People are becoming increasingly aware of the advantages of using Bitcoin. Now, developer Sylvain Saurel identifies several compelling reasons for preferring Bitcoin over conventional currencies.

“Bitcoin is Better than Cash”

The combination of an obsolete banking system and a three-thousand-year-old fiat monetary system is becoming incompatible with the new borderless, decentralized, and fast-moving digital economic model.

As a result, a growing number of industry experts agree that BTC is better than cash. For example, in December 2017, Microsoft co-founder Bill Gates explicitly said, “Bitcoin is better than currency.”

Saurel now puts forward several reasons why Bitcoin is better than cash. These reasons are summarized below.

BTC helps users to satisfy their desire for hiding their wealth. According to Saurel, BTC could play the role of Swiss banks. Until January 2017, Swiss bank secrecy allowed rich people from all over the world to hide wealth. But now Swiss banks must share data in compliance with global standards on taxation.

The leading cryptocurrency can also help millions of adults who do not have access to bank services around the world. Indeed, over two billion people remain without bank accounts, according to a World Bank report published in April 2015.

In the U.S., an FDCIC national survey revealed that in 2017, 6.5% of American households were unbanked. An additional 18.7 percent of the households were underbanked. In this regard, Saurel points out,

Bitcoin is, therefore, a blessing for unbanked people as it can provide them with access to equivalent services

Bitcoin’s Greatest Advantage: No Authority Controls Bitcoin

Central banks control fiat money. In contrast, Bitcoin is decentralized and under the control of no authority. Saurel remarks,

Again, this is a major advantage because no authority will be able to arbitrarily prohibit you from carrying out a transaction in Bitcoin.

Another plus is its ability to perform easy and anonymous online transactions. Although these transactions are registered on the blockchain, Saurel argues, only your wallet address is listed.

If you do not tell anyone that these addresses belong to you, no one will know what you have done with your Bitcoins.

Conversely, online cash payments are not private. Banks control online payments and know about all your purchases.

BTC is an Investment

Unlike with conventional cash, once a BTC payment is made, it is irreversible. Therefore, merchants can reduce their risks by avoiding customers who cancel their purchases.

Moreover, BTC is an investment because traders can exploit Bitcoin’s volatility to make capital gains.

Lastly, Saurel considers Bitcoin to represent a great revolution. Thus, he advises,

“Without going as far as the Bitcoin Maximalists, you could choose to buy and use Bitcoins to be at the beginning of a revolution that will have huge impacts on the future of money.”

What other reasons can you think of to explain why Bitcoin is better than cash? Let us know your thoughts in the comments below!

____________________________________________________________________

Images via Shutterstock

The post Saurel Offers Convincing Reasons Why Bitcoin is Better than Cash appeared first on Bitcoinist.com.

A survey by cryptocurrency blog Crypto Radar is showing a high bitcoin apathy in the U.K. for people of retirement age.

67.5% of U.K. Citizens Have No Interest in Bitcoin

According to the details of the survey as published by Crypto Radar, only 5.3% of the 2,500 participants owned Bitcoin. Of this number, more than half  say they don’t plan on buying more BTC.

The survey also showed an apparent high level of BTC apathy in the U.K. with 67.5% percent of respondents claiming they did not own or have any intention to own bitcoin. This demographic even increases further when only considering male participants aged 65 years and above.

High bitcoin apathy among people of retirement age isn’t a new phenomenon as seen by numerous similar surveys. The situation surrounding Brexit may also see retirees looking to hedge their fortunes in assets deemed to be less risky than cryptos.

Bitcoin volatility aside, global negative-yielding debt is north of $17 billion. Plus, there is an argument to be made that BTC provides a hedge against the growing.

On the other end of the spectrum, the reality appears flipped with a significant number of male respondents between 35 and 44 years of age keen on increasing their BTC ownership. Commenting on the results, Crypto Radar chief, Amine Rahal remarked,

Regardless of its enormous volatility, Bitcoin is a very attractive asset class for those investors, especially younger investors, who are willing to ride the volatility to tremendous gains.

Patchy Crypto Adoption in Europe

One particularly striking result from the survey was that about 20% of respondents claimed to not know about bitcoin. An ING survey published in September showed nearly a quarter of U.K residents believing that bitcoin will eventually replace cash.

Both the ING and Crypto Radar surveys did reveal an apparent dearth of crypto education in the U.K. This limited range of crypto awareness even extends to young upwardly mobile professionals who usually form the core of global BTC adoption.

While bitcoin is a demographic mega-trend in the U.S., the same cannot easily be said for their counterparts across the pond. In all, these surveys reinforce the patchy crypto adoption landscape that characterizes Europe.

Currently, it appears that bitcoin appeal only ranks high in places like Turkey where there are some economic struggles.

Do you think there exists a low level of bitcoin education in the U.K? Let us know in the comments below.

Images via Shutterstock

The post Bitcoin Ownership in UK Surprisingly Low, New Survey Reveals appeared first on Bitcoinist.com.

Can a YouTube influencer survive for a day by only spending Bitcoin (BTC)? Ryan Trahan tried this out as a part of his series of stunts and challenges.

Buying Food With Bitcoin was the Most Difficult Task

Trahan started off at a whooping milestone, being a “one-coiner”. He was handed one gleaming Bitcoin at the start of the video and promptly set out to buy breakfast.

His first attempt ended in a failure, as food trucks said a no to his requests for BTC payments. Eagle, Texas, has a single Thai restaurant that promised to accept Bitcoin. Luckily, Ryan Trahan managed to get a meal, but he had to cheat and use another method to pay. The restaurant only tested the waters with BTC, accepting the coins for a few months in the past. Coinmap, the app showing locations that accept Bitcoin, revealed only outdated locations and restaurants that were not in business.

Trahan did manage to pay for a haircut at his local barbershop, immediately using his mobile wallet. The bill came to $35, which was just a fraction of a BTC. Trahan spent Bitcoin at a rate of about $9,100 per coin, and since the video’s launch, the price is a bit closer to $9,400.

Hitching a Ride and Hotel Worked with BTC

Transportation was a bit easier, though it came with challenges. Trahan either cheated or was extremely lucky to find an abandoned scooter, on which he navigated the city. Scooters, apparently, did not take a BTC payment.

But hiring an Uber was easier, though requiring an extra step. Trahan spent Bitcoin to get a $20 gift card, which he then used to get an Uber ride.

Mariot, the hotel chain, was more hospitable, offering reservations, accommodation and room service as a Bitcoin payment. Trahan ended up owning the remainder of around 0.96 BTC. Not bad for an influencer with a $500,000 net worth.

Spending Bitcoin in 2019 should be easier – network fees are near an all-time low, and come to around $0.50 or lower for getting into the next block. But Trahan ran into an unexpected delay – waiting for his “change”, or UTXO balance, to return to his wallet and to be confirmed. This may take a few minutes, at least the time until the next block. In case the network is congested, paying in BTC may have to wait for hours until it clears. Some merchants accept zero-confirmation payments, but the wallet owner may face troubles using the remainder of the coins for a while.

What do you think about Trahan’s test with Bitcoin? Share your thoughts in the comments section below!

Images via Shutterstock, YouTube: Ryan Trahan

The post Surviving on Bitcoin for a Day: Influencer Ryan Trahan Does a Test Ride appeared first on Bitcoinist.com.

We at Bitcoinist already analyzed the controversial Article 7 from El Salvador’s Bitcoin Law from every angle. But, did we? The President himself, Nayib Bukele, defends and explains it in a way that leaves little doubt. They really thought this through. This is an elegant law that keeps everyone in mind.

To say that Peter McCormack was at the right place at the right time would be an understatement. The host of the What Bitcoin Did podcast scores a major victory with the President’s first interview after declaring Bitcoin as legal tender in the Center American nation. For his part, Nayib Bukele passes the test with flying colors. He really knows his Bitcoin.

Related Reading | President Bukele Teases El Salvador’s Volcano-Powered Bitcoin Mining Preview

His opening phrase says it all, “In the case of Bitcoin, the system is just beautiful.” No argument there. However, we’ll have to get into Bukele’s views at another time. First, we have to go to the heart of the matter and talk about the controversial article that got the world talking. “Article 7 is very important. But you cannot look into Article 7, without looking into Article 8 and Article 12, because they work together.” He thinks that would be, “Getting Article 7 out of context.” 

And we wouldn’t want to do that. So, let’s see what Bukele thinks about all three.

The Controversial Article 7 Of The Bitcoin Law

Art. 7. Every economic agent must accept bitcoin as payment when offered to him by whoever acquires a good or service.

“Article 7 actually protects the people,” Bukele says. It’s for the 70% of people that’s outside of the financial system, those who don’t have bank accounts, or credit and debit cards. How?

“Imagine these people in El Zonte or some other places working in an ecosystem with Bitcoin. And then having their sats and going into a pharmacy to buy medicine.” Without Article 7, the pharmacy could refuse because it’s a private agent. And that, “Would be a discrimination against the 70% of the people that you want to benefit.” They don’t have another method of payment. They have to be able to go to buy medicine or food, “and have them receive their sats.”

Ok, that makes sense. But, who protects the pharmacy?

Article 8, Nayib Bukele’s Protection To Merchants

Art. 8. Without prejudice to the actions of the private sector, the State shall provide alternatives that allow the user to carry out transactions in bitcoin and have automatic and instant convertibility from bitcoin to USD if they wish. Furthermore, the State will promote the necessary training and mechanisms so that the population can access bitcoin transactions.

President Bukele expresses clarity, “Bitcoin is something that promotes freedom. So, you need the freedom to either accept or not accept Bitcoin.” They want to protect the pharmacy from Bitcoin’s volatility, and from the fear of the new. “Article 8 gives you the power to immediately and automatically exchange the Bitcoin they’re giving to you into Dollars.” It’s as simple as that, “If they don’t want to receive Bitcoin, they just press the button and they’ll receive US Dollars.”

To summarize, “We need Article 7 to protect 70% of the people, and Article 8 to protect 30% of the people. Now, we have Article 12” 

BTC price chart on Bitbay | Source: BTC/USD on TradingView.com

At Their Own Pace, Article 12

Art. 12. Those who, by evident and notorious fact, do not have access to the technologies that allow them to carry out transactions in bitcoin are excluded from the obligation expressed in Art. 7 of this law. The State will promote the necessary training and mechanisms so that the population can access bitcoin transactions.

This one is for those who don’t have the technology, don’t have Internet, don’t have a smartphone, or don’t know how to use the app. “He doesn’t have to use it if he can’t use it. And if course, we’ll promote the use of it because we don’t want them to be left behind from the benefits of Bitcoin.” They’ll be able to learn at their own pace. If it takes five years, so be it, but the government will provide training and tools to speed up the process.

Bukele’s Three Articles Together

According to Nayib Bukele, El Salvador’s Bitcoin law is, “very clean. Simple, short, easy to read. Easy to understand. Nothing hidden.” And even though some people thought Article 7 was problematic, after the explanation it’s hard not to agree with him. “Article 7 is not there just to enforce the legal tenderness. It’s there to protect the people that’s going to work in the Bitcoin ecosystem.”

Related Reading | How El Salvador Embracing Bitcoin Signifies “The Separation Of Money And State”

A notable characteristic of the law is that ”you can actually opt-out. You have to accept the sats, but you don’t have to receive them. You can actually receive US Dollars. So, how can you complain? I mean, you’re receiving what you ask for.” El Salvador will have a trust fund dedicated to these currency exchanges. They’ll buy the Bitcoin from those who choose to receive Dollars, and they’ll protect their earnings from possible volatility in Bitcoin’s price. If the vendor does a transaction for $5, that’s exactly what he or she’s going to get.

According to President Bukele, El Salvador’s Bitcoin law “gives full freedom to the seller, but also gives full freedom to the buyer.” 

Do you buy his explanation?

Featured Image by David Peterson from Pixabay - Charts by TradingView

There’s still a long way to go, but analytics firm Gallup asked US investors about Bitcoin and got increasingly positive results. Slowly but surely, Bitcoin is reaching mainstream status. Gallup made a similar survey in 2018, and the compared data from both tells an interesting and bullish story. People with investable income are slowly waking up to the fact that there’s a new game in town. 

Related Reading | Bitcoin Falls to $53,000 as Wall Street Gains Hurt Appeal; What’s Next?

In 2018, the article’s title was “U.S. Investors Not Biting on Bitcoin, but Many Intrigued.” This year, it’s “Bitcoin Making Inroads With Younger U.S. Investors.” The tide is shifting. Indicators abound. However, we’re still very early in the game. It’s as Gallup says: 

Six percent of U.S. investors — defined as adults with $10,000 or more invested in stocks, bonds or mutual funds — say they own bitcoin. This is up from 2% in 2018. But ownership is up a more impressive 10 percentage points, to 13%, among investors aged 18 to 49. It remains minimal among investors aged 50 and older; just 3% now say they own it, versus 1% three years ago.

To put those numbers in perspective, we need to compare. But, who can compete with Bitcoin? What is it usually compared to? That’s right, gold is the only similar asset. Gallup goes one step further and compares it with every financial instrument under the sun:

Bitcoin ownership can be contrasted with the more mainstream investments U.S. investors rely on. For instance, 84% of investors report having money invested in stock index funds or mutual funds, 67% say they own individual stocks, and 50% have bonds. At 6%, bitcoin ownership is more akin to gold, which 11% of investors say they own.

Sex And Risk In Bitcoin Investment

Just as there’s an age gap, there’s a sex gap. As it happened with the Internet, women are taking longer to adopt Bitcoin. And, as it happened with the Internet, they’ll surpass men sooner than later. Just give them time. For now, Gallup informs:

Gallup finds male investors are over three times as active as female investors in the bitcoin market, with 11% of male investors and 3% of female investors now owners.

The perception of Bitcoin is also changing. As volatility settles down, so does the perceived risk factor the newer asset commands. And considering Bitcoin is an ongoing experiment with no guaranteed results, it’s only logical that most investors still see a level of risk inherent to the asset. 

Nearly all investors perceive bitcoin to be a risky investment to some degree — but the percentage calling it “very risky” has declined to 60%, from 75% in 2018. Most of the rest, now 35%, consider it “somewhat risky,” while just 5% think it is “not too risky” or “not risky at all.”

Those “not risky at all” people may be too optimistic, but, who are we to judge?

BTC price chart on Bitstamp | Source: BTC/USD on TradingView.com

What Does The 2021 Gallup Survey Ultimately Show?

“We know more about the will of employees, customers, students and citizens than anyone in the world.” According to Gallup ’s “About” page, their company knows what’s up. “We know what matters most to them at work and in life and how those priorities change over time.” And what does that company thinks about Bitcoin? Well…

Bitcoin is inching closer to general acceptance among U.S. investors, particularly with those under age 50. Not only do 13% of these relatively young investors own it, but their familiarity with it and willingness to buy it have risen to majority levels. 

Related Reading | Are The Tables Turning? Litecoin Transactions Compared To Bitcoin Are 75% And Growing

What’s taking so long? Well, it isn’t. Bitcoin’s adoption curve is beating that of the Internet, and we know how important that little technology turned out to be. In fact, it’s also beating mobile phones and any virtual banking tool:

When compared to the Internet, PayPal, technologies such as mobile phones and other virtual banking tools, Bitcoin’s adoption rate is much faster. Levin said:

Despite the fear mongering, Bitcoin, like all innovative technologies before it, is following a predictable and transparent adoption curve, albeit, at an accelerated rate.

In only 12 years, Levin estimates that BTC reached 135 million users today with projections to have 1 billion users by 2025.

Slow and steady wins the race.

Gradually, then suddenly.

 Featured Image by Icons8 Team on Unsplash - Charts by TradingView

After the Venezuelan parliament approved a law aimed at reducing inflationary pressure on the struggling fiat bolivar, certain crypto and foreign currency transactions would be taxed at up to 20%.

Venezuela To Tax Crypto Transactions At 20%

The Venezuelan government has authorized a new tax that will affect cryptocurrency and foreign currency transactions and payments. The levy, known as the “large financial transaction” tax, aims to encourage the use of the national currency, which has lost relevance in a multi-currency environment like the one that has existed in Venezuela in recent years.

The tax stipulates that any transactions or payments conducted in foreign currencies or cryptocurrencies without a limit quantity will be subject to a tax of up to 20%, depending on the nature of the transaction.

A local firm noted that MPs adopted the bill on a second reading during an evening session of the assembly on Thursday, February 3.

The national government will choose the percentage to be paid after the law is officially published, but in its first application, it will collect 2.5% on these payments. The rate will range from 2% to 20%, with the government having the authority to decide the ultimate rate in individual circumstances. People with incomes that the tax authority deems important to declare are referred to as “special taxpayers.”

Related article | Latin America, Tipping Point: Cuba Regulates, Honduras ATM, Venezuela Spends

The Bill To Incentivize Use Of National Currency

The law tries to encourage the usage of the national currency, which has lost nearly all of its value in the last decade and has lost over 70% of its value in the last year alone.

The Bill reads:

“It is necessary to guarantee treatment at least equal to, or more favorable, to payments and transactions made in the national currency or in cryptocurrencies or crypto assets issued by the Bolivarian Republic of Venezuela versus payments made in foreign currency.”

This, the lawmakers who authored the document wrote, will “give greater incentive and confidence to the use of the national currency.”

In recent years, Bitcoin acceptance has exploded in Venezuela, with tens of thousands of local businesses switching to bitcoin to hedge against hyperinflation. In October 2021, a major international airport in Venezuela planned to begin taking Bitcoin and other cryptocurrencies as payment for tickets and other services.

The inclusion of cryptocurrencies in this law reflects the importance of this type of currency as well as the amount of transactions and payments that take place in the country. Aaron Olmos, a national economist, holds this view. The law’s main goal, however, would be to tax transactions involving dollars, which, according to estimates, account for 65% of all transactions and payments in the country.

According to Jose Guerra, a Venezuelan economist, this will be a blow to Venezuelans that save their savings in foreign currency and cryptocurrency. Guerra noted:

“It must be recognized that foreign currency has solved part of the cash problems, reserves of value and savings of everyone in the country. Also crypto assets, to a certain extent. Making this decision is trying to privilege one means of payment over another.”

Related article | Venezuelan Petro Cryptocurrency is a ‘Scam’, Say Local Merchants