Barriers preventing you from using bitcoin today/advantages of using bitcoin?

[DougM]

There was some excellent points/discussion on my recent Poll: when will cryptocurrency go mainstream?. I actually didn't vote myself until I reviewed a number of the responses  

Mostly the answered varied from 'already' to 'never' based on personal interpretation of what 'mainstream' means.  If I was a pollster I would have failed for providing such an open ended question, but for the sake of bitcointalk discussion, it actually was quite interesting to see everyone's thoughts. Thank you for your participation so far...the poll isn't closed yet so get out and vote!! 

Anyway, the responses made me think hard about what I considered 'mainstream' myself. Sure if mainstream meant world wide name recognition then bitcoin has long passed that threshold, but for me it is about usage as a replacement for fiat money.  I believe that was Satoshi's ultimate dream not simply a household name or even a digital gold replacement.

Personally, there are *many* barriers remaining before I will use bitcoin over my credit card and even a few significant barriers where I would use it over say cash (I never use a debit/check card myself). 

I would like like to hear from bitcointalk members about what barriers YOU believe are preventing you from using bitcoin today.

My personal top reasons that doesn't even get to the technical issues involved:

#1 barrier in the USA is the tax treatment of bitcoin  Personally, there is no way I would want to track every micro purchase to complicate my tax return!

Because bitcoins are being treated as assets, if you use bitcoins for simple transactions, such as buying groceries at a supermarket, you will incur a capital gains tax (either long-term or short-term depending on how long you held the bitcoins).
https://www.investopedia.com/articles/investing/040515/are-there-taxes-bitcoins.asp

#2 I make money by using my Credit Card today Again, Personally, I like CC which is easy to use for purchasing and with autopay I don't even need to think about it after I make the purchase. Plus I get a rebate $ back and an extra month earning a whopping 0.0001% interest    Even eliminating all of the technical barriers so that bitcoin was as easy as a CC swipe and universally accepted like VISA (better than a Discover card please ) it still would be like me using a debit/check card which I never do today.

I realize these are my top personal reasons, but there are a lot of other potential advantages that others might enjoy.

I would be interested in hearing about what you perceive is the advantages of paying with bitcoin (or name your fav crypto if different)

To get the ball rolling let me provide some benefits cited in an article, but hopefully we can collectively come up with even better ones:

1. User Autonomy
The primary draw of bitcoin for many users, and indeed one of the central tenets of cryptocurrencies more generally, is autonomy. Digital currencies allow users more autonomy over their own money than fiat currencies do, at least in theory. Users are able to control how they spend their money without dealing with an intermediary authority like a bank or government.

2. Discretion
Bitcoin purchases are discrete. Unless a user voluntarily publishes his Bitcoin transactions, his purchases are never associated with his personal identity, much like cash-only purchases, and cannot easily be traced back to him. In fact, the anonymous bitcoin address that is generated for user purchases changes with each transaction. This is not to say that bitcoin transactions are truly anonymous or entirely untraceable, but they are much less readily linked to personal identity than some traditional forms of payment.

3. Peer-to-Peer Focus
The bitcoin payment system is purely peer-to-peer, meaning that users are able to send and receive payments to or from anyone on the network around the world without requiring approval from any external source or authority.

4. Elimination of Banking Fees
While it is considered standard among cryptocurrency exchanges to charge so-called "maker" and "taker" fees, as well as occasional deposit and withdrawal fees, bitcoin users are not subject to the litany of traditional banking fees associated with fiat currencies. This means no account maintenance or minimum balance fees, no overdraft charges and no returned deposit fees, among many others.

5. Very Low Transaction Fees for International Payments
Standard wire transfers and foreign purchases typically involve fees and exchange costs. Since bitcoin transactions have no intermediary institutions or government involvement, the costs of transacting are kept very low. This can be a major advantage for travelers. Additionally, any transfer in bitcoins happens very quickly, eliminating the inconvenience of typical authorization requirements and wait periods.

6. Mobile Payments
Like with many online payment systems, bitcoin users can pay for their coins anywhere they have Internet access. This means that purchasers never have to travel to a bank or a store to buy a product. However, unlike online payments made with U.S. bank accounts or credit cards, personal information is not necessary to complete any transaction.

7. Accessibility
Because users are able to send and receive bitcoins with only a smartphone or computer, bitcoin is theoretically available to populations of users without access to traditional banking systems, credit cards and other methods of payment.
Source: What Are the Advantages of Paying With Bitcoin?

What do you think?

[mk4]

I would be interested in hearing about what you perceive is the advantages of paying with bitcoin (or name your fav crypto if different)

There are a lot of various advantages of Bitcoin in general, but it's mostly:

1. For privacy: Not like I'm buying dragon dildos or something similar, but I feel more comfortable buying stuff peer-to-peer; without(or with less) centralized entities knowing what I'm buying. Unfortunately of course, what you can buy with bitcoin online is very limited.

2. Having self custody: not necessarily concerning payments, but it feels great having total ownership of the money(bitcoin) I have; especially right now whereas the whole world is going bonkers.

3. Because fuck PayPal. Seriously. So much problems with it throughout the years that it's unfortunate that my options mostly are pretty much either use PayPal, or use my debit card.

[thesmallgod]

Pain for services or goods using bitcoin makes it possible to explore many opportunities globally which would have been difficult to do using a debit cards. To be specific, the central bank in my country has made it impossible for many people to use a debit card on an international website. However, using bitcoin makes it easy to break this barrier as long as it is accepted on such platforms.

[Fundamentals Of]

The number one reason why I can hardly spend my Bitcoin is that there are almost no market, stores, and other businesses which are accepting Bitcoin. However excited I am to try to experience spending my Bitcoin in an actual purchase of goods and services, I am always confronted with the reality that these purchases can only be done online for now. And even online, purchases using Bitcoin is very limited.

[hd49728]

I would like to talk about barriers and here I would like to write about the biggest and most serious barrier (IMO of course) that prevent people to use bitcoin.

People who are die-hard or stick-in-the-mud have to clear their conservative mind. Such negatively conservative mind does play as barrier to prevent them accept bitcoin. They doubt on bitcoin, reject to read, learn, and never adopt bitcoin.

Clear your mindset and become kids that will help you increase prob to accept bitcoin.

[Lucius]

If one were to generally looking for the biggest barrier that prevents someone from using Bitcoin as a means of payment then it would surely be the fact that there are no stores that accept Bitcoin in their vicinity. In some countries the situation is better than in others, but in general it is mostly online stores that accept BTC as a means of payment, and given the nature of BTC transactions that have no insurance in case of fraud, few take such a risk.

The second barrier is more mental than physical, and we all know that there is a large percentage of those who do not perceive Bitcoin as a currency, but only as an investment.

As for the benefits of using Bitcoin, I think more or less everything is listed in the OP, and all those who have sent some money internationally know that it can take up to 5 working days and that it will not be cheap. Also, the mere fact that using BTC means bypassing banks is quite enough for some to use it at every possible opportunity.

Perhaps the greatest benefit for any individual is that for the first time in history all people can be their own bank - for some priceless, for others a nightmare


Fundamentals Of, there are several link directories where you can find sellers who accept Bitcoin - so I wouldn't say we're completely limited.

https://spending-bitcoin.com/

[Eugenar]

Biggest restriction is its adaptation. Majority of the countries, still, are not into cryptos as a digital currency, to be used in services and transactions. There are indeed advantages of it but countries wherein Bitcoin and other cryptos are not supported, are concerned with its price volatility. If it would be a medium of transactions, its value sbould be consistent in order to promote equality. Just think of it; if the price still is not stable, those businesses which would accept cryptos as payment will be at risk from doing so. They will be at risk of partially losing profit. Given that no one knows when will an uprise movement occur, the money would be "sleeping" instead of being a continuous amount to boost the business itself.

[kryptqnick]

Personally, there are *many* barriers remaining before I will use bitcoin over my credit card and even a few significant barriers where I would use it over say cash (I never use a debit/check card myself). 

I would like like to hear from bitcointalk members about what barriers YOU believe are preventing you from using bitcoin today.

The main barriers for using Bitcoin as money that I face:
1. Almost nobody accepts it as payment. My main expenses are the rent and groceries, and neither can be paid for in BTC. I also use public transportation and this buy a monthly pass which cannot be bought with BTC. I see some places accepting Bitcoin very rarely, but they don't sell the stuff I need, and I don't want to buy something I'm not going to use just to pay with Bitcoin.
2. Additional fees. From my limited experience with merchants that do accept Bitcoin as payment, it seems that it's always cheaper to pay with local fiat because the price in BTC is adjusted to cover fees required by the merchant to exchange it back to fiat.
3. Bitcoin transaction fees. When it's less that $1, I'd be willing to pay it. But when it's more that $1, it would be very significant given how much I usually spend somewhere, and I buy something that costs more than $50 very rarely.

[Ucy]

The second barrier is more mental than physical, and we all know that there is a large percentage of those who do not perceive Bitcoin as a currency, but only as an investment.

I think one of the reasons for this is the lack of understanding of what currency is. Perhaps they don't understand how a mere long string of intangible numbers on the internet can be currency. Maybe if you print it on paper and/or tie it to some "good things" people value, it will make more sense to them.

If you tie, let say, 1 btc/coin (some sort of asset-backable coin/bitcoin) to a small pieces of land, and only the owner of the 1 btc can own/have the full right to the piece of land... Then you ask a newbie who doesn't really see bitcoin as currency to buy the coin and have the full right to the piece of land, I bet this will help make coin make more sense to him/her. This works in similar manner for online-based virtual assets/values. Tokens for example can be created to represent(or be tied to) simple art works or any other kinds of virtual products. This could easily mean that the tokens/currencies have real intrinsic values... because they are tied to things that have good values. Bitcoins paid to workers for example are tied to their good services or hardworks (which are values). So you can correctly say it has intrinsic value if the good quality service can be replicated for more/other consumers. This value represented by numbers are exchanged between people within the economy.     I think this is one of reasons it's very important to have a currency with lots of people who deliver good quality services. And you can incentivize participants to deliver  or create great quality services/products for bitcoins.

[avikz]

I would like like to hear from bitcointalk members about what barriers YOU believe are preventing you from using bitcoin today.

There are many but let me list out a few for you from the perspective of my country.

1. No legal definition - bitcoin doesn't have a legal definition in my country. It is not recognized in any way.

2. No tax recognition - since it ia not legally defined, it doesn't have a tax recognition as well. Some people pay taxes on their bitcoin earning but that's as per their own calculation. Tax authority didn't provide any tax related info on bitcoin.

3. No merchat acceptance- for the same reason, merchants don't accept bitcoin as a legal payment method if they are doing something legally.

4. Low credibility - there are many instances happened where people have ordered illegal drugs using bitcoin and then caught by the enforcement authorities. Every newspaper highlighted such newses involving the name bitcoin. For a layman in my country, bitcoin is a scammers money used only for illegal stuffs.

These are main reasons why I can't use bitcoin in my country!

[dothebeats]

I guess the lack of merchants largely affects the decision of a lot of people to use bitcoin and other cryptocurrencies on using bitcoin on real-world transactions. Not that txs related to purchases aren't happening but the number is significantly small to justify how great bitcoin and crypto can be as a form of payment. I know a lot of people like me are itching to use their crypto to buy something that is more of a necessity rather than a novelty, so the demand is there. It's just that most merchants are still hesitant to integrate crypto-payments due to their common enemy: volatility.

[HeRetiK]

#2 I make money by using my Credit Card today Again, Personally, I like CC which is easy to use for purchasing and with autopay I don't even need to think about it after I make the purchase. Plus I get a rebate $ back and an extra month earning a whopping 0.0001% interest    Even eliminating all of the technical barriers so that bitcoin was as easy as a CC swipe and universally accepted like VISA (better than a Discover card please ) it still would be like me using a debit/check card which I never do today.

Also: The opportunity cost of spending bitcoin rather than fiat.

Of course one can always spend and refill, but that can be (1) relatively cumbersome and (2) come with unwanted tax implications. While your mileage may vary, depending on the available services and tax rules in your country of residence, this will still hold true for most people to some extend.

How to fix this? Wait until Bitcoin reaches a price level where volatility becomes negligible, I guess.

[molsewid]

The only barrier that prevented me to use my bitcoin mostly in my daily transaction is it's not acceptable in online shops, stores, supermarkets, and pharmacies. Of course, the transaction fees cost too much sometimes. I think if bitcoin fees become lower forever many would like to use it in their businesses and daily transactions.

[Ucy]

4. Low credibility - there are many instances happened where people have ordered illegal drugs using bitcoin and then caught by the enforcement authorities. Every newspaper highlighted such newses involving the name bitcoin. For a layman in my country, bitcoin is a scammers money used only for illegal stuffs.

These are main reasons why I can't use bitcoin in my country!

Ofcourse, this's part of the problems. It's not as if fiat currencies (esp the physical ones) are not used for bad/immoral/illegal things though. They are most likely used far more for evil... Unfortunately they are not as transparent as Bitcoin to help us (the public) know the truth, which is part of the reasons the public don't know much about what they are used for aside information on "crime tainted fiat currencies" handed to us by people that expect  the public to trust them without having the proper means of verification that has the Bitcoin-level transparency.

Well, I just hope we will have decentralized communities/networks on Bitcoin to help prevent things that are wrong/immoral on whole network and for keeping it safe. If you could develop such decentralized networks/communities, it will really be harder for Bitcoin to be controlled centrally. But if you don't, and the network is seen( and proven) as a place with tolerance for evil, it could be "punished" and conquered.
I think Satoshi suggested the use of reputation to encourage good behavior. Other forms of incentives for encouraging good behaviors should be tried also

[BrewMaster]

but for me it is about usage as a replacement for fiat money.

i don't see it that way. bitcoin doesn't have to replace fiat to be considered "gone mainstream". the bitcoin adoption, or the ultimate one mass adoption is when people have the option to pay with bitcoin if they choose to or continue using fiat if not.
and i have never read anywhere that Satoshi said anything about "replacing". even in the paper it is referred to as something like an alternative method.

as for advantages, i'd say the main thing is the control and power one has when they use bitcoin compared to using fiat where they have to rely on banks, credit card companies,... to have access to their own money. and that comes with a lot of limitations.

[DougM]

but for me it is about usage as a replacement for fiat money.

i don't see it that way. bitcoin doesn't have to replace fiat to be considered "gone mainstream". the bitcoin adoption, or the ultimate one mass adoption is when people have the option to pay with bitcoin if they choose to or continue using fiat if not.
and i have never read anywhere that Satoshi said anything about "replacing". even in the paper it is referred to as something like an alternative method.

as for advantages, i'd say the main thing is the control and power one has when they use bitcoin compared to using fiat where they have to rely on banks, credit card companies,... to have access to their own money. and that comes with a lot of limitations.

You are right, 'replacement' was a poor choice of words on my part....consider instead 'alternative' (I just edited my original post to reflect this)

Satoshi original paper was entitled  Bitcoin: A Peer-to-Peer Electronic Cash System suggesting he envisioned bitcoin to be an alternative for cash, right?

Unfortunately, I do not use nor do I see much use of bitcoin in the USA in this fashion today....hopefully that will change one day.

[Upgrade00]

Unfortunately, I do not use nor do I see much use of bitcoin in the USA in this fashion today....hopefully that will change one day.

I don't think it is an unfortunate situation. Bitcoin has been around for just above 10 years and has made lots of progress within that time frame. Adoption rate has been actually very quick imo, and the fact that we are having discussions about global adoption shows the potential it has shown. Fiat has been around for a very long time (centuries) and has evolved over the years to what we have today, Bitcoin would need a lot more time to function effectively as an alternative.

I would like like to hear from bitcointalk members about what barriers YOU believe are preventing you from using bitcoin today.

One of the major barriers is its speculative value. The price is volatile and overtime has shown to mostly appreciate. This potential ROI limits a lot of people from spending their bitcoins and it is viewed as an investment.

[Oasisman]

but for me it is about usage as a replacement for fiat money.

i don't see it that way. bitcoin doesn't have to replace fiat to be considered "gone mainstream". the bitcoin adoption, or the ultimate one mass adoption is when people have the option to pay with bitcoin if they choose to or continue using fiat if not.
and i have never read anywhere that Satoshi said anything about "replacing". even in the paper it is referred to as something like an alternative method.

Exactly, the key word is not to replace but to choose Bitcoin more often than fiat, debit, cc, and other form of digital currency when these options are presented when you pay for service or goods.
Replacement means eradicating the fiat completely, I don't see that happening.

I would be interested in hearing about what you perceive is the advantages of paying with bitcoin (or name your fav crypto if different)

Well, I could say "Convenience and privacy". Unlike paying with debit or cc when you like to subscribe for an online service provider or purchase a product, you don't need to link your financial information such as card number. Bitcoin could be directly sent to the merchant without linking anything.

[pixie85]

The points that prevent OP from using Bitcoin are completely irrelevant for me.

I have to pay for my card each month so it's not like I'm making money with it.
I also don't live in the US so US laws don't concern me. In the EU we don't have especially high Bitcoin taxation. It's either taxed lower than fiat money or on the same level.

The only thing that stops me from using Bitcoin to buy things is lack of acceptance. I can use amazon via payment processors but that's online shopping. I can't buy things in stores.

[figmentofmyass]

Also: The opportunity cost of spending bitcoin rather than fiat.

Of course one can always spend and refill, but that can be (1) relatively cumbersome and (2) come with unwanted tax implications.

not to mention it costs money---fees to wire money to an exchange, trading fees, or the premium you pay over spot price on LBC. and while you're waiting or going through the process to rebuy, the price could edge even higher.

this is why we see what bitpay likes to call a "wealth effect" with bitcoin usage. after a significant rise in price, people love to spend their bitcoin as a way to lock in those capital gains. this was in 2017:

The more valuable bitcoin has become, the more people are using it to buy stuff.  ”We have definitely seen a ‘wealth effect’ pattern when the bitcoin price increases,” says James Walpole, BitPay’s marketing manager. In other words, if you already owned bitcoin and it rose in value, selling some bitcoin would give you more dollars to spend.

The bitcoin “wealth effect” is also evident in the buying patterns of customers at CheapAir, which sells plane tickets, hotel reservations and car rentals online. CheapAir was one of the earliest merchants to accept bitcoin payments in November 2013, and founder Jeff Klee says his bitcoin customers are now feeling flush. “With bitcoin we tend to generate more sales in premium cabins like business class or first class,” he says. “Certainly the average spend for the bitcoin customer is higher than a non-bitcoin customer.”

https://qz.com/931810/cheapair-and-bitpay-data-show-rising-bitcoin-btc-payment-volumes/

i 100% agree with the points about tax implications and credit card incentives too. you could get 2-3% cash back using a credit card, whereas using bitcoin might just incur costs (to replace it) and unwanted taxable transactions.