- 1 The Advantages of Bitcoin
- 1.1 1. Zero or Very Low Fees
- 1.2 2. 24-Hour Service
- 1.3 3. Immediate Transactions
- 1.4 4. Safety, Reliability and Protection
- 1.5 5. Technological Bitcoin Advantages
- 1.6 6. New Business Possibilities Thanks to the Advantages of Bitcoin
- 1.7 7. The Ability to Send Microtransactions
- 1.8 8. Easy Start
- 1.9 9. Simple to Send and Receive Donations
- 1.10 10. Supranational System
- 1.11 11. Open Technology is Another Attractive Aspect of Bitcoin
- 1.12 12. Market Prices
- 1.13 13. Bitcoin’s Ability to Bypass Sanctions
- 1.14 Finally
The Advantages of Bitcoin
The Advantages of Bitcoin – how do they look like? This is one of the most common questions people ask about this cryptocurrency. Other questions include “What is Bitcoin good for?”, “What are the benefits of Bitcoin?”, and “How can Bitcoin be useful to me?”. As it’s always tricky to filter the key benefits of the cryptocurrency, this article contains a list of thirteen Bitcoin benefits.
1. Zero or Very Low Fees
The fees are virtually independent of the amount transferred or the location of the sending and receiving parties. Transactions are often free. Fees are only required for the formation of technically large transactions that charge the network very small amounts to prevent an attack, which could spam a large number of meaningless transactions.
Other Bitcoin benefits include the fact that there are no subscription fees, restrictions or other limits.
2. 24-Hour Service
Put your business first; don’t worry about whether the bank is open on weekends or at lunchtimes. If you want to send a bank transfer at 3 am on Sunday, it will be sent at 3 am on Sunday.
3. Immediate Transactions
Bank transfers take on average 3-5 business days or longer for international bank transfers, but cryptocurrency transactions are almost immediate. However, if you are dealing with large volumes, it is recommended to wait for several acknowledgments from the transaction network. This usually takes less than an hour.
4. Safety, Reliability and Protection
The access key to the funds is stored using a proven cryptography that has a split between open and private keys. Similar algorithms are used by banks and other financial organizations to protect their data. The overall processing power of the Bitcoin network, which protects the history of transactions, surpassed that of any supercomputer in the world in 2012.
5. Technological Bitcoin Advantages
Excellent divisibility of the structure, easy transfer and verification of the authenticity of virtual coins while retaining many advantages of cash.
6. New Business Possibilities Thanks to the Advantages of Bitcoin
Smart contracts, multi-signatures, and other advances have been designed or redeployed for the convenience of businesses and users. You can create transactions with a guarantee, for example, that two out of three signatures are required to complete a transaction. Smart contracts allow you to set even more complicated conditions for executing tasks.
7. The Ability to Send Microtransactions
One example might be a thousandth of a dollar. These include new ways of monetizing content and other business opportunities that feed into the Bitcoin benefits.
8. Easy Start
Registration is quick and easy with no age or other restrictions. To get started, you need nothing more than access to the internet. Simply download the Bitcoin client to your computer or smartphone and it will generate the address of your wallet. Then you’re ready to accept and send cryptocurrency.
9. Simple to Send and Receive Donations
Publishing your Bitcoin address is sufficient to receive donations. The originator of the donations can send them to the addressee, which guarantees that there are no abuses by the authorities. This happened, for example, to bank transfers to the victims of the earthquake in Nepal, which were forcibly transferred to the personal account of the Prime Minister.
You can also donate to projects such as WikiLeaks without revealing your identity and without fear of state persecution.
10. Supranational System
This cryptocurrency works on the same supranational technology as the internet. All over the world, the number of cryptocurrency points has increased in recent years. Even multinational companies such as Microsoft and Dell have already used Bitcoins for their products.
As you redistribute, you no longer have to worry about converting between local currencies, losing commissions, and converting the value of a commodity into a trusted currency to understand its value. Euros, dollars, rubles, lira, crowns, shekels, rupees … Bitcoin makes more sense!
11. Open Technology is Another Attractive Aspect of Bitcoin
Bitcoin source code is open and available to everyone. Anyone can check that the program executes only the declared functions and not more as the software is distributed under a free MIT license. The system is less dependent on the human factor, the credibility of the issuer or the regulatory bodies. All this is replaced by algorithms, mathematics, and cryptography.
Decentralization and open development ensure that Bitcoin will not one day simply cease to exist, take control or engage in any other harmful actions.
12. Market Prices
The value of the cryptocurrency is not controlled by the authorities, who are not obliged to forcibly accept the cryptocurrency and make certain payments only in a specific currency, as with state funds. The cost of the cryptocurrency is solely determined by the relationship between market supply and demand; a free market economy.
13. Bitcoin’s Ability to Bypass Sanctions
Despite the high volatility of the free market, fluctuations in the exchange rate of the cryptocurrency are comparatively small. It is unaffected by the decline in the exchange rate of national currencies in the event of political instability or even declaration of insolvency.
Bitcoin is independent of central banks, local law, religion, politics or other factors that could intervene and restrict operations, which includes sanctions.
Sooner or later, cryptocurrencies and the technologies behind them will take their place in our daily lives.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.