Bitcoin is a big deal right now, but not everyone understands why. More importantly, not everyone understands whether or not Bitcoin is for them, and how they can get involved. Here are some of the most compelling reasons why you should use Bitcoin.
More secure than banks
The Bitcoin algorithm is as close to bulletproof as a computer program can get. Some of the best hackers and online security experts have taken a crack at it, and so far no one can find any weaknesses. The Bitcoin code has been described as masterfully written, the digital equivalent to Shakespeare.
Banking transactions, meanwhile, are under a lower level of security than Bitcoin. In many ways, Bitcoin has had to be more secure than the banks. After all, the banks have been around for centuries, and people understand how it works. But Bitcoin is the new, young upstart, and needs to prove itself.
That makes Bitcoin a target for those who would like to see it fail. But Bitcoin’s inventor Satoshi Nakamoto kept this in mind while writing the Bitcoin algorithm. Go ahead, give it a shot. I don’t think you’ll be able to crack it.
Lower service fees than banks
Banking institutions charge high rates per transaction. The system is set up in a way that individual transactions between two people are impossible; they require a “trusted” third party to facilitate the transaction. And, naturally, the banks get to take a service fee for facilitating these transactions.
You can use escrow services with Bitcoin which take a service fee, but you don’t have to. Because Bitcoin is based on P2P transactions, there are no service fees. Naturally, the banks aren’t a big fan of Bitcoin because of this.
Low risk of inflation
The number of Bitcoins being created is set at a predetermined rate. What that means is there is no possibility of any government printing off more money to pay off their debts.
Whereas real world currencies lose a small percent of their worth every year, the price of Bitcoin seems to be getting steadily higher.
Low risk of collapse
When your currency is attached to a government, it depends on the stability of that government. You and I both know governments can fall, and when they do the currency they printed can sometimes become worthless. Take a look at the bills in your wallet. You worked hard for them. Can you imagine them one day becoming worth less than the paper they were printed on?
Because Bitcoin isn’t attached to any government or central authority, it doesn’t depend on any outside circumstances for its value. So long as the internet exists, Bitcoin will continue to exist and be valuable.
Of course, Bitcoin isn’t perfect. Just like anything, there are risks involved. But that’s a subject for another article.
In the face of increasing uncertainty in the global market, Bitcoin seems to be quickly becoming a beacon of stability and an exciting opportunity to create a new financial world.