A relatively new form of money called bitcoin has only recently begun to enter major markets.
Critics state that using Bitcoins is unsafe because –
- They have no authentic value
- They are not regulated
- They can be used to make illegal transactions
All of the major market participants continue to discuss bitcoins. Here are some compelling arguments for why using this cryptocurrency is worthwhile.
Quick payments – The process of making a payment through a bank takes a few days, and wire transfers take even longer. Bitcoin transactions, however, are typically completed more quickly.
“Zero-confirmation” transactions are instantaneous, where the merchant accepts the risk, which is still not approved by The transaction takes 10 minutes on the bitcoin blockchain if the merchant needs to get approval. A bank to bank transfer cannot compare to how quickly this is.
Inexpensive – Although credit or debit card transactions are immediate, there is a fee associated with using this convenience. The fees for Bitcoin transactions are typically low, and in some cases, they are even free.
Because Bitcoin is decentralized, no centralized authority can take a portion of your deposits.
No chargeback – Bitcoins vanish after a trade has been made. Without the recipient’s permission, you cannot claim them back. Thus, the chargeback fraud that credit card users frequently encounter is made more difficult.
People buy products, and if they discover a flaw, they contact the credit card company to request a chargeback, effectively undoing the transaction. Your chargeback fee, which can be anywhere between $5 and $15, is levied by the credit card company.
Safe personal details – During online transactions, credit card numbers are stolen. There are no personal information requirements for Bitcoin transactions. For a transaction to be completed, your private key and the Bitcoin key must be combined.
Simply make sure that nobody else has access to your private key.
It is not inflationary – When the economy is struggling, the Federal Reserve prints more dollars. Government introduces newly created money into the economy, which results in a decline in the value of the currency and consequently starts inflation. Because prices of goods rise during an inflationary period, people have less money to spend.
There is a finite amount of bitcoins. When the total number of Bitcoins reaches 21 million, the system will stop mining new coins. This indicates that while inflation won’t be a problem, there will be a deflationary period in which prices will drop.
Semi- anonymous operations – While transparent, Bitcoin is still comparatively private. On the block-chain, the Bitcoin address is displayed. Although your name will be hidden, anyone can look inside your wallet.
Easy micro-payments – Making free micropayments of up to 22 cents is possible with bitcoins.
Substitute of fiat currencies – Bitcoins are an excellent alternative to holding national currencies that are subject to capital controls and high inflation.
Bitcoins are getting legitimate – The Federal Reserve and other major institutions have decided to accept Bitcoin as payment for transactions. More and more merchants are now accepting Bitcoin payments, including Reditt, popular pizza chains, WordPress, Baidu, and numerous other small businesses. You can trade with Bitcoins with a lot of binary trading and forex brokers.
Bitcoin is the forerunner of the new crypto-currency era, the technology that offers a glimpse into the future of money.