Bitcoin is a pointless mean of transaction according to pundits, but how right could they possibly be?
Let’s commence by looking at how Bitcoin operates. To send Bitcoin to someone, you first of all have to advertise it to the system to be approved by “miners” who facilitate the deal to give you access to recent Bitcoin. Your transaction will be included as part of the Bitcon blockchain if there are no hiccups.
The system is widely used as a means of transaction regardless of the common criticism that it is not yet effective. An estimated $150 billion of dealings was made by the end of 2017 which is way higher than it was in 2016 and it exceeded the number of transactions made by Western Union in a normal quarter. But this is not to state that there has been any significant increase in the number of deals that took place- in actual sense the worth of each deal is what keeps multiplying.
If you want to get your daily cup of coffee, this is surly not a favorable form of exchange. This happens because your proposal has to be recognized by the system which in most cases favors larger payments. Take a look for instance, someone trying to make a transaction of $1 million will find it easier to spend $20 but this might not be the case for someone buying pizza. This system according to critics paves the way for inconsistency and only favors those that can afford to pay more and will more or less become a trend for the wealthy.
However, one possible way to overcome this is through Coinbase and Xapo, which serve as a link between Bitcoin and many users. In 2017, Coinbase revealed that they were hoarding close to 10% of all bitcoin transactions. Customers using the same service providers find it easier and faster to make bitcoin transactions without going through the normal tedious process. This is clearly reflected by Xapo that makes about 500,000 deals without the usual bitcoin procedure and makes only 30,000 following the bitcoin process.
Customers can enjoy faster services if they have the right middle link however; Bitcoin is going all out to undermine this considering the fact that such middle links are high targets for criminals.
So how can you use Bitcoin as a means of payment while being loyal to its rules? Well a new ray of hope is offered by a system called Lightning which makes it possible for customers to make smaller exchanges which will only reflect the final transaction. However, to maintain the loyalty of users, people are expected to make guarantees that can be taken away if they do not abide by the rules.
Unfortunately, Lightning is still growing which makes it next to impossible for people to make use of Bitcoin globally.