Bitcoin is still a topic of many debates. Some see the currency as the future of money, while some are certain it will eventually bust.
There are many ways to use Bitcoin, but buying stuff is the most common. Using bitcoin to purchase online goods or services is a good way for beginners to get used to cryptocurrency. The best thing about Bitcoin is that you can also sell your digital money for regular currencies like dollars, Euros, and pounds.
One of the things discussed in many circles is using Bitcoin compared to traditional currency. Some people even exchange their bitcoins for extra cash because they think their digital money will be worth more than what it’s purchased for in the future. Check the steps on how you can take your first step into the world of bitcoin to know everything about cryptocurrency trading. On the other hand, others think that we should not sell our bitcoins because we should hold on to them as an investment and wait for the price of Bitcoin to rise further.
Why Might Digital Currency Be Better Than Traditional Currency?
Transaction Fees
Transaction fees for using credit cards are generally 2%, and PayPal charges another 3%. So you can transfer as much money as you want without being charged anything, which is one reason why many people see it as the future of money.
Transferring funds between accounts is immediate compared to wire transfers that can take several days to clear. So, banks are quick with transfers, but they also charge hefty transaction fees, and transfer times can be relatively slow.
You Can Make Purchases Worldwide
You can spend bitcoins anywhere in the world that takes your fancy, from Canada to China or from Iceland to Australia. It’s not as complicated as it sounds. You can easily buy anything online and even offline that accepts Bitcoin as a form of payment. It’s particularly great for international transactions because you don’t have to worry about currency conversion.
No Inflation Risk
Private banks are holding on to more than $2 trillion in fiat reserves, ready for the next financial crisis should it happen anytime soon. It is why inflation is a reality, and it certainly doesn’t help that governments are printing more money, which only decreases the currency’s value over time. On the other hand, Bitcoin is designed to reach a cap or limit of 21 million bitcoins. So no government will ever be able to mess with this limit and make the currency suddenly worthless.
Anonymous Transfer Of Money
One good thing about Bitcoin is that you don’t have to give any information about yourself when sending some of your money across borders. Unlike regular banks and credit card companies, which always ask for personal information from you before approving a transaction, bitcoins are anonymous, and there’s no extra verification required when making a payment. It’s also more secure than traditional banking systems because you can’t trace payments back to an individual once they’re made.
Transactions Fees Are Low
As mentioned earlier, Bitcoin transactions are completely free of charge. The transaction fee is meager. You can send $1000 or $10 million, which will cost almost identical. Sure, some transfers can take up to a few hours, but it’s not something anyone should complain about.
How To Use Your Bitcoins Wisely?
If you plan to use your bitcoins as an investment, it’s highly recommended that you keep them secure in your digital wallet. Although it is possible to convert bitcoins to dollars and other traditional currencies, it’s not wise to keep your digital money in a bank account because it’s vulnerable to theft.
It would help to note the number of merchants who accept Bitcoin. It’s a good way of keeping track of how much it is worth against other types of currency. If you have a portfolio full of bitcoins, be sure to keep track of their value and sell them when the price is right.
Bitcoin is a huge deal, and the opportunities it brings for both buyers and sellers are increasing every day. Of course, it’s not something to be taken lightly, but people from all over the world are jumping on the bandwagon.
