The Advantages of Bitcoin
Bitcoin is the most popular crypto-currency known nowadays. It is a form of digital money which uses encryption for securing transactions.
What makes Bitcoin so revolutionary is that it came hand in hand with new technology, called block-chain. Even though payment with Bitcoin (and other crypto currencies) is possible without understanding the technology behind it, it is interesting to take a closer look at the matter. But we will focus on this in our next article.
However, Bitcoin is not the only ‘virtual currency’ found on the market that functions with Blockchain. There is a large amo
unt of so-called ‘cryptocoins’ or ‘altcoins’ that you can find, buy, trade or use for other purposes – again, we will talk about those in a different article.
Let’s begin our ‘cryptoventure’ by focusing on Bitcoin and the advantages they may bring (for us as well as for the future of technology). Many people might be skeptical about this currency because of rumors they heard on the news or shady stories they read online. But in truth, Bitcoin should not intimidate one any more than fiat/cash should. So let’s take a look at what Bitcoin can do.
Advantages of Bitcoin
With the use of Bitcoin, nothing is impossible when it comes to sending and getting the money anywhere and anytime across the globe. An average transaction takes up to 10 minutes until it has been confirmed by the network. Although since the great success of this cryptocurrency, these transactions can take a few hours if your transaction fee is too low. But let’s not forget that a ‘quick’ average bank transfer takes at least 1 day depending on its destinations. Some transfers from one country to another can take up to a few days, so this is one important factor that makes Bitcoin popular.
You are in control of the money, because there is no authority figure when it comes to the Bitcoin network and because of its decentralized feature, double spending (error in digital cash in which a token is spent more than once) and fraud is impossible. We will develop this part later when we move our focus onto the actual technology behind the currency.
You won’t need to worry anymore about rescheduling on bank holidays, crossing borders and other limitations which you think may occur during the transferring of money. As mentioned above, transactions can be made over borders with no extra charge and money can be sent and received any day (including weekends and bank holidays). It is important to point out the low fees that are involved in bitcoin payment.
It is important however to know that Bitcoin’s success comes with a price, but don’t be alarmed! As we mentioned before, last June, a report said that bitcoin’s popularity in India was so high, that it affected the entire network, causing the demand to be higher than the supply. This resulted in a longer wait than usual in the processing of transactions. Though it is possible to pay extra fees in order to speed things up. Like some may say ‘You can pay a cup of coffee with bitcoin, but is it worth paying a 5$ fee for such a small amount?’. You have to weigh your priorities of course.
One other advantage that Bitcoin has, besides doing some online payments or trading (yes, the worth of Bitcoin goes up and down, up more than down, and it is possible to make good money if you stay updated and buy at the right time!) is that allows people with no bank accounts to get paid or make payments. This has made life for people in third world countries a lot easier since the costs of transactions are so low and many people in the world don’t have legal documents. This will also be developed in further posts.