Note: At FinTelegram, we’ve been enthusiastic about cryptocurrencies since the early days — some of us have been advocating for Bitcoin since 2012. With the economic uncertainty brought on by the COVID-19 pandemic, and the upcoming Bitcoin halving event, interest in BTC is once again gaining momentum. If historical trends hold true, this halving could spark another major rally, with some analysts projecting prices as high as $300,000. But what truly gives Bitcoin its value? Here’s a breakdown of how BTC is perceived across different sectors.
Not Built for Everyday Payments
While Bitcoin pioneered the blockchain revolution, it’s not built to handle high-volume transactions like those managed by traditional financial systems or credit card networks. BTC transfers — even when accompanied by higher fees — can still take hours to complete. In the realm of practical, day-to-day payments, it falls short compared to streamlined FinTech services like TransferWise, Revolut, Monzo, or N26. When it comes to convenience and speed, Bitcoin simply can’t compete.
A Digital Store of Value
On the other hand, Bitcoin shines as a long-term investment vehicle. Despite its volatility, it has proven highly rewarding for those who entered the market early — particularly before the 2017 boom. Even mid-term investors from 2015 or 2016 have seen substantial gains. Similar to gold, Bitcoin’s scarcity (with a hard cap of 21 million coins) positions it as a modern alternative to traditional stores of value.
Volatility Attracts Traders
Bitcoin’s price often swings dramatically, sometimes by several percentage points within hours. For short-term traders and market speculators, this volatility presents continuous opportunities. While risky, the potential for quick profits makes BTC an attractive asset in the trading world.
The Preferred Currency of Cybercriminals
Unfortunately, Bitcoin has also become the go-to currency for online criminals, alongside the US dollar. As governments tighten Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, and cash becomes less common, illicit actors increasingly turn to crypto for its pseudonymous nature.
While major exchanges like Coinbase and Kraken have implemented rigorous compliance protocols, it’s still easy — and cheap — to acquire a crypto business license in countries like Estonia and run your own payment platform. Many scams now use this method to operate under a seemingly legitimate front.
Looking ahead, demand for BTC within the cybercrime ecosystem is expected to grow. As unsettling as it may be, the ongoing expansion of the digital underground could further entrench Bitcoin as a key tool in the world of online financial crime.