In one way or the other, you’ll be forced to accept the fact that the world has come to realize the importance of this digital currency, and it’s not going anywhere. If you are a newbie to bitcoin and electronic currency in general, we’d like to enlighten you about its significance. Digitization is one thing that has been a great subject of discussion and debate in recent times. Great hopes are being pinned on bitcoin and cryptocurrency through trending technologies like Blockchain technology, and that’s why some experts believe that the future lies with bitcoin rather than fiat money.
Positive Aspects of Bitcoin
(i) Anonymity and transparency
It’s a digital currency independent of any country, but still, it ensures transparency in all transactions carried on via bitcoins. Another critical point to be mentioned here is that bitcoins are entirely secure as every user has a unique address, which is highly encrypted. Therefore, you can rest assured of the security of your personal information.
(ii) Bitcoin awareness
Awareness of this particular currency has been on the rise in recent years. People know that it exists and are well informed about how it functions. The benefit of such awareness is that people will have more faith in bitcoin than ever before. This awareness will also help make the rules of bitcoin clearer and more transparent. Awareness also helps find out the points to be followed while using bitcoins.
(iii) Increased demand
Students, freelancers, and people who rely on the internet for their livelihood have started accepting bitcoins as payment. If they can receive bitcoins, they will undoubtedly spend them online. It helps in increasing the demand and hence the value of bitcoins too. Many businesses accept bitcoin nowadays compared to just a handful of them some years ago.
(iv) Decentralization
Decentralization is significant when it comes to bitcoins as there can be no third party involved in the transactions. Therefore, it helps to avoid any hurdles and makes the entire process extremely smooth. In addition, there are no intermediaries involved, which is one of the primary reasons why so many people prefer using bitcoin to fiat currency.
(v) Funding projects
The crowdfunding industry has grown leaps and bounds in recent years, and if you want to carry out such projects securely, then bitcoin is the way to go. Bitcoins are also well known for compliance, so even if your project fails, you’ll get your money back.
(iv) Accessibility and Liquidity
You can access bitcoins from anywhere in the world; hence, it is a very liquid asset compared to fiat currency. You can even use bitcoins while being at sea, but you cannot send a wire transfer while being at sea.
(vi) Transaction fees
Transaction fees are meager when it comes to bitcoin, which has become a significant reason why people prefer using it these days. Unlike credit cards, there are no transaction fees for sending money via bitcoins.
(viii) A vast growth potential
Last but not least, bitcoins have a massive potential for growth, which is why digital currency enthusiasts predict that bitcoin will reach $10,000 per coin by 2020. However, a few experts say this prediction will be too far if bitcoin is not regulated. The bitcoin system is undoubtedly very complex, and if you are not tech-savvy, it might be hard for you to comprehend DeFi’s growth to date and its whole bitcoin system. Therefore, you need to spend some time learning about bitcoins before even attempting to use them. While all the positive aspects of bitcoin speak for themselves, you need to understand that there are many risks associated with bitcoins. The reason for such high volatility is that it’s not entirely established in the monetary system. The above are some of the very many positive aspects of bitcoin.
