What are bitcoins for? The answer to this question is simpler than you think

By Roberto D. | CryptoFarm | 12 Feb 2020

What are bitcoins for is one of the most common questions among those who try to approach this technology; the reason is simple, bitcoin revolutionizes our way of conceiving money by creating a new paradigm and those who can not deviate from the classic vision we have of money make it very difficult to understand the usefulness of this tool.

Bitcoin is useful from many points of view, but to understand how much, how and why the currency invented by Satoshi is so important, it normally takes some time; so let's try to reason together to help us understand what bitcoins are for and why more and more people in the world describe them as a revolution.

Bitcoin, first of all, serves to heavily reduce the cost of banking services; even though in many countries opening a checking account is quite cheap, in many other parts of the world this is not the case at all.

My bank account, for example, costs zero euros a year, despite this I pay exorbitant commissions every time I make a bank transfer, every time I make a payment or withdrawal to an ATM that is not owned by my banking institution; even if we often don't realize it, managing our money costs us several hundred euros a year, a cost that seems reasonable to many but which in many countries around the world represents an unsurpassed barrier.

Storing our money on a bitcoin wallet, on the other hand, costs practically zero, just as handling it requires negligible commissions and there are no entry barriers of any kind to start using bitcoin.

Another aspect not to be underestimated is that many people find themselves with blocked accounts (perhaps due to a protest) and this represents a huge problem; working for a large company, for example, if you don't have a checking account is practically impossible.

In addition to making access to banking services barrier-free and less expensive, bitcoin also guarantees high standards in terms of privacy for users; contrary to what can be read in the newspapers, the privacy of financial data is our right and the fact that it is harmed with the excuse of avoiding phenomena such as evasion does not mean that privacy is something that interests only criminals.

For example, imagine a citizen of a country who ended up on the international blacklist who, having emigrated, wants to send money to his family; It is possible that due to the sanctions provided by the international community the banks prevent him from sending money to the country and, worse still, he could risk being branded as a financier of terrorism only for having sent money to a relative.

What I have just described, of course, is a borderline case, but the problem also concerns "honest" citizens; that with the anti-money laundering and evasion rules, for example, ordinary people are forced to demonstrate how they spend the cash they withdraw from ATMs.

In the event of an investigation, therefore, it may happen that you are asked for an account of how you spent 2000 € withdrawn at the ATM; at that point it does not matter that you have used that money in a lawful way, because with the reversal of the burden of proof it is not the authorities who have to prove that there has been a crime but it is the citizen who must prove that he did not commit it .

The problem is that maybe years have passed between that withdrawal and the subsequent assessment, so it is not uncommon for a person, especially if poorly informed, to no longer be in a position to demonstrate that he has spent that money in a lawful way, simply because maybe he has thrown away the receipts.

Privacy is always important, any type of privacy, including that relating to how we use our money; currently there is a media narrative according to which only those who have something to hide care about the privacy of their transactions, but the truth is that any honest citizen can end up entangled in the network of controls and find themselves unable to prove that they have not committed any wrongdoing.

There are also other aspects that make bitcoin extremely useful, for example those who travel around the world often can count on a currency accepted everywhere and are not forced to pay commissions to exchange currencies.

Another aspect that makes bitcoin very useful for ordinary people is the ability to protect themselves from devaluation; while fiat currencies (read: cash) inevitably end up losing purchasing power over a fairly long period of time, as an effect of the monetary policies of the countries, bitcoin behaves in a substantially opposite way, continually reevaluating itself.

If today I deposited 1000 € on a savings account between now and 30 years the value of those 1000 € will be much lower than the current one, in other words, I will have lost purchasing power; on the contrary by depositing 1000 € in bitcoin on a wallet from here in 30 years I can be sure that my money will be appreciated and that those thousand euros in bitcoin that I put on the door will be worth much more than they were worth 30 years before.

There is, in fact, never will exist, a fiat currency capable of revaluing itself over an average long period of time; even the dollar, so to speak, which is one of the most solid currency, the currency with which international trade is regulated, has seen its value plummet in just 50 years.

Furthermore, to conclude, bitcoin should not be conceived only as a currency but also, and perhaps above all, as an infrastructure; the same network we use today to record BTC transactions can be used to build any type of service and tool on it, and this is the biggest utility of bitcoin.

It is a decentralized infrastructure that will allow in the future to create tools that we still cannot even imagine today but that we will use in the future tomorrow; the bitcoin network is like a highway that connects all the countries of the world and that makes it possible to access information from anywhere in the world in a safe way and being certain that that information cannot be manipulated or modified fraudulently.

Let's get used to starting to conceive bitcoins not only as a currency but as a strategic infrastructure that is made available to anyone for free; to conclude, it is the network that is the most important aspect of bitcoin and what makes it so useful.

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