Most people still use cash and credit cards to pay for things they go shopping — but time will tell if that trend will continue.
Why? Because Bitcoin offers some clear advantages compared to other payment methods.
Before Bitcoin, there were no successful decentralized, peer-to-peer cryptocurrency systems. The revolutionary invention of cryptocurrency has made a significant global impact in a little over a decade.
Right now, there are several different reasons people are using Bitcoin. Some like the user autonomy, while others simply want to make fast payments globally.
Here’s what we’re going to talk about in this guide:
● Why Bitcoin transaction fees are lower than standard bank fees.
● How Bitcoin works as a pseudonymous network.
● How Bitcoin will become more commonly accepted over the years.
1. Low Transaction Fees
Low transaction fees are among the most common reasons why people use Bitcoin. And that makes sense when you think about how much banks are charging for the same service.
It doesn’t make sense to pay banks a fixed fee and up to 3% per transaction when there’s a cheaper alternative available.
When it comes to Bitcoin, the price of the transaction fee is dictated by the free market. The fee also varies depending on the speed of the transaction, which you have the option to choose.
That means you can choose to pay higher fees for faster transactions.
To put things into perspective, the fee can be as low as a quarter even if you’re sending several thousand dollars. Think about that the next time you want to transfer funds.
Tip: Check out this Bitcoin fee estimator to determine how much a Bitcoin transaction will cost you.
2. Easy and Anonymous Payments
You have to provide your personal information when you want to buy something online with your credit card. It might bother you that your purchases are not confidential if you’re a person who values privacy.
Fortunately, the whole concept of Bitcoin was made with anonymity in mind. You don’t have to provide any personal information when you set up a Bitcoin wallet.
However, that doesn’t mean the transaction you make can’t be traced.
When you use Bitcoin, you make transactions with your pseudonym. If someone can link you to your pseudonym, then they can see all your transactions. It’s also worth noting that all Bitcoin transactions ever made are permanently stored in the common ledger known as the blockchain.
But overall, your transactions will remain a lot more anonymous than they would if you used a bank transfer or card payment.
3. Commonly Accepted
The days when Bitcoin was a weird currency only used by geeky recluses in the dark corners of the web are gone.
Ever since its creation, Bitcoin has become increasingly popular with each passing year. Following the 2018 Bitcoin craze, the cryptocurrency has pretty much become impossible to ignore.
It’s safe to say that Bitcoin has become commonly accepted.
Bitcoin ATMs are popping up in many different countries across the globe. Many online stores and restaurants that deliver food offer Bitcoin as a payment option.
The fact that it’s so commonly accepted today makes it more convenient for everyone.
Bitcoin is often referred to as one of the most liquid assets that currently exist in the financial market. In other words, you can easily trade it for fiat currencies and other assets, such as gold.
You’re also able to make the transaction in a few moments without having to go through the hassle of using a third-party institution.
The high liquidity associated with Bitcoin is especially important in regions under strict financial regulations, as it enables them to easily trade assets and foreign currencies.
The decentralized, peer-to-peer system works perfectly because it prevents any single institution from processing orders and making implementing its own rules.
5. High Transaction Speed
You can transfer Bitcoin to anybody you want within a matter of minutes no matter where in the world they’re located. What’s more, you can send it at any time of the day.
Now compare that to transferring funds via your local bank.
It would take at least a few days for you to send money to a business partner in a different country via a bank. On top of that, you’d have to pay insanely high fees.
But it gets better…
There’s a movement to improve the speed of Bitcoin transactions even more. The standard used to be that around seven Bitcoin transactions could be completed each second.
Now, the new Lightning Network promises to ultimately process a million transactions per second.
6. Zero Chance of Inflation
The government decides how much money it’s going to print. Inflation occurs when the government prints too much money and injects it into the economy to pay off its national debt. As a result of inflation, the prices of commodities can increase significantly in a short time period.
On the other hand, there is a limited supply of Bitcoin.
There is exactly 21 million Bitcoin that can be mined, which means that there is zero chance of inflation. And that means the volatility you see on the Bitcoin market now is bound to peter out as that limit is reached.
Where Can You Buy Bitcoin in 2020?
It’s only the beginning of the cryptocurrency era and people have already noticed the advantages Bitcoin has over other payment methods.
Only time will only tell if it’ll replace credit cards and cash completely — but there is no denying it’s currently the superior option.
Ready to get your hands on some Bitcoin? Then visit NordikCoin now.
It’s a brand new Bitcoin exchange based in Estonia, and we’ve kitted it out with the most up-to-date technology for your safety and convenience. All you need is an electronic ID and you’re good to go.
It takes less than five minutes to create an account, and then you can buy and sell Bitcoin to your heart’s content. Simply select the amount of Bitcoin you’d like to purchase and tap in your VISA or MasterCard details — then it’ll arrive in your wallet instantly.
Speaking of which, we’ll also supply you with a Bitcoin wallet free of charge.
NordikCoin is not only the fastest way to buy Bitcoin — it’s also the safest. We looked at other exchanges and saw where they went wrong with their security. So we decided to do one better with our exchange.
We store all our users’ Bitcoin using a cold storage solution, which means they’re taken offline — and that means they can’t be stolen by hackers. We’ve also protected it with multi-sig software, which means you need more than one key to open the vault with your Bitcoins.
All of that without affecting the speed at which you can use Bitcoin.
Finally, we also want to make it easy for you to spend the Bitcoin you buy on our exchange. That’s why we’ve linked to thousands of merchants that accept Bitcoin. That way, you can continue to enjoy all the benefits of the cryptocurrency without having to convert it back to fiat.
See you on the other side!