You don’t have to be an investor or from the finance field to have heard of Bitcoin. Launched in 2009, Bitcoin took the whole world by storm, and everyone wanted to know what exactly it was. Bitcoin is a cryptocurrency that has no regulatory authority and can be sent from one user to another through the peer-to-peer bitcoin network, eliminating the need for intermediaries. In essence, it’s a digital currency that has no single administrator. It serves the same purpose as the normal currency we all use – purchase of goods and services, exchanging for other currencies.
The launch of Bitcoin opened up a whole new world of possibilities in the finance field. Plenty of interest was generated in this “third form of currency” when it was released to the world by a mysterious programmer, and for a good reason too.
Now that you have a basic idea of what the famed Bitcoin is, your question must be this – why Bitcoin? The answer to that is – why not?
It can be quite difficult for the general public to trust a form of currency that is so different from what the world is used to. Without proper education on the subject and
No Pesky Intermediaries
Bitcoin has no regulatory authority, which means that governments, banks, and other financial institutions can’t interfere in user transactions. Bitcoin accounts can’t be frozen by third-parties, thus avoiding a quite frustrating consequence that is very common. This is possible as Bitcoin is based on purely a peer-to-peer network. So the pesky intermediaries you’re so used to will be out of your hair by using Bitcoin.
Saves Time and Money
Using the peer-to-peer Bitcoin network means very low transaction fees, unlike wire transfers and purchases from foreign entities. This is due to the lack of intermediaries in the system, which helps reduce the transaction costs as there are lesser levels the transaction has to travel through. It is also faster than normal transactions due to the fact that the Bitcoin network does not make you suffer through long processing or authorizing periods.
The Bitcoin network does a lot to protect a user’s identity. The peer-to-peer network does not ask for personal information when completing a transaction, and a transaction once completed cannot be traced back to the user who carried it out. Every Bitcoin user is assigned a different anonymous Bitcoin address every time he or she carries out a transaction. The purchases of a user are not accessible by a third party unless and until he or she publishes their history of purchases. The network thus allows you to remain completely anonymous and off the radar, and therefore prevent your information from getting stolen.
Bitcoin is a form of currency, and therefore it can, like any other form of currency, be exchanged for other forms of currency. This digital currency can be exchanged into dollars, rupees, and any and every other fiat currency. Besides this, Bitcoin also lets you exchange it for less popular alternatives of the cryptocurrency. Bitcoin exchanges – like Bitcoin Circuit, an online cryptocurrency trading platform – work to ensure that the value of the digital currency as compared to traditional currency and other alternatives of cryptocurrency is always accurate and updated. So even if you decide to cash in a bit of your investment for the regular old currency, you won’t have a problem!
Bitcoin has a built-in scarcity feature, with the network having been programmed to ensure that only 21 million units of the currency will ever exist. The scarcity of this digital currency means that its existence itself creates value for it, much like gold. More and more unites of traditional fiat currency can be generated by the respective regulatory authorities to deal with economic crises. In the case of Bitcoin, however, the number of units is fixed and unchangeable, making its existence and value similar to that of precious metal.
Easier International Transactions
Unlike the inconvenience caused by traditional money transfer, Bitcoin transactions across borders of countries do not set you back by international transfer fees or make you undergo the headache of red tape. Bitcoin, being very popular among a large number of merchants all over the world, is not only accepted at most places but also makes transactions much easier to carry out.
The initial hesitation to invest in Bitcoin is understandable, it being so different from the traditional currency we are all so used to. It can also be understood from weighing the pros and cons; however, that investing in Bitcoin is a good enough route to pursue by anyone willing to take a chance and make a change. As long as you’ve chosen the right platform to trade your investments on, Bitcoin will most definitely be rewarding to you.