Bitcoins

Yves Lauriault asked 3 months ago

Are Bitcoins something like bartering? I once owned a small print shop in small town in California. The owner of a Mercantile store across the street wanted some envelopes printed. I said to him that I needed a new lawnmower, so he said let’s trad

4 Answers
Ofir Beigel Staff answered 3 months ago

Hi Yves,
Bitcoin are more like a new form of money then barter. If you want to barter you are faced with the double coincidence of wants problem, meaning if you need a lawnmower you need to find someone who is :
a. Willing to give away a lawnmower
b. Needs some printing done
On the other hand, when you have money like Bitcoin – you can use that as something both people can use as a store of value and use it later for whatever they will need. I encourage you to watch this video in order to better understand what Bitcoin is.

Yves answered 3 months ago

Well bitcoins sounds great but How much is a bitcoin?
The government will eventually tax bitcoins like any other commodity?
It’s also limited where I can spend them?
Social Security won’t give me bitcoins instead of USD.
I don’t see that many advantages on using bitcoins.

Ofir Beigel Staff answered 3 months ago

At the moment 1 Bitcoin = $1036. Regarding taxation it’s still not clear, every country has their own rules about it. Here’s a list of places that accept Bitcoin. Have you watched the video I linked to in my previous answer? It kind of details the benefits of it.
For now the major benefits are:

  • Currency that can’t be controlled or manipulated by a central authority
  • Anyone can use it (doesn’t require permission from the bank)
  • Low fees for sending money across the world
  • Semi anonymous currency to allow you to keep your privacy

 

Yves answered 3 months ago

If 1 Bitcoin is worth $1,036.00 dollars how does a merchant like Subway brakes down to a $10.00 sandwich. If it can be broken down what is a $1.00 worth or for that matter a penny.
So if I understand correctly the value of a Bitcoin fluctuates similar as a commodity like gold and silver. 

Ofir Beigel Staff replied 3 months ago

Exactly, only it’s digital so it’s much easier to transact with.

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