During the 2008-2009 crisis, an innovative payment network called Bitcoin was raised as a cryptocurrency strategy. Bitcoin is considered as digital currency which promotes lower transaction fees than conventional online payments. It follows the ideas of enigmatic Satoshi Nakamoto who set out this digital currency in a white paper. Simply, bitcoin is digital money that allows peer-to-peer transactions.
Bitcoin was manufactured as a way of transferring money over the internet. The purpose of the digital currency was to provide an alternative payment system that would operate without central control but would otherwise be used as a conventional currency.
Bitcoin uses cryptography to keep transactions secure, that’s why Bitcoin is known as a type of cryptocurrency. Facilities such as faster transactions and lower processing fees help fill the annoying lack of privacy offered by Bitcoin. Because of highly beneficial criteria, more and more traders and individuals are joining the Bitcoin bandwagon. Below are some of the benefits that everyone should know before using Bitcoin.
Advantages of Bitcoin
- When we want to transfer money with other ones, fiat currency is a transaction that can take days or even weeks to complete. On the other hand, through Bitcoin, you will get your money whether it’s 9 am or 1 am. In Bitcoin, there is no intermediary involved which means less hassle while waiting.
- When you want to transfer a large amount with your bank, they will deduct a minimum percentage as a processing fee but with Bitcoin, you can transfer as much as you want without any fee. For miners only, the bank reduces a minimum amount as a processing fee.
- Bitcoin trading is an ideal example for those who like privacy because Bitcoin transactions are anonymous. To complete a transaction through Bitcoin some pieces of information are needed and all BTC wallet owners have one or multiple public keys which perform the role as the address of Bitcoin. This means that, unlike credit card systems where your name, billing address, and other information are required for a payment process, all you have to do with Bitcoin is the recipient’s address.
- Due to its decentralized nature, Bitcoin transactions cannot be obstructed with by the government or financial institutions. For people who are looking for some extra privacy or those who are against the system, Bitcoin is an excellent choice for them. Traditional payment methods such as credit cards or debit cards, users’ information can get hacked due to their full financial information but you can avoid these problems in Bitcoin because of its unique blockchain technology.
- There is no chargeback with BTC. This means that once the BTC is transferred, it cannot be reversed; The other party can keep your money and you can keep their product.
- In this digital world, every normal currencies are questionable about their security but when it comes to Bitcoin, every single transaction is recorded in an open distributed ledger which means if someone tries to make unofficial changes, The whole BTC community will know about it. Hence proved Bitcoin transactions are very safe.
- The value of Bitcoin is another significant advantage of Bitcoin trading that is why people seriously consider trading with Bitcoin instead of fiat currency which can be devalued without notice. Bitcoin on the other hand will always be at one price (price determined by the market). This makes Bitcoin an excellent source of value. There is no regulation when you decide to convert your BTC to something else. You are the only one who can control your Bitcoin.