Why You Should Use Bitcoin
A cryptocurrency is basically a decentralized payment system that allows people to send and receive currency online without using a third party like a financial institution or bank. The transactions are affordable and even cheap in some cases. There are different types of cryptocurrencies, but the most popular is bitcoin. Critics say that it is unsafe to use bitcoins as it’s not regulated, has no authentic value and can be used to make unlawful transactions. However, there are really good reasons why you should use bitcoins. Here are some of them.
One of the best things about this cryptocurrency is that the fees for bitcoin transactions are usually low and even free in some cases. Debit or credit card transactions may be instant, but you have to pay an expensive fee to use this service. Since bitcoin is decentralized, no central authority can deduct some percentage from your deposit.
Bitcoins are gone once you trade them. It is impossible to reclaim them without the consent of the recipient. As such, the chances of being a victim of chargeback fraud are lower compared to those who are using credit cards.
Payments made by using banks and wire transfers take days to complete. Bitcoin transactions, on the other hand, are quick. This only means that you will get your payments right away. Zero-confirmation transactions where the trader accepts the risk are prompt, but this is still unapproved by the Bitcoin block-chain. If you need an approval, the transaction will take ten minutes but this is still faster than inter-banking transfer.
Personal Information is Safe
Bitcoin transactions don’t require any personal information, so you remain anonymous and your personal details are protected. Credit card information can get stolen when you make online payments. When it comes to bitcoin transactions, you need to combine the bitcoin key and your private key to complete the process. This is safer. Just make sure that your private key won’t be accessed by strangers. This cryptocurrency also allows you to make easy micropayments. Bitcoin is transparent as well. The Bitcoin address is shown at the block-chain. While everyone can see what it’s in your wallet, your name will remain invisible.
Resistant to Inflation
Another good thing about bitcoin is that it’s not inflationary. The currency value decreases when the government releases newly created money, triggering inflation in the process. The prices of goods increase, decreasing people’s capacity to purchase things. That is not the case with bitcoins as it is not affected by inflation. This is because it’s a virtual currency and has a limited supply. The system was made to quit mining more bitcoins upon reaching 21 million. Inflation won’t be a problem with this cryptocurrency, but it will trigger deflation where the prices of products fall.
Bitcoins are also getting legitimate. Many institutions like Fed and outlets such as Baidu, WordPress and Reddit started accepting bitcoins payments. A lot of Forex and binary trading brokers also allow people to trade with bitcoins. With these benefits, you should consider adding bitcoins to your portfolio today.