Did you try to buy a pizza with Bitcoin these the last days? Was it too difficult to realize how many Bitcoins it would cost you? Well, it is because Bitcoin is not being used as a means of payment but as a speculative investment. This is what Don Pittis, a Canadian journalist believes.
Bitcoin is a currency!
Since Bitcoin has started to rise in value, it has also been difficult to buy things with it. “But while the cryptocurrency may seem like a success, that crazy multiplication in the value of the Bitcoin has almost completely derailed its initial purpose. For all intents and purposes, a bitcoin has become the currency that’s hard to spend,” wrote Don Pittis for cbc.ca.
The first time that Bitcoin was used to make a transaction was in 2010. Laszlo Hanyecz bought two pizzas in Jacksonville, Florida for 10,000 Bitcoins the 22nd May 2017. Nowadays it would be a little bit more difficult. A $20 dollars’ product means that it costs 0.0030303 BTC.
Some investors and individuals have lost the main purpose of Bitcoin. The idea behind Satoshi Nakamoto was to develop a currency easy to be used. Fast transactions, low fees and no intermediaries were his basic ideas for Bitcoin. But now it is difficult to give a price to something with the virtual currency.
“If you have to convert from Bitcoins to U.S. dollars two pizzas to know how much your money is worth, it is the U.S. dollar, not the Bitcoin that is the measure of exchange. The Bitcoins are merely a speculative investment,” commented Don Pittis.
What About Thinking in Satoshi?
Satoshi is the smallest unit of Bitcoin. 0.00000001 Bitcoin is the equivalent of 1 Satoshi. It is true that it is difficult to use Bitcoin or Satoshi as a means of payment. It is not easy to give a price to something when Bitcoin value is high or when Satoshi price is too low. So, is there any possibility of something between the two nominations?
There is a possibility. 100,000 Satoshi equal 0.001 Bitcoin. This unit of measure is known as 1 mBTC (em-bit). 1 million Satoshi are equivalent to 0.01 Bitcoin, or 1cBTC (bitcent). In this way, a product that costs $20 dollars would just cost 3 mBTC (3 em-bit). In this way, we could find an easier method to give a price to goods and services.
At the beginning of the year, Bitcoin was just $960 dollars. At the moment, Bitcoin is being traded at $6600 dollars. It means that the cryptocurrency experienced an increase on its price of 687% just in 2017. Since September the famous virtual currency grew 110%.
The different Bitcoin hard forks helped the currency to increase its price. Besides that, bigger investors are starting to pay attention in Bitcoin and place their savings into the virtual currency. It is important to mark, that even after difficult moments for Bitcoin, the currency showed to be incredibly resilient. China, one of the strongest countries in the world, decided to shut down Bitcoin exchanges and ban ICOs.