Need to look at what Bitcoin can't pay for.

by Glen Wallace

While there may be plenty of places you can buy stuff with Bitcoin, and that list may be growing, the important point is what you cannot 'pay for' with Bitcoin. 

In the US and other developed nations, there is a list of expenses that make up what is commonly referred to as the 'cost of living.' It is those expenses that must be spent in order to maintain a foundational level of modern industrialized society living comfort one is accustomed to.

It is those cost of living expenses that cannot be payed for with Bitcoin and I've seen no signs of any adoption of acceptance of Bitcoin as consideration of payment in those costs. 

Examples of those expenses that cannot be payed for with Bitcoin: Mortgage payments, HOA fees, Rent, Property taxes, public utilities, gas and electric, all types of insurance including property insurance, health insurance, auto insurance, student loan payments. It is only after all those essential expenses are made that maybe one can look for some nicety they can buy with Bitcoin. I think this lack of use for Bitcoin to pay for the costs of living expenses will greatly weaken future demand for the cryptocurrency. 

Right now I think people are mostly just flipping or hoping to flip the virtual currency with the goal of acquiring more dollars that can be then used to pay for those cost of living expenses and maybe a few niceties if there is some dollars left over.