Bitcoin, when it was introduced, was an all-new form of currency that has already started to hit the market, but many people still can’t understand the concept behind it.
Here are some of the reasons explaining why bitcoin should be accepted as it is:
Bank payments and international wire transfers take considerable time to process the transactions. Transactions can be fast if they are “zero-confirmation” transactions, indicating that the merchant bears the risk of accepting a deal that hasn’t been confirmed by the blockchain of bitcoin. Other than this, they may take approx. 10 minutes if a merchant needs the transaction to be approved, which is also a lot faster than any inter-bank transfer.
Transaction fees are being decreased to a considerable level, as there is no involvement of any third-party. Some merchants charge a specific fee for debit card transactions as well because they also have to pay a ‘swipe fee’ to fulfill them. Transaction fees associated with Bitcoin are minimum, or free (in some cases).
The drawback associated with the usage of fiat currency is that it can be printed as much as governments intend to, and they apparently do so. For example, if in India, funds are not sufficient to pay the national debt, then the central bank of India is authorized to print more Indian currency to fulfill debts. An almost similar deed has been performed by the prime minister of India Narendra Modi, at the time when the economy was stumbling, and he wanted to bring all the black money out, he passed orders to create new money (making old one worthless) and introduced it into the Indian economy, through a process known as quantitative easing. This has caused a lot of problem in several sectors.
If currency more than required, is being printed, then the value of it decreases, in turn, inflation comes into existence. Inflation is very difficult to control, and it may cause a decrease in buying capability of people. The idea behind the creation of Bitcoin was to keep it restricted, that’s why a limited number of bitcoins are being created, in turn, its value stays maintained. In simple words, the number of bitcoins doesn’t increase, so the situation of inflation may not arise.
Regulatory Authority has no access to it
The incident happened in Cyprus in March 2013, still gives us goosebumps when the central bank over there intended to take back the uninsured deposit amount more than $100,000 to let it recapitalize. Such a condition may not arise while using bitcoin. The currency is decentralized, and you own it completely. No central authority has access to it, and that’s why no bank can take it back from you or claim for anything.
No chargebacks as the transactions are irreversible
Once bitcoins are being sent, they’re gone forever. After sending the bitcoins, the same transaction cannot be retrieved or reversed. That’s why it is impossible to perform any fraud activity. As the transactions are irreversible, that’s why no chargebacks can be deducted you’re your account. Also, no one can reveal your payment information from merchants. The one thing you have to remember is that keep your private key, secret and don’t expose it to anyone.
Produce your own money
Bitcoin platform gives you the flexibility to create your own money. You can purchase bitcoins on the open market, and you can even mine your own if you can manage to collect the desired computing power. After getting your initial investment in equipment as well as electricity, mining bitcoins is just about leaving your machine switched on, the software running, and let them do their job.
Next level of anonymousness
Bitcoin is a private currency, and on the other side, it is transparent too (due to blockchain technology). Due to this transparency, everyone can get to know how much a specific bitcoin address holds in transactions, but due to enabled privacy, no one may come to see that who owns that particular bitcoin address. This level of advancement is not manageable for everyone to handle, that’s why one should be very careful while performing bitcoin transactions.
No need to trust any intermediary
In a traditional banking system, you have to keep faith in other people to handle your money correctly. You may have to believe any bank, or third-party payment processor, or any merchant depending on the purpose. Bitcoin is entirely decentralized, that’s why you need to trust no one while using it. When you perform a transaction, it is signed and secured digitally. No one would know about you until you choose to reveal it.
It’s all yours
While using bitcoin, you have the private key and the corresponding public key which forms a bitcoin address. No one can take that from you until you expose it publically. That’s why the bitcoins you’ve earned or bought will be all yours, and no one is authorized to take it away from you.