Why you should use the Bitcoin? Here are 10 good reasons for Bitcoin and why it is time to start using the cryptocurrency at the latest.
The Bitcoin is fast: transactions are done in no time
The Bitcoin is much faster than the banking ways are often. If paid by bank transfer, it may take one to two business days for the money to be there. If money is transferred worldwide, it will take much longer. If you make payments with Bitcoin, you can do it in a few minutes. Transactions may be instantaneous, depending on the merchant, as part of “zero confirmation” transactions, or in about ten-thirty minutes, if the merchant requests confirmation of payment. This is much faster than any bank transfer, even if it can be done within one business day.
Transactions with Bitcoin do not cost much
Bank transfers often cost money. People who pay with a credit card often have to pay transaction fees of up to 2 percent. Even if paid by PayPal, this costs depending on the dealer fees. When paying with Bitcoin, the cost of the transaction is either very low, or there are no fees.
Central banks have no access
In 2013, it was very uncomfortable to see what central banks are capable of. They deposited a wealth tax on deposits that were stored in Cyprus. First, the tax on all deposits should apply, after numerous protests within the euro zone, the levy on investment amounts over 100,000 euros was charged.
This is not possible with Bitcoin, as no central bank has access to the digital currency. No government in the world, and no central bank in the world can steal Bitcoin just because it suits anyone. Bitcoin is not a centralized currency, but a free, decentralized currency, and can be used by anyone who is interested. For those who have lost their faith in the traditional banking system, that’s a big advantage.
There are no charge backs
Bitcoin eliminates annoying charge backs. The sender who has sent the digital currency to a person can not simply reclaim it. The Bitcoin is then gone, and can not be ordered back without approval. This makes it difficult to commit the kind of scams we often experience with credit cards. Fraud where people make a purchase and then contact the credit card company to make a charge back to effectively reverse the transaction and then cash in on the money.
Of course, you should pay even more attention to whom the money is transferred. Because now you are completely responsible and have to take good care of your bitcoins.
Payment information can not be stolen by the merchants
That’s a big problem of our time. Most online purchases today are made by credit card, but in the 1920s and 30s, when the first precursors appeared on credit cards, the Internet had not been designed. Therefore, credit cards should never be used online because they are insecure. Online Forms require that you enter all of your secret information (the credit card number, expiration date and CVC number) in a web form. It’s hard to think of a less secure way to do an online business. For this reason, credit card numbers are stolen.
A Bitcoin transaction is not about revealing any secret information. Instead, two keys are entered for payments and transfers with digital currencies: a public key and a private one. Everyone can see the public key because it’s your bitcoin address. Your private key is secret. When a Bitcoin is sent, the transaction is signed by bringing the public and private keys together, and from this a mathematical function determines a certificate. As long as the private key is not shown to anyone, the bitcoins are secure.
Bitcoins are not inflationary
“Normal” currencies such as the Euro and the US Dollar are so-called Fiat currencies. These can be reprinted, whatever it suits the respective government and/or central bank, and in any quantity. The money is thus vulnerable to inflation, and its value can drop considerably at any time. This is done primarily to quickly pay off government debt. If the economy stutters, then the government can take newly created money and inject it into the economy through a process known as quantitative easing. This reduces the value of a currency.
This is not possible with Bitcoin. Only 21 million units of digital currency can be created under the original specification. This means that the amount of coins of the cryptocurrency is finite, not infinite, like a Fiat currency. Bitcoins are therefore comparable to gold, the amount of gold is finite and it is becoming increasingly difficult to find new gold.
Bitcoins are anonymous
Sometimes we do not want people to know what we have bought. Bitcoin is a relatively private currency. On the one hand, it’s transparent – thanks to the blockchain, everyone knows how much a given bitcoin address is holding to transactions. They know where these transactions came from and where they were sent. On the other hand, unlike traditional bank accounts, nobody knows who holds a particular Bitcoin address. It’s like a clear plastic folder with no visible owner. Everyone can look inside, but nobody knows who they belong to. However, it makes sense to point out that people who use Bitcoin unknowingly (such as always with the same Bitcoin address, or the combination of coins from multiple addresses into a single address) significantly increases the risk that they will be identified online.
You do not have to trust banks with Bitcoins
In a traditional banking system you have to trust banks to send or get funds. These organizations require important, sensitive information from you. Because Bitcoin is decentralized, you do not need confidence in banks, because you are your own bank. When transactions are sent, they are digitally signed and therefore secure. An unknown miner will check it, and then the transaction is complete. The trader does not even have to know who is behind the payment.
You own the bitcoins yourself and can even secure them on your own hardware.
The Bitcoin belongs to you and you have control over the use of the digital currency. No other electronic cash system can prohibit this. Other payment services can lock the account at any time, and then all the money is gone, freeze it indefinitely, or deny the transactions to certain merchants or service providers. This is not possible with Bitcoin, the digital currency coins are self-owned and nobody has the right to access them.
With Bitcoins everyone can generate their own money
The bitcoin is not printed, as is the case with a fiat currency, but promoted. The more computing power someone can muster, the more “coins” of the digital currency, he can mine. After covering your initial investments in equipment and power, Bitcoin’s mining is simply a case of the machine and the software is up and running.
That should be a reason for you to also deal with the topic cryptocurrency/Bitcoin.