10 Reasons Why use Bitcoin? Read This Article For Explanation

10 Reasons Why use Bitcoin

Bitcoin is a form of currency that is relatively new, just starting to become mainstream, but many people still do not understand how bitcoin why they should try to use them.

Why use bitcoin? Here are 10 good reasons why it is necessary to take the time to get involved in this virtual currency.

1. Bitcoin was fast

When you pay a check from another bank to bank, the bank will often hold the money for a few days, because it is inconceivable that the funds actually available. Similarly, international wire transfers can take a relatively long time. Bitcoin transactions, however, are generally much faster.

Transactions can take place immediately if the transaction is a "zero-confirmation", meaning that traders took the risk of receiving a transaction that has not been confirmed by blockcoater bitcoin. Or, they can take about 10 minutes if a merchant asks for the deal to be confirmed. It is much faster than bank transfer.

2. Process Transactions Bitcoin It Cheap


What did you say your credit card transactions immediately, too? Well, it's true. But traders (and maybe you) pay for that privilege. Some merchants will charge for debit card transactions as well, because they have to pay 'money swipe' to meet their demand. Bitcoin transaction costs are minimal, or in some cases free.

3. The central government can not take it

Remember what happened in Cyprus in March 2013? Central Bank wants to take back the uninsured deposits greater than $ 100,000 to help recapitalize itself, causing great unrest in the local population. Originally wanted to take a percentage of deposits under that figure, fed directly into the family savings. That can not happen with bitcoin. Because it is a decentralized currency, you have it. There is no central authority that has control, and therefore the bank can not take it from you. For those who consider their faith in traditional banking system unraveled, it is a big advantage.

4. No refund

After bitcoin sent, they go. Someone who has sent bitcoin can not try to retrieve it without the consent of the recipient. This makes it difficult to commit fraud that we often see with a credit card, where people make a purchase and then contact the credit card company to do a chargeback, effectively reversing the transaction.

5. One can not steal your payment information from the merchant

It's great. Most of the current online purchases made through credit cards, but in the 1920s and 30s, when the first precursors appeared credit card, the Internet has not been understood. Credit cards are never supposed to be used online and unsafe. The online form asks you to enter all of your confidential information (credit card number, expiration date, and number CSV) into a web form. It is hard to think of a less secure way to do business online. This is why it remains stolen credit card numbers.

Bitcoin transactions, however, does not require you to release all information confidential. Instead, they use two keys: a public key and a private key. Anyone can view the public key (which is actually your bitcoin address), but your private key is secret. When you send bitcoin, you 'sign' transactions by combining public and private keys you together, and applying mathematical functions to them. This makes the certificate that proves it comes from your transaction. As long as you do not do anything stupid like to publish your private key so that everyone can see, you are safe.

6. It is not inflation

The problem with regular currency is that governments can print as much as they like, and they often do. If there are not enough dollars to pay off the national debt, the Federal Reserve could just print more. If the economy is sputtering, then the government can take and inject new money into the economy, through a widely publicized process known as quantitative easing. This causes the value of the currency declines.

If suddenly you double the number of dollars in circulation, that it means there is a two dollar where previously there was only one. Someone who has been selling chocolates for one dollar should be double the price that it costs the same as before, because the dollar suddenly only half its value. This is called inflation, and this causes the price of goods and services increased. Inflation can be difficult to control, and can lower the purchasing power of people. Bitcoin is designed to have the maximum number of coins. Only 21 million that will be made based on the original specification. This means that after that, the number of bitcoin will not be increased, so that inflation will not be a problem. Actually, deflation - where prices of goods and services fell - more likely to occur in the world bitcoin.

7. This is as private as you want

Sometimes, we do not want people to know what we buy. Bitcoin currency is a relatively private. On the one hand, transparently - thanks blockchain, everyone knows how many bitcoin address specified in the transaction. They know where the transaction, and to which they were sent. On the other hand, unlike conventional bank accounts, no one knows who holds a particular bitcoin address. It's like having a clear plastic wallet with no owner in sight. Everyone can look into it, but no one knows who it is. However, no point showed that people using bitcoin is not wise (like always using the same bitcoin address, or combine coins of several addresses to one address) risk of making it easier to identify them online.

8. You do not need to trust others

In the conventional banking system, you have to trust people to handle your money correctly along the way. You have to trust the bank, for example. You may have to trust a third party payment processor. You often have to trust the merchant as well. These organizations require critical and sensitive information from you. Because bitcoin fully decentralized, you need to trust anyone when using it. When you send a transaction, it is digitally signed, and safe. A miner who are not known to be verified, and then the transaction is completed. The merchant does not even know who you are, unless you have set up to notify them.

9. You have

No other electronic cash system where your account is not owned by anyone else. Take PayPal, for example: if the company decided for some reason that your account has been misused, he has the power to freeze all assets in your account, without consulting you. It is then up to you to jump through hoops whatever it takes to get it cleaned up, so you can access your funds. With bitcoin, you have a private key and a public key corresponding form bitcoin address. No one can take it from you (unless you lose yourself, or live with a web-based wallet service that his loss to you).

10. You can create its own money

Apart from technological advances stunning print at home, most national governments take a pretty dim view of you make money themselves. With bitcoin, however, recommended. You can certainly buy bitcoin on the open market, but you can also mined its own if it has enough computing power. After closing your initial investment in equipment and electricity, mining bitcoin is simply a case to shut down the machine, and the software is being run. And who does not love their computers to make money while they sleep?

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