Satoshi Nakamoto, the creator of Bitcoin predicted the coin to become a mode of payment for daily transactions. The main concept behind cryptocurrencies was to abolish the centralized authority behind money by the government institutions or authorities to speed up the transaction process. However, the bitcoin transactions that took place after its launch are very few and thus, suggesting that bitcoins couldn’t satisfy the expectations of the creator. But a currency that does not have a central power is a very powerful idea.
Several technologies are developed recently around bitcoin technology, which has the power to improve the popularity and transactions of bitcoins. Even though bitcoin transactions are less in number, the popularity of cryptocurrencies has risen in the past few years, encouraging many companies to accept cryptocurrencies as a mode of payment. Therefore, several products and services can be purchased using bitcoins now.
Here are the most popular advantages of using bitcoins as a payment method.
- User Autonomy
There are several risks and restrictions for fiat currency transactions. The vulnerability of banks can affect fiat currencies and this incident has taken place several times around the world. Thus, it is evident that people do not have complete control over their money. But, there is no central control over bitcoins, which means the user can completely control the money they have. The value of bitcoins is not linked to any policies of the government.
- Pseudonymous transactions
Fiat money transactions require a lot of personal information to carry out transactions. The information and details on both the sender and the receiver have to be verified before allowing the transaction. Even though the verification process is to avoid crimes associated with the transactions, there is a third party in between that decides to allow or reject transactions. The transactions carried out using bitcoins are pseudonymous and the transactions can be spotted only with the blockchain address.
- Peer-to-peer transactions
The payment system of bitcoin is completely peer-to-peer which means the user can send or receive money from anyone on the blockchain across the world. The transactions do not require any consent from the central institutions or authorities.
- No banking fees
Banks charge certain fees for the transactions of fiat currencies. Bitcoin users do not have to pay any banking fees, unlike traditional currencies. They do not have to pay any fees for banking services or transactions.
- Irreversible transactions
Transactions on blockchains are irreversible as blockchain technology is immutable. Therefore, no third party like banks or the government can amend the transactions. Also, no charge-back can be filed for bitcoins sent to other users.
Bitcoins can be stolen only if the private keys are accessed. As they do not have a physical form, it is not possible to steal them. If there is proper security, it is really difficult to steal bitcoins in the wallets. As several incidents of hacking were reported earlier, crypto exchanges have become vigilant and more secure making bitcoin transactions highly secure.