Cryptocurrencies are important for numerous reasons, but as it pertains to bitcoin because it meets and exceeds other forms of monies to assist the individuals holding the asset. Bitcoin excels in the following areas:
Whether the money can be exchanged repeatedly; hence it must survive wear and tear for long periods. Bitcoin is a digital asset. It is information. As such, it cannot be dropped, torn, or otherwise destroyed in a manner that a physical currently can be affected.
The ease at which money may be transported. Bitcoin is information. It can be transported over the internet or carried on a hard drive. In this respect, the transmission of information is much easier than the transmission of a physical asset.
Whether the money can be easily divided to enable the purchase of different products. Each bitcoin can be subdivided into one-hundred-million subunits, with the smallest subunit called a “satoshi.” Upon the widespread adoption of Bitcoin, further subdivision is possible. As such, Bitcoin excels at the property of divisibility.
A standardization of money so that it looks the same and is recognizable. Bitcoin can be quickly and independently verified by the owner to confirm its authenticity. As more transactions occur virtually, involving only the transfer of information, such independent authentication will be important and is an asset that Bitcoin possesses.
Money is only valuable if it is in limited supply. This component of scarcity is perhaps the most important trait of Bitcoin and is driving much of the fervor surrounding the possession of Bitcoin, particularly as governments print more and more of their local currencies to address economic challenges.
The currency must be acceptable for trade in the stream of commerce. Bitcoin and other cryptocurrencies are making headway involving this aspect of money, as more and more retailers accept cryptocurrencies as payment for goods and services.
The Cobos Law Firm accepts Bitcoin and some other forms of crypto-currencies in exchange for legal representation. When in need of a cryptocurrency lawyer Houston businesses trust our firm’s experience and expertise.