Using Bitcoins for payments can bring you many advantages since this digital currency is decentralized and anonymous. This is why cryptocurrencies are preferred to traditional fiat currencies, and even though the Bitcoin was launched a decade ago, the crypto environment has been continuously evolving since then. Many tokens have still not been tested as a possible medium of exchange; so, users should weigh the pros and cons before starting to invest in them.
Advantages of using Bitcoins for payments:
- To begin with, Bitcoins are decentralized and not regulated by any centralized institution like a bank or governmental agency. Bitcoin payments get processed via a network of computers or nodes and these are connected to each other through a public ledger called the blockchain. This blockchain acts like a distributed ledger so that there is no need for any authority to maintain the records. Autonomy is perhaps the greatest advantage of using Bitcoins. it gives users far more autonomy than fiat currencies, at least theoretically. Users will never have to deal with middlemen when spending money.
- Bitcoin buys are always confidential; until the user voluntarily shows his transactions. Personal identity of the recipient or sender will never be revealed and transactions cannot be traced back to a user.
- The Bitcoin system is a P2P or peer-to-peer exchange so users can receive or send payments to anyone inside the network without needing approvals from any external authority.
- With Bitcoin payments you never have to worry about banking fees. Cryptocurrency exchanges may charge fees, like the “taker” or “maker” fees, withdrawal and deposit fees, Bitcoin users do not have to bear any typically banking fees. So, there is no minimum balance fee, no charges for overdraft, no fees for returned deposits, or maintenance fees for the account.
- When you must make standard wire transfers across international borders, you will need to pay steep charges and exchange costs. Because Bitcoins are not regulated by any third party institution, transaction costs are minimal. This is especially beneficial for travelers. Moreover, transfers are quick and there is no inconvenience for them or long waiting periods.
- Bitcoin users have the freedom to pay whenever they have web connectivity. So, buyers are never directed to a bank or to a physical store to make a purchase; they can simply make mobile payments. Unlike credit card payments, Bitcoin payments do not require you to give your personal ID to finish a transaction.
- Bitcoin payments are highly accessible and people in places which do not have much access to traditional banks or credit cards can comfortably use these coins for making purchases.
- Bitcoins also make it possible for shopper to make payments without having to share their personal information like debit and credit card details to sellers. This financial anonymity can be a huge advantage for most shoppers. Bitcoin is like digital cash that cannot be easily intercepted by hackers and cyber thieves.
- When you own Bitcoins, the risks of inflation are zero because Bitcoin has a finite supply. Inflation happens when governments issue more and more currency notes each year lowering the people’s buying power. But there can only be 21 million Bitcoins that reduces an inflation threat.