Time and again you will hear that Bitcoin is magic money that has no use or purpose and has no intrinsic value.
You will be told that you can’t buy a cup of coffee with it and that it has no “use case” as money. Even some “believers” say it is not currency but is instead digital gold for staking up while it appreciates to some incredible lofty value.
This might be the case but Bitcoin is definitely money.
It is valuable money as it is incredibly useful.
Allow me to demonstrate.
I want to sell a product, let’s say I’m a business making some normal margin product, such as picture frames. A customer comes to me from Africa and he is desperate to get a container load of frames costing $20,000.
I will of course say, “Pay me up front” and my new African customer says, “Sure.”
I am now ten days away from getting the money. They might take a day or two to get their paperwork straight, perhaps as much as a month. The paperwork we have to go through at our end is a nightmare and it may or may not show up as expected and it may or may not cost a couple of percent in forex charges and various other charges. Heaven forbid it’s a big order and we need a letter of credit.
All sorts of things can go wrong. The letter of credit can be fake. The order can be produced awaiting the payment only to find the order has gone away. The money can bounce around because one bank in the chain messed up.
The whole process is fraught.
So they offer to pay the lot on credit card.
We might not be able to take that payment and the charge from the company, even if we take credit cards, may be 3%-5% of the invoice. Then six months later the untested customer can call their credit card company and say they never bought the goods and we get a huge chargeback and have lost not only the profit but the principle too.
So instead we say, “We take Bitcoin” and they say, “Fine.”
Then a few minutes later we have notification the payment has been sent. There is no going back for that money. A few minutes later we have the full amount confirmed and if we have our cryptocurrency ‘ducks in a row’ the fiat is on the way in another few minutes.
That is an electrifying improvement in business process and it is real, today, right now.