1) I can send dollars quickly and cheaply using services like Paypal or Dwolla.
2) If I want a low-risk store of value, I can buy bonds.
3) If I want to be anonymous, I can use cash.
Granted, bitcoin can do both #1 and #3 at the same time (though dollar<->bitcoin fees seem to be high everywhere). I hear Bitcoin is supposed to do #2, but in reality, it's extremely volatile/high-risk right now.
Is being able to do #1 and #3 at the same time really that useful? Are there any other advantages I'm missing?
1. Payment providers can choose to block your account whenever they feel like it. They can charge whatever fees they like.
2. Bitcoin is booming and it is very volatile at the moment. It will take time to mature and stabilize. If you are a merchant you can use a payment processor like bitpay who will allow you to accept bitcoin, and who will pay you, the merchant, out in your preferred currency. This makes the volatility the risk of the payment processor when the value of BTC dips, and the profits theirs if the value increases.
Other advantages:
- Cryptocurrrency allows you to send money to anyone anywhere on the planet for mere cents. No one can block your transaction, no one can tell you what to do, no banks are involved. Think about how mindblowing this actually is.
- Counterfeiting is impossible.
- Chargebacks are impossible.
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