FX.co ★ Will Bitcoin become a universal currency?

Lyn Alden, the Founder of Lyn Alden Investment Strategy, said that Bitcoin is more profitable as payment due to improvements in transaction speed and cost savings under tier 2 payment protocols such as the Lightning Network, and its usefulness as a currency makes more sense in some situations than in others.

Recently, El Salvador made bitcoin a legal means of payment, and accordingly, this law can facilitate transactions.

It is worth noting that the level of banking services in El Salvador is not high enough, and, ironically, it is easier to get a cheap smartphone than to get a bank account. So for those people who have a free bitcoin wallet on a cheap cell phone, this will really simplify transactions. And although there is a risk of instability, it is never too late for those who do not want to store large amounts of Bitcoins to convert them into US dollars again.

According to Lyn Alden, consumers should know that borrowing Bitcoins is a big risk. In general, any form of debt expressed in a currency other than the currency of the source of income will be risky if the value of the debt unexpectedly rises.

When compared to gold, Bitcoin is better suited for e-commerce in terms of large money transfers and digital transactions since the precious metal is not the best choice for such transactions.

However, gold has less volatility and also has low transaction costs if the transaction is done in person and the seller accepts gold as a form of payment.