Bitcoin is the first cryptocurrency in the world and has changed money transaction in many ways. Without further ado let us talk about what the advantages of Bitcoin are:
One of the reasons why Bitcoin is popular is because of the low fees or no fees at all. If you use your local banks or international banks for payment and receiving money internationally, a certain amount of fees and taxes are applicable. However with Bitcoin, the majority of the times, there are no fees at all. If you want the transaction to move faster, you can pay some amount. However, this amount is still lesser than what you would normally pay for other transactions.
International transactions in many countries are limited to certain methods or certain banks. Not everyone can obtain an international debit card or credit card. Hence people without these methods cannot buy, sell or make payments internationally or even locally. Bitcoins are a great advantage in this matter because a lot of big companies accept Bitcoin as a mode of payment. Hence it gives access to a wider population.
- More anonymous:
With credit cards and debit cards, when you purchase anything, the sellers have access to information about your cards including personal information. If you purchase on a website which is not that reliable, there is always a chance of sellers taking advantage of it. They might misuse your card or identity. But with Bitcoin, you have your Bitcoin wallets which allow you to do the transaction without revealing your information.
Bitcoin also offers you the security of not being traced. That means no one can trace where your funds come from. The government also cannot take money from you since the source of funds are not known.
- Lower inflation:
With our currencies, it can suddenly go down or up. However, developers of Bitcoin have tried to avoid this by limiting the produce of Bitcoins. Only 21 million Bitcoins are available, and so far it has been decided that no more Bitcoins will be produced. Hence the value of coins will not suddenly rise or fall as it will with our government currencies.
- No third party:
There is no owner of Bitcoin. Bitcoin functions and is regulated by the community of Bitcoin users. It is an open world digital currency. It is an advantage because if there were an owner with regulations, fees and taxes would be applicable and much higher.
Another advantage is that there is no access or interruption from any third party.
- Multiple wallets:
Another advantage is that you can create multiple wallets. This ensures that no one knows some Bitcoins you have. Even if you have just one wallet, no one can find out how much you have unless you click fake links outside the official page and it leads to hackers hacking your account or unless someone else accesses your computer physically. Multiple wallets are made by users just for extra security.