Bitcoin in Action: 8 Unique Ways to Use Your "Money"!
Yes, $BTC has utility | Here are the places to go to put it to use!
On November 30th, 2022 — two years prior to the published date of this Bear’s Bulletin — prominent Ph.Ds at the European Central Bank hopped on their high horses…
And they started to “sing” — to pronounce, via their academic pedigrees, the coming death of our dear beloved decentralized monetary asset: $BTC.
Titled Bitcoin's Last Stand, Ulrich Bindseil and Jürgen Schaaf argued that Bitcoin "has never been used to any significant extent for legal real-world transactions" and that its market valuation is "based purely on speculation.” They described Bitcoin's technological shortcomings, calling it "questionable as a means of payment.”
These statements are particularly ironic given the increasing adoption of Bitcoin in various real-world transactions, such as through platforms like Amazon and Shopify… who have started accepting Bitcoin payments, offering customers a convenient and efficient payment solution for online shopping.
But those two examples are just the tip of the iceberg when it comes to Bitcoin’s utility. And that’s what I’ll be covering today, giving you websites and links where you can go to… pay bills, buy real estate, get loans, receive your monthly salary in BTC and more.
Those two Ph.D’s must have gotten Permanent Head Damage
Living in a world where their cherished fiat currency is fueled by international debt and inherenbt debasement, how could such esteemed academics ever see Bitcoin's legit role in the circular economy?
BTC isn’t just about speculation or investment; it is about empowering individuals and communities with financial autonomy, reducing barriers to financial inclusion, and creating a more equitable and efficient financial system.
Bitcoin is integrating into mainstream society, making everyday transactions more efficient and secure. From online shopping to physical retail purchases, Bitcoin's real-world applications are transforming the financial landscape by reducing intermediary costs, increasing transaction speed, and providing financial access to underserved areas.
Within two years of their misguided attempt to pen Bitcoin's eulogy…
It has become the 7th largest asset, by market cap, in the world (real-time listing), just ahead of Saudi Aramco and Silver.
It has risen 375.4% against the USD and 470.4% against the Euro (thank you Sylvain for that reminder).
It has advanced its transaction speeds, via the Lightning Network and other layer-2 solutions.
It has continued to streamline cross-border transactions, significantly reducing the costs and complexities inherent in traditional banking systems. This efficiency has bolstered financial inclusion, especially in regions where access to conventional banking is limited.
It has deepened its integration into mainstream finance, via the ever proliferating interest from institutional investors.
Those are just a few examples which come to mind. And they alone explain why the ECB gurus, riffed on above, should rename their article "Bitcoin's Last Laugh."
It’s not lost on me why I’m writing this
I’m here to show you — not just tell you — why BTC is much more than just an appreciating investible digital asset.
We all know the price-focused speculative aspect of this asset, but do we all really understand how it is becoming the most secure method for holding censorship-resistant wealth?
Let’s start with a chart which lists the traditionally recognized traits of money, as well as the new traits made possible by the invention of the blockchain.
Verifiable? Yes, when someone wants to send Bitcoin to another person, they create a transaction and sign it with a special code (like a digital signature) using their private key. This transaction is then sent to the Bitcoin network. Computers on the network, called nodes, check to make sure the transaction is valid. They verify that the sender has enough Bitcoin and that the transaction is correctly formatted.
Once verified, the transaction is grouped with other transactions into a block. Miners, who are powerful computers, solve a difficult math problem to lock this block into the blockchain, which is like a big, public book that keeps track of all Bitcoin transactions. When the block is added to the blockchain, the transactions in it are confirmed and can't be changed. This process ensures that Bitcoin transactions are safe, transparent, and can't be tampered with.
Fungible? Yes, one Bitcoin is the same as any other Bitcoin. They are all equal and can be used in the same way. Imagine dollar bills. One dollar bill is just like another; you can use either one to buy something. It's the same with Bitcoins. Even though you can see where each Bitcoin has been used before on the blockchain (a big public book), it doesn't change the fact that each Bitcoin is worth the same as any other.
Portable? This term, in the Bitcoin arena, is often synonymous with borderless. In short, you can move your wealth anywhere in the world instantly. As long as you have the private keys to your Bitcoin, no one can restrict your transactions or ask you to explain how you're using your money. It's entirely yours to use as you see fit. In 2020, someone moved $1.1 billion in Bitcoin in a matter of minutes for a transaction fee of just .68 cents. This level of portability and efficiency is unmatched by traditional banking systems, which often take days or weeks to process large transactions and charge much higher fees.
Durable? It’s obviously not subject to physical degradation. Since it does not have a physical presence, it cannot deteriorate over time like physical assets such as food or even metals to some extent. Also, with its blockchain being replicated across thousands of nodes worldwide, it makes it highly resistant to destruction. It would be virtually impossible to erase or corrupt every single copy of the Bitcoin blockchain.
Divisible? Yes, it’s one of its key features that make it a versatile and accessible financial asset. Bitcoin can be divided down to eight decimal places, allowing for very small transactions, often referred to as microtransactions. One Bitcoin can be divided into 100 million smaller units called Satoshis (sats). This means that 1 Bitcoin is equal to 100,000,000 Satoshis.
Scarce? Yes, the 21 million hard cap on Bitcoin's supply is a core feature of its design, enforced by the network's nodes and the consensus rules, and is highly unlikely to be changed due to the lack of economic incentives and the practical difficulties involved.
Established History? No use in getting too deep in the woods on this one. 16 years (BTC) compared to thousands of years (Gold). But, again, we’re in the digital age, too. The toothpaste isn’t going back in the tube. I see major opportunity in this regard.
Censorship resistant? It’s decentralized architecture, immutable ledger, transparency, encryption, and economic incentives make it highly resistant to censorship attempts. Interesting recent YT video about that, from Swan Bitcoin, here…
* Openly programmable? and decentralized? Well, yes and yes. ;) You can learn about that on your own.
The rundown above is to simply back up this statement:
In the digital age, Bitcoin is emerging as the ultimate form of "hard money," revolutionizing how we protect and utilize our economic value.
Therefore, it’s long been accpeted that the REAL use case of $BTC is, well, doing nothing other than holding BTC — in a self-custody wallet (hint: not your keys, not your bitcoin).
But I think we’re going to evolve even beyond that, as many early adopters are starting to see a world where your crypto wallet, not your bank, is the hub of your financial life. A one-stop-shop hub where you can invest, save, earn, and spend with unprecedented ease and freedom, unshackled from the constraints of traditional financial intermediaries.
We’re not there yet — probably a decade away, minimally. However, that doesn’t mean you can’t, presently, hold a percentage of your overall Bitcoin holdings in a HODL (Hold on for Dear Life) account… and, say, a smaller percentage in a LIQUID account (used for purchases).
It’s what I do.
Here are some of the places I know about… where you can accomplish the latter — i.e., put Bitcoin into action, by using (spending) it: