Bitcoin is a comparatively new type of currency that is just starting to hit the mainstream markets.
Critics claim that using Bitcoins is not safe because –
They have no authentic value
They are not regulated
They can be used to make illegal transactions
Yet all the major market players are talking about Bitcoins. Below are some good reasons why it is worth using this cryptocurrency.
Quick Payments – When payments are made using banks, the transaction takes several days, similarly wire transfers also take a long time. On the other hand, virtual currency Bitcoin transactions are usually faster.
“Zero-confirmation” transactions are instantaneous, where the merchant accepts the risk, which is not yet approved by the Bitcoin block-chain. If the merchant needs an approval, the transaction takes 10 minutes. This is much faster than any interbank transfer.
price – Credit or debit card transactions are instant, but you will be charged a fee to use this privilege. In Bitcoin transactions, the fees are usually low, and in some cases, it is free.
No one can take away – Bitcoin is decentralized, so no central authority can take away a percentage of your deposits.
No compensation – Once you exchange Bitcoins, they are gone. You cannot claim without the recipient’s consent. Thus, it becomes difficult to commit chargeback fraud, which is often experienced by people with credit cards.
People buy goods and, if they find them faulty, contact the credit card agency to do a chargeback, effectively reversing the transaction. The credit card company does and charges you a costly chargeback fee ranging from $5 to $15.
Secure Personal Data – Credit card numbers are stolen during online payments. A Bitcoin transaction does not require personal data. You need to combine your private key and Bitcoin key together to make a transaction.
Just make sure that your private key is not accessed by strangers.
It is not inflationary – The Federal Reserve prints more dollars whenever the economy is sputtering. The government injects the new money created into the economy causing a decrease in the value of the currency, thus triggering inflation. Inflation decreases people’s purchasing power because the prices of goods rise.
Bitcoins are in limited supply. The system was designed to allow the mining of more Bitcoins to reach 21 million. This means that inflation will not be a problem, but deflation will be triggered, where the prices of goods will fall.
Semi-anonymous operations – Bitcoin is relatively private, but transparent. The Bitcoin address is revealed to the blockchain. Everyone can search your wallet, but your name will be invisible.
Easy micro-payments – Bitcoins allows you to make micropayments like 22 cents for free.
Substitute fiat currencies – Bitcoins are a good option to hold national currencies that have capital controls, and high inflation.
Bitcoins become legit – Major institutions such as the Bank of England and the Fed have decided to take Bitcoins for trading. More and more outlets like Reditt, Pizza chains, WordPress, Baidu, and many other small businesses are now accepting Bitcoin payments. Many binary trading and Forex brokers also allow you to trade with Bitcoins.
Bitcoin is the pioneer of the new era of crypto-currency, the technology that gives you a glimpse of the future currency.