A person living in a cash-dependent economy will use Bitcoins, if ever, just for the love of it, because there’s not enough motivation for spending in Bitcoins. I can understand the reaction of the Urdubit team and many Bitcoin enthusiasts; yet, I believe it is of no use for an ordinary person.
The question, of course, is why?
You can find many benefits listed on blogs, but most of them are temporary, uncertain and questionable. Apart from that, Bitcoins come with many disadvantages and risks associated with them as well. Right now, I’ll focus on the core benefits. First, the Bitcoin network is isolated from the banking laws and second, owner of the wallet is anonymous outside the network. These two points give Bitcoins much of the attention that they’ve got today.
Three main reasons that attract people to become part of such a system, where they can remain anonymous while doing transactions.
- Making money, using means that they don’t want to disclose.
- And… they’re making a lot of it, and want to hide it. Yes, I can see it coming: offshore shell companies as an alternative!
- They have an interest in buying the stuff that is legally prohibited, raises ethical concerns, or they just want to remain untraceable.
Just putting myself as a test subject, I tried to find out the value it can offer to an ordinary person like me.
I’m legally employed and yes, paying my taxes, so the first point doesn’t make sense for me. Regarding the second aspect, guess what? I’d rather have been enjoying the serenity in Caribbean islands on my yacht instead of writing this post from my living room. If privacy or traceability is the concern, then everything is readily available in cash in the country, so the last point doesn’t fit either.
If I want to pay using Bitcoins, I need to set up my wallet, and that’s the beginning. Further, I need to protect Bitcoins from losing just like cash or even more at times. And, then I’ll exchange my currency with Bitcoins, using my credit or debit card. Finally, I’ll have to search for places, where I can use my Bitcoins. Sparing a few exceptions, there aren’t many acceptance locations, even in the United States.
Why should I take all the trouble? Don’t need to.
It does make sense for people with special needs, but it’s certainly not for everyone. A person living in a cash-dependent economy will use Bitcoins, if ever, just for the love of it, because there’s not enough motivation for spending in Bitcoins.
You have a lot to disagree. I’ll be glad to hear it from you.
On a separate note, there can only be 21-million Bitcoins mined with the current protocol and the mining will end around 2140. People have mined around 70% of Bitcoins, and they have already lost some of them over time. Satoshi Nakamoto, the creator of Bitcoin, has around 1-million Bitcoins with him or her. These Bitcoins were worth more than $400 million by the end of the year 2015.