Bitcoin was launched in 2009 by the crypto investor Satoshi Nakamoto. The idea of creating a cryptocurrency was to eliminate centralized currencies as the only payment method and ensure a faster way of processing transactions.
More than a decade has passed, and observers are trying to identify whether Bitcoin has delivered its promises or not? However, we see many other cryptocurrencies today, and Bitcoin isn’t the only one in this game.
Well, what kind of benefits does Bitcoin offer as a cryptocurrency? Let’s find out!
13 Benefits Bitcoin offers when using it as a payment method
1. Bitcoin offers user autonomy
Fiat currencies suffer some of the same issues: continuous restrictions imposed and risks it has to face against inflation. For instance, fiat currencies undergo phases where they are booming or crashing in the economy. Nevertheless, this affects your local currency, or the dollar or Euro will also affect the global economy.
Nevertheless, we are trying to say that users aren’t in control of their money with fiat currencies. However, Bitcoin (BTC) is a decentralized currency, so it promotes much higher user autonomy and allows you to buy or sell your assets. At the same time, you can’t do that with fiat currencies. So, it shows that users are in higher control of their money with cryptocurrencies.
2. Has lower risk
Not everyone will accept Bitcoin as a payment method, but those who do are doing you a favor. You can make purchases with Bitcoin and don’t need to reveal any personal information while making purchases. This is excellent for buyers who don’t feel secure with their personal data when trying to make online purchases.
This grants BTC holders a tremendous amount of autonomy which they can use compared to debit or credit card holders when making payments. For instance, you can buy BTC on Moonpay and only pay a nominal transaction fee when you purchase BTC. However, when using BTC to make payments, you won’t lose any value when you make the purchase, no matter where you are in the world.
Moreover, as Bitcoin is considered a digital asset, it’s less likely that hackers will target it as easily. Decentralized platforms can provide you with an autonomous identity, so hackers don’t be able to identify who you are.
3. You don’t have any banking fees
Bank fees can include different types of fees, from deposits, withdrawal fees, and even maintenance that you pay. However, you don’t have to worry about these fees when paying with Bitcoin.
Nevertheless, this means that Bitcoin will save you from these costs. Moreover, when making payments abroad, you won’t need to pay any fees since Bitcoin is a decentralized currency and not under any governmental control. Also, let’s not forget that Bitcoin payments can be made instantly, so you don’t need to wait for authority approval.
4. No risk against inflation
Unlike fiat currencies, Bitcoin and other cryptocurrencies don’t suffer any risks from inflation. Nevertheless, the higher inflation is, the weaker a fiat currency will get since the government is printing more money. Bitcoin won’t have this issue since it has a limited supply of 21 million coins.
So, there isn’t any chance to produce more Bitcoin if there is any shortage. Thus, inflation threats are nearly impossible for Bitcoin without any possibility of excessing the currency. This is both an advantage for sellers and buyers.
5. Bitcoin transactions are more anonymous
Most online transactions, especially with fiat currencies, will require a considerable amount of information you need to provide to ensure that no scams are made. For example, when you transfer money from one account to another, it can only be completed after the right amount of information is provided by both parties.
All online purchases will require you to identify if the information provided is correct since it’s important for avoiding financial crimes. Still, simultaneously, it allows intermediary firms to stay in charge of the transactions
Comparatively, Bitcoin transactions are much more anonymous than fiat currency ones. However, this doesn’t mean they are entirely anonymous, but transactions can only be identified using the blockchain address. Individuals can have various addresses, just like you can have many usernames and passwords for an account. Moreover, IP addresses and other identifying information aren’t required to perform a Bitcoin transaction.
6. You can’t revert transactions
You may perceive this as something negative, but in many cases, it isn’t. Sometimes, senders might be aware that payments can be reversed, and it can hurt a business’s reputation whenever reverse payments are made.
However, with Bitcoin, this isn’t an issue as it’s a 100% irreversible payment method and can never be charged back. Thus, it makes companies and people think about the payment they have to make.
7. Quick transactions and flexibility
If you are a Bitcoin holder, you don’t need to worry about carrying physical money everywhere. Instead, you must use your mobile phone or desktop to complete purchases with only a single click.
Nevertheless, you can use your Bitcoin wallet anywhere in the world and don’t have to go back and forth to local banks whenever you travel to different countries. Moreover, your mobile phone is your wallet, so you have your capital safe and sound.
Alternatively, there is new trending news for wallet technology that makes it even easier for users to pay, store, and receive their payments globally. Overall, paying with Bitcoin allows you to complete transactions quickly, without delay, and worry whenever your internet is slow or any other related issues!
8. Bitcoin payments are based on peer-to-peer
The Bitcoin payment system is entirely focused on peer-to-peer, meaning users can send and receive payments from anyone worldwide on the network. Unless they send or receive Bitcoin to an institution, no approval is needed from an external authority source.
9. No taxes
Third parties can’t identify or track Bitcoin transactions that take place. In addition, third parties don’t know who makes the payment since the buyer’s identity is hidden. Thus, when identities are secret, people purchasing a product or service won’t need to worry about paying taxes.
10. Easier international payments
Small retailers won’t prefer selling or buying a product or service internationally because of high cross-border transaction fees.
However, with Bitcoin, it isn’t the same story. Bitcoin doesn’t allow you to worry about high transactional fees and relieves you from these types of pressures. Thereby, it makes it easier for you to make payments safer, easier, and much faster.
11. A better Ecosystem
Each Bitcoin wallet transaction will have a digital signature before it’s sent to a blockchain. Nevertheless, this process makes applications safe for storing and exchanging cryptocurrencies.
Moreover, a better ecosystem means you aren’t using physical money to transfer back and forth, reducing the need to take up physical space, especially when using coin cash!
12. Smart contracts
The whole idea of smart contracts all started back in the 1990s. This idea was to establish agreements between two parties without any third-party intervention. Even though these types of contracts haven’t accurately been realized yet, it’s giving more power to these types of contracts, which we may start using shortly!
13. Bitcoin mining
Bitcoin mining is another advantage you can use to make payments. How so? Well, Bitcoin mining is done through powered machines that mine the coin. Depending on the power the machine generates, that is how much Bitcoin you can produce. However, you’ll also need to consider that your electricity bill won’t be small, but at the same time, the amount you mine will outweigh the electricity costs.
Thus, you can mine Bitcoins and add them to your account without asking for governmental approval. However, before you do so, we recommend you check which countries allow Bitcoin mining, so you don’t do something illegal!
The final word
That’s about it for this article. These are the 13 benefits you receive from using Bitcoin as an online payment method. Nevertheless, many people may not prefer Bitcoin as the primary payment source due to the continuous news they hear and that it isn’t accepted everywhere you go as cash is.
However, there are many advantages that Bitcoin offers that you won’t find in the payment methods you see nowadays. Above all, Bitcoin continuously increases in value, so it might greatly benefit you in profits you can make from mining it, even as its value rises over time.
As a result, we don’t know what the future holds. Tomorrow, we might never have physical cash in our hands again, everything might go digital, so it’s better to be used to paying digitally than to get shocked by sudden changes.