Bitcoin is a relatively new type of currency that has just begun to enter mainstream markets.
Critics state that using Bitcoins is not safe because –
They have no authentic value
They are not regulated
They can be used to make illegal transactions
Bitcoin is still being talked about by all the major market players. Below are some good reasons why it is worth using this crypto currency.
Fast Payments – When payments are made through banks, the transaction takes a few days, like bank transfers also take a long time. On the other hand, Bitcoin virtual currency transactions are usually faster.
“Zero-confirmation” transactions are instantaneous, where the merchant assumes the risk of not yet being approved by the Bitcoin blockchain. If the merchant needs approval, the transaction takes 10 minutes. This is much faster than any interbank transfer.
Cheap – Credit or debit card transactions are instant, but you are charged a fee for using this privilege. In Bitcoin transactions, fees are usually low and in some cases it is free.
No one can take it away – Bitcoin is decentralized, so no central authority can take away a percentage of your deposits.
No Refund – Once you trade bitcoins, they disappear. You cannot claim them back without the recipient’s consent. This makes it difficult to commit chargeback fraud, which people with credit cards often run into.
People buy goods and if they find that they are defective, they contact the credit card agency to do a chargeback, which effectively cancels the transaction. The credit card company does and charges you an expensive chargeback fee ranging from $5 to $15.
Secure Personal Data – Credit card numbers are stolen during online payments. Bitcoin transaction does not need personal data. You will need to combine your private key and bitcoin key to complete a transaction.
You just need to make sure that your private key cannot be accessed by strangers.
It is not inflationary – The Federal Reserve prints more dollars whenever the economy collapses. The government injects the newly created money into the economy, causing the currency to depreciate, thus causing inflation. Inflation reduces people’s ability to buy things because the prices of goods go up.
Bitcoins are in limited supply. The system is designed to stop mining more bitcoins when 21 million is reached. 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 on the block chain. Anyone can look at your wallet, but your name will be invisible.
Easy micropayments – Bitcoins allow you to make micropayments like 22 cents for free.
Substitute for fiat currencies – Bitcoins are a good option to hold national currencies experiencing capital controls and high inflation.
Bitcoin goes legit – Major institutions such as the Bank of England and the Fed have decided to accept bitcoins for trading. More and more businesses like Redditt, pizza chains, WordPress, Baidu and many other small businesses are now accepting Bitcoin payments. Many binary brokers and Forex brokers also allow you to trade Bitcoins.
Bitcoin is the pioneer of the new era of cryptocurrency, the technology that gives you a glimpse into the currency of the future.