Why Buy Bitcoin

Bitcoin was initially developed to be used as a form of payment. It quickly however also became a form of investment. Whether you consider Bitcoin as money or as an investment tool it is important to remember that like both money and shares (or similar investment tools) they only exist as these two possibilities because you think that other people value it as well.

As discussed in our What is Bitcoin page the appeal of Bitcoin is wide ranging. Aside from simply an ideological position on having a method of payment or investment that is not managed by one central institution, here are a few reasons why people around the world buy Bitcoin.

1. They use it to send to their families overseas.

Whilst Vanuatu has always had a strong banking sector and Ni-Vanuatu for the most part have been able to access banks even in the outer islands, this is not the case in a lot of other  LDC countries. Throughout Africa and Asia there are many people that for a variety of reasons do not have access to banking facilities. Their family and friends from these regions and also those who live abroad can buy bitcoin then send it without having to use a bank. Bitcoin ATM’s are now used worldwide as a way of sending and receiving bitcoin and converting it into cash.

2. Using it to pay for goods and services

Many manufacturers and service providers around the world now offer Bitcoin as a payment option. Instead of having to wait for telegraphic transfers, customers can now transfer bitcoin as a method of payment. This means payments can arrives within minutes and both sender and receiver can confirm payments individually by forwarding a block chain transaction code to each other. Online or ecommerce merchants have also quickly picked up on using bitcoin as a method of payment because of how much more secure it is compared to credit cards, i.e. they cannot be charged back to the merchant.

3. Using it as an investment & speculative trading tool

Bitcoin started as a method of payment, but almost immediately also transformed into a form of investment and speculative trading tool. Using Bitcoin in this manner is highly risky as its price has been volatile throughout its history with lots of winners and also a lot of losers.  We highly recommend that you research bitcoin trading trends before using bitcoin this way.

Why Not to Buy Bitcoin !

As Bitcoin is unregulated it can often be used for purposes that are illegal (i.e. purchasing of illegal items, money laundering, scams).  Before you buy Bitcoin you need to understand that purchasing and using it for illegal uses such as illegal purchases or money laundering can result in serious consequences. Across the world countries are putting in regulation for Bitcoin and breaches of these regulations can result in jail time.

Scammers have also now moved onto using Bitcoin in the same way they previously used Western Union and Bank transfers and they are asking for bitcoin as a method of receiving payment from people they are scamming.

If you (someone in Vanuatu) are being asked by someone from Nigeria, Latvia, Egypt Cameroon or other like fraud hot spots for payment using Bitcoin, it is almost 100%  that you are being scammed.

Always remember the following:

  1. If you did not participate in a lotto and you have been advised that you have won, but need to send bitcoin…. It’s a scam
  2. If you have been be-friended by someone online who you have never met in person and believe yourself to be in a relationship with this person and they ask for bitcoin as a sign of your love for them…. It’s a scam
  3. If you or a family member or friend are sick and someone proclaims to have a miracle cure that cannot be verified by searching on google and want to be paid in bitcoin… it’s a scam
  4. If you suspect you are the target of a scam, go through the below check list:
    1. Someone you do not know is asking you to send them bitcoin
    2. You have received an email, social media message or phone call from someone overseas who you do not know.
    3. You are being asked to handle payments – people asking you to accept payment (in bitcoin or cash) and then forward it on.
    4. You are being threatened, i.e. you’ll lose your job, go to jail etc.
    5. You are being asked to provide your information and send Bitcoin to an unsecured website, i.e. one that does not have https:// in front of it.

If any of the above apply to you, then you are being scammed and we implore you to not buy bitcoin and sent it for the above purposes.