The meteoric rise of Bitcoin in recent media reports have many people wondering about the benefits and risks associated with using the cryptocurrency as a legitimate store of value and alternative form of payment online.
Bitcoin is a remarkable technology that was birthed in 2009 by Satoshi Nakamura. While no one has been able to identify the mysterious Bitcoin creator, the technology has been readily adopted by the tech world and touted as the future of currency.
At the moment, Bitcoin is still understood by very few people. However, the recent increase in the price of a Bitcoin has gained it attention as a viable asset that can be used to avoid the pitfalls of inflation and devaluation of government fiat currencies.
Have you heard of Bitcoin? If you are new to cryptocurrencies and how they work, you may be a little skeptical about the concept. This is completely understandable, however, all you need is some knowledge to make an informed decision in your own mind. Here are the top benefits associated with Bitcoin.
The Benefits of Bitcoin
#1 Market driven currency values
Unlike currencies which are manipulated on the global FX market, Bitcoin is completely independent and a true ‘free market’ currency. The price is driven by demand and supply.
#2 Anonymous payment
The ‘Blockchain’ technology used as the backbone of the cryptocurrency network allows for complete anonymity in trading Bitcoins. No-one can track your purchase.
#3 Limited supply of Bitcoin
When all Bitcoins are mined, there will be a total supply of 21 million coins. This adds to their scarcity and future potential value. Limited currencies tend to gain value due to their sovereign nature.
#4 Not Linked to any country, bank, or government
Central banks have control over our money and our lives. RFID chips are embedded in everything. From your credit cards to your passport. Magnetic card readers, ATM card dispensers, and point of sale machines such as handheld credit card scanners or a lintechtt.com can be used to track your purchases and your location by banks and governing bodies.
Bitcoin is only controlled by the Blockchain and not a central bank or government. This means that the price of Bitcoin cannot be manipulated and controlled by governments. Instead, it is a true free-market financial instrument that derives its value from the demand and supply of Bitcoin.
#5 Peer to peer transactions
There is no middle man is a Bitcoin transaction. Therefore you can send funds instantly anywhere in the world, circumventing any capital controls implemented by governments. This has made it a popular and inexpensive method of transferring funds.
Most major online retailers now accept Bitcoin for payment and the few that don’t are taking a serious look at implementing the technology on their platforms.
The final word
Given enough time, Bitcoin could develop into a stable, widely accepted global currency. However, no-one can determine where the inflection point of global recognition and adoption as currency will occur.
While there may be risks associated with owning Bitcoin, it is a prudent decision to buy a little and hold onto it. You never know what a little foresight today may end up yielding in the future.