Being the world's first decentralized peer-to-peer digital
cryptocurrency, Bitcoin has amassed a lot of users from around the world. As a
matter of fact, bitcoin is considered to be a very good revolution in the
present currency world. So far so good, a lot of people have been adopting this
virtual currency and its popularity has extended all around the world. In fact
some of the countries that had initially banned the trade and use of BTC are
now looking to make it legal.
Bitcoin actually faced a lot of criticism when it was first
created. A lot of people considered it to be some kind of Ponzi scheme, a kind
of scam, due to the fact that the creator (or creators) were unknown, it was
the first of its kind, and a lot of other factors. But over the years, currency
and market experts started looking into what BTC is and they were able to
comprehend the power of digital currencies.
Once they got past the fact that it was not a scam and realized
how powerful and useful it could be, they started portraying it in a positive
way. Although there are still a lot of people who are unaware about the digital
currency world, much less bitcoin, it is safe to say bitcoin has gain momentum
over the years and has been well adapted to. Bitcoin is poised to become a very
relevant force to reckon with as more people get to know about it and realize
how useful and safe it is.
Now that you have gotten a little bit of information on what
bitcoin is, let's take you a little deeper into the advantages you stand to
enjoy with BTC.
PRIVATE AND ANONYMOUS
Each and every transaction made on the bitcoin network is private
and anonymous. Unlike bank payments where you can identify and track
transactions, bitcoin transactions can neither be tracked nor identified. The
only thing you'll know is the bitcoin address of the person you want to
transact with, but as for the owner of the address, he or she cannot be
identified. You can liken it to paying into a bank account with no way of
knowing who the account holder is.
FREEDOM OF MAKING PAYMENTS
Using bitcoin as your mode of payment provides you with incredible
freedom. You have the ability to send money to anyone in the world, no matter
where they are. All you need is the person's bitcoin wallet address. With bitcoin,
no intermediaries, no bank strikes or holiday, no borders or boundaries and
above all, no payment limit. You are free to transfer any amount.
LOW FEES
Using bitcoin as your mode of payment simply means you'll be
charged incredibly low fees. In fact, there are transactions where you won't be
charged at all. Transaction fees depend on the priority you place on your
transaction. If you want your transaction to be processed in a super-fast way,
you'll have to pay extremely low transaction fee. And the fees will be
incredibly low compared to what you'll get from other financial intermediaries.
LIGHTNING FAST
Compared with banking channels, bitcoin transactions are really
fast. In fact, a bitcoin transaction can be processed in less than ten minutes.
Processing can be as fast as an email or even faster if there are "zero
confirmations". Zero confirmations simply means that the merchant accepts
a transaction that has not been confirmed by the blockchain yet. While this is
risky, it makes the transaction process faster. Confirmed transactions are
those that take up to ten minutes to process. You might be thinking "but
digital wallets and credit card services provide instant approved
transactions", well the truth of the matter is that while they do that
indeed, they also charge you excessive fees, unlike bitcoin where you pay just
a little token for the faster processing.
LESS RISKS
With bitcoin, you don't need to worry about anyone getting hands
on personal or sensitive information. Also, bitcoin transactions are
irreversible and secure, thereby protecting merchants from fraudulent
chargebacks and losses caused by fraud.
NO CENTRAL GOVERNMENT CONTROL
No one has control over BTC. It is decentralized and so cannot be
overtaken by the government. The worst a government can do is ban it from their
country. They cannot, however, reduce the value or change the price of BTC
unlike the way they can with paper money.
WELL SECURED
This is perhaps the most important advantage people are enjoying
in the bitcoin network. Most purchases being done online today are being done
with credit cards or debit cards. This simply means that you'll have to enter
every detail of your card into the merchant site so as to be able to purchase
whatever you need, thereby putting your card at a risk of getting manipulated.
With BTC transactions, you don't need any of these; you don't need to give up
all the information you are supposed to keep secret.
NOTHING LIKE INFLATION
Unlike fiat currencies, where more money can be printed by the
central government when the economy is not moving forward and they are unable
to pay their national debt, thereby causing inflation, BTC cannot be inflated.
Only 21 million BTC will be created and once these twenty one million have been
successfully created, bitcoin mining will stop. This simply means that no
bitcoin will be mined again after the creation of the 21 million BTC,
therefore, inflation won't occur.
YOU CAN GENERATE YOUR OWN MONEY
You can create bitcoin yourself as long as you have the necessary
resources and information. This process is known as mining. It is done through
the use of specialized hardware. Once you are able to get your hands on these
specialized hardware and you are fully equipped with the right knowledge on how
to use them, you’ll be making your own bitcoin the same way the central
government makes fiat currency.
0 Comments