The first cryptocurrency has risen and fallen several hundred times, according to various media headlines. Many people even call it "the biggest bubble" in modern history. But not everyone can explain the meaning of this digital asset — unlike gold or conventional money, bitcoin's range of uses is much more ambiguous. If this cryptocurrency is a true commodity, its value must consist of more than just the value of an investment tool — but for what?
One option is an alternative means of payment. Major players in online sales are increasingly indicating that they accept bitcoin as payment for goods or services. The cryptocurrency uses a p2p system, and many people may not fear account blocking — which can happen in the case of, for example, providing VPN traffic.
Another option is analogous to a debit card. The transactions made with bitcoin are similar to those provided by traditional banks. In some regions, people even have access to bitcoin ATMs where they can withdraw funds from their wallet or transfer them to a special card, which is an alternative to the usual plastic issued by banks.
An alternative to fiat currency is another prospective application. Bitcoin is a great solution for those who don't want to use regular money, live in a country with a declining economy or in a region with an unstable currency. Despite the volatility, the first cryptocurrency is a good investment tool, unlike the classic currencies of different countries.
The next option is a permanent transaction ledger. Blockchain records all cryptocurrency transactions.Due to the fact that data can be entered into the records, bitcoin can be used to exchange information and values.
All of bitcoin's capabilities have yet to be explored, but even the above is enough to understand that the cryptocurrency's popularity is justified.