Bitcoin is a crypto-currency. I know that sounds a little crazy, especially if you have never really investigated it.
Crypto-Currencies are interesting in and of themselves, and big investment advisers like Forbes suggest we should be careful investing in them because "they have no intrinsic value".
The value of crypto-currencies, as they are so new, and can be kind of a fad, tend to rise and fall on a regular basis so keeping a lot of money in a crypto wallet can make you vulnerable to these kinds of swings you may not be ok with.
So with those big drawbacks, why would you want to use Bitcoin as a currency, either to pay for things, or to accept payment.
Here are the big reasons we like bitcoin, and we think you should at least consider it, or something like it for your business.
People who buy silver and gold will tell you that they like to own something that has an intrinsic value. After all the dollar is not backed by gold anymore, and if the dollar were to take a big drop as a currency it would be financial Armageddon. Now keep in mind that sounds a little crazy, but if you do your own research you would find that a dollar collapse really would be a big problem.
If the dollar fell apart due to hyper-inflation, or deflation, it could indeed be a bad day for everyone. Because retirement accounts are backed by treasury bonds, which are backed by what are basically IOU's because of QE actions by the fed. This outcome is quite possible.
Also with the dollar being dropped as the worlds reserve currency for trading energy world-wide it is a real possibility. We try not to dwell on it. But the possible dollar problems in future decades are not the reason we like bitcoin.
People who have been investing in "non dollars" because of this fear traditionally purchased old-school physical currency like gold and silver bullion. I am sure you have seen the ads for your gold backed IRA on the television.
But lets consider this "intrinsic value". Yes Gold and Silver are in fact used for real world applications, but the actual value of them is only in what people are willing to pay for them in return. So in essence, how is that different than the dollar?
Intrinsic value is over-rated, and its quite possible no such things exists to a rational person. Everything has a value, and it has never ever been a mystery.
An item, object, idea, service, and everything else have always been worth what someone else will pay for them. You see value is established in the transaction. You tell me a dollar is worth a loaf of bread, or an oz of gold, or a new truck. I can prove you wrong by simply selling it for more dollars.
So now that we see bitcoins have no intrinsic value, and neither does anything else. What about these wild swings in the market?
The wild swings are real in bitcoin and they are a possible downside. If people decide bitcoins have no value, they will be worth nothing. End of story!