Being around for a little over a decade, we are dealing with a more aware group of people – with some of them already knowing how to buy bitcoin and how to trade them for profit. With that being said, it’s safe to say that bitcoin is starting to get accepted more and more – at least compared to the negative connotation that bitcoin has a few years back (the reputation that bitcoin was only used for illegal acts). Now, more businesses are starting to accept it as a payment method… but why would one do such a thing? What’s the main difference between paying in bitcoin and paying in cash? What are the advantages of doing so?
5 advantages of using bitcoin over cash
At this point in time, bitcoins aren’t anything new and everyone has probably heard of it already. People see it as an investment opportunity and although there’s nothing wrong with that, it has to be understood that bitcoin can do a lot of good as well in terms of personal finance. Here are 5 advantages that paying in bitcoin brings to the table:
Bitcoin is decentralized
Bitcoin is decentralized and peer-to-peer in nature. They are defining characteristics of the coin. When you say that bitcoin is “decentralized”, it means that it is not influenced by a single central authority. Instead, the operations of bitcoins are based on the buyers and sellers. Being decentralized also means that it cannot be inflated or devalued by banks or governments – something that happens regularly with fiat currencies.
You have more privacy using bitcoin
Bitcoin transactions are very transparent and not transparent at the same time. They are transparent because there is a public ledger that allows visibility on all transactions. It’s also not transparent because the ledger doesn’t reveal any identities of the people involved. Depending on the level of account verification, no tracking can be done using bitcoin.
You have more freedom when using bitcoin
When it comes to ordinary payments, there are sometimes limits to how much one can spend – or even if one can spend at all. This refers to the limitations that it has when it comes to a certain amount (credit/debit limits) and geographical locations. Some banks and online services (like PayPal) can even freeze your payments.
When it comes to bitcoin, you can use it anywhere and at any time. You don’t need specific software or clients to transact with bitcoin. All you’ll need is a stable internet connection and aaddress. This makes sending international payments cheaper and easier. There are also no banks standing in the way, making you wait, no limitations, and no extra fees.
The transactions are quick
When sending regular fiat currency to a faraway place, it could take a few days to a week for the receiver to actually get the money. If you use bitcoin, it would only take a couple of minutes. Banks also have working hours. This means that they are closed at night, during holidays, and on weekends. When it comes to bitcoin, there is no pressure coming from a schedule.
Bitcoin is portable and durable
Bitcoins do not have a physical existence. This means that they cannot be damaged or destroyed. When put in the context of gold and fiat currencies, this is a very important aspect. For example, the price of gold and silver can be manipulated if the supply is tampered with. Dollar bills and coins can be destroyed and counterfeited. Bitcoins are impervious to things like these.
With a mobile wallet, you’ll also be able to take your bitcoin wherever you go and wherever you want. Some applications will even allow you to trade on your smartphone, allowing you to have a bitcoin experience that’s on-the-go.
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Founder Dinis Guarda
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