There are several reasons why Bitcoin as a form of internet currency as well as a store of value is far better than fiat currencies. Here are 10 good reasons why you should choose bitcoin to fiat currencies.
1. Lower inflation risk: All world currencies are controlled by their respective governments. Since governments keep printing more money at will, it leads to fluctuation in the value of the currencies. When a currency loses value, its purchasing power decreases. Bitcoin by design is meant to be free from inflation since the number of bitcoin that can ever be created is finite. By 2050 it is expected that there will be 1 Bitcoin for every 500 person on earth.
2. Transactions are Irreversible: Transactions processed on the blockchain are irreversible, impenetrable, impregnable, and impervious from outside manipulation (except for a strategically coordinated 51%+ attack). Once transaction is confirmed on the blockchain network, it becomes impossible to reverse it. This property is particularly necessary to reduce county party risk which is one of the biggest challenge in eCommerce.
3. Pseudonymous: Cryptocurrencies offer anonymity and identity protection and so transaction is untraceable. Currently, if a consumer uses traditional payment platforms to purchase a product or service, aside the transfer of funds from Bank A to Bank B, the consumer’s Personally Identifiable Information (PII) is also transmitted. This allow central governments, large scale banks or credit unions to tap into this data. This is in contrast to the incognito offering of Bitcoin where neither transactions nor accounts are connected to real world identities. You receive Bitcoins on wallet addresses, which are random string of character. This is particularly useful in a world where there is serious government control on the distribution of wealth and values.
4. Fast and global: Transaction are propagated nearly instantly in the network and are confirmed in a couple of minutes. Since they happen in a global network of computers they are completely indifferent of your physical location. It doesn’t matter if I send Bitcoin to my neighbour or to someone on the other side of the world. For those who have tried to send money abroad using any of the traditional remittance service, this is very significant. It saves time and increases productivity.
5. Secure: Cryptocurrency funds are locked in a public key cryptography system. Only the owner of the private key can send cryptocurrency. Strong cryptography and the magic of big numbers makes it impossible to break this scheme. A Bitcoin address is more secure than Fort Knox.
6. Permissionless: You don‘t have to ask anybody to use cryptocurrency. Neither the government nor the banks can freeze your account or place limit to how much you can transact with as there are basically no gatekeepers.
7 . Bitcoin transactions are simple, easy, and cheap. Since the buyers cannot claim their money back after purchase, it gives the sellers an opportunity to ship the product or service to the buyer without any worry of recovery.
8. Bitcoin is portable: With the current major currencies, it is difficult to carry around large amounts of money. Cash amounting to millions is risky to carry for several reasons, which is why Bitcoin investors prefer it to other currencies. With Bitcoin, you can easily carry around a million dollars of Bitcoin in a memory card.
9. Cryptocurrencies are typically protected from interest rates, fees and surcharges that you may have to pay on your bank account or credit card. In reality, the crypto aficionado community that comprises the core development team and all of its regular users, are philosophically against these fees.
10. International cross-border payments can be executed within almost instanteneously compared to 5–8 business days using traditional banking infrastructure.
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Israel Martins is a cryptocurrency researcher and trader since 2016, passionate about blockchain and other emerging technologies.