Wikimedia.org

Summary of use cases for Bitcoin

Having just finished a course on crypto currency led by Anthony Pomliano, I met a number of Bitcoin maximalists i.e. folks who believe in Bitcoin’s success more than anything.

While I plan to write down some thoughts about the course soon I thought this is a good time to talk about what I’ve learnt about the utility of Bitcoin.

  1. Emerging Market Reserve Currency — El Salvador has adopted Bitcoin as legal tender and there are a host of other emerging market economies which are considering the same. Countries who’s own currencies are struggling to retain value and have their citizens relying on USD or remittance payments (with high fees) are seriously looking at Bitcoin as a way to decrease the large numbers of unbanked citizens and reduce costs. It makes sense for some emerging market countries to move away from USD as their reserve currency given they have no control over its supply or interest rates — Bitcoin’s supply is fixed and it is easily available over your phone or computer without the need for any Bank.

Clearly there are quite a few here use cases here, all of which have their own real world equivalents like USD, Gold, Visa and Pesos. I would think if Bitcoin can continue to grow in market capitalisation, its volatility will decrease and more institutional investors and nation states will climb on board. Ultimately it cannot be stopped, but needs a good amount of utility, adoption and a favourable regulatory environment to thrive.

--

--

I write about mentoring, productivity, finance, crypto, Python and Data Science. Please follow if you like

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Riz Pabani

I write about mentoring, productivity, finance, crypto, Python and Data Science. Please follow if you like