With the advent of Blockchain technology, there has been a tremendous increase in the trading of cryptocurrencies, all around the world. The word ‘Bitcoin’ has become almost analogous with Cryptocurrency.
Among all the cryptocurrencies available in the market, Bitcoin stands out to be the most prominent and popular one. Generally, when people hear the word ‘Cryptocurrency’, then the first thing that comes to their mind is Bitcoin.
- 1 Advantages of Using Bitcoins
- 1.1 1) The Inflation factor is completely eliminated:
- 1.2 2) No third party is involved in a bitcoin transaction:
- 1.3 3) Blockchain technology is much safer and secure:
- 1.4 4) Less transaction fee or commission is charged:
- 1.5 5) Reduced risk of fraud for buyers and sellers:
- 1.6 6) Bitcoin facilitates faster payments:
- 1.7 7) Ease of use and Convenient Portability:
- 1.8 8) Hassle-free international payments for small business ventures:
- 1.9 9) Transparency of Information:
Advantages of Using Bitcoins
Trading in bitcoin has a lot of merits and advantages. Some of them have been explained below:
1) The Inflation factor is completely eliminated:
There is no risk of inflation with bitcoins. As a matter of fact, inflation happens when the government issues excess currency over a year, which leads to a reduction in the buying power of people, overall on a national level.
But, the bitcoin was created in such a way, that its total quantity will always be a finite amount, at any given point of time.
Thus, it completely eliminates the possibility of any inflation. Currently, there are about 21 million bitcoins which exist, out of which 17 million bitcoins have already been mined, as of April 2018.
2) No third party is involved in a bitcoin transaction:
A Bitcoin is decentralized and there is no involvement of any third party. The basic principle of a bitcoin transaction is that the whole process is carried out peer to peer. Whether it’s an organization, or a regulating body, or the government; there is no entity in this world that can claim, freeze or tax your bitcoins.
Furthermore, a bitcoin cannot be stolen and it also cannot be seized by the government, in any circumstances whatsoever.
3) Blockchain technology is much safer and secure:
Each and every bitcoin transaction is verified and authenticated by a digital signature, before being added up to the Blockchain. In this whole process, the bitcoin miners confirm and authenticate each transaction, which has taken place in the network.
Consequently, as an obvious result of this phenomenon, it can be concluded that it’s extremely safe to store and exchange bitcoins. In fact, cryptocurrency and Blockchain technology is the next big thing.
4) Less transaction fee or commission is charged:
In terms of cryptocurrency transactions, a commission or transaction fee is a small amount, which you pay to the cryptocurrency exchange, for each cryptocurrency transaction.
It’s substantially lower as compared to the commission, which you pay for credit or debit card transactions. So, this system can be highly cost-effective for individuals and small businesses alike.
5) Reduced risk of fraud for buyers and sellers:
In a bitcoin transaction, the customer doesn’t need to disclose any crucial or sensitive financial information such as debit or credit card details. Also, your identity is kept concealed at all times. Thus, you can be absolutely assured of privacy, security and financial anonymity.
Moreover, since bitcoin is a digital currency, it cannot be intercepted or hacked in any possible manner.
6) Bitcoin facilitates faster payments:
If a credit card customer asks for a chargeback, then his credit card money can get locked up to a week, or even more than that. This leads to a delay in payments, for no legitimate reason.
On the other hand, bitcoin transactions are comparatively quicker, as compared to credit card settlements. Generally, a bitcoin settlement happens within 2 business days.
7) Ease of use and Convenient Portability:
If you are in a foreign country, then you can use bitcoins for payment to all kinds of businesses, which accept bitcoin as a mode of transaction. By doing so, you can actually save yourself from the hassle of currency conversion, which includes the pain of going to local banks or forex exchanges.
While traveling anywhere, you can use a memory stick for the transportation of bitcoins. Interestingly, the bitcoins are stored electronically or digitally in the stick. You can carry this memory stick containing bitcoins, in the same way, as you carry a memory stick storing your audio, video & other data.
8) Hassle-free international payments for small business ventures:
Due to high cross-border transaction fees, the small online retailers and sellers do not often sell their products or services to the international market. Since an online payment made via bitcoin can be done by sitting in any corner of the world; so it makes the bitcoin a great mode of international payment. Plus, there is no paperwork involved.
In addition to that, a payment done through bitcoin is much cheaper, easier, safer and faster, in all aspects.
9) Transparency of Information:
As a core feature of Blockchain technology, everyone in the network can see all the finalized transactions. Although, all the personal information of a user is kept confidential. It must be noted that your public address is visible, but your personal information is kept strictly hidden.
In the Bitcoin Blockchain, anyone at any point of time can verify the transactions. Since the Bitcoin is cryptographically secured, so it cannot be manipulated or changed, by any person, organization, or government.