Ever wondered why the Bitcoin has become so popular in recent times? The main reason is that this digital currency appears to offer many advantages compared to traditional currencies like USD or Euro. Bitcoin was launched as a digital decentralized peer-to-peer payment system that was beyond the control of any centralized institution like a bank. It was supposed to facilitate money transfers across borders without any third party intervention.
Advantages of paying with Bitcoins:
- Decentralization: The biggest advantage that Bitcoin offers is decentralization. Bitcoins are not issued or regulated by any centralized governmental authority. The payments are processed via a network of many computers spread all over the world. Every transaction is recorded in a Bitcoin blockchain. This acts like a distributed public ledger that does away with the need to have any central authority for maintaining such records.
- Autonomy: One of the greatest benefits for users is the autonomy that Bitcoin offers. Digital currencies will offer far greater autonomy compared to fiat currencies because users are free to spend their money and there is no intermediary like a governmental agency or bank involved in transactions between parties.
- Transactional freedom: The Bitcoin system is a peer-to-peer payment system and users are free to receive or transfer payments to anyone anywhere on the globe for which no approval is required from any external authority.
- Secrecy/Privacy: Bitcoin payments are confidential; while you can view the amount of transactions that may have taken place, you cannot view the identities of the sender or recipient of the Bitcoins.
- Zero banking fees: In Bitcoin transactions, users will not have to pay traditional banking charges as is needed in fiat currencies. So, there are no minimum balance fees, no account maintenance fees, and neither any deposit fees. The standard wire transfers or cross-border money transfers will involve charges and exchange costs. But, because the Bitcoin transactions take place without involvement of any third party, the transactional costs are kept low. Moreover, Bitcoin transfers are typically faster than wire transfers because there are no waiting period or authorization formalities as in fiat currencies.
- Mobile payments: Like other online payment services, Bitcoin users can easily pay for their coins from anywhere in the world, as long as they have Internet connectivity. So, you do not have to drive down to a store or a bank to transfer money to buy anything. Moreover, you do not have to provide personal details to make a transaction.
- Accessibility: Payments transfers and receipts can happen even with smartphones and laptops; this is why Bitcoin becomes easily accessible for populations that lack proper access to banks and credit cards. Due to the advancement of technology, bitcoins can be transacted using automated apps which are programmed to be operated from mobile devices as well. This site https://kryptoszene.de/bitcoin-robot/cryptosoft/ is a great repository for trading using such an algorithm.
- Security: Buyers can complete payments without having to divulge any personal information or financial details to sellers. So, buyers get a high degree of financial anonymity which credit cards cannot guarantee. Besides, Bitcoin transactions once made cannot be tampered with. To hack into a Bitcoin network, the hacker must have more than 51% of the total computing power of the network and that is hard to achieve.
- No inflation risks: There can only be 21 million Bitcoins and not any more. Inflation happens when governments introduce more money each year and reduce the people’s power to buy. But, since Bitcoin has a finite supply, there is zero threat of inflation.