Bitcoin is the most popular and widely used virtual currency in the world and since its launch in 2008; it has faced its fair share of ups and downs. Due to its volatility, its change in price has seismic effects on other virtual currencies.
Despite governments and financial institutions fighting its use and recognition as a legal tender for payment of goods and services, it has continued to gain global attention. Here are reasons why you should use Bitcoin.
It Is a Decentralised Currency
The virtual currency is based on encrypted cryptographic algorithms and this is what makes it a decentralised currency on top of the fact that it is not owned or regulated by any government. The benefits of a decentralised currency such as Bitcoin include
- Lower fees
- No broker
- Greater control of the funds
- It is faster, cheaper, immutable, and more secure
The value of conventional currency, on the other hand, is controlled by banks and other financial institutions. Bitcoin, on the other hand, is owned 100% by the owner.
Great Tool for Investment
Conventional currencies are bogged down by conversion processes, which add to the difficulty of making global investments. However, Bitcoin is accepted all over the world, and it is considered to be at par with gold with regards to its ease of use.
Bitcoin also operates in an open market, where governments and banks do not restrict its value. This aspect makes it easy to make global investments.
A Great Way of Maintaining Records
All Bitcoin transactions are recorded in a public ledger which shows how much Bitcoins were transferred and which address owns them. What this means is that there are no two people who can transact on the same value.
There are thousands of computers in a distributed network that use cryptographic techniques to create permanent and public records of every single Bitcoin. This ensures that records are up to date, simpler, and healthy for tax purposes. Moreover, you get to be accountable for tax purposes and tracking payment.
Bitcoin Is Not Affected By Inflation
The conventional currencies are affected by inflation which means that your money will lose value from time to time. Governments and banks relish times of high inflation which forces people to consume more.
Shrewd investors always avoid inflation, and this makes Bitcoin a very attractive option. At any one time, there will be only 21 million Bitcoins created, and this leads to a state of deflation.
Faster and Cheaper Way of Making Global Transactions
You can transfer Bitcoins from your wallet to another user across the world in seconds. Conventional currencies are not scalable, and this increases the time it takes as well as the fees it takes to make global transactions.
Other than this, Bitcoin operates around the clock, and this makes it an attractive option since you do not have to contend with banks’ closing times. It only costs a few cents to send a vast sum of Bitcoins compared to banks that charge as much between 1.5% and 3% for global transactions involving conventional currencies.
Bitcoin is the currency of our time and with the above benefits, and more, you should make a point of using it. There are various ways of getting Bitcoins, but the bottom line is that you need to monitor the price to know when you should trade your Bitcoins for a profit.