In addition to being a powerful tool for payments, Bitcoin is many other things to many people. It can serve as a hedge against the fiat economy, a store of value, a speculative asset and more. So if you are holding BTC as well as other currencies, you might be wondering why you should be using your bitcoin to buy things.
Because Bitcoin is free from the third parties that oversee credit and debit card transactions, BTC transactions are inherently faster, cheaper and free of governmental regulation.
While credit card companies typically charge a 2 to 3 percent processing fee on fiat currency, bitcoin payment processors typically charge 1 percent fees. (There are also fees tied to bitcoin transactions, which incentivize miners to verify them. These fees vary based on network conditions and transaction size.)
Because Bitcoin is not controlled by any central authority, but rather distributed across nodes located around the world, the barriers that make international fiat payments difficult do not exist for BTC. Transferring bitcoin across borders does not incur extra fees, nor can it be regulated by a government (although the Bitcin payment processors that make BTC payments easier are subject to government regulation). Some merchants in certain parts of the world may also prefer BTC to their given fiat currency, depending on the state of their country’s economy.
Many Bitcoiners who choose to spend their BTC despite having access to fiat (even if paying with bitcoin is more cumbersome in some scenarios) do so to propagate the “closed loop economy” for Bitcoin.
This vision of a world where we all choose to transact in Bitcoin is the ultimate goal behind the technology for many people. If BTC were the chosen medium of exchange around the world, many people would realize brand new spending and value creation power. The world economy would become vastly more equal and the ingrained institutions that control wealth and power would be forced to adapt.