Bitcoin is a relatively new type of currency that has just begun to penetrate mainstream markets.
Critics claim that using bitcoins is dangerous because –
They have no authentic value
They are not regulated
They can be used to conduct 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 cryptocurrency.
Fast payments – When paying with banks, transactions take a few days, and bank transfers take a similar amount of time. In contrast, Bitcoin virtual currency transactions are generally faster.
“Zero-confirmation” transactions are instantaneous, with the merchant accepting a risk that has not yet been approved by the Bitcoin blockchain. If the merchant needs approval, then the transaction takes 10 minutes. This is much faster than any interbank transfer.
Cheap – credit or debit card transactions are instantaneous, but there is a fee for using this privilege. For bitcoin transactions, fees are usually low and in some cases free.
No one can take it from you – Bitcoin is decentralized, so no central authority can take a percentage of your deposits.
No chargebacks – Once you trade bitcoins, they’re gone. You can’t get them back without the recipient’s consent. This makes it difficult to commit chargeback fraud, which is often experienced by people with credit cards.
People buy an item, and if they find it defective, they contact the credit card agency and make a chargeback, effectively voiding the transaction. The credit card company will do this and charge you a costly chargeback fee of between $5-15.
Secure personal information – credit card numbers tend to be stolen when making payments online. A bitcoin transaction needs no personal information. You need to link your private key and the bitcoin key together to complete the transaction.
You just need to ensure that your private key cannot be accessed by strangers.
Not inflationary – The Federal Reserve prints more dollars whenever the economy spikes. The government injects the newly created money into the economy, causing the value of the currency to drop, thus causing inflation. Inflation reduces people’s purchasing power as the prices of goods rise.
The supply of bitcoins is limited. The system was designed to stop mining more bitcoins when it reaches 21 million. This means that inflation will not be a problem, but deflation will be induced when prices of goods fall.
Partially anonymous operations – Bitcoin is relatively private but transparent. Bitcoin’s address is revealed in the block-chain. Anyone can look in your wallet, but your name will be invisible.
Easy micropayments – Bitcoins allow you to make micropayments like 22 cents for free.
Replacement of fiat currencies – Bitcoins are a good choice to hold national currencies that are experiencing capital controls, and high inflation.
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