Want to get familiar with some of the advantages of Bitcoin?
There are seemingly so many advantages in using cryptocurrency, most especially the Bitcoin.
It is no news that the world of the decentralized currency (Cryptocurrency) is experiencing significant changes.
Everyday individuals move their assets and cash into crypto, more especially the bitcoin crypto. Why is that? What are the advantages of using the bitcoin cryptocurrency?
What is Bitcoin?
Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.
If you are thinking about investing in this digital currency, make sure you have studied all the benefits and risks you face when making investments. The following are some of the major advantages of using Bitcoin versus other currency systems:
Advantages of using bitcoin as a payment mode
- No Third-Party Seizure
Since there are multiple redundant copies of the transactions database, no one can seize bitcoins. The most someone can do is force the user, by other means, to send the the bitcoins to someone else. This means that governments can’t freeze someone’s wealth, and thus users of Bitcoins will have complete freedom to do anything they want with their money.
- No Taxes
There is no way for a third party to intercept transactions of Bitcoins, and therefore there is no viable way to implement a Bitcoin taxation system. The only way to pay a tax would be, if someone voluntarily sends a percentage of the amount being sent as tax.
- No Tracking
Unless users publicize their wallet addresses publicly, no one can trace transactions back to them. No one, other than the wallet owners, will know how many Bitcoins they have. Even if the wallet address was publicized, a new wallet address can be easily generated. This greatly increases privacy when compared to traditional currency systems, where third parties potentially have access to personal financial data.
- No Transaction Costs
Sending and receiving Bitcoins requires users to keep the Bitcoin client running and connected to other nodes. Essentially, by using bitcoins users will be contributing to the network, and thus sharing the burden of authorizing transactions. Sharing this work greatly reduces transaction costs, and thus makes transaction costs negligible.
- No Risk of “Charge-backs”
Once Bitcoins are sent, the transaction cannot be reversed. Since the ownership address of Bitcoins will be changed to the new owner, once it is changed, it is impossible to revert. Since only the new owner has the associated private key, only he/she can change ownership of the coins. This ensures that there is no risk involved when receiving Bitcoins.
Here you have it, a comprehensive post on the advantages of Bitcoin. If you found this insightful, do well to share on your social handles.
Do you have any questions or suggestions? Share them in the comment section, I’ll love to hear from you.