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April 18, 2023, 10:01:58 AM Last edit: April 18, 2023, 11:30:15 AM by Amphenomenon |
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Most people being introduced into bitcoin sees bitcoin as a means of investment, precisely since 2018. They don't even care of knowing what it is use for, all they care about is that they can make money from it and this flaw has been exploited by the government and now most countries legalising Bitcoin, legalised Bitcoin as an asset instead as an digital currency.
I was once among these set of people who just sees Bitcoin as a means of investment not until I joined this Forum, where I saw a reason to read the Bitcoin Whitepaper and did research about how it helps in the field which it was created for. Bitcoin as digital currency was created to make online payments to be sent from one party to another without the need of an intermediary.
I know people have various view of Bitcoin as some view it as an alternative to digital gold so they see it as a means of investment , some sees it as something that gives them total control of their money while they are other views but this is the most common aside from what it was created. Though, they have a solid reason to justify their claims but in the end this is not the main reason or use for Bitcoin. It is just a part feature that bitcoin offer as a digital currency.
I don't really know how feasible is this my theory but this is how I see Bitcoin. I see bitcoin Blockchain as a country, where those who works there are paid with Bitcoin "just like how every country pays their citizens working with the country currency (those who receives salary in other currency in a country, obviously works in an organization that is not from their own country)" and this is when the worker validate a block.
Just like how there are those who are unemployed, unable to get a job done or are caught lying to have completed done a job are not paid, so it's on Bitcoin Blockchain, those who are unable to validate a block (unemployed), unable to get a job done or are caught lying to have completed a job earns nothing. This are the proof of work mechanism.
When converting from one currency to another, the one with the highest value have a better edge (like if am converting from naira to dollar, I will be having less), Bitcoin is just another currency having higher edge than the other currency but just like how the rate from converting naira to dollar or any other currency may change, Bitcoin price also changes (though more volatile).This covers why bitcoin is seen as an investment.
Then the wallet is a unique bank, that is to say, it gives you total control of your money (except when you using a CEX, which though still gives you more control of your money than the Physical banks but not total control of it). Just as some physical banks are more secured and better than the others, so is it for the wallet so you have to find the most effective and secure option for you. Aside from this the rate anonymity depends on the wallet you use. This covers why bitcoin is view something that gives total control of one's money.
Like I stated before, there are various ways people view aside from the main reason it was created but if you check, you would see that all this are features that physical currency offers but with Bitcoin having more unqiue features to it.
Now Bitcoin as a means of payment:
When Bitcoin first came out, there where alot of criticism some saying it will make criminal activities such as money laundering, financing terrorism, Kidnapping easier and others speaking of how it not be accepted.There are other criticism which Bitcoin face, the criticism stood a ground at that time but not all are still standing and those critics of then and now, always try to find issues to speak against it and also not wanting to speak of uses of Bitcoin. Bitcoin as a means of digital currency has covered almost everything of it field (if not all) as a means of payment with the off chain and on chain protocol which has been use to aid payment like multi sig wallet, Lightning network, Schnorr Signature, SegWit wallet and others makes transactions faster.
The multi sig wallet helps offer security, make not just a single person to get total control of an organization funds and also offers other benefits that helps the organisation. While the Lightning network, Schnorr Signature, SegWit wallet and some others are fixing the scalability issues. Bitcoin core members are working hard to make bitcoin the best means of payment and though Bitcoin still have some issues but they will be fixed. I prefer to see bitcoin being accepted as a digital currency and not as an asset or anything because that what it is.
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