I was talking with a friend yesterday and he kept saying how he can't wrap his head around Bitcoin (or any cryptocurrency) since you always need to transform it into a real currency, like dollars, for it to be of any use, and has nothing really backing it like dollars do. Also if you pay with Bitcoin, the volatility means you could be paying much more than you intended. Paying a bill in dollars, inflation might change the $ value a year from now by a percent or two, but with Bitcoin, it changes way more. Honestly, I see where he's coming from.
Does anyone else struggle with understanding these issues?
I just found this article, that sheds light on the issue and explains how a Bitcoin might be more of a "store of value" than as the currency of a peer-to-peer electronic cash system.
https://www.investing.com/analysis/bitcoins-identity-crisis-is-it-digital-gold-or-cash-200267022Source:
Investing.com
