Bitcoin is a new type of currency that has only recently begun to attack mainstream markets.
Critics say the use of Bitcoins is unsafe because –
-
They have no real value
-
They are not regulated
-
They can be used to make illegal transactions
Yet all the major players in the market are talking about Bitcoins. Below are some good reasons why it is worth using this crypto currency.
Quick payment – If payments are made through the use of banks, the transaction will take a few days, same wire transfers also take longer. On the other hand, virtual Bitcoin transactions are generally faster.
“Zero-confirmation” transactions are immediate, where the trader accepts the risk, which is still not approved by the Bitcoin block-chain. If the trader needs an approval, then the transaction will take 10 minutes. This is faster than any inter-banking transfer.
Not expensive – Credit or debit card transactions are instantaneous, but you are charged a fee for using this privilege. In Bitcoin transactions, the fees are usually low, and in some cases, they are free.
No one gets it – Bitcoin is decentralized, so no central authority can get a percentage out of your deposits.
No chargeback – Once you sell Bitcoins, they are gone. You cannot recover it without the recipient’s permission. As such, it can be difficult to commit chargeback fraud, which is often experienced by people with credit cards.
People buy items and if they find that they are defective, they contact the credit card agency to make a chargeback, which effectively reverses the transaction. The credit card company does this and charges you an expensive chargeback fee ranging from $ 5- $ 15.
Secure personal details – Credit card numbers are stolen during online payments. A Bitcoin transaction does not require any personal details. You will need to combine your private key and the Bitcoin key to make a transaction.
You need to make sure that your private key is not accessible to strangers.
It’s not inflationary – The Federal Reserve is printing more dollars, every time the economy is sputtering. The government injects newly created money into the economy causing a decrease in the amount of money, thus causing inflation. Inflation can reduce people’s power to buy things because the price of commodities will rise.
Bitcoins have a limited supply. The system is designed to stop mining and add Bitcoins to reach 21 million. This means that inflation is not an issue, but deflation will be triggered, where commodity prices will fall.
Semi -anonymous operations – Bitcoin is relatively private, but transparent. The Bitcoin address is revealed in the block-chain. Everyone can see your wallet, but your name cannot be seen.
Easy micro -payments – Bitcoins allow you to make micropayments like 22 cents for free.
Replacement of fiat currencies – Bitcoins are good options for holding national currencies that have experienced capital controls, and high inflation.
Bitcoins become legitimate – Major institutions such as the Bank of England and the Fed have decided to take over Bitcoins for trading. More and more outlets like Reditt, Pizza chain, WordPress, Baidu, and many other small businesses are now accepting Bitcoin payments. Many binary trading and Forex brokers also allow you to trade Bitcoins.
Bitcoin is the pioneer of the new era of crypto-currency, the technology that gives you a glimpse into the future of money.