Bitcoin's value is a function of its adoption as the world understands its industrial use cases. It's an asset with a finite supply that offers various scalable solutions to both social and economic challenges in the world.
What is Bitcoin’s value or use case other than functioning as an inflation hedge and store of value?
Bitcoin is becoming the base layer on which different fiat currencies can transact on; from remittances to everyday payments. This means that two parties can now interact with their own currencies using bitcoin as the link between them. This is proving to be a powerful industrial use case for bitcoin as it allows people and companies to transact across borders instantly, without being subject to bitcoin’s volatility.
How does bitcoin compare to other cryptocurrencies such as Ethereum?
Bitcoin was created with the purpose of functioning as digital money. Other cryptocurrencies like Ethereum were created for alternate use cases such as decentralized computing. Bitcoin was created to solve a long lasting and urgent problem in the world- to give financial access to any and all.
Bitcoin is used for illicit purposes, how true is this?
While it is true that some illegal transactions do occur using bitcoin, they are no different than those that occur using the US Dollar or any other fiat currency. The difference is in their traceability; every single transaction using bitcoin is recorded on the bitcoin blockchain and available for inspection by any law enforcement agency in the world. Crime prevention capabilities on Bitcoin are improving on a daily basis, making it harder and harder for malicious activities to happen.
How much will bitcoin be worth in the future?
While nobody can provide a clear response to this, bitcoin’s price is a function of its adoption as the world understands its various use cases. Combining massive adoption with a limited supply of 21 million bitcoin could result in a higher price in the future.
What are bitcoin use cases that we know of so far?
Bitcoin can be used to instantly convert between different currencies. It allows split payments between one or more parties; this can be implemented by a restaurant to pay its staff or by multinational conglomerates to pay different subsidiaries across borders.
Multi-party escrow: two or more parties can enter into an agreement in a trustless fashion that self executes based on predefined events.It can be used as an instant messaging service where two or more parties can communicate.
Assets such as stablecoins, bonds, titles to property, etc. will be able to be transacted over Bitcoin.There still are various other use cases that will develop as time goes on.