Bitcoin Real World Use Case
Bitcoin Payments: You can’t physically touch Bitcoin, but you can spend it.
By Macey Hollenshead – NextEdge Strategies
People love to debate Bitcoin. Some say there is no intrinsic value, while others talk about decentralization, censorship resistance, and freedom from the banking system. No matter where you stand in this debate, one angle that can’t be denied is bitcoin’s growing popularity as a payment system.
Traditional payment rails are slow, expensive, and built on outdated infrastructure. Businesses big and small feel this the most as merchants are getting squeezed. When a customer pays with a credit card, most stores are losing 2-3% of each transaction in card processing fees. Not to mention, there is also risk of chargebacks and fraud with the users. For a business doing $500k in annual revenue, that’s easily $15,000–$20,000 evaporating into the pockets of payment processors. For many businesses, that’s the difference between, hiring an additional employee, surviving the year, upgrading equipment or paying rent. Merchants don’t care what payment system they use they care deeply about saving money.
Bitcoin flips that entire model: It is quietly becoming the first real alternative that saves merchants’ money, reduces risk, and strengthens their business. When stores accept bitcoin as payment, there are 0% processing fees, no chargebacks, instant settlement, global usage, and every payment is Irreversible.
Bitcoin flips that entire model.
Bitcoin merchants could offer cashback for bitcoin payments. Every time a merchant uses Lightning or other Bitcoin rails instead of Visa:
They replace a 3% cost from credit card companies with 0% fee from bitcoin payments. The merchant in return offers customers a 2% reward for paying with bitcoin. In the end, this is free marketing for a select amount of time to encourage bitcoin use moving forward. Merchants naturally promote.
1. Merchants save money by escaping Visa/Mastercard fees.
2. They pass some of those savings back to customers as rewards or discounts.
3. Customers choose the cheaper, rewarded option.
4. Merchants promote it because it boosts their margins.
5. The network grows naturally.
US Policy Momentum Is Quietly Aligning
While the core driver of Bitcoin payments is economics, there’s another emerging tailwind that reinforces the direction things are moving. A new U.S. proposal in congress would allow Americans to pay federal taxes in Bitcoin. Why is this important? This payment would not trigger a capital gains event when paying the government.
This is where innovation and seeing the future comes into play. Everything is digital now, why wouldn’t our financial system be? We are so early in the transformation cycle, that it is hard to see bitcoin will be a payment system. This gives way to also seeing bitcoin as a store of value. Think about your everyday money. If you have a ripped 20 dollar bill, wouldn’t you want to spend it so you can keep your other crisp 20s in your pocket? This is how I see bitcoin. It is perfect money: Easily divisible, always open, global, and unprintable. There is no inflation risk. So why not use the US dollars in your bank account now, and hold bitcoin as it is the future of finance?
The Bigger Picture: Bitcoin Becomes Infrastructure
Bitcoin is evolving into: a global payment rail, a settlement network, the foundation for stablecoin transactions, and a merchant cost-saver. It’s the first system in history where everyone in the transaction benefits financially.
Bitcoin’s future isn’t determined by debates on the internet or political talking points. It’s determined by the same force that drives every technological shift:
If it’s cheaper, faster, and more efficient; the world will use it.
Merchants will adopt it to survive. Customers will follow the incentives. Governments are beginning to acknowledge it. That’s how mass adoption happens.
Not through belief, through economics.
About the Author
Macey Hollenshead is the founder of NextEdge Strategies, a consulting and research firm focused on digital assets and macro innovation at the intersection of AI and finance. This content is for educational purposes only and does not constitute financial advice. Markets carry risk; consult licensed experts before making decisions.
