Criticizing Bitcoin's utility, the Wall Street Journal declares, "Bitcoin is the world’s hottest currency, but no one’s using it"

A recently posted article from the Wall Street Journal leaves no question as to the position of the writer when it comes to the worth of Bitcoin. We're talking tulips here.

It's true, tulip mania exhibited many of the same symptoms as the ridiculous rise in value of Bitcoin. It's an easy comparison to make. However, Bitcoin definitely is being used - perhaps in ways those outside the world of cryptocurrency would have a hard time recognizing.

The first use-case of Bitcoin is obvious and frankly, surprising, that a Wall Street Journal writer would not be able to recognize. It is a form of digital gold - a place to store value away from fiat in order to avoid the inflationary problems inherent in the fiat system. Unlike placing a wad of cash under one's mattress, which inevitably would lead to a less valuable stash in the future, Bitcoin can be stored away safely and later sold back into fiat at a much, much higher value relative to fiat. It is true that transaction fees for moving Bitcoin are quite high at the moment and this is slowing the usage of Bitcoin in everyday transactions. But for the longer-term storage of an asset, it is a compelling, and possibly very lucrative, solution. A transaction fee of five to ten dollars is not a big problem when a holder sells thousands of dollars of Bitcoin in one shot when deciding to "cash out".

Secondly, the implementation of technologies using debit card solutions to spending cryptocurrency are growing rapidly. Upon loading a cryptocurrency debit card with Bitcoin, the currency can then be freely spent as it is converted to fiat at the point of sale. This enables much greater portability and eases barriers between crypto-holders and retailers that are not yet ready to support Bitcoin. A number of companies, such as TenX and Monaco, are either working on this technology or already have cards being issued globally.

Thirdly, and perhaps most importantly, Bitcoin acts as an entry point to the entire cryptocurrency market. Upon purchasing Bitcoin, most crypto-investors, by trading their Bitcoin on exchanges such as Bittrex or Shapeshift, go on to purchase other coins that are faster and cheaper to transact. Bitcoin Cash, Litecoin, Ethereum, and my personal favorite, Vertcoin, among more than a thousand other coins, are bought and sold relative to Bitcoin. These coins all have varied and interesting use-cases that offer a vast range of technological solutions.

This is not to mention that Bitcoin will soon offer more blockchain-oriented solutions to technological problems. Technologies like atomic swaps will be utilized for trustless, instant exchange of other coins with Bitcoin. Additionally, smart-contract solutions will be offered through the Bitcoin side-chain Rootstock. A wide range of technologies will be built with the Bitcoin blockchain as the foundation.

So yes, Bitcoin is the hottest currency, being used for more than just money. It's not as catchy as the Wall Street Journal title, but at least it rings true.

source:

https://www.wsj.com/

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