Bitcoin isn’t something that’s new to most people around the world. In fact, most people are actually aware of what bitcoin is, it’s just that they aren’t too educated on the matter. If you know how to buy bitcoin, you should know that there are a lot of advantages to using it – real-life advantages that could really help a lot of people. Let’s take a look into these real-uses and some of the advantages of using bitcoin.
Advantages of using bitcoin over cash
To convince you and your friends to start using bitcoin, you’ll first need to understand the main advantages of using it over cash. Here are some of the advantages of using bitcoin instead of cash:
The decentralized nature
Bitcoin is decentralized and peer-to-peer in nature. They are considered to be defining characteristics of the coin. Bitcoin being decentralized means that it isn’t influenced by a single central authority. It also cannot be inflated or devalued by banks or governments – something that happens fairly regularly with fiat currencies.
Transparent, yet anonymous
Bitcoin transactions have the rare combination of being transparent and anonymous at the same time. They are transparent because all transactions are recorded on a public ledger for everyone to see. They are anonymous 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.
When it comes to ordinary payments (with fiat currencies), there are sometimes limits to how much one can spend – or if one can even spend at all. These limits come from banks – credit/debit limits and geographical locations. When using bitcoins, 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 a bitcoin wallet address.
Bitcoins also don’t have operating hours. You can trade at any time you want (arguably at a faster speed). Banks, on the other hand, are closed at night, have holidays off, and are closed on weekends.
Portable and durable
Bitcoins have no physical existence. This means they cannot be damaged or destroyed. This is important because if it could be physically damaged or destroyed, the price can be manipulated. For example, if a supply of gold and/or silver was tampered with, it could change the price completely. This applies to dollar bills and coins as well, both of which can be destroyed and counterfeited. Bitcoins are impervious to these things and primarily exist digitally.
Bitcoin’s real-life uses
As said earlier, bitcoin is peer-to-peer in nature and the emergence of peer-to-peer marketplaces have changed the way people use their bitcoin. Here are some of the real-life uses that bitcoin is providing for people:
Earning an income
Starting with the basics, everyone knows by now that bitcoin can be a viable source of profit. Trading can be a profitable business if done correctly. The process is made even easier with peer-to-peer marketplaces as more power is given to the users via a more personalized trading experience.
Added to trading and earning a profit, you can also make some good passive income with bitcoin. There are some really great bitcoin affiliate programs out there that could help you earn money easily.
Although sending remittances with fiat currencies are still a viable option, cryptocurrency remittances are making the process cheaper and faster. In fact, cryptocurrency remittances are starting to become a popular option as 15.8% of remittances around the world are done with cryptocurrencies. When you send remittances via bitcoin, you circumvent the extra fees charged by Money Transfer Operators and Remittance Software Providers (MTOs and RSPs). Bitcoin remittances are also much faster compared to sending real money across the world.
Some countries have struggling economies. When the economy struggles, the value of their fiat currency sometimes inflates. When that happens, people look to bitcoin and other cryptocurrencies as ways of preserving the value. An example of this would be Venezuela. They are experiencing an annual inflation rate of 2.69 million percent – as of January 2019. Because of that, the usage of cryptocurrencies has skyrocketed in Latin America. Bitcoin isn’t only a way out, it could be a means of survival.
Combining both its advantages and real-life uses, bitcoin has the potential to be a powerful weapon. It doesn’t only have the power to help people on an individual scale, but it can also help entire communities out of financial struggle. The reason that bitcoin is able to do this is because of its peer-to-peer aspect. People are starting to find creative ways to use the peer-to-peer aspect of bitcoin to their advantage and give credit to them, it’s working.
If you’re interested in bitcoin but are still too afraid to put in a significant amount of money, you can always invest a little bit at a time to test the waters. If you don’t want to put in any money at all, you can look into bitcoin faucets that will reward you small amounts of bitcoin for completing tasks and playing games.