While cryptocurrency, most notably Bitcoin, has been revolutionizing the financial system at http://trustpedia.io/, there are still plenty of people who aren’t sure why they should care about it, or what it means to their everyday lives. In this article, we will help you know more about why Bitcoins are the most preferred option in terms of financial investment. You will also know why people prefer Bitcoins over Fiat currencies.
If you are an enthusiast Bitcoin investor and curious to know more about, read on to know further to have an overall better understanding!
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1. Transaction Speed
One of Bitcoin’s primary advantages over traditional currencies is its ability to facilitate transactions quickly. When you buy something with a credit card, it can take days for payment to process and clear, which is exactly why companies like Visa and MasterCard charge businesses hefty transaction fees. With bitcoin, however, payments can be authorized and verified instantly via mobile devices or computers. As of now, there is a total of six million Bitcoin wallets that are in use.
2. Fees
One thing that sucks about credit cards, wire transfers, and other monetary transactions? The fees. Bank wires and electronic payments cost money, which can make small amounts seem like a lot of money. Take $10 for example. If you’re paying a fee of $2.95 to send that money to your bank account, suddenly those $10 don’t seem so little anymore—they become $12.95! Now think about doing that with hundreds or thousands of dollars…you may not have enough left in your account to make it worth it.
3. Security
Part of what makes Bitcoins so safe, is that they’re decentralized. There are no banks or central storage facilities to get hacked, and your digital assets can only be stolen if you lose access to your private key (thus losing your assets). Compare that with a bank account—if someone hacks into your bank’s database, they can access whatever amount of money you have in there; in other words, there’s one point of vulnerability.
3. Self-Ownership
One of bitcoin’s most significant advantages over fiat currency is its self-ownership. The latter cannot be used without an authority figure, such as a bank or government, to create and maintain it. Self-ownership ensures that bitcoin’s value will not diminish in a crisis; as long as you have your bitcoin wallet, you have your money and can use it however you please.
4. Accessibility
How easy is it to buy, sell, use and understand bitcoins? As you probably know, there are two types of currencies in today’s world: fiat currency and cryptocurrency. In a nutshell, fiat currency refers to an actual piece of paper that has value because it has a government seal on it; cryptocurrency does not have such backing. One common myth about cryptocurrencies like Bitcoin is that they aren’t safe to use because governments can shut them down at any time.
5. Decentralization
With fiat currency, a central entity like a bank controls your money supply and issues new units. With bitcoins, there’s no central authority to issue new coins. Instead, each machine on its network—referred to as nodes—is equal, cryptographically protected and responsible for keeping up with transactions on their own machines.
6. Storage Requirements
Bitcoins are stored in a wallet, which is protected by a private key. The private key mainly gives users access to their accounts. In this case, you should note that the secure Bitcoin wallets both have public keys and private keys. However, it’s common for people to make their own wallets using just one key. If your wallet uses only one key, make sure that you do not lose it!
Conclusion
The aforementioned points clearly say that Bitcoin is more beneficial than Fiat currency. Bitcoin, a digital currency designed to facilitate purchases over an untrusted network, without requiring trusting any central parties for facilitating those transactions, has proven itself time and again to be incredibly useful and valuable. With each new innovation and addition to Bitcoin’s feature set, it becomes easier for both merchants and consumers to trust it with larger amounts of money.
