What are the Main Advantages of Bitcoin as a Currency?
Bitcoins are gaining traction around the world slowly, but surely, as a valid form of currency. What attracts people to the use of bitcoins and what are the advantages of Bitcoin over a more traditional form of money?
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Here are the main benefits of Bitcoin, which have caused many people to adopt this form of digital cryptocurrency:
1. No risk of inflation
Bitcoins are not made by a government. For this reason, no one can decide to suddenly create a lot of extra coins and add them to the current supply. Inflation is controlled because the coins are released at a steady rate that is predictable and transparent.
2. Secure and private payments
Your personal information is not tied to a Bitcoin purchase like it is with a credit card or bank transaction. This makes payments much more secure, especially when you’re paying online or through a mobile device.
If you don’t want your purchases tracked, you can use Bitcoins to keep prying eyes away from seeing what you’re buying. While this can be bad in the sense that Bitcoins have been used for illegal purchases, it’s also a good thing for your personal privacy.
3. Ownership of your money
Once you purchase a bitcoin, it is yours completely. No government, bank, or other party can come along and reclaim your money for any reason. Bitcoins are not produced or owned by any certain entity, so once you own the public and private keys, you own the coin itself, fully and completely.
4. No third-party interactions necessary
You don’t have to go through banks or other payment intermediaries to spend your bitcoins online. This gets rid of a lot of the transaction fees and the mistrust that is involved in using a third party service. Unlike bitcoins, these money-holding services can control your assets and put you through unnecessary requirements to get usage of your money back. There is no such problem with Bitcoin, as you don’t have to keep it in a third-party online wallet unless you choose to.
5. Tax-free and borderless money
In many cases, sales tax cannot be charged to Bitcoin purchases as it’s impossible to know where the money is coming from. This also helps you to transfer money between countries without any transaction fees or issues.
6. Payment transparency
The Bitcoin blockchain can be viewed at any time and includes a log of all payments and transactions that have taken place with Bitcoins over the recent period of time.
7. No payment reversals
Because there are no third party money-holders, transactions cannot be reversed. This helps to eliminate cases of fraud.
Benefits of Bitcoin Mining
Bitcoin mining, the process of acquiring new Bitcoins, can also be advantageous. Here are the main benefits of bitcoin mining:
1. Good investment
It doesn’t cost as much to invest in the necessary computer hardware to start mining as it would to start up a different sort of investment. Bitcoins can give you a fairly high return on investment, if you get the right gear to earn more coins. Since Bitcoins have a very high value right now, you can get your money back within a relatively short period of time.
2. Passive income
Mining Bitcoins doesn’t require you to physically do anything. Once you set it up, you
mainly have to leave your computer on and check up on it to make sure it’s still actively working. Otherwise, there is nothing else you need to physically do to get your return from this investment.
Although Bitcoins certainly come with risks, the advantages of Bitcoin can outweigh those risks in the minds of many people. Decide for yourself whether these benefits are enough for you or if you think it’s a bit too risky of an idea to try.
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