Bitcoin is a relatively new type of currency that is starting to hit the mainstream markets.
Critics say that using Bitcoin is dangerous because –
They have no real value
They are not regulated
They can be used to conduct illegal transactions
Still, all major market players are talking about Bitcoins. Below are some good reasons why this cryptocurrency is worth using.
Fast Payments – When payments are made through banks, the transaction takes a few days, as do money transfers. On the other hand, the virtual currency Bitcoin transactions are generally faster.
“Zero-confirmation” transactions are instantaneous, where the merchant accepts the risk, which is not yet verified by the Bitcoin blockchain. If the seller needs approval, the transaction takes 10 minutes. It is faster than any interbank transfer.
Cheap – Credit or debit card transactions are instant, but you’ll be charged a fee for this privilege. Fees in Bitcoin transactions are usually low and in some cases free.
No one can take it away – Bitcoin is decentralized, so no central authority can take interest from your deposits.
No Refunds – After trading the bitcoins, they are gone. You cannot redeem them without the buyer’s consent. This makes it harder to commit chargeback fraud that people with credit cards often face.
People buy an item and if they discover it’s defective, they effectively reverse the transaction by going to the credit card agency for a refund. The credit card company does this and charges you an expensive chargeback fee of between $5 and $15.
Secure personal data – Credit card numbers are stolen during online payments. No personal information is required for Bitcoin transaction. You need to combine your private key and your Bitcoin key to make a transaction.
You just need to ensure that your private key is not accessed by outsiders.
This is not inflation – The Federal Reserve prints more dollars when the economy is booming. The government injects newly created money into the economy and causes the currency to depreciate, thereby causing inflation. Inflation reduces people’s purchasing power because the prices of goods rise.
Bitcoins are in limited supply. The system is designed to stop mining more bitcoins when it reaches 21 million. This means that inflation will not be a problem, but deflation will occur where the prices of goods will fall.
Semi-anonymous transactions – Bitcoin is relatively private but transparent. A Bitcoin address is discovered on the block chain. Anyone can see your wallet, but your name will be invisible.
Easy micropayments – Bitcoins allow you to make micropayments as low as 22 cents for free.
Replacement of fiat currencies – Bitcoins are a good option to hold national currencies that face capital controls and high inflation.
Bitcoins Are Going Legal – Major institutions such as the Bank of England and the Fed have decided to buy Bitcoin for trading. More and more outlets like Reddit, Pizza chains, WordPress, Baidu and many other small businesses now accept Bitcoin payments. Many binary trading and Forex brokers also allow you to trade with Bitcoins.
Bitcoin is the pioneer of the new cryptocurrency era, a technology that gives you a glimpse into the currency of the future.