Most people have heard the word Bitcoin, but do not know what the advantages of Bitcoin really are. In a simple form for the sake of our audience. We will define it as a type of electronic currency (cryptocurrency) that is autonomous from traditional banking. Bitcoin is a decentralized, peer to peer, digital currency system. It is designed to give online users the ability to process the transaction via a digital unit of exchange.
As a currency, Bitcoin has proven advantages. Its digital nature makes it hyper-portable, divisible, durable and consumable. Its decentralization means that it isn’t beholden to the vulnerabilities of national currencies. It’s entirely transferable across nations.
The bitcoin system was created in the year 2009 by an undisclosed programmer. Since then it has gathered tremendous attention as well as controversy as an alternative to the US dollar, Euros and commodity such as gold and silver.
The Bitcoin exchange rate does not depend on the central bank. No single authority govern the supply of cryptocurrency. However, the Bitcoins value or price is determined by the level of confidence and demand of the users, as more major companies are accepting it to settle payment transactions, the more successful and appreciated Bitcoin is becoming and study as shown that many major companies will adopt the use of Bitcoin in future
Here are some of the advantages of Bitcoin.
1. The flexibility nature of Bitcoin
Because it is an online payment system, users can access their account, pay for their coins from any corner of the world once there is internet facility. This means that you can lay on your bed and purchase coins instead of taking the pain of traveling to a specific bank to get your job done.
2. No inflation
Unlike traditional currencies, Bitcoin does not suffer inflation, and it does not lose its purchasing power. This is because Bitcoin mining is limited to just 21 million units which mean the release of new Bitcoin is slowing down, and the full amount will be mined by 2140. One could actually say that bitcoin is deflation and can inits nature only increase in price. Now that miht not sound like a lot but think about this
“A house in 1950 that at the time would cost 500.000 today, bitcoin has gone from 10 cents to $ 675 in the last 5 years, imagine what the future will bring”
3. Minimal transaction fees
Because Bitcoin is not monitored by any international institution or government agency, the cost of the transaction is kept very low, unlike international transaction made via conventional currencies.
4. No taxation
It is no news that when you make a purchase via dollars, Euros or any other government currency, you have to pay an addition sum of money to the government as tax. But in Bitcoin, a tax is not added to your purchase. This is deemed as a legal form of tax evasion and is one of the major advantages of being a Bitcoin user.
5. No outside intervention
One of the greatest advantages of Bitcoin is that it eliminates third-party interruptions. And this is giving it a lead way as no financial institution or Government can interfere in its operation. Hence, the user of Bitcoin enjoys greater liberty when making a purchase than they do when using conventional national currencies.
6. Concealed user identity
Bitcoin gives the user the option of anonymity. In Bitcoin transaction, your transaction can never be tracked back to you. Because transaction identities are never the same as your real life identity.
As a matter of fact, the address created for user purchase is never the same for two different transactions. But whoever wants his identity to be known have the liberty of doing so.
The above listed advantages of Bitcoin makes investors see potential in investing in it. If you are a newbie and still contemplating investing. Make your decision quick before Bitcoin become $10,000 as predicted by expert.
In conclusion, many experts believe that Bitcoin is a legitimate contender to challenge conventional currencies in the not so distance future.