How Is Bitcoin Valued?
You have money in your pocket that can buy you a movie ticket or a couch, and you have debit cards that can pay for bottles of champagne, but what is the value of cryptocurrencies and Bitcoin?
Over the past few weeks, Bitcoin has raced past $19,000 in value due to a perfect storm of supply, demand, and anticipated further growth. With this surge came many questions regarding the coin’s usefulness and true value. The extent to which a digital coin is useful on the market is referred to as the coin’s utility. Increasing a coin’s utility is the best way to increase its value. Luckily, the number of companies that accept payments in Bitcoin is growing day by day, which makes for a much more useful digital currency. Some companies currently accepting digital currencies and Bitcoins include:
As per Microsoft’s billing policy, Bitcoin is accepted as “a payment option to buy apps, games and other digital content from Windows, Window Phone, Xbox Games, Xbox Music or Xbox Video Stores”.
The money transfer giant now allows its users to send and receive payments in Bitcoin.
Miami Dolphins accept Litecoin (an alternative cryptocurrency to Bitcoin) for payments.
Bitcoin accepted as a form of payment for both tickets and merchandise.
KFC Canada created a value bucket deal, an offer that can only be purchased with Bitcoin.
Norwegian Air is one of Europe’s leading budget airlines. It will allow passengers to purchase tickets using Bitcoin, and will be opening its own cryptocurrency exchange.
Since 2013, CheapAir has been accepting Bitcoin (along with Litecoin) as a payment option for flight and hotel bookings.
You can also convert Bitcoins to any cash currency through a Bitcoin exchange or at a Bitcoin ATM.
Virtually anything and anywhere else.
Today, Bitcoin can completely sub for money in a simple and effective way. Owners can load up debit cards with funds using Bitcoin and use them at any retailer or outlet they please. Online retailers that accept Bitcoin payments can be found on BitcoinWide and SpendaBit, among others. On those, you can pay for anything from a new laptop to a slice of pizza using Bitcoin.
If all shop keepers woke up and decided that they would no longer accept US Dollars as a means for payment, the USD cash in your wallet would become greatly less valuable. Similarly, the widespread adoption of any currency (including Bitcoin) has resulted in a dramatic increase in its value.
You might be wondering, will I one day wake up and learn that the Bitcoin I purchased (or mined) is worth nothing at all? Just like every other asset (US Dollars, Japanese Yen, and stocks in Netflix), that may be a possibility but not a realistic one. The value and adoption of Bitcoin has only seen a strong upward trend as of late, and experts anticipate that they are the future of currencies as people move away from government controlled, centralized, volatile currencies.
While not everywhere accepts Bitcoin and other cryptocurrencies at this time, it is clear that global adoption is underway.