Many people in South Africa consider cryptocurrency primarily as an investment rather than a means of payment. And indeed, Bitcoins can serve as a long-term investment; moreover, thanks to the underlying blockchain technology, they offer many other possible usages.
The concept of cryptocurrencies is based on a so-called blockchain, which can be viewed as a real-time cash ledger or database. In this database, all Bitcoin transactions are entered unchangeably. Thus, it should be impossible to change or damage the blockchain and the Bitcoins in it are protected.
Therefore, Bitcoins are as safe as they come. However, then the question arises of how best to invest in the new currency. To invest in Bitcoins, you need to spend a relatively long time on the subject, at least to know exactly what you are doing. Let’s check out why this is such a hot topic this year.
Future Investment or Practical Payment Method?
Cryptocurrencies are not to be seen exclusively as an investment; they can also be used to pay for everyday goods or at crypto casino sites for South African players quite easily, provided that the virtual currency is accepted.
From the original idea, Bitcoins are primarily intended for online shopping. However, in the meantime, digital currency is no longer accepted only by a few Internet stores, but also individual service providers and retailers use virtual money.
Even though the acceptance of Bitcoins is steadily increasing over the years, the number of companies accepting electronic money is still very small.
Pizza Was the First Bitcoin Purchase
A nice anecdote: developer Laszlo Hanyecz was the first to buy two pizzas with Bitcoins, proving that Bitcoin works smoothly as a payment method.
In 2010, Hanyecz paid a total of 10,000 Bitcoins for his pizza delivery. At the time, no one could have known that the value of Bitcoins would rise to nearly $50,000 by the end of this year. Because Bitcoin was able to maintain a price level of $10,000 for an extended period of time, it can be said the pizzas had a total price tag of (at least) $100 million.
Physical Payment with Cryptocurrencies
As a digital currency, Bitcoin is particularly suitable for online payments. This allows digital content such as software, music, e-books and games to be purchased quickly and easily. More and more providers are therefore taking cryptocurrencies and some even give discounts when payment is made in Bitcoin, because this does not incur any extra fees or the like for the seller.
In real life, more and more sellers are accepting Bitcoin as a means of payment. Paying for beer and burgers in a bar with Bitcoin is now just as possible as the entire bulk purchase in the supermarket.
The special thing about Bitcoin is that it is a borderless, global phenomenon. This has to do with the fact that there is no state that controls cryptocurrencies. After all, you can buy and sell Bitcoins in almost every country in the world.
Functional and Practical, But Not Yet Available Everywhere
No one can accurately predict whether Bitcoins will become accepted as an alternative to the conventional, conventional money system in the medium term.
Bitcoins are less recommended for beginners in value investment due to the existing risks, which are, for example, the very massive price fluctuations as well as the lack of hedging systems. Accordingly, there are too many risks that cannot be weighed, or at least not yet. Nevertheless, it can be worthwhile to invest at least part of one’s assets in Bitcoins.