Cryptographers and innovators have been trying to come up with a secure, decentralized and viable digital currency. None succeeded until Satoshi Nakamoto released Bitcoin. This token seems to be the perfect medium to enable global investors, including those in developing countries, to access unprecedented trading opportunities. Thanks to the unique benefits of Bitcoin. Here, we present to you the top 10 benefits of Bitcoin.
What is Bitcoin?
Firstly, we need to define that, on the one hand, you have a bitcoin token, which is a small piece of code that represents ownership of a digital concept. On the other hand, you have the Bitcoin Protocol, which is a distributed network that maintains a ledger of the balance of bitcoin tokens. Both are called "Bitcoins."
This system allows payments to be sent between users without having to go through a central authority, such as a bank or payment gateway. It is created and stored electronically. Digital coins are not printed like dollars or euros, they are produced by computers around the world using free software.
The platform is built on the concept of "proof of workload", where the system is based on the idea that "to mine digital currency, a computer must complete a complex algorithm, essentially a large amount of computational work, in order to exchange it for some newly minted currency. The digital currency is worth whatever the market decides through supply and demand.
Transactions are linked to a user's Bitcoin address, which is stored in their ledger, called the blockchain. If that address is associated with a real identity, the transactions can be traced back to the user. If not, they are not.
The key component of the Bitcoin blockchain is that it is an open, distributed ledger. Through the distributed nature of this ledger, transactions on the blockchain will be verified through the consensus of each member, providing security and trust without the need for third-party oversight.
Bitcoin is a platform that hosts a digital ledger on which people can mine, store and trade bitcoins, a digital form of currency obtained through computer algorithms, without the constraints of a central authority.
Advantages of Bitcoin
Bitcoin is often touted as the future of the cryptocurrency world for a variety of reasons. So, what makes this digital currency unique and attractive to millions of people around the world?
1, User anonymity
While the sender of traditional electronic payments is usually identified (for verification purposes and to comply with anti-money laundering and other legal requirements), Bitcoin users operate in a semi-anonymous manner. Since there is no central "validator", users do not need to identify themselves when sending coins to each other. When a transaction request is submitted, the protocol checks all previous transactions to confirm that the sender has the necessary amounts and the authority to send them. The system does not need to know his or her identity.
Unless the user voluntarily posts his/her transaction, the purchase is never associated with his/her personal identity, just like a cash-only purchase, and cannot be traced. In fact, the anonymous bitcoin address generated for a user's purchase changes with each transaction.
2, Low transaction fees
Standard wire transfers and foreign purchases usually involve fees and transaction costs. Since there are no intermediaries or governments involved in BTC transactions, transaction costs are kept very low. For travelers, this can be a major advantage. In addition, any transfer transactions are carried out very quickly, thus eliminating the inconvenience of typical authorization requirements and waiting times.
3, Fast international payments
International wire transfers can take anywhere from a few days to over a week, while crypto transactions typically take an hour to confirm. Sending digital coins across continents is as easy as sending them down the street. We don't have banks that can make you wait 2-3 business days, there are no additional fees for international transfers and there are no special restrictions on the minimum or maximum amount you can send.
4, Decentralization
No single institution has control over the Bitcoin network. It is maintained by a group of volunteer encoders and is run by an open network of dedicated computers located around the world. This attracts individuals and groups who are uncomfortable with the control banks or government agencies have over their funds.
Bitcoin solves the 'double-spending problem' of electronic money (where digital assets can be easily copied and reused) through a clever combination of cryptography and economic incentives. In an electronic fiat currency, banks can perform this function, thus allowing them to control the traditional system. With digital money, the integrity of transactions is maintained by a distributed open network that no one owns.
5, Security
Encrypted payments do not necessarily need to be tied to personal information. Because personal information is excluded from the transaction, users are not at risk as they would be with identity theft. It is also possible to back up and encrypt bitcoins to ensure the safety of your money. Merchants cannot charge extra for anything without being detected. They must talk to the consumer before adding any fees.
6, No paperwork
Anyone of any age, in any country, can accept bitcoin in minutes. There is no ID, passport or proof of address required to open an account with any traditional bank. All that is required to start sending and receiving BTC is to download a Bitcoin wallet program and generate a Bitcoin address. There is no limit to the number of addresses you can have, and you can have up to 1000 different addresses if required.
7, Irreversible transactions
As existing merchants will be well aware, when accepting a credit card payment, or even a bank payment, the sender can withdraw or "refund" the payment. There is nothing worse than sending a product to a customer only to receive a message stating that the payment has been cancelled and you have been scammed and there is nothing you can do about it. Bitcoin is the only payment method that is 100% irreversible and non-refundable. Therefore, extreme care should be taken when sending coins. Make sure you send them to a trusted supplier. It's like cash - once you give someone cash, you can't get it back (unless they give it back to you).
8, Freedom
A key selling point is that people can carry millions or billions of dollars of bitcoin across borders and pay any fees at any time without having to wait for an extended bank extension. Using Bitcoin provides you with the financial freedom to transact globally using all of the above attributes. In this way, Bitcoin brings economic stability and newfound freedom to the world, a life-changing event.
9, Limited Supply
There is a limited supply of Bitcoins. Only 21 million BTC have ever been created and generated at a predictable rate. it is scarce and deflationary.
10. Mobile payments
As with many online payment systems, BTC users can pay for their coins from anywhere they have access to the Internet. This means that the purchaser does not have to go to a bank or bank shop to purchase the product. However, unlike online payments made using a US bank account or credit card, no personal information is required to complete any transaction.
Bitcoin is still a relatively young currency, but it has already gained significant user adoption and growth. Its network is only becoming more powerful as more people understand the basic technology of BTC and the potential associated with other methods of storing value.
