We all know that Bitcoin is a popular digital currency, and there are millions of Bitcoin users. But, do you know the benefits of Bitcoin and why people use Bitcoin or the reason behind using Bitcoin instead of fiat currency?
Let’s take a quick look at the advantages of bitcoin.
Top 10 Benefits of Bitcoin
1. Deflation currency
We have heard the word inflation, which means the price of goods and services is increasing, and the value of money is decreasing. But bitcoin currency is the opposite of fiat currency. The value of fiat currency decreases because it is an inflation currency, but the price of bitcoin currency increases because it is deflation currency.
In simple words, the demand for bitcoin is high, and supply is limited, so the price will increase in the future seldomly and will not decrease in value like fiat currency. So the first benefit of bitcoin is deflation currency.
2. No tax
The second benefit of bitcoin is no tax. You do not have to pay tax for bitcoin transactions. Bitcoin is a different currency, and no one can control bitcoin, such as the government and other institutions. In addition, the government will charge if you have earned a profit from bitcoin.
If you do bitcoin transactions without converting your bitcoin into cash or fiat currency, you do not need to pay tax to the government because your identity is anonymous.
3. Global currency
Bitcoin is a global currency, and it makes it different from other currencies. We use fiat currency but no value outside the country, i.e., if you are in India and want to buy something in USD, then there will be no value of USD in India which means people will accept INR and not USD. So fiat currencies are limited to the country. But bitcoin is a global currency, and you can use Bitcoin all over the world.
4. Most secure currency
Bitcoin is the most secure currency, which means no one can hack bitcoin. Bitcoin is a different currency that no one can control over it. Some many nodes or computers are working behind bitcoin. The operators of these computers are called miners. To hack or to stop the bitcoin, you have to hack the computers or nodes working behind the bitcoin. So it is the most secure currency.
5. Low transactional fees
If you use a third party for money transfer, it will charge high fees, and everyone cannot afford it, especially people in business. For example, credit cards charge a high commission per international transaction, and everyone cannot use a credit card for transactions. On the other hand, PayPal charges 4 to 5 percent commission for international transactions.
Still, there are low transaction fees for bitcoin, and you can send bitcoin all over the world without paying any extra charges.
6. Benefits to vendors
There are millions of bitcoin users and 21 million bitcoins in circulation. Many people want to buy through bitcoin, but they are seeking an eCommerce store. So bitcoin is the better option for vendors or business people to start a new business by accepting bitcoins, and they can also expand because bitcoin is a global currency.
7. Best investment
Many people buy bitcoin because it is the best investment. People know that the price of bitcoin will increase in the future, and they hold bitcoin to earn profit. Trading is the most popular way to earn money because there is no need to wait for years. You can earn money in weeks and months or even in days. Here is a free trading App where you can earn money through trading.
You can earn money through mining. BTC mining pools might be the process of validating and broadcasting successful transactions, and you will get a reward as bitcoins for validating a block. A block is the set of different transactions that miners validate by solving complex mathematical equations. Currency miners are rewarded 6.25 BTC for validating a block.
9. Transaction’s speed
If you use other payment methods or third parties like a bank, that will take 4 to 5 days for payment processing. In simple words, if you want to transfer money outside the country through banks or other financial institutions, then it will take 4 to 5 days. Bitcoin’s transaction speed is very high.
For example, you will send or receive bitcoins in 10 minutes. It is because Bitcoin takes 10 minutes of processing time for a successful transaction.
You have to fill in your details if you are going with third parties. You are anonymous on bitcoin, and no one can track you. That means every staff member can get your details and share your details, but bitcoin is a decentralized system that means no one can see your personal information except you. You can change your wallets for bitcoin transactions.