Why choose Crypto Currency Bitcoin: Know the reasonsFebruary 5, 2019
This is the digital age and people have become more aware of the happenings around them and are looking for new ways and means to enhance their savings and returns on their hard earned money. Crypto Currency is considered to be a modern concept that has become quite popular among traders all over the world. It was Satoshi Nakamoto who had introduced this revolutionary concept first to the world and since then, it became a huge hit. The term Crypto currency (CC) stands for ‘something hidden’ & ‘medium of exchange’. This currency form is used in blockchain and is created and stored. Encryption techniques are used for controlling its creation of currency and to verify the transactions. The first CC that came into existence is Bit Coin.
Significance of Crypto Currency
It is regarded to be part of the virtual database process that runs within the virtual world. Here, the real identity of any investor cannot be easily determined. Moreover, no centralized authority is present to govern online cryptocurrency trading. The currency is stated to be equivalent to that of hard gold and is preserved by people. Its value is stated to increase in manifolds within short time span. Satoshi set an electronic system that is decentralized and allows only miners to have the authority to make necessary changes, by confirming initiated transactions. Within the entire system, they are considered to be the single human touch providers.
It is the initial crypto currency to be introduced and has already made headway into the mainstream markets. But critics are of the opinion that Bitcoins are unsafe due to the given below reasons:
- No authentic value
- Not regulated
- Can be used for carrying out illegal transactions at will
Reasons to use this form of crypto currency
Although stated to be unsafe, Bitcoins still is regarded to be the much talked about topic among major market players. Some of the reasons for using it are given below:
- Inexpensive: Debit/Credit card related transactions are done in an instant. However, it comes with a fee to use this privilege. Fees usually are low in Bitcoin transactions and free in few cases. Moreover, Bitcoin being decentralized, no percentage will be debited from the investor’s deposits by the central authority at any point of time.
- Quick payments: Transactions made through banks often take few days to complete. Even wire transfers do take long time. But Bitcoin virtual currency transactions are quick. Besdies this, ‘Zero confirmation’ transactions can be termed to be instantaneous, with the risks being taken by the merchant. However, Bitcoin blockchain does not approve it. If approval is desired by the merchant, then within 10 minutes, the transaction gets completed. It is indeed much faster when compared to inter-banking transfer.
- Safe personal details: When carrying out online transactions, there are very high chances of credit card numbers getting stolen. Personal details are not required by Bitcoin transactions. Rather, the account holder has to combine Bitcoin key and private key to perform transactions. But great care should be taken to ensure that strangers do not get access to the private key.
- No chargeback: On completion of Bitcoin trading, they are gone and cannot be reclaimed without recipient’s consent. Therefore, committing chargeback fraud, often experienced by credit card users, become quite difficult. Again if goods purchased are found to be defective or damaged, the credit cards agency is generally contacted to make chargeback to reverse effectively the transaction. This task is carried out by the credit card provider for which some fees are charged between $5 & 15.
- Semi-anonymous operations: Although Bitcoin is private, it is still transparent. The blockchain reveals the Bitcoin address and everyone will be able to look into the person’s wallet, but not the holder’s name.
- Not inflationary: Sputtering economy requires printing of additional dollars by the Federal Reserve prints. New created money is injected by the government within the economy, thereby decreasing currency value and triggering inflation. This in turn reduces people’s power to purchase things since item rates increase. On the other hand, with Bitcoins being in limited supply, reaching 21 million, the system has been designed to stop mining. It means inflation will remain checked and trigger deflation, thereby making prices of all goods to fall.
- Easy micro-payments: Micropayments, such as free 22 cents is allowed.
- Legitimate: Major institutions such as Fed and Bank of England have vouched Bitcoins for trading purpose. Several outlets such as WordPress, Reditt, Baidu, Pizza chains including other small businesses have started to accept Bitcoin transactions. Most Forex brokers and binary trading also allows Bitcoin trading.
- Fiat currency substitution: National currencies that experience high inflation and capital controls can now be held with Bitcoins.
Therefore, it can be safely said that Bitcoin is undoubtedly the new method to transaction to be used in the near future. Discussing with the reputed crypto broker can provide better insight.