Launched almost 11 years ago, Bitcoin has emerged to be a better medium of exchange than other conventional currencies, and the reasons are manifold. Bitcoin is a digital currency, more specifically a computer program that runs independently of third-part oversights like banks or other government institutions. Bitcoin is the most popular cryptocurrency but it is volatile too. The value of Bitcoin reaches its all time high in 2021 and it is still continues its bullish zone due to this several users, investors are buying or investing in Bitcoin. Here is a unique way to trade in Bitcoin that is Bitcoin Pro, which is an automatic trading bot that makes trade on cryptos on behalf of its users. So if you are also planning to invest in Bitcoin, you can find more details about the Bitcoin Pro. Here are some of the advantages of bitcoins discussed that make it superior to any other conventional currencies.
Advantages of Paying with Bitcoin
Here is why the modern generation considers Bitcoin as a safer and more convenient mode of payment than other mediums of exchange. Besides being a secure medium of exchange, Bitcoin has the following attributes that make it stand apart from other leading cryptocurrencies.
- More liquidity
When it comes to converting cryptocurrencies into fiat currencies, Bitcoins steal the limelight. Due to its power of greater liquidity, it allows users to retain most of its inherent value when converted into any of the fiat currencies like the US dollar or Euro. Most other cryptocurrencies either cannot be exchanged into fiat currencies at all or lose substantial value during the exchange.
- Lower transaction fees
Compared to most other digital payment getaways, the transaction fees for Bitcoin, even for international transactions, are much lower. As such, for BTC, it charges the same irrespective of cross-borders or in-country transactions. Even though the transaction fees are variable, such fees rarely exceed 1% of their value as compared to other digital payment platforms that often charge 2 to 3% as transaction charges; for money transfers, the rate may be as high as 15%.
Reason for Using Bitcoin Instead of Cash
Bitcoin is considered superior to cash or any other conventional currencies due to the following reasons:
1. Bitcoin is Digital and Decentralized
Decentralization is the most dominant feature of digital currencies, where you are the owner of the digital currencies held by you in contrast to conventional currencies that are owned by banks or the government. In the absence of any financial intermediaries, people using bitcoins or any other digital currencies get the liberty to transact at much lower fees and enjoy better control over the funds. This is not possible when they use any conventional currencies that are controlled by banks or governments.
2. Cross Border Transactions
Bitcoin allows two people, settled anywhere around the world, to exchange transactions via the internet within a matter of a few minutes. This has become possible because bitcoin is globally accepted and is also less volatile than cash.
3. A Great Way of Maintaining Records for Tax Purposes
Transacting in bitcoins helps maintain transparent and healthy tax records as the ownership of bitcoins is transferred once the coins are transferred from one owner to the other. This prevents repetition of the same transactions on the same value by the two people transacting, and hence maintaining records becomes less complicated.
4. No Duplication Possible
Owing to the immutable feature of blockchain, duplication of information is not possible. Any information transmitted by users is first verified and then grouped into blocks, and once the transactions are verified, they cannot be canceled. Moreover, each block is secured by robust cryptography that provides users with a remarkably high level of security for each transaction, thereby eliminating the limitations that conventional currencies face.
5. Bitcoin is P2P (End to End Encrypted)
Bitcoin is the first peer-to-peer, open yet secure, and decentralized currency based on blockchain. It allows two people settled in any part of the world to exchange values over the internet without the interference of financial intermediaries like banks etc. People holding the coins are the owners themselves who have the liberty to access their wallet balance with the help of a private key. In simple words, P2P encryption allows users to transact anonymously, and hence their personal data is always safe.
6. Transnational Digital Currency
Bitcoin is globally accepted, as such, there are no specific boundaries as to its operations; people settled anywhere in the world can transfer or receive funds via bitcoins, do online shopping, pay for expenses, etc. Moreover, the absence of financial intermediaries reduces the transaction fees for transnational transactions. Therefore, it allows for seamless transactions across nations with a distributed ledger, based on blockchain technology continuously getting updated at the backend.
7. Bitcoin is Secure
Bitcoin transactions are anonymous, and therefore they are outwardly safe, as you do not have to share any personal information while carrying out a transaction. This is opposed to the conventional payment methods, be it online payments or cash, where your personal details are first verified before you can make any transaction.
The cryptocurrency industry has inevitably grown by leaps and bounds since bitcoins came into existence. In this era of globalization, where everything starting from investment to money transfers is heading towards a digital ecosystem, bitcoin is a promising addition to the digital payment sector. Owing to its useful features, bitcoin has achieved mainstream acceptance through 2018 and has proved its efficiencies in numerous positive ways.