Bitcoin is a huge thing now, yet not everybody knows why. Most specifically, not everybody knows whether Bitcoin is for them or not, and how they can get interested. Here are some of the most compelling reasons for using Bitcoin.
More safe than banks The algorithm Bitcoin is as similar to bulletproof as a computer program can achieve. Any of the strongest hackers and cyber protection specialists took a run on it and no one can consider any flaws so far. The Bitcoin code, the digital equivalent of Shakespeare, has been described as masterfully crafted.Read this content.
Meanwhile, banking transactions are lower in protection than Bitcoin. Bitcoin has had to be more stable in a number of ways than banks. The banks have been around for decades, after all, and people understand how this operates. Yet Bitcoin is the latest, upstart youth and needs to prove itself.
That is what renders Bitcoin a priority for those who want to see it crash. Yet Satoshi Nakamoto, founder of Bitcoin, had that in mind when creating the Bitcoin algorithm. Step ahead, and fire it. I don’t believe you would solve this.
Higher service costs than large prices paid by banks financial companies per transaction. The mechanism is set up in such a way that direct transactions between two individuals are impossible; a “trusted” third party is needed to initiate the transaction. So, of course, banks will be paying a service fee to allow these purchases.
You can use Bitcoin escrow services which take a fee for service, but you don’t have to. Since Bitcoin is focused on P2P transfers, no service fees apply. Of default, because of this the banks aren’t a big fan of Bitcoin.
Low Inflation Danger The amount of Bitcoins produced is fixed at a preset rate. All it means is that no country will print more capital out to pay down their debts.
While real world currencies lose a tiny amount of their value per year, Bitcoin’s price continues to be increasingly increasing.
Low risk of default That relies on the stability of that country while the currency is linked to a bank. You and I both realize that states may collapse, and may sometimes become useless when they do the money they’ve written. Look at the banknotes in your pocket. You dealt for them tough. Could you think that one day they would become worth less than the paper on which they were printed?
Since Bitcoin is not linked to any sovereign or central authority, its value is contingent on no external circumstances. Bitcoin can continue to exist and be useful as long as the internet does exist.
Bitcoin is certainly not perfect. There are risks involved just like any other. But it’s a question for another post.