It's also fairly successful as a way to transfer money.
Sometimes you have to transfer money in and out of the country at war with it’s currency in free fall and capital controls in place. At times like that “normal” ways take about 30% of the sum as transactional overhead, while bitcoin doesn’t.
Sometimes “normal“ ways just don’t work normally. Sometimes your government is actively working against your ability to transfer your money for whatever reason — be it drug laws or capital controls or what not. Sometimes you enter account number into the “normal“ system and field just turns red for no reason at all. Sometimes you have your access to “normal“ system severely restricted because of your legal status and residency rights.
So yeah transferring money between Canada and US being resident of either of them and not doing anything funny — is not a use case for Bitcoin.
Seriously in reality the specifics of any sort of wild situation like the one you describe matter. Which countries? Which currency? Which kind of illegal behavior?
And (I ask out of ignorance) in this scenario you describe why would whatever group managing whatever bitcoin exchange or whatever is being used remain virtuous and not charge a 30% markup themselves?
That indeed is a bunch of real situations that have happened to me in 2014-2015 and some of that is still a thing. Check your privileges, sweet summer child.
Like seriously — for the first 30 years of my life it was outright illegal to have a bank account in a foreign country in my name. Not enforceable in practice, except I can’t make wires between two.
So 2014, fucking Russia is being Russia again, USD wired from foreign clients goes in... and is sold for UAH at government mandated rate. I sit in a third country, withdraw it through ATM. Guess what? It is converted back to USD at a market rate. Of course you can still bring cash or btc in and sell it at market rate plus some margin, but not 30 damn percent.
Sometimes it’s less dramatic and web interface of your bank doesn’t have regexp for IBAN format of destination country. Ridiculous but have happened as well, so I have proxied IBAN that starts with GB instead of UA and that always works.
But, like, the classic "society could collapse" fear-and-doubt, doom-and-gloom, grab-the-gold-and-the-burner-laptop-and-the-ammo argument can be used for just about anything.
Heck, even when society actually is collapsing, the argument isn't actually that great an argument!
I'm not even arguing that cryptocurrency couldn't have value in the scenario you describe. Just that genuine, specific, examples are more compelling than generalized scenarios. Generally speaking ; )
For example, all of the more specific examples folks talk about below (Argentina, etc).
Plus the parent poster made fair points, based on my limited knowledge, about accountability issues with cryptocurrency. And trust. Especially for nontechnical folk, and even for technical folk. Even (especially!) when society is collapsing, there's always someone out to scam you ...
For arguments sake, if someone is in the scenario you describe, what are good initial resources for a nontechnical person? For instance, should I use something like a coinbase wallet?
https://www.reddit.com/r/BitcoinBeginners/comments/fdykz3/is...
Then again people who I talked to in 2014, were still a bit in denial till the start of school year and only then left the area directly affected by war.
My point is simple — you take the ability to access banking system for granted, when it’s far from universal. It’s also not as unrestricted and interconnected as bitcoin or internet itself. Sometimes you have a bank and a card, but your ability to transact is restricted. It doesn’t always mean that you sit in the basement hiding from daily artillery strike or wandering post-nuclear desert on a cool bike.
I guess I was more pointing out that right now it seems highly scenario-specific whether or not cryptocurrency can help in the way you described.
Doesn't it depend on the amount of money you're dealing with, what you may or may not need to do with said money in the near-future, your own technical competence/facility, and perhaps even the current state of cryptocurrency itself?
You just need to be in a situation where the law prohibits, or somehow restricts or severely taxes, the money transfer itself, or the use of that money to procure something you need.
Please don't do this here. It is needlessly condescending and insulting..
"Does this hypothetical situation you describe exist anywhere outside of the hypothetical situation posited by a character in a Neal Stephenson novel"
WikiLeaks may have amassed more than $46 million in Bitcoin based on the number of coins held by its known wallet address. https://bitcoinist.com/wikileaks-has-received-more-than-46-m...
Sometimes crypto is the only way of sending/receiving money from other countries reliably and cheaply.
Other countries are much worse, Venezuela for instance has destroyed the value of their money, so bad that people use it wallpaper.
I heard there was a similar problem in Egypt, no idea if and how it was solved.
It beggars belief that someone would so callously call the situation in these countries 'hypothetical'. Please, inform yourself about the war and strife that is occurring outside your own bubble. Its very important that we in the West stop ignoring the plight of the people our military industrial complex is targeting with their weapons.
Bitcoin has held things together in many such places.
Also: Russia.
User adamsea is informing himself, that's why he's asking a question here.
Just because people are starving behind economic blockades and sanctions and mafia hell, doesn't mean they don't RTFM.
(Oh, and you can use BTC on the street, all over the world.)
Bitcoin users are a tiny, tiny percentage of "anyone".
Shouldn't we amend that statement to be "You can use bitcoin to buy anything which is being sold by some other bitcoin user?" ;)
Which sure, is potentially anything/anyone, but will obviously vary on circumstances.
They: What is this?
Me: Money.
They: No, bring money.
https://en.wikipedia.org/wiki/2012%E2%80%932013_Cypriot_fina...
Bitcoin was the backstop that saved my ass when I went to SE Asia and none of my first-class Australian or US bank cards would let me get cash.