What Is the Need for Bitcoin?
Have you ever asked yourself, like many people do today, why bitcoin is needed in the first place if there are already so many forms of payment? Bitcoin is known as a decentralized currency. This means that it’s not controlled or regulated by any one and any central authority, which in most cases is the government. Bitcoin achieves this decentralized status by ensuring all transactions are processed via a private and worldwide network of computers linked by a ledger.
What Is Bitcoin?
Bitcoin is what’s known as a peer-to-peer cryptocurrency and, as mentioned above, a decentralized currency. It’s specifically and uniquely designed to allow users to process transactions from anywhere in the world by means of digital-units-of-exchange, otherwise known as bitcoins. With Bitcoin being over a decade old, it has no doubt been through many ups and downs. Ultimately, the cryptocurrency has persevered into something that no one could ever have imagined, except for its creator Satoshi Nakamoto.
Advantages of Using Bitcoin as a Means of Payment
Hopefully, by now, you have a relatively decent idea of what bitcoin is and why it’s necessary. So with that being said, let’s get into the advantages of bitcoin as a means of payment.
Discreteness is first, as this is the biggest draw for most bitcoin users. Purchases are discreet, private and almost untraceable. This is achieved due to the user’s anonymous address being changed with every purchase, which makes it virtually impossible to know who is buying bitcoin.
Next is bitcoins glaringly obvious focus on peer-to-peer, meaning that no authority is involved. Therefore, users can buy and sell bitcoin from anywhere in the world with no middle man or any form of jurisdiction involved.
Transaction fees, especially international transaction fees, are a challenge for a large number of people globally. This isn’t the case with bitcoin, with fees being so low they’re almost non-existent. On top of the low fees, bitcoin is highly and rapidly accessible to anyone anywhere on the planet, which sets it apart from virtually any other known currency. However, with its growing success, it’s important to look out for scammers. According to TaxLawCanada, there are several fraudulent investment schemes out there that future and current Bitcoin users should be aware of.
In summary, the leading cryptocurrency known as Bitcoin, although relatively new, offers users unprecedented advantages over conventional means of payment. Users are provided with unrivaled privacy in comparison with traditional fiat currencies.