Now almost every person has heard about bitcoin. Naturally, many people ask themselves a question: what is bitcoin used for?
Until 2013, bitcoin was used to speculate on the stock exchange, for gambling, and part of the cash coins was spent on the purchase of goods of questionable quality and characteristics. Anonymity – the main advantage of crypto currency – played a key role in this.
However, in the spring 2013 there was a series of high-profile scandals with the theft of bitcoins and the bankruptcy of stock exchanges. In addition, strangely enough, these scandals, vividly discussed in the press, instead of reducing interest in Bitcoin, gave impetus to the rapid development of virtual currencies.
Having dealt with the advantages of bitcoin over traditional currencies, many businesspersons and global corporations decided to cooperate with this payment system to accept payment in bitcoin. This allows them to get involved in this business and open new business opportunities together with cryptocurrencies.
Some EU countries, the US and their neighbors across the American continent allowed the participation of cryptocurrency in their economies, adapting it to the existing legal framework. An algorithm is developed for the participation of bitcoin in the financial and legal areas of states.
The countries of the Asian continent, Russia, China and some countries of South America imposed restrictions and prohibition on bitcoin operations on their territories. Almost all regulators have warned the population of their countries about high risks while working with cryptocurrencies.
It should be mentioned that in countries that have allowed the use of bitcoin in calculations, a legislative framework is being developed and created that will regulate the use of cryptocurrency.
There is a bitcoin logo or an inscription “Here Bitcoin is accepted” on the shop-windows and signboards, on the websites of small online stores and retail giants. It gives a possibility to pay off with cryptocurrency.
All over the world, new payment points are constantly appearing in every country. In most cases, it is due to services of the largest BitPay and Coinbase companies that offer business convenient and simple methods of accepting cryptocurrencies.
So what can bitcoin be used for? There are some examples:
• goods in sales outlets;
• remote services;
• digital content and services;
• goods in online stores;
• services, goods and content for business;
• major purchases;
• accumulation of investment capital.
• exchange for bitcoins recognized currency (USD, EURO and etc.).
World companies that take bitcoin as a payment
Large and well-known companies, such as Microsoft, Dell, Greenpeace, Virgin Galactic, Expedia, Wikipedia, influenced enlargement of Bitcoin”s trading area.
At the beginning, they started to take advantage of cryptocurrencies to enhance amount of realization of commodity and services.
After a cooperation with BitPay, Microsoft appended bitcoin as a way to buy different digital content, (for example mobile). Also it became real to make payments for games and Xbox subscriptions.
A big retailer Overstock cooperating with Coinbase, was one of the leaders to start accepting Bitcoin payments.
A huge fabricator of computers for personal use and equipment for servers – Dell Corporation, last year ushered an ability doing shopping on Dell.com and offered 10% discount for all Bitcoin products for customers. As a result, this brings much popularity to bitcoin.
Known all over the world touristic company Expedia supported the recognition of the advantages of cryptocurrency accepting bitcoins and increasing the opportunities for the whole tourist world.
It is possible for bitcoins to use any kind of transport or reserve a hotel or accommodation as well as buy food and drinks in restaurants, bar or cafes.
Traveling paying in bitcoin to any country is no longer an extreme. A lot of agencies now can offer this way of payment. What is more, students can pay for studying at such institutions as Cyprus University of Nicosia in Cyprus and United Kingdom University of Cumbria
A Norwegian resident bought five thousand bitcoins for $ 27 a few years ago and forgot about them. After a while, the media started writing about the growth of the Bitcoin exchange rate (or cryptocurrency). Then the Norwegian remembered the password and, finally, found out that his 5 thousand coins turned into 75 million dollars.
Briton James Howells in 2009 created 7,500 bitcoins, then time they cost $ 675,000. Subsequently, he threw out the hard drive to which they were tied to a dump. Now his coins would have cost $ 112 million.
Bitcoin is also accepted for replenishment of services that invest currency for profit and for gambling. The rates in bitcoins on Forex have been opened, they are taken by betting companies, various casinos and poker playing fields. This is due to the anonymity and decentralization of bitcoin, which is not controlled either by the tax service or law enforcement agencies.
According to calculations, the mining of bitcoin will be completed in 2140, but now the stock of crypto currency is enough to organize the trade of various goods and services. Characteristics of bitcoin allow making an unlimited number of translations. The speed of the transactions, the constant growth of the value of the cryptocurrency, make it an indispensable tool in trading operations. The number of transactions with bitcoin and other cryptocurrencies is growing exponentially and may in the future replace all money. So answer for the question “what is the purpose of bitcoin” includes almost everything and this tendency is going to expand.