Many individuals are now gaining their trust in cryptocurrencies, especially bitcoin. They believe the future of currencies is in digital assets. Prices are going high with greater interest. This makes blockchain technology a very powerful field to invest in.
It makes sense to be among the crypto investors. Although there are a lot of discussions going on about bitcoin, there are reasons why this currency is of significance in the market. Some of the reasons are:
Effective and fast transaction
In the real world, making transactions can be slow. But the crypto banking has brought a lot of differences in the market. For example, paying for something can take more than a day while using a bank cheque to go through. But once you have the bitcoin digital wallet, you can send money, and the related party will get it instantaneously. So if the two parties are far apart, let’s say in different continents, the transactions take less than 10 minutes.
Cheaper
Some internet and mobile banking are a bit fair. However, if we compare the difference in the transaction for a large amount of money with another merchant, the prices are too high. Some merchants will add an extra fee to debit card transactions. The changes are small and sometimes free when it comes to bitcoin.
Chargebacks
There has been a lot of fraud in internet banking. Black hart hackers are acting as intermediaries to get your data and still a lump of money. It’s easier to reverse the money sent with credit cards. However, if one sends the amount to the next party with bitcoin, it stays in that position. So you cannot reverse it for security purposes.
Free from government
The main reason crypto started was to eliminate the intermediary players like the government and banks. Many countries have suffered because of their poor economy. The government is always in a position to control the value of the currencies. It results in civil unrest in third-world nations. No one is happy when the government takes their own money. Bitcoin and other currencies are decentralized. This means any member has total control of the currency they own. There are no intermediaries to control the market.
Total Payment Protection
This has made bitcoin trusted by millions of investors. Every company is trying hard to secret its client’s data, mainly when it comes to debit and credit card information. All your card transactions must be recorded in a system whenever you want to pay. However, this doesn’t guarantee that the company will keep that info safe.
You only need a single public key to perform a transaction with bitcoin. It acts as an address to send and receive money through a private key. If you perform any traction, you can use both public and private keys. The hash algorithm behind this technology is very strong. You are guaranteed safety.
Bitcoin designed for deflationary
Some nations will print a lot of fiat currencies to fund their economic activities like wars. If they run out of money, there is no debate about it. Federal reserves take the next action, but print voilà. In a situation where the economy goes down, the same procedure is followed. This business leads to a decrease in purchasing power of the dollar. This behavior destroys the wealth of the nation.
Bitcoin was created with this idea in mind, the total coins in the market should not exceed 21 million. That is the maximum circulation of bitcoin. If the number is almost exhausting, the price goes high.
Very private
Blockchain technology is very private. It is not easy to know the person possessing a certain wallet. You have the mandate to see how much another person possesses, but you won’t notice the owner. This makes it difficult for the government to impose taxes on wealthy people. Recently, the US government has loomed in to destroy this secret. They want a receipt for any transaction exceeding $1000.
Free from Third parties
Most people rely on PayPal, stripe, and banks to take care of the money they own. We do pay a small price and give out our essential data. When it comes to crypto, we trust it alone. In any transaction, the digital ledgers record the bitcoin information hence providing security. Merchant-related needs zero information about the sender.
You own bitcoin
All the services or currency you own belong to public or private companies. Companies like PayPal might decide to lock your account for a certain period. At times, they deactivate your account, and you have to abide by their laws. For bitcoin, it belongs to you. You are the one in control of your private key.
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