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Forex Education
by ForexNewsNow Team on April 7, 2016

What can you do with bitcoins?

Bitcoin is a new currency. It got established only in 2009 but till date all of the bitcoins that exist are valued at $ 6,507,528,963. The main purpose of bitcoins is rather questionable and debatable, some people would say that it was mostly developed due to the sophisticated technology it employs. Others would say that bitcoin founders were developing it with monetisation in mind. There are also groups of people that think of BTC as a world-changing asset. As it is not controlled by any government, bitcoin could be treated as another step towards globalisation.

Well, whatever the reason behind bitcoin is, it the philosophy is outside of the scope of this article. What we are going to do is to focus on the practical applications of bitcoins.

Paying with your bitcoins

The countries are currently debating whether bitcoin is a currency or a commodity. The main feature here is that bitcoin is accepted so widely that it has quickly became one of the world’s leading payment system. In simple words, you can use bitcoins to pay for goods and services nearly as simply as you would use the dollars or gold. The main advantage here is that the payments you make with bitcoins are commissions-free and anonymous.

Trading bitcoins

Most of the bitcoin trading volume is purely speculative. Unlike Forex, which is the largest market in the world, but its volumes are mostly transactional. This is why it might be a great idea to actually which from EUR/USD trading and move to BTC/USD. The later is less likely to be influenced by the macroeconomic data and is more predictable with technical analysis due to its volumes. There are not so many Forex brokers that offer bitcoin trading, especially when you are looking to get some leverage, but in 2016 you can find more and more brokers that have added BTC/USD to the armory of the trading assets.

Bitcoin poker

Playing poker with bitcoins is not really different from playing just a regular online poker. The main difference between those two things is that when playing bitcoin poker you can gamble without getting rid of the bitcoins that you might be helding for speculative purposes. Say you bought 10 BTCs at $300 and want to have a little quiet evening and play a few sit and goes. Assume you also don’t have plenty of dollars to spend, but you do have your bitcoins on your wallet and their value is growing. Instead of cashing out your bitcoins, converting them into dollars and making a deposit via your credit card – you can just deposit BTCs to one of the bitcoin poker rooms and start playing your favourite game nearly instantly.

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