Same as other traditional currencies, it is up to you if you want to use Bitcoin for saving or want to use it for purchasing things. Different people interpret digital currencies differently. Some people think it is good to invest in it; others find it a gamble and some use it to move money around the world quickly. But the question is still there whether Bitcoin is good for long-term savings or best to use as money. Here are some reasons why both ideas are correct and good.
Bitcoin for saving
All cryptocurrencies including Bitcoin move upward in value over a long time and are some of the best assets for saving money; that’s why they’re considered a safe-haven asset. If we look back on the history of Bitcoin from the beginning, it was started from less than a dollar and now has crossed 18,000 dollars.
It has shown a long-term upward trend. Having rapid volatility can even be a very good asset for people. If we look back on the journey of the US dollar, there are things that we would buy with 100 dollars that we can not buy now because of inflation. Should you store 100 dollars and not spend it for 10 years, then the purchasing power will be much less now.
In simple words, the value of traditional fiat currencies is always going down because these currencies are directly controlled by the central banks of their countries — sometimes some currencies lose their value completely.
Instead of saving a 100-dollar note, say you bought Bitcoin worth 100 dollars and keep it in your wallet for 10 years. When you take it out after 10 years, you will find the value of the Bitcoin that was previously worth 100 dollars is likely worth a lot more.
This happens because it is deflationary, meaning it is the opposite of inflationary currencies and assets. It is designed so that its value always goes up over time because its scarcity means it is limited in supply. Other currency notes can be printed by the governments as much as they want. The creation of Bitcoin is so complex that no one can create it on his or her own attempt. To learn more about Bitcoin visit Bitcoin evolution.
Bitcoin for spending
As we all know, Bitcoin is very good for saving money in the long term, and is also very good for spending as money or cash. However, it is a little different from other currencies.
BTC and other digital currencies allow their users independence of unprecedented degrees, flexibility, and freedom, with unparalleled access to anyone anywhere. You can send any amount to any destination in the world. There are no regional restrictions, bankers, national holidays, or any other restrictions that you have to face in a traditional money transfer.
That’s why Bitcoin is the ultimate replacement for traditional currencies. And it can be the true international monetary system of the world. People were in fear of using it as cash due to its volatility, but it has shown in previous years that Bitcoin is more stable than any other currency or asset.
Volatility means fast increases and decreases in the value of any currency or asset. The solution in relating it to a universal currency like US dollars means if you buy Bitcoins today, their value after a time period may be the same in relation to US dollars.
This will be useful when you need to use it as cash. Many big payment companies have added Bitcoin to their list, so now you can buy or pay your bills with Bitcoin. This is the same as purchasing or paying with regular currency. PayPal is one of those companies and has more than 1 billion live users worldwide.
So, it is not far in the future when world-famous restaurants will create their menus containing everything with rates in Bitcoin — you will pay your bills in just one click.
Conclusion
We can’t say that Bitcoin is best for spending or saving. Instead, we can say that both methods are good, but it depends on your needs and goals. If you want to invest in the long term, it is very good not to have to rely on low-interest-rate banking. You will get a good drive for long-term savings, by getting more than multiplied profits every year.
If you want to transfer your funds or send money anywhere in the world and do not want to pay high transfer fees or do not want to face any restrictions by diplomatic authorities, then Bitcoin is the best option. You can enjoy fee-free, rewarding, and transparent unlimited access to your funds anywhere and at any time.
BTC can do what you want to do far better than other traditional currencies.
