Despite the growing Bitcoin adoption all across the globe, the digital currency often makes into news headlines for all the wrong reasons. Bitcoin is hailed as the future of the economy, at the same time there are complaints about its sustainability and volatility. Tiyo Triyanto rightly says that Bitcoin is not for everyone in his recent blog post.
Triyanto, an Indonesian entrepreneur currently with BitX makes a list of people who should not be using Bitcoin in a funny yet informative post. Anyone complaining about Bitcoin not being fit to be called money are the first ones in the list. As he puts it,
“If you are going to die soon, you should definitely not own bitcoin. Because bitcoin is the currency of the future.”
In spite of Bitcoin being around for about 8 years, the digital currency is still in its early stages of adoption. Given the slow rate of adoption, Bitcoin hasn’t yet reached the position to replace fiat as a mainstream currency. But given the progress made so far, the day isn’t far away.
“If you are a drug dealer, criminal, or a corrupt official”
Bitcoin transactions were initially thought to be anonymous, but not anymore. Those who still continue to believe and use it for “illegal” transactions may get into trouble with authorities, sooner than later. The transparent nature of Bitcoin blockchain makes it easy to trace Bitcoin transactions using state-of-the-art blockchain analysis tools. Many companies like Chainalysis are already providing the necessary technology to banks and law enforcement agencies across the world.
“If you like paying fees”
The number of people who fall into this category is very less. No one wants to shell out more money in the presence of a cheaper alternative. Bitcoin is a decentralized cryptocurrency where all transactions are processed over a network managed by the community. Without any third-party intermediary organization involved, people can transfer funds anywhere across the world over Bitcoin network at minimal costs. This very feature of Bitcoin is now considered as a threat to the banking sector. Many banks, with the intention of competing with Bitcoin, are working on blockchain technology-based applications for cross-border fiat transactions.
“If you enjoy carrying cash or keeping and using cash for purposes of money laundering”
Bitcoin is a digital asset and can be easily stored in a USB or a paper wallet or mobile phone. Even billions of dollars’ worth of Bitcoin will occupy a very insignificant storage space on electronic devices and can fit in a single paper wallet the size of a $1 banknote.
About money laundering and Bitcoin, the transparency associated with bitcoin kills the joy and increases the risk of getting caught.
“If you enjoy seeing your currency depreciate in value over time”
Fiat economy is known for depreciation. A number of things a unit of fiat currency can buy keeps on decreasing with time. This has a lot to do with the way economic and monetary systems are designed. With banks printing more currency to satisfy the demand, the value of a unit falls. Bitcoin has a finite supply of 21 million BTCs, but a growing community of users. So, by design, the demand is set to increase, leading to an appreciation in its value.
“If you enjoy filling out paperwork or waiting”
Bitcoin transactions don’t require one to fill bank challans or forms and documentation to facilitate money transfer. All one needs is a Bitcoin wallet, the other person’s wallet address, and internet connection. Also, bitcoin transactions get executed within minutes. An overseas wire transfer still takes anywhere between a day to a week and is expensive.
“If you are a merchant and enjoy dealing with chargebacks and fraud”
Unlike credit cards, there is no way to chargeback with bitcoin transactions. Currently, chargebacks and cancellation of transactions make merchants lose out on a lot of money. With bitcoin, the merchant has to manually execute a refund on customer’s request.
“If you want to risk all of your investments in one basket”
Bitcoin is increasingly being accepted as a financial instrument across many leading companies, including Microsoft, Dell, Expedia, DealsLands.co.uk, etc. Investing in Bitcoin will help people diversify their investments and maybe get better returns on them in the future. Being an alternate currency, the way market conditions affect bitcoin is quite different from that of conventional fiat based assets.
It is just a matter of time before the new world order is created, powered by Bitcoin as the currency. We just have to wait for it.
Ref: Tiyo Triyanto on Medium |Image: Shutterstock