Bitcoin, along with the technology that underpins it, the so called Blockchain, has been making waves in the financial markets since its launch in 2009.
Bitcoin is a virtual Digital Currency or cryptocurrency that is controlled by a decentralized network of users. It is by far the most popular cryptocurrency in use today, although there are hundreds of altcoins popping up around the market every year.
Here are some of the most popular benefits of using Bitcoin. Read on!
Bitcoin is the most popular cryptocurrency by a significant margin. And because of that, it also has a far greater liquidity than its peers. This enables users to retain most its inherent value when they convert it to fiat currencies, such as US dollar and euro.
For comparison, many other cryptocurrencies can’t be exchange directly to fiat currencies. Sometimes they lose their substantial value during such exchanges.
Increasing Popularity as Payment Method
More and more merchants are now accepting Sell and Buy Bitcoin as payments. It is becoming more possible buy virtually any physical item by using Bitcoin units.
If you’re taking your investing into cryptocurrencies seriously, Bitcoin’s growing acceptance as a mainstream payment method will be a big help for you.
International Transactions are Easier
Bitcoin transactions that are accomplished cross-border are no different from locally based transactions. There aren’t any international transaction fees, as is typically the case with credit card payments, cash withdrawals, and international money transfers.
While many other cryptocurrencies do not have international red tape, cross-border Bitcoin transactions are easier just because Bitcoin is more popular around the world.
Lower transaction fees
When compared to other digital payment methods like credit cards, Bitcoin charges relatively lower transaction fees. Even though such fees vary, it’s uncommon for a Bitcoin transaction to cost higher than 1 percent of its value. This is lower than the 2 percent to 3 percent rate for several other digital payments.
Your privacy is not really thoroughly protected when you hold fiat currencies in an online bank account or credit card transactions. Even though your online accounts are probably secured against hacks and attacks, they’re obviously associated with you. That means private merchants and authorities can follow how you spend and receive your electronic funds.
Bitcoin, on the other hand, has built-in privacy protections that allow you to completely separate your Bitcoin accounts from your public persona, if you want. Even though it is indeed possible to track Bitcoin flows between users, it’s extremely difficult to know who those users really are.
Bitcoin wasn’t created and isn’t controlled by any state entity like a central bank. That means it’s not much affected by political influence.
It follows that it only exists outside political system and it’s extremely difficult for banks to freeze or seize Bitcoin units.
Because of its decentralized nature, popularity, and liquidity, Bitcoin is also independent from its creators. Many other cryptocurrencies are characterized by concentrated holdings, and this means that the majority of existing units are held in a handful of accounts.