When the cryptocurrency known as Bitcoin first hit the market and started garnering attention, people were intrigued. The value of the newly minted currency quickly rose from almost nothing to more than R246,300 a piece only 9 years later. After that, Bitcoin fell in price and some people began questioning the value of the Bitcoin currency, and whether these types of new currencies are as desirable as they have been made out to be. Since then Bitcoin has continued a meteoric rise where today it is a little over R106,700 per bitcoin and respected public figures are predicting it may reach a million dollars per coin within 10 years.
Benefits of Bitcoin
A number of influences have combined to create a strong need for Bitcoin, and the new digital currency still has a lot of advantages to offer consumers and investors around the world. One of the biggest reasons Bitcoin is still considered the wave of the future has to do with the need for increased security measures. Identity theft has been on the rise, with entire databases full of credit card numbers and other personal information being stolen and used for nefarious purposes. The new PIN-and-chip credit cards banks are issuing have helped to some extent, but there is still plenty of room for fraud.
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Bitcoin offers nervous consumers a more secure alternative to the more traditional payment methods. To store you Bitcoins use Bitcoin Wallet so that your Bitcoins does not go in other people hands, and be sure you are using a trusted site to store your Bitcoins. Since the Bitcoin transactions are entirely anonymous, the security is built in from the start. Bitcoin users benefit not only from the privacy and security of the transactions but from other advantages that go far beyond financial security. Those living in repressive regimes have been turning to Bitcoin to make purchases, transfer funds, and live their lives far from the prying eyes of their governments.
Like every other cryptocurrency, block chains are the backbone of bitcoins. Blockchains are so secured that it is impossible to hack them. Also, the cost of verifying transactions is less than that of central banks because the transaction of cryptocurrency happens between the two parties without the intervention of a bank. These transactions made by an individual are recorded in a digital ledger or a blockchain. The security of block chains has even made banks to consider it as an option for them.
Shield against Economic Problems
The governments of countries like Venezuela have started using bitcoins as a major means of exchange because the value of their own currencies was low due to inflation. So, in such countries which are suffering from hyperinflation bitcoins seems a more stable option to transact.
Freedom from financial interference is another valuable benefit of Bitcoin. Governments, tax agencies, and even private businesses can freeze traditional bank accounts with the touch of a button, putting individual wealth at serious risk.
Paying with Bitcoin and maintaining a Bitcoin account offers protection from the risk of asset seizures and bank account freezes. Even individuals who have no reason to think their assets would be frozen have been using Bitcoin to protect themselves from this unlikely scenario. Those who have been struck by previous asset and bank account seizures are even more enamored of Bitcoin and even more likely to turn to the currency.
Another big practical benefit of paying with Bitcoin is the easy availability of mobile payments. On-the-go payments allow consumers to make Bitcoin purchases with the touch of a button on any smartphones. There is no need to travel to a bank or pull money from an ATM.