Here are the reasons on why people choose to use Bitcoin, its advantages in terms of control, fees, security, accessibility and value
Why use Bitcoin? What are its benefits? Is it better than cash or credit cards? We have already provided a comparison between cryptocurrency and fiat money, and here we present a list of major reasons for using Bitcoin.
The 2008 financial crisis made it clear that people need to move to a more stable decentralized money system that does not depend on central authorities. This event seems to have inspired the creation of Bitcoin, a peer-to-peer electronic cash system.
While the adoption of Bitcoin is not yet universal, it is already proving itself useful in an increasing number of ways. Sending money to anyone in the world has never been this quick and cheap because Satoshi Nakamoto, the anonymous developer, created Bitcoin especially for the Internet generation with all its needs and demands in mind.
Control over finances
Bitcoin gives people freedom over their finances. People no longer have to put up with governments seizing control over their money. It is now people themselves who determine the value of money because the price of a bitcoin only depends on two factors — supply and demand.
With Bitcoin, customers actually pay for the good, as opposed to being charged for it. Buying something with bitcoin is simply sending a certain numeric value to the seller. Fees in Bitcoin are much lower than those in other electronic payment systems such as Visa, Mastercard, or Paypal.
Bitcoin transactions are immutable. This means that dishonest people cannot exploit some of the flaws of traditional digital payment systems, such as money replication, and businesses no longer face the problems related to canceled or reverted payments.
The Bitcoin network is secure because of its peer-to-peer architecture. This means that it does not have a single point of failure; all data is safely stored on a blockchain, which does not rely on servers to run. This dramatically reduces the surface area for attacks.
It may sound surprising but there are a lot of unbanked or underbanked regions in the world. People in these countries cannot buy goods online because they do not have access or have limited access to banking services. Bitcoin completely eliminates this problem because, to receive or spend bitcoin, the only thing a person needs is a computer connected to the Internet.
Bitcoin is borderless. With the increasing level of globalization, more and more people move to foreign countries for work. However, when it comes to sending their earnings to their relatives at home, they face huge remittance fees due to the status of cross-border transactions. Bitcoin, on the other hand, does not have jurisdictions and is not subject to any country’s legislation. Anyone anywhere in the world can send and receive money with drastically lower fees.
Store of value
Before Bitcoin reaches mass adoption, it has to solve a number of problems such as scalability and high power consumption. Due to these and other issues, Bitcoin, as some believe, is slowly turning from an e-cash system into digital gold. It is an asset that does not lose its value over time, and the owner can always sell it at a predictable price.
It is still hard to say whether Bitcoin becomes an easy tool to pay for things online or a digital store of value. Nevertheless, Bitcoin has a great chance to bring so much needed change to the current economic establishment. Apart from financial systems, open-ledger technologies have the potential to revolutionize business, legal system, government, and the Internet itself.