While purchasing products online, many individuals wish to have a payment solution that’s secure, prompt, and affordable. Unfortunately, standard methods lack the attributes mentioned above. Bitcoin came into being to fill this gap. The digital currency was created in 2009 after the housing crash, which almost caused a US recession. With many features that make it superior to fiat currency, Bitcoin has excellent value to customers and business owners. Please keep reading to understand the points that make this virtual currency an ideal option than the standard payment solutions.
A brief introduction to Bitcoin
Beginners to Bitcoin may not comprehend what we’re talking about. Therefore, a brief introduction can suffice. Bitcoin is a digital currency that runs outside governments and banking institutions. Because the virtual currency is decentralized, it vests the power of users who are at liberty to use their money the way they want. In other words, Bitcoin doesn’t have intermediaries who regulate how you spend your financial resources. And this is good news for individuals and institutions that want to have more power over their resources.
Why Bitcoin is better than standard currencies
Bitcoin has numerous properties that make it a better solution than traditional payment methods. These include:
Simplification of online shopping experience
While shopping online, many clients want a payment solution that’s fast, affordable, and quick. Sadly, the standard solutions do poorly on this front because of their slowness, being expensive, and fraud susceptibility. Bitcoin is exceptional because it provides a fast payment solution, which is secure and affordable. And this simplifies the shopping experience because the Bitcoin platform lacks intermediaries who slow down the shopping procedure. These intermediaries must take time to verify your transaction before approving it. Besides, they charge you highly before approving your transaction.
Furthermore, Bitcoin is a digital wallet that can help a user efficiently conduct online shopping through a secure e-wallet that lets you keep, track, and use your cash.
Bitcoin uses a public ledger that eliminates fraud.
As a digital currency, Bitcoin operates on a decentralized platform that enables users to see the transactions. Through the use of a decentralized program, transparency is enhanced. However, this is a significant issue with traditional centralized payment methods. While using standard methods, you can’t see what happens behind the scenes. Therefore, the possibility of negative things happening is high because the middlemen may decide to play fast, lose with your resources and mess you up.
Also, the use of a public ledger improves the Bitcoin platform’s security as each user sees all the transactions taking place. Users can get wind of any suspicious activities and take precautionary steps. However, it’s challenging to hack the system because it uses blockchain technology.
Stable than Fiat currency
Currently, many countries in the world accept Bitcoin as a payment solution. This means that digital currency is relatively more stable than other coins. And this attribute makes it possible to use digital currency in transacting at the international level. You even don’t need to exchange money because its value is the same in the whole world.
Unlike standard currencies, like the Dollar and GBP, which are volatile, especially during challenging economic times, BTC is relatively stable. So you don’t need to be jittery about its value.
Lack of a proper mechanism of keeping track of standard currency
One of the challenging aspects of standard currencies is that it’s challenging to keep track of the transactions. Bitcoin overcomes this difficulty by having an elaborate distributed network, which applies cryptographic technology to form a durable, open record of each BTC settlement that has taken place. This permanent record assists you in keeping track of your transactions.
Concealing your wealth
People may have multiple valid reasons why they may want to hide their wealth. However, stringent laws have been created that regulate the amount you’ve in your bank account. This means that it might be difficult to conceal your wealth from governments and other interested parties if you use cash. The good news is that Bitcoin can help you achieve your mission of hiding your wealth because it uses a decentralized platform that operates outside the government’s radar. Nobody will be interested in your financial records when you’re using Bitcoin. And the good thing is that you may decide to remain anonymous. So wealthy individuals who used to hide their money in Swiss banks, Bitcoin can now assist you.
Availing financial services to the unbanked individuals
It’s sad to note that many people in the world don’t access mainstream banking services because the financial institutions erroneously believe that such people are poor and can’t pay bank charges. Thanks to Bitcoin, such people can now access similar solutions offered by banks. And the good news is that Bitcoin is creating more products designed to meet the unbanked poor’s credit needs.
Bitcoin is a P2 P platform.
Bitcoin is a system based on a decentralized peer-to-peer platform. It enables people to send money to each other without the need for third parties. Users of the platform send their cash anonymously without the need to reveal their identity. On the other hand, standard payments can’t allow transactions to happen for people they don’t know. Besides the enhancement of security, the P2P aspect is affordable.
It eliminates the possibility of duplication.
For bank-managed cash, the possibility of duplication is high. However, this isn’t possible in Bitcoin. The virtual currency operates on blockchain technology, which sends confirmed information and groups them in blocks. Because of the nature of its architecture, it’s hard to cancel completed settlements. For security purposes, the immutability element is critical as it prevents scamming through duplication.
Frictionless and anonymous payments
Payments through the standard payment methods are time-consuming. Transactions must pass through third-parties for verification. Time wastage is a high cost for a business that may slow down your operations, especially if you need raw materials. Bitcoin is not only a hassle-free payment solution, but it has a high level of confidentiality.
Most people don’t like others knowing what they buy online. Sadly, this isn’t the case with standard payment solutions where you have to capture a narration to banks and tell them what you intend to purchase. Sometimes you may not have anything to hide, but you value your privacy.
Thanks to BTC, you can buy items online easily with a high level of confidentiality. You don’t need to provide personal and financial info while making your purchases.
It’s an investment tool.
If you intend to diversify your investments, you may come across different options. However, you may realize that most of those choices are prone to the economy’s inflationary pressures. The good news is that Bitcoin is not only a viable investment vehicle, but it hedges against inflation.
Stock market shares are traditional investment vehicles. However, during economic challenging periods, these investment tools are prone to inflation. This is because governments may print out more currencies to cushion the vulnerable sectors of the economy. To meet its economic goals, governments may hurt investments by lowering their values.
Some people may be quick to point out that Bitcoin is prone to significant instability. However, you need to realize that many people who bought virtual currency during the early times are now billionaires. You can also join this class of wealthy individuals by buying Bitcoin and holding it for some time until its value rises substantially. And if you lack investment tactics, you can learn more about bitcoin equaliser that can assist you.
Minimizes merchant Risks
Besides helping customers to make quick purchases, Bitcoin also assists merchants in extraordinary ways. One of the risks that many merchants grapple with is chargebacks that come from sly clients. And this danger is rampant in traditional payment systems because of third parties.
Bitcoin’s transactions are irreversible once the settlements have been validated. Once your clients have paid through the decentralized technology, they can’t hit back your enterprise with chargebacks.
Easy access to credit services
Many individuals globally can now access the internet, which facilitates the transfer of data through blockchain technology. Individuals with a reliable data connection, some information about virtual currencies can access credit services available on the decentralized system. Sadly, most of these people don’t access traditional banking services because of their low financial status. For instance, the standard banking services may demand that individuals have funds to run their accounts, which many may lack.
Besides transferring money, blockchain technology can execute specific two-party contracts. Additionally, particular types of transfer can also take place in the decentralized system. For example, the digital currency contracts can be planned to add third-party confirmation, refer to outside sources, or be completed at a specific period in the future. This helps you to eliminate many go-betweens whose intention is to make a lot of money on your transactions.
Since its creation, Bitcoin has helped many individuals overcome many challenges while transacting on the standard payment systems. The virtual currency has multiple attributes that make it superior to traditional payment systems. Some of its qualities are listed and explained here.