Featured article by Calvin Paige, Independent Technology Author
Anyone that has read the news surrounding bitcoins will understand how popular it has become over the past couple of years. More investors are looking at this currency, and it grew rapidly in 2017. There are now more than 1,100 different type of cryptocurrency around the world of which bitcoins were the first. People have also realized how convenient bitcoins are when you compare them to using fiat currencies, and this is only one of the many advantages that is has over traditional currency.
It’s Decentralized
Being a virtual currency, bitcoins along with all of the other cryptocurrencies are not regulated by any central authority. Uniquely, it means that they will only be influenced by the buyers and sellers so that no third party can have any influence. With other currencies, banks and governments can artificially inflate and devalue their currency to help their economy. However, bitcoins cannot be used in this way, so investors can be secure knowing that their investment is safe. They are also not affected by global monetary issues, such as a collapsed economy. It makes it a more stable and reliable currency than any other in the world.
Protection of Privacy
Unlike making a transaction through a bank, bitcoins do not reveal the identities of those who took part in the transaction. However, there is a public ledger which records all transactions identified only by the user’s wallet address. It means while there is a record, it maintains the anonymity of the bitcoin owners which many prefer. Although this has caused some controversy, with people thinking it promotes illegal activity, most people use it because they don’t want to share personal data with large corporations. It is especially highlighted at the moment with many companies being found to have misused customers data.
Freedom of Transaction
Because there are no intermediaries with bitcoins, it leaves those using them with no restrictions. Traditional currencies are controlled by banks who can limit spending or freeze accounts. However, no such limits exist with bitcoins, so you can spend as many as you have. The same applies when you buy bitcoin; you are able to purchase as many as you want and spend or invest them as you see fit. Although this lack of control has also been criticized, many people like the freedom it offers with how they can spend their money.
Ease of Use
Using virtual currencies is incredibly easy to use and is another reason many people prefer them. Unlike a bank where you often have to open an account and pay money in to start, bitcoin wallets are free to set up, and there are no complicated forms. You also don’t need to rely on the bank to process your payments as they are all done electronically.
In many ways, bitcoins and other cryptocurrencies are more identifiable with peoples need to have access to their money 24-hours a day, 7-days a week. Traditional banks are still struggling to give their customers the freedom they want.
