Behind the Scenes
For starters, let’s answer a simple yet important question – what is Bitcoin? Created back in 2008 by Satoshi Nakamoto, it was the first-ever crypto coin. Bitcoin is a P2P payment system, which means users can make transactions online without anyone’s interference. Every single transaction is recorded on the public ledger and looks like a small block within a never-ending chain. The ‘blockchain’ technology is decentralized, as it’s not regulated by any banking systems. “Miners” ensure the proper functioning of bitcoin blockchain and confirm transactions using the high-power computers. Plus, bitcoin has a massive set of advantages over regular payment methods such as credit cards, checks, and good-old cash.
1. Anonymous Monetary Operations
In the modern world, every financial move you make is linked to your ID and reported to a banking system. Checks, credit/debit cards, and even cash do not guarantee anonymity, as you still need an ATM to cash your paycheck. Unlike traditional currency, bitcoin ensures a next-gen level of privacy.
To complete a bitcoin transaction, make sure to create a bitcoin wallet using the related services. If you’re willing to receive or send BTC, you got to know the address of the receiving party or make sure to give the sending party yours. And, get ready for an immediate transfer! Sure, it will appear on the blockchain, but none of your personal details will become publicly available. Just two wallet addresses and the amount of cryptocurrency transmitted – that’s all the system stores. If you think much of privacy protection, bitcoin is a win-win option.
2. Ubiquitous Acceptance
Bitcoin ceased to be a fad or technology gimmick, it has become a full-fledged financial phenomenon. Having won over numerous businesses worldwide, BTC is now used to pay for goods and services.
Additionally, bitcoin has been apprised by the financial sectors. Now, it’s possible to keep tabs on its value and price movement. On top of that, some financial institutions and hedge funds commence regarding bitcoin as ‘bullish.’ Due to the implementation of bitcoin distribution algorithm, the yearly supply of the coin is steadily slashing down. Also, the world economy is facing the release of ETF’s like $COIN in order to ease out the purchase of shares. In other words, such ETF’s will enable common investors to speculate on a price increase even if the number of bitcoins in their possession equals zero. The fact that bitcoin has stepped into the financial sector means its era will linger.
Except for BTC itself, the virtual currency community highly values its top-of-the-line blockchain technology. Considering the fact it’s completely decentralized and automated, blockchain can operate large-scale ledgers without any external influence. What’s the point, you may ask? Well, it means the possibility of fully automated transactions, reducing the risk of intentional malfeasance or human error next to none.
3. Global Coverage
Perhaps, the #1 point in bitcoin’s favor is its ease of use. The possibilities of its use are limitless, except for a tiny restriction of having a working smartphone or computer to be able to conduct bitcoin transfers. The coin preserves the same value in every part of the world, and there are no outsized transfer fees. Actually, bitcoin transaction fees are overwhelmingly low compared to commonly accepted methods. Another upside of using bitcoin is that it’s impossible to counterfeit.
4. Immediate Transfers
What can happen in a second? A bitcoin transaction, for instance. As soon as you hit the ‘Send’ button, miners from across the globe confirm the operation, and the bitcoin is transmitted to the receiver’s wallet before you can say “Blockchain.” The process is conducted without any human intervention! By eliminating all the mediators, Bitcoin transfers can be carried out both in small and very large amounts unbelievably quickly.
5. Steady Price
Whereas the past years have been full of bitcoin value fluctuations, the price has become way more stable and grown ever since. As of today, a bitcoin price slightly exceeds the amount of $450, and it has been preserving the value of $400 for months. Investors cannot be 100% sure that their coins will not fall in price as long as they own them, but one thing is undeniable – it’s the stability of bitcoin. More to it, there are numerous proofs of the rise in bitcoin. So, chances are the value of bitcoin you own will increase as you spend crypto coins.
So far, virtual assets are considered the future of financial technology. While the NASDAQ is attempting to power up trading by merging it with blockchain, bitcoin-focused companies are being allotted a fair share of venture capital. In case you’re up to speculate on the potential rise in bitcoin value or benefit from its numerous pros in everyday transactions, now is the time.