JustinBefore learning about the benefits of Bitcoin, it is important to know what Bitcoin is. It is a golden coin with a ‘B’ written on it like how you see on social media and google. Bitcoin isn’t a physical asset that can be held in your arms.
Bitcoin is a digital currency that has been decentralized and was first heard of in January 2009. Bitcoin transactions are known to charge lower transaction fees compared to those of traditional online payment methods and they are not operated by any central authority like the government.
It is a type of cryptocurrency that is secure as it uses cryptography. The balances are kept on a public ledger called blockchains and everyone has access to this. When making transactions, the transactions are confirmed and checked using a computing process which is known as mining.
What are the advantages of making purchases using Bitcoin?
Bitcoin has been widely used by many people around the world. People have also introduced Bitcoin dedicated servers that accept Bitcoin as a mode of payment. There are still many that don’t accept Bitcoin as a mode of payment however, this is slowly decreasing and people are beginning to allow cryptocurrency as a mode of payment.
Some of the benefits of using Bitcoin as a mode of payment for purchases are:
– Bitcoin is not affected by any external policies like government policies. Banks can be affected by policies by the government; however, this cannot be which is why it promises user autonomy meaning that the users are in control of the money they own.
– Bitcoin is pseudonymous meaning that they aren’t completely anonymous and the transactions can be verified by using the blockchain address. To make a transaction, one wouldn’t need IP addresses and other such information like traditional transactions would need thus making this process easier and quicker.
– Useful for international transfers because they charge a lower transaction fee compared to traditional transaction fees for international transfers. This is because there aren’t any intermediary institutions or banks that are involved in the money transfer; this is why it is more economical.
– Can be used by people who don’t have a bank account. Because Bitcoin is decentralized, people who do not have a bank account can also pay using this. You do not need to have a bank account.
– Bitcoin payments are mobile and can be done from anywhere in the world. You would only need to have access to the internet and that’s it.
There are many benefits of Bitcoin and it is a great technology that has brought evolution and growth to our economy. Do you think investing in Bitcoin is a good idea?
