Bitcoin is the first and most well-known cryptocurrency to date, designed to allow people to operate independently of banks and national governments.
You may have heard a lot of stories, such as early adopters making a lot of money, their bitcoin rose from a few pennies to a few thousand pounds.
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Still others have suffered a lot of losses – they entered the market at the wrong time, only to find that three-quarters of their money was gone as bitcoin prices plummeted.
But can you really use it as money?
Earlier this year, cryptocurrency company CoinCorner decided that if employees were willing, they could choose to pay in full using Bitcoin.
Zakk Lakin decided to do this – all the wages he received were bitcoin.
Is Bitcoin a "real" currency?
The great economist Adam Smith believes that money has three functions—value storage, exchange media, and accounting units.
Last year, Bank of England Governor Mark Carney pointed out that bitcoin is too volatile as a means of storing value.
At present, the value of Bitcoin is three times that of January, twice that of March, about half of the end of 2017.
“Think, if you used £1,000 in bitcoin for next year’s living expenses in December last year (2017), you’re now about £500. If you did this last September, you’ll earn It’s 2,000 pounds. It’s like buying a lottery ticket.”
In terms of acting as a medium of exchange, Carney believes that Bitcoin has more problems.
“If you use a debit or credit card in the UK, the transaction can be completed in a few seconds and there is no exchange rate risk. By contrast, Bitcoin users may have to queue for hours.”
So how do they perform as a unit of account? Carney said:
“Considering that the value of cryptocurrency is poorly stored, transactionally inefficient and unreliable, there is little evidence that cryptocurrency can be used as a unit of account.”
“Bitcoin-priced retailers often update prices to match prices in traditional currencies such as the US dollar or the pound. As far as the central bank knows, no company is still accepting bitcoin while accepting bitcoin payments.”
In short, his conclusion is that bitcoin is not a real currency.
"Cryptographic currency can only play a role in currency for some people to a certain extent, or even parallel to traditional currency."
But in my opinion, Bitcoin is a good value storage method, which may not be comparable to a centralized system in terms of payment, but the value of Bitcoin is spiraling compared to the centralized legal currency. The price of Bitcoin does fluctuate in the short term, but it is an excellent safe-haven asset compared to the French currency.
For cryptocurrency enthusiasts and investors, cryptocurrency is definitely the future – Zakk is in this spirit decided to accept cryptocurrency to pay.
Living with bitcoin, no difference
After CoinCorner said that some or all of the employee's salary could be paid in cryptocurrency, Zakk immediately made a choice – 100% accepting bitcoin to pay.
The software engineer living in the Isle of Man said that he handled it very well.
“People always ask me how to live with bitcoin, but the truth is that my lifestyle has not changed.”
“Shopping in cryptocurrency is easier than people think – there are many online merchants that accept bitcoin, and I can buy something for a month – from technical products like Raspberry Pi to Amazon's kitchenware (yes, with cryptocurrency) You can buy something at Amazon."
Of course, not everything can be bought in Bitcoin. But this did not affect Zakk.
“Currently, I convert all permanent expenses (such as rent, direct debits, etc.) into pounds on paydays to avoid any problems with bitcoin price fluctuations, and then the rest for disposable income or savings. ”
The advantage of Zakk is that he works on a cryptocurrency exchange and can exchange bitcoin for pounds without paying a fee.
“I believe that in the future we will start to see more retail companies, such as restaurants and gas stations, introducing bitcoin payments, which will mean that my French currency spending will decrease and bitcoin spending will increase.”