Why use Bitcoin?

Why Use Bitcoin? Here are few reasons!

When any cheque has been transferred from one bank to another, the bank usually holds the check for some period of a time. This is because no banks can trust whether the amount is really available or not. In the same sense, international wire transfers will also take a long time.

Advertisement Miners Garden

By comparing these, bitcoin cryprtocurrency transactions are fast, the transactions can be instantly taken. However, if there are zero confirmation transactions or only 10 minutes can be required to get transactions confirmed if merchant inquiries it.

Zero Transactions: ( where merchant assume the risk of accepting to that transaction which hasn’t been confirmed by bitcoin blockchain)

It’s Cheap:

However, a Credit card transactions are also instantaneous. But the merchant has to pay for that privilege. In some cases, these merchants will charge for debit card transactions too. But bitcoin transaction involves with minimal fees, in some cases free.

Free from Authority

Because the Bitcoin currency is decentralized, it means you own it. Central government does not have any control on it so they can’t take it away.

There are no chargebacks

Bitcoins are not retrievable in nature (otherwise on the consent of recipients). Once it has been sent they are gone. This avoids any fraudulent act what we usually see with credit cards.

People can’t steal payment information from merchants.

Nowadays, most online businesses are made via credit cards but in the year 1920 and 30s, Internet had not been apprehended when 1st precursors to credit card were initiated. However, credit cards were insured and never supposed to be used online. Often, forms require you to add confidential information (the credit card number, CSV number or expiry date and so on) into a web form. It is quite hard to analyze secure payment, which is why credit card numbers are often stolen.

On contrary, Bitcoin transaction doesn’t require any information as an alternative, two keys are being used (private and public key). The public key is visible to everyone, as it is a bitcoin address while private key kept secret. As and when you proceed with Bitcoin, you sign the transaction by combining these two keys together. Then applying mathematical functions to them. This process creates a certificate which certifies that transactions is originated from you.

Bitcoin is not inflationary:

Often, Government prints more money when debt is huge and take newly created money if the economy is sputtering. This results in decreased value of the currency and increased the value of product and services which are referred as Inflation.

Bitcoin was proposed to have a maximum number of coins. Under original specification, 21 million coins will be created and then a number of bitcoins won’t grow. This will not create any issue of inflation.

Show More

Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button