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If bitcoin can be converted into fiat currencies at a lower transaction cost than the fiat-to-fiat conversions made by banks and credit card companies, it's a superior means of exchange.
One of the most common comments I hear from bitcoin skeptics goes something like this: Bitcoin isn't real money until I can buy a cup of coffee with it.
In other words, bitcoin fails the first of the two core tests of "money": that it is a means of exchange and a store of value. If we can't buy a cup of coffee with bitcoin, it obviously doesn't qualify as a means of exchange.
The confusion here is the same one that plagues the conventional understanding of the foreign exchange markets: people confuse exchange and convertibility, which are both flows, i.e. transactions.

Here's an illustration of the difference.

Let's say Hipster Coffee Bar accepts payment in bitcoin (BTC) for a cup of coffee. In the U.S., the coffee bar accepts the BTC as payment, which is then converted into the local currency, the U.S. dollar, to pay rent, employees' wages and so on.
The Hipster Coffee Bar branch in Mexico converts the BTC into pesos, the branch in Thailand converts the BTC into baht, and so on around the world.
Another coffee shop, Most Excellent Coffee, doesn't accept bitcoin in exchange for a cup of coffee. So when I enter Most Excellent Coffee, I convert a sum of BTC into U.S. dollars if I'm in the US, to pesos if I'm in Mexico or into baht if I'm in Thailand, and proceed to buy the cup of coffee.

You see the point: what matters isn't whether the coffee shop accepts #bitcoin directly; what matters is whether bitcoin is easily convertible to the local fiat currency. 

Put another way: convertibility rests on the recognition that the "money" is a reliable store of value that can be converted into a variety of other currencies.
As long as the cost of converting one form of "money" into another form of "money" is fast and low-cost (i.e. nearly frictionless), then it no longer matters whether the "money" in question can be used directly in an exchange or not.

Consider a credit card. 

Part of the service offered by the issuer isn't just a line of credit to fund purchases; it's convertibility from one's domestic currency into whatever currency is used in the place where you're making the purchase.
This convertibility is certainly fast in the credit card realm, but it's not frictionless; rather, it's costly, as a hefty fee is skimmed for every transaction paid in one currency and converted to the cardholder's domestic currency.
If bitcoin can be converted into fiat currencies at a lower transaction cost than the fiat-to-fiat conversions made by banks and credit card companies, it's a superior means of exchange.
In other words, it doesn't matter what currency the coffee shop accepts; what matters is the friction involved in converting the currency you hold with the one the shop accepts.

If bitcoin can be converted into U.S. dollars at a lower transaction cost that the USD can be converted into (say) Swiss francs, it's superior to fiat currencies as a means of exchange.

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Banks and other financial institutions have opposed cryptocurrency for quite some time now. Major entities including Goldman Sachs have remained wary of Bitcoin, even though that situation is slowly changing. In fact, the CEO of Goldman Sachs recently acknowledged there is no reason to dismiss Bitcoin whatsoever. This sudden change of heart comes at an interesting time, to say the very least.


Truth be told,Goldman Sachs has been far less aggressive when it comes to opposing Bitcoin compared to some other institutions. It never closed customer bank accounts for buying or selling cryptocurrency, nor has its CEO attempted to discredit Bitcoin as a tulip mania. Other banks, especially in the US, have some conflicting opinions in this regard, but that is only to be expected. It is difficult to keep an open mind when it comes to a new form of money that may make banks completely obsolete in the future.
Moreover, Goldman Sachs has been one of the more interesting banks when it comes to cryptocurrency and digital assets these days. More specifically, Goldman Sachs analysts have actually been advising clients on the Bitcoin price over the past few months. This advice has been well-received by the cryptocurrency community, as well as from institutional investors alike. In a way, this has been an interesting development, as it shows the institution isn’t dismissing Bitcoin whatsoever.
In fact, Goldman Sachs CEO Lloyd Blankfeinconfirmed as much earlier this week. More specifically, he stated that Bitcoin cannot be dismissed by the bank or anybody else, for that matter. While it is true the initial years have been pretty difficult for Bitcoin, no one can deny the world’s leading cryptocurrency is rapidly carving out its own legacy. In particular, the recent Bitcoin price spike has attracted a lot of attention from all industries.

Moreover, Blankfein touched upon how fiat currencies work. He explained that despite the widespread use of paper money, most people aren’t aware that fiat currency is an empty promise by a bank or government to honor the value printed on the paper itself. Whether or not those promises will ever be upheld when push comes to shove remains to be determined. So far, the system seems to work just fine, even though we have seen multiple cracks in the facade as well.
Truth be told, there is no reason for people to remain skeptical about Bitcoin. In fact, the concept of paper money hasn’t been universally received all that well either, which isn’t entirely surprising. A new form of money backed by consensus rather than centralized entities is something else entirely. Whether or not Bitcoin can succeed in this regard remains to be determined. The Goldman Sachs CEO isn’t skeptical whatsoever, even though that doesn’t mean he is a fan of Bitcoin or other cryptocurrencies by any means.
It is evident something is changing in the world of traditional finance. Bitcoin has been dismissed as a fad for far too long, and the time has now come to finally address the elephant in the room. Bitcoin will not go away overnight, no matter how much some people may want it to. Goldman Sachs is the first major bank to officially acknowledge Bitcoin isn’t going away. Whether or not others will follow suit remains to be seen.


Bitcoin, Like Anything New, is Confusing at First

Four years into its popular adoption, even a well-regarded economist like Paul Krugman thought little of the Internet’s potential, predicting, “The growth of the Internet will slow drastically,” he wrote, “most people have nothing to say to each other! By 2005 or so, it will become clear that the Internet’s impact on the economy has been no greater than the fax machine’s.”

It’s fair to look back and acknowledge not everyone fully appreciates a technology at the time of its inception or early years.New To Bitcoin? Welcome! Here’s How To Take Those First Steps

The same is true for Bitcoin, or will be.

Mainstream accounts of Bitcoin range from terrifying criminal portrayals to a speculative mania rarely seen. While
some of that is for sure going-on, the vast majority of Bitcoiners are people interested in a reliable payment
system and a money that holds its value (or better).

Leave the hype behind, both good and bad, and instead consider the basics of Bitcoin as a network and bitcoin
as a money.

Install a Wallet on Your Phone or Computer

Think of it like electronic mail, email. You don’t really understand how it works either, but you’ve used it in some fairly serious communications. Same might said of social media: you have an appreciation of its power because you’ve experienced it. To really get bitcoin, you have to use it, experience it in some practical way. The first thing to do is download a wallet, a piece of software to install on your smartphone or home computer. Continuing with the email analogy, you’re setting up your email address, but for money.

I am biased, of course, and believe ZuPago wallet is the easiest to use, but there are many available options. For beginners, ours is ideal. download the ZuPago Wallet App from the google play store following this link: https://play.google.com/store/apps/details?id=com.zupagope


ZuPago HyBrid (HD) Wallet Android App

ZuPago HyBrid Wallet App now available at Google PlayStore for Free.
Download & Enjoy top quality features combined with the innovative approach to payment processing that emphasizes simplicity, quickness, & security of Bitcoin (BTC), Bitcoin-Cash (BCC/BCH) & E-Currency (USD/EUR/GBP).

Download Now @ Google PlayStore

Or copy & paste this link to your Android Phone.

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Chosen ZuPago HyBrid (HD) Wallet, the system will enable you to do the following.

• Buy other currencies such as Bitcoin, GBP, USD as well as EUR. • Transfer money between ZuPago members. • Receive money over the Internet & in Cash. • Full access to Bitcoin network. • Gift Cards for friends and family @ low fee. • Make regular online payments. • Make payments for goods and services.

ZuPago HyBrid (HD) Wallet presents unique features for businesses as well as personal accounts.

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ZuPago is the most recognized and reliable platform that provides the best and the most affordable way to transfer E-currency across the globe. By using ZuPago HyBrid (HD) Wallet, you can easily send E-currency in Bitcoin, Bank transfer, USD, EUR, GBP or in any currency of your choice and the receiver will receive it in Bank transfer, Bitcoin or in any other currency that you prefer.

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