Today, digital currencies are making a step in the transaction of money worldwide. However, those transacting should be careful when choosing the medium of exchange so that they don’t lose their money. That said, Bitcoins/Cryptocurrencies seem to have unique advantages.
Standard foreign money transfers usually involve fees and exchange costs. Because Bitcoins have not yet found an intermediary, the transaction fee is kept very low to attract customers.
Also, the Bitcoin transfer happens fast. This does away with any waiting periods that the customer might incur. It is a benefit to the travelers. However, even though there is a low fee for the transaction of the bitcoin/cryptocurrency, users should involve a third-party in creation and maintenance of their bitcoin wallet.
The Advantages Of Bitcoin And Cryptocurrencies
Low Transaction Fees
Direct transfers for immediate settlement
As we all know, purchasing of real property must involve delays, payment of fees and the presence of a third party. Bitcoin contracts work differently. It is designed in such a way that it does away or instead adds a third person approvals or external referral evidence. It also stipulates a date and time that will be taken to complete the traditional assets transfer.
Protection from fraud
Unlike credit cards, cryptocurrencies are digital and cannot be forged or arbitrarily be reversed by the sender. This is beneficial to the user.
Acknowledgement at a universal level
Cryptocurrency can be used at international levels without experiencing any problems. The reason is that it’s not bound to any transaction charges, interest rates, exchange rates or rather any other charges for any given nation. This, therefore, saves a lot of time and money, for any individual or businesses, which might have been used to transfer money from one country to another. Therefore, transactions have been made easier since cryptocurrency is recognized universally.
Decentralization
Decentralization in bitcoin/cryptocurrency simply means that network operates on a user-to-user basis. A global network of computers that use blockchain technology is in charge of managing the database that keeps the records of any Bitcoin transaction. That means that bitcoin is controlled by its network and not just by any other central authority. Therefore, there are no interferences from say, the government. No one can be allowed to block or freeze your account as it happens with most financial institutions. If there is anything concerning your account, then you will be notified. You are the core controller of your bitcoins at all times.
There are millions of people today worldwide that have access to their mobile network, but they are primed to cryptocurrency/ bitcoin. It is a shock that they do not have access to their traditional money exchange. In Kenya today, micro finances and the M-PESA which is a mobile phone money transfer have now reported that a good number of Kenyans currently own a bitcoin wallet.
Protection from identity theft
While credit card uses a pull-like basis, cryptocurrency uses a pull-like basis which allows the cryptocurrency holder to send the exact amount that they want to send to the recipient or merchant without giving them full information about your account. This is unlike when you give your credit card to a merchant because you will provide them with full access to your credit line; however small the transaction fee is.
In the credit card transaction, the store initiates the payments for you thus pulling the given amount from your account.
Another thing is that with cryptocurrency, you will not have to be worried about someone stealing your RFID information from your credit and debit cards.
User Anonymity
The purchases for bitcoins are discrete. That means that the purchases cannot be associated with the user’s identity unless the user decides to publicize his transactions. Good news is that the bitcoin address that is generated by the user does not remain the same after a transaction. It changes with each transaction that takes place.
There is no tax for the purchases
Since there are no interruptions from the government to get to know about your transactions that are dominated in bitcoins, the sales tax is not added to your purchases. Therefore, you get your purchases without any subtractions of tax.
Mobile payments
Just like other online payment systems, bitcoin users are also allowed to pay for their coins anywhere in the world provided there is an internet. Therefore, for you to buy a product, you do not need to travel to the nearest store or bank. Personal details are not necessary for you to complete any form of transaction, unlike the credit cards. Therefore, bitcoins are very convenient.
Solving problems
Cryptocurrency is used to solve several problems in the world. Inflation is one of them. There are very minimum traces of inflation when it comes to the cryptocurrency world. However, the little traces have been identified, and now there is a Proof- Stake protocol that has been put in place to enhance cryptocurrencies.
That is why many people today are running for cryptocurrencies because the inflation is not that high when you compare to say the central banks. Another problem that is solved is that no one can confiscate your assets. The government can confiscate your assets but bitcoins cannot. Also, there are capital controls to themcountries. Many countries restrict their citizens from transferring of capital from their lands. This problem is now being taken care of by bitcoins.
Come to think of it. Many people now prefer the digital currency. Nowadays most don’t carry cash with them. There is a step to embrace the introduction of the digital currency. Change is said to be inevitable. It is fascinating how change is taking over the world when it comes to money transactions.
That said, BitCoins have captured the attention of different characters: the cyberpunks, con men, and even big financial speculators. The question that many ask is that are the BitCoins the solution to this digital world? However, the demand for a genuine virtual currency is high and real. Therefore, when Cryptocurrency is used appropriately, it will be the initiator of many emerging systems that will profoundly change our economic system.