In this post, we will see the benefits of Bitcoin and other cryptocurrencies.
If for some reason you are not convinced that cryptocurrencies have the potential to revolutionize an entire industry and the world in general, in this article we will comment in-depth on their benefits.
You may also be interested:
Benefits of Bitcoin
A first major benefit is that it’s very easy to start using Bitcoin.
Anyone can create a new bitcoin portfolio literally in seconds without any of that paperwork or unnecessary waiting that we are forced to go through by the institutions of the traditional banking system.
All we need is a computer and an internet connection because bitcoin even works with any operating system no matter if we prefer to use windows or a mac, or even a more up-to-date and sometimes robust operating system.
In fact, you can carry out transactions from your mobile phone and as we know these devices have the ability to connect to the Internet almost always.
Anyone who has this then can get a bitcoin address or wallet in a few seconds and thus begin for example to receive units of cryptocurrency and also spend the later on what they want.
When we do this in a few seconds we can already have our own bitcoin wallet and without having to hand over any piece of our credit history and even less official personal identification and also without having to wait for it to be checked and sometimes rejected for reasons that are not even explained to us.
If we compare this to the process of obtaining a bank account, the great advantages of Bitcoin and other cryptocurrencies become clear.
If one wants to have a bank account either for personal use or for an organization or company, typically these financial intermediaries ask us for a huge amount of paperwork and identification and cause the process to be slow.
Some degree of identity protection
Cryptocurrencies, and in particular Bitcoin, do not by nature allow you to achieve 100% anonymity, although you can achieve this level if you wish.
Anyway, I think we can very easily identify already from this moment and it is the fact that thanks to the fact that we are not asked for all the identification documents, we have immediately greater protection of our identity the first layer of privacy compared to open a traditional bank account.
Even so many people will still choose to use traditional banking services with the argument that carrying out this identification process is only one time and of course when the account is opened it is necessary to take all this documentation to the bank and wait for the approval process and once our profile has been approved then traditional banking services can be used for many years.
Therefore everyone will agree that the third benefit we will review is even more attractive if our main concern is not really to achieve that maximum anonymity.
As a third benefit, we have that by obtaining a bitcoin portfolio we do not have to pay fees to any institution or maintain minimum balances for any amount.
A portfolio can be equated to a fair account at a financial institution and as you probably know if you have ever had an account with a bank depending on the type of account, you will most likely be charged for simply maintaining and managing that account.
Sometimes the worst thing that happens is that you are charged for every move you make if, for example, a minimum amount is not met over a certain period, typically a month.
So from here, the advantage is clear as obtaining a bitcoin portfolio with its corresponding address is totally free.
Some users even have several since there is nothing to stop them from even thinking about a fee to be paid for each of these bitcoin portfolios.
Very low fees compared to financial institutions
It is now necessary to talk about the fees that many of the traditional institutions charge for the use of the services which, as you can imagine in the case of bitcoin, the fees are simply very low or basically non-existent.
When they do exist they are infinitely smaller than what these large financial institutions charge and that is so even though many of you do not know it or do not realize it some banks charge a fee for example if you dispose of your money at an ATM.
For the simple fact of claiming something that is yours and that the bank simply kept some of these banks at the time you need it, they charge you that fee for the withdrawal.
For example, making a transfer to someone’s account in another country where institutions typically charge a fee that is too high.
Currently in practically no transactions that occur with bitcoin commissions are charged or if it becomes necessary to give paid some commissions is very low compared to what with a traditional banking institution.
Transactions are almost instantaneous
Another very important feature is that transactions are almost instantaneous. It does not matter if this transaction is between two counterparts who are in the same room in the same place or if each individual is in two totally opposite parts of the world, the transaction will always take very little time.
It’s the same as when you send an email or Facebook message to a person on another continent, this message reaches them very quickly.
This is a very important feature for the whole issue of remittances, which we will detail below.
The remittance business
Due to the more global connection we have and the previous point where we talked about the low or null commissions that each of the bitcoin miners charge to verify the transactions, one of the great applications of the cryptocurrencies is the business of remittances.
This is one of the points where financial institutions expect to lose more ground to bitcoin because of the clear advantages that this and other cryptocurrencies offer in this type of business.
This is the case where it is typical that many people leave their country and migrate to another country in the hope of finding better job opportunities and higher pay for their work and the truth is that in most cases they succeed.
What is very true is that these people want to stay in touch with their families and loved ones in the countries from which they left and also often send resources and money to those countries of origin.
Unfortunately up to this point the easiest and sometimes the only way to do this is to use some service of an institution that is in both countries sending the money through their international system.
It is typical that the fee charged by these institutions to make and guarantee the money is quite high so some of the money earned by the people with their hard work disappears and remains in the hands of this financial institution.
On the other hand, and fortunately for all the people who find themselves in this situation, Bitcoin offers, thanks to its own design that uses all the infrastructure of the Internet, the movement of value through the network, as well as when they send an e-mail.
It is designed to make this a reality no matter where the counterparts are located.
In addition, cryptocurrencies offer the benefit that so far no fees are charged or if they are seen they are so small that they really have nothing against what a traditional financial institution charges for a similar service.
The benefit of micro-payments
Another huge advantage that bitcoin offers over the traditional financial system is one known as micropayments.
For example, we have a writer who currently offers continuous updates on his blog that many people enjoy every day because it is a comedy, for example, or they also take advantage every day of his comments because they are otherwise financial advice that they follow and help them to better maintain their money.
In both cases, people who are reading get a benefit either in the form of a good time and laughter or in the form of knowledge and better skills in managing their resources.
We can even mention the case where we get nothing but wish to help a person or group of people who typically form a non-profit organization, whose work we would like to support.
There are times when one does not have that much money available so we would like to send either the writer or this organization even if it was just a few cents and really the writer or the nonprofit would not mind receiving it, because even if it is a very small amount if there is the possibility that all their followers contribute and the vast majority do everything accumulates and constitutes an income.
With the current financial system, this is not possible since the commissions that many traditional banks charge are so high that it is more expensive the commission that we wanted or could send.
As bitcoin is widely divisible and as there are no commissions at the moment or if they are too small, then this type of money transfers is allowed opening a new possibility that before was unthinkable to send micropayments.
Many organizations and freelancers are already accepting bitcoin to make it easier for them to make transfers and continue their work in a much simpler way.
Beneficiary to tourism
If this is a case of worldwide acceptance, when you go out for tourism and want to know another country you would not have to worry about exchanging large amounts of cash to be able to consume the days you are abroad.
In addition, financial institutions can be more harmful to tourists because of the commissions they charge.
Whether it is the bank or the exchange houses for providing us with units of the currency used in the destination, they also imply a great risk since as we all know the tourist is the most exposed and more at risk than any other because he faces a country, in which he probably does not speak his native language, a country in which he does not have friends and much less all the relatives to whom he can turn for advice.
Read also: Investing in Bitcoin: Is It Safe? Understand the risks
So, as a payment method that knows no boundaries, Bitcoin and cryptocurrencies, in general, offer a clear advantage.
This is related to the point that someone who wants to travel to another country and without having to change from one currency to another can be consuming with peace of mind.
You could also use your credit card abroad to avoid carrying large amounts of money in notes and coins and minimize the risk of theft, but you have to take into account the exchange rate and also the fees charged for credit cards.
Cryptocurrencies are decentralized
We have commented on the fact that bitcoin works in a decentralized way and these types of people are primarily frightened of it because they are used to having one of these central authorities controlling different aspects of their lives, particularly for our example the currency they use in their day-to-day lives.
The bitcoin, precisely because it is independent, is sometimes really safer. This fact that it is decentralized is already identified as another of the great benefits of cryptocurrencies.
To be clearer, it is enough to know how a government has the power to print more money (like Venezuela) when what is needed for example to cover debt payment obligations which in turn causes a depression in the value of that currency, affecting the citizens in fact.
As all this is artificial, it decreases the value of the currency in general.
Another example is the Argentine peso, which has fallen into this situation.
The fact that the cryptocurrencies are decentralized is a point in favor.
The fact that there is not a single institution that controls them and is responsible for their value and to take care of them, but that all users have the responsibility and work to protect their value, in general from any cryptocurrency.
Furthermore, it is practically impossible to commit fraud. Nobody would benefit from it because if for example someone found some way to steal, for example, bitcoins from other accounts or to commit some kind of fraud, this would be something that would come out as news and would damage the value of bitcoin.
So all the coins that person had would lose their value or at least their value would be reduced.
At the end of the day, it’s practically impossible thanks to all the security measures that are actually within the Bitcoin protocol and that’s why many people are taking a much more serious approach to Bitcoin versus any other coin.