbled. In part that’s because the question of what’s more useful probably isn’t a fair one to begin with. Answering that depends, at least somewhat, on an individual’s particular situation and financial outlook.
There’s a clear answer, however, if you alter the question slightly to ask whether or not Bitcoin is more efficient than traditional currency. Bitcoin is better money for the following reasons.
1. Its Value Is Trustworthy
One of the biggest problems with conventional currency is that its value changes over time due to inflation, decisions by central banks, etc. This makes holding such currency risky and inefficient in the long-term, because you can never quite be sure how much value your currency this year will hold next year. Because its value is constrained by the universal laws of mathematics, rather than laws and inflation, Bitcoin is immune to this particular problem. Dealing in Bitcoin and planning for the future with it is simply a more exact and efficient process because you know its value won’t be destroyed by legal measures (not to mention fraud or forgery).
2. Storage Is Easy & Accessible
As most users are well aware, there are actually several different ways to score quantities of Bitcoin. You can store the currency on a mobile device, online, or even in physical form in a “paper wallet.” But in particular, online storage makes access convenient and independent from your hard drive, allowing you to quickly and easily access your secure Bitcoin anywhere you can get an online connection. Once you get the hang of this, and as more retailers openly accept Bitcoin, it can become even more efficient than cash or credit card payments (not to mention accepting Bitcoin is a lot more straightforward than depositing checks or cash).
3. It’s Highly Divisible
The most efficient currencies to use in everyday transactions have always been those that are easily divisible to smaller amounts. This is one area in which the dollar actually maintains a lot of utility, as the hundred-cent system allows for a lot of variety in pricing and payment. Bitcoin goes even further, however, and it’s something that often goes unmentioned in conversations about the digital currency’s utility. While the dollar can be divided into one hundredth of its original value (a single penny), Bitcoins can be divided down to one hundred-millionth.
4. Remote Payments Are Easy
On a certain level, online shopping unlocked the potential of remote payments years ago, and at a glance it may not seem that Bitcoin offers any additional advantage in this regard. However, it’s clear that Bitcoin holds significant, well-rounded capability for remote payments of all kinds when you consider its use as both a means of purchasing goods and services, a peer-to-peer payment system, and even for use at a Bitcoin Casino. You can essentially pay anyone any amount for anything without needing to be in the same place.
5. Its Versatility Is Unmatched
Some equate Bitcoin with PayPal when it comes to how and when they can be used, and to a certain extent the comparison is fair. The big difference, however, is that PayPal requires that a user be online and have a credit card to link an account to, whereas Bitcoin can be sent offline via email or SMS, and doesn’t require a credit card linked to an account. This is more efficient and convenient in general. However, it holds particular significance in developing countries, where people who may just be getting into electronic payment can bypass online credit cards and PayPal, and go straight to digital currency.
The benefits of Bitcoin extend beyond these concepts, but this should help to provide a picture of why so many are enthusiastic about using digital currency. As of now, in everyday life, ordinary currency can still be the more convenient option. But there are fundamental differences that will ultimately work to Bitcoin’s advantage.