If you’ve heard of bitcoin, you may be wondering exactly what anyone is meant to do with it. The key point of bitcoin is that it is a new type of currency that is not regulated by any governments, and therefore is ‘freer’ and more cost-effective than anything else. Right now, now many outlets and stores, both online and offline, accept it, but the number is slowly growing. It’s also something that people like to invest in, as the price rises massively and you can make a good return on your initial investment. Here are some more reasons to use bitcoin – they might surprise you!
It’s All Online
As with many things these days, the bitcoin currency (as with all cryptocurrencies) is all maintained online. That means you don’t have to carry any cash with you, or even a debit or credit card, making it a much safer way to make transactions. No one is going to want to steal a wallet that has nothing of interest in it for them. Bitcoin will work in a similar way to a credit card, but the fees will be a lot lower and transaction time will be instant.
Bitcoin is an extremely secure way of making purchases for goods and services. To use it, you need to have a wallet with a public key and a private key. The public key is what people will use to pay you, meaning that they (and everyone else) can see it. The private key, however, is known only to you, and it is encrypted, unlike most passwords and PINs. It is this private key that is needed if you want to pay someone, and without it, no payments can possibly be made.
Using bitcoin is something that can be done anonymously. You can keep your identity a secret and still be able to use bitcoin to purchase items if you want to. Unlike with a bank card or credit card that can be traced, you can go anywhere in the world and buy anything you want to without being found. Although this may not be important for everyone, for some it is extremely useful and is why they are looking forward to Bitcoin becoming more universally accepted. You can buy BTC and keep it in any number of different wallets too – there are no limits.
It’s Not Subject To Inflation
Bitcoin is different to other currencies because the total number of bitcoins is capped at 21 million. It means that bitcoin is not subject to inflation. When more money is produced, the money that is already in circulation automatically becomes worth less; since this can’t happen with bitcoin, the price can really only go up.
It’s Not A Fiat Currency
A fiat currency is one that a government regulates, and one that, depending on what the government hopes to achieve, they can devalue if they need to. No government regulated bitcoin which makes it a much better prospect for those who don’t want to be subject to other people’s whims.