Bitcoin’s price index reached an all-time high recently, slated to end 2017 at four times the price it was at the beginning of 2017. If you haven’t bought into bitcoin yet, you need to think about getting a piece of the cryptocurrency market ASAP. If you’re still wondering what the benefits of bitcoin are, you need to find out before it soars out of reach.
Bitcoin is difficult for some people to understand, being a purely digital currency in a world where our image of money is broken down into a piece of printed paper. But can you really understand how money really works?
After a bit of thought, bitcoin isn’t any more abstract than a five-dollar bill. It just happens to be worth a whole lot more. And it allows you to perform transactions with anyone in the world with
To understand other ways you can use cryptocurrency, read these 5 main benefits of bitcoin.
1. It’s Future-Proof
How often do you run into a situation where no one at the table has any cash on them when the check comes? You then have to either run to an ATM or turn to one of the services that take your cash and converts it to a digital currency. Most of them work for free now but how long until they start charging a fee?
Having some kind of digital wallet connected to your bitcoin account could save a step and make it easier to manage your finances.
Bitcoin is perfectly engineered for the internet era. As we make more transactions over the internet, banks are taking a cut of what we send to each other. One of the benefits of bitcoin is that if you buy something from someone for 1.5 bitcoin, they get that 1.5 bitcoin in their account.
This payment option gives us instantaneous transaction times, unlike any other currency. There’s no need to call out to a bank’s credit card center over a card reader, wait for a response, print a receipt, and get a signature. The verification for a bitcoin transaction is all in the transaction itself.
An increasing number of people under 35 are pretty sure most people might not need a bank account in a few years. With the number of big bank hacks that have happened lately, bitcoin offers a degree of security that apparently banks can’t.
2. It’s Global and Non-Discriminatory
There is a long history of people having trouble buying property or getting loans because of racial or cultural biases. Bitcoin transactions allow people to work outside of the system of biases and discrimination by putting all transactions through a digital system.
One of the many benefits of bitcoin is the inability to counterfeit. Verification lives within the DNA of every transaction. There’s no way to duplicate or forge anything related to bitcoin.
Because it’s based on peer-to-peer transactions, bitcoin needs no intermediary and therefore there’s no waiting for a payment to go through. You can immediately trust the person you’re doing business with because there’s no lag time where you’re waiting for a transaction to process.
This could all change as China has moved to license bitcoin. The cryptocurrency utopia could have an expiration date.
3. Privacy Is Key
There are lots of people who work outside of the standard economy, whether they’re dog walkers, babysitters, or selling something that’s not supposed to be sold. For them, bitcoin allows for a degree of privacy and tax-free living. This is especially important for people who make relatively small amounts of money and couldn’t give up 20% of that income and still provide for their family.
Bitcoin’s whole protocol is built around the concept of accountability. Every transaction is tied to a user. This would seem like it’s the inverse of private.
Because you have the opportunity to opt out of identifying yourself, you can buy and sell privately. Credit cards don’t allow that. In fact, credit cards can show companies all kinds of buying habits, life achievements, and predict future behavior.
In a world with bitcoin, that kind of overreach that advertisers have now will no longer be possible.
And if you want to have separate accounts for different things, you can set up an infinite number of bitcoin wallets. This can help keep your finances separate in case you do need to be compliant with local laws and standards.
One of the basic standards of bitcoin is that can be only 21 million. Once those 21 million are sold, they will be traded for goods within the market. That number can be expanded but it would take a major recalculation of the bitcoin market.
Creating more bitcoins would lower the value of bitcoins. This is what happens when more money is printed. This is one of the basic ways that inflation happens.
By keeping the number of bitcoins scarce, the demand will increase, as will the value. This is one of the best reasons to buy in today.
5. New Businesses
All sorts of new businesses have been created because of bitcoin. Aside from the business of buying and selling mining equipment, there are lots of tech companies getting on board. You can even get a Starbucks coffee with bitcoin.
As more businesses get involved with bitcoin, they can cooperate and form communities around their use of bitcoin. As of right now, it’s hard to spend bitcoin in everyday transactions. As more companies get involved, more ideas will come up and innovation will happen.
There will be hiccups along the way as more businesses get involved but new ideas that will allow the benefits of bitcoin to reveal themselves as a positive development. Businesses will find ways to improve on Bitcoin transactions and the overall cryptocurrency economy over time.
The Benefits of Bitcoin Will Continue
We can only understand the benefits of bitcoin through our own paradigm of dollars and cents. Once we’ve had some time to build a more robust bitcoin economy, we’ll see an increasing amount of value to using cryptocurrency.
If you’re still wondering about how bitcoin can become part of your everyday life, contact us for more info.