By Mohammed Abdul Nadeem
Bitcoin is a comparatively new type of currency that has just started to strike the mainstream markets.
Critics state that using Bitcoins is unsafe because –
They have no authentic value
They are not regulated
They can be used to make illegal transactions
Still all the major market players talk about Bitcoins. Below are some good reasons why it is worth using this crypto currency.
Quick payments – When payments are made by using banks, the transaction takes some days, similarly wire transfers also take a long time. On the other hand, virtual currency Bitcoin transactions are generally more rapid.
“Zero-confirmation” transactions are instantaneous, where the merchant accepts the risk, which is still not approved by Bitcoin block-chain. If the merchant needs an approval, then the transaction takes 10 minutes. This is much more rapid than any inter-banking transfer.
Inexpensive – Credit or debit card transactions are instant, but you are charged a fee for using this privilege. In the Bitcoin transactions, the fees are usually low, and in some cases, it is free.
No one can take it away – Bitcoin is decentralized, so no central authority can take away percentage from your deposits.
No chargeback – Once you trade Bitcoins, they are gone. You cannot reclaim them without the recipient’s consent. Thus, it becomes difficult to commit the chargeback fraud, which is often experienced by people with credit cards.
People purchase goods and if they find it defective, they contact credit cards agency to make a chargeback, effectively reversing the transaction. The credit card company does it and charges you with costly chargeback fee ranging from $5-$15.
Safe personal details – Credit card numbers get stolen during online payments. A Bitcoin transaction does not need any personal details. You will need to combine your private key and the Bitcoin key together to do a transaction.
You just have to ensure that your private key is not accessed by strangers.
It is not inflationary – Federal Reserve prints more dollars, whenever the economy is sputtering. Government injects the new created money into the economy causing a decrease in currency value, thereby triggering inflation. Inflation decreases people’s power to buy things because prices of goods increase.
Bitcoins are in limited supply. The system was designed to quit mining more Bitcoins on reaching 21 million. This means that inflation will not be an issue, but deflation will be triggered, where prices of goods will fall.
Semi- anonymous operations – Bitcoin is relatively private, but transparent. The Bitcoin address is revealed at the block-chain. Everyone can look in your wallet, but your name will be invisible.
Easy micro-payments – Bitcoins allows you to make micropayments like 22 cents for free.
Substitute of fiat currencies – Bitcoins are good option to hold national currencies experiencing capital controls, and high inflation.
Bitcoins are getting legitimate – Major institutions like the Bank of England and Fed have decided to take Bitcoins for trading. More and more outlets like Reditt, Pizza chains, WordPress, Baidu, and many other small businesses are now accepting Bitcoin payments. Many binary trading and Forex brokers also allow you to trade with the Bitcoins.
Bitcoin is the pioneer of new crypto-currency era, the technology that gives you a peek into future currency.