Even though Bitcoin was launched to be used as a payment method for daily transactions, that mission is still to become true. Bitcoin aimed at eliminating the control of centralized agencies and authorities in the transactions, thus speeding up the transaction process. However, there are only a few transactions made using bitcoin as a payment option.
The power of cryptocurrencies like Bitcoin, which do not have an intermediary in between is a strong concept. The technologies behind Bitcoin have developed drastically. Lightning Network is an example of such advancements in Bitcoin technology that has the power to make Bitcoin much more popular than before. With the popularity of Bitcoin and the technology behind it, several companies have started accepting Bitcoins for transactions. The fact is that there are a lot many things you can buy using Bitcoins.
Bitcoin offers numerous benefits over the other payment modes. Here are some of them.
- User Autonomy
There are risks and restrictions associated with fiat currencies. The crash of banks or bank runs may even lead to a recession in the country. Bitcoins are not controlled by any governmental authorities and the value of Bitcoins is not decided by any of the policies of the government. Thus, the user has complete control over their money.
- Pseudonymous Transactions
All the online transactions ask for a lot of details for carrying out the transaction. The third person in between, be it banks or other financial institutions, require personal details of both the sender and the receiver before they allow a transaction. These verification processes are to avoid crimes, but the third party in between becomes the controller of the transaction.
Bitcoins allow pseudonymous transactions. The transactions done through Bitcoins can be identified only through the blockchain address. These transactions do not require IP addresses or any other information.
- Peer-To-Peer Transactions
Bitcoins allow users to have peer-to-peer transactions, which means the user can have transactions with anyone in the world who is on the network. They do not need any approval from any intermediary or authority for transactions. Only that the transaction has to be done through a regulated exchange or other similar institution.
- No Banking Fees
There are always some banking fees associated with the transaction of fiat currencies. Bitcoin users do not have to pay any of these banking fees. They do not have to pay for maintenance of their account or for withdrawal.
- Low-Cost International Transactions
International transactions using fiat currencies are expensive as the banks and other financial authorities charge a good sum for the transactions. As Bitcoins do not have any intermediaries in between, the cost of bitcoin transactions is much lower than the cost of traditional transactions. Travelers can make use of this advantage. Also, Bitcoin transactions are faster and do not need long verification processes and waiting.
- Irreversible Transactions
The Blockchain technology associated with Bitcoin is immutable and therefore, the transactions using Bitcoins are irreversible. It does not allow for any amendment by a third party in between. A charge-back is also not possible in Bitcoin transactions.
