13 Key Benefits of Bitcoin and Its Challenges

By Techfunnel Author - Last Updated on March 13, 2020
Article Describing About the Benefits of Bitcoin

Bitcoin is a decentralized digital currency, one of the most popular cryptocurrencies in the world. As you can see from this Bitcoin summary, this is a very important virtual coin that manages to offer you anonymity online and it also makes payments faster and more convenient.

You can easily store your Bitcoin in a mobile, online or paper wallet and you can initiate transactions at any given time. The Bitcoin overview clearly shows that this is one of the best ways to keep your money in the virtual world and not have to worry about any hassle and challenges that can arise.

Statistical Research Insights about Bitcoin

There are around 20 million bitcoins available for mining, more than 60% were already mined at this time. On top of that, more than 1 in 4 millennials prefer Bitcoin to stocks (1), as it’s an investment opportunity and not just a simple purchase. Not only that, but 2 in 5 millennials agrees that Bitcoin will be widely used by most people. And yes, at this time 70% of the cryptocurrency market is held by Bitcoin alone.

( Also Read: 4 Reasons the Bitcoin Market is Growing )

What are the Benefits of Bitcoin

Using Bitcoin can be a very good idea if you want to change the way you invest your money. It can be very well worth it if you understand what are the benefits of Bitcoin as well as the drawbacks of Bitcoin. Once you know why Bitcoin is useful, it will be a lot easier to gain the results you expect.

  • Zero Paper Verifications – All Online

    One of the main advantages that make Bitcoin so great is the fact that you don’t have to handle any paperwork. What that means is everything is handled online, and you can avoid dealing with banks or any financial institutions.

    It’s a great way to transfer money to anyone without involving third parties. This is one of the main benefits of Bitcoin, the fact that you can transfer money to anyone.

  • Global Payments Done Quickly

    Another one of the benefits of Bitcoin is the fact that payments are done very fast. Most of the time payments happen instantly. So, the other person will receive them in just a few minutes. It helps a lot and it just makes the experience a lot more rewarding every time.

  • Easy Mobile Payments

    Bitcoin also does a very good job of helping you pay via your mobile phone. There are mobile wallets through which you can send Bitcoin to other people in an instant. And yes, you can also keep your money in the mobile wallets, then use it online as you see fit. It’s definitely a very good idea to give it a try for yourself to see how it works and implementing it will pay off big time.

  • Low Transaction Fees

    Most of the time you end up with high transaction fees when all you have to do is to transfer money. Bitcoin helps you avoid that since the transaction fees are very low regardless of how much you want to transfer to other people. This high level of security combined with low fees really helps make the experience a lot better than you might imagine.

  • Safe, Secure, and Encrypted

    Bitcoin does a very good job of keeping your information safe. No one knows who is sending money or who receives it, only the two parties. The encryption system is great, and it provides full anonymity, which is something everyone wants to see upon sending stuff online. That’s definitely something you want to check out and see for yourself.

  • Forget Third Parties

    When you usually want to send money online, you have to rely on third parties. Bitcoin helps remove that and it eliminates the need for any third party. It just makes the entire process more convenient and simpler than ever before without rushing anything. You just have the sender and receiver; those are the only parties involved.

  • Identity Protection

    Thanks to Bitcoin you can keep your identity safe when you receive or send Bitcoin online. This means you never have to share your personal information with anyone. That makes transactions a lot more secure, and you keep your identity safe.

  • Zero Inflation Effects

    While Bitcoin prices fluctuate (one of the drawbacks of Bitcoin), the reality is that investing in Bitcoin keeps you away from inflation. While prices can be lower, they can also get higher, and that’s definitely something that you want to think about as much as possible.

  • Anonymous Transactions

    You can transfer Bitcoin anonymously, but the transactions are transparent. There’s a copy of the transaction in the blockchain, and the best part is that you need to know exactly what wallet you are sending money to. There’s a lot of transparency, the only thing lacking here is a record of who transferred and who received the money.

( Also Read: Everything Beginners Need to Know About Bitcoin Wallet )
  • Decentralized Network

    No one has control over the Bitcoin network. And that’s a good thing because you can be sure everything is safe and that there are no worries. It helps immensely and the benefits are extremely impressive.

  • Security from Currency Fluctuations

    Currency risks appear out of nowhere, so you want to stay away from them. While Bitcoin has its fair share of price changes, most of the time prices tend to go up. You just have to study the market when you want to sell it.

  • Credit Cards

    The last thing you want is to deal with credit card problems when you transfer money. With Bitcoin, your transactions happen instantly. You won’t have to worry about credit cards being declined or having to wait for a bank to complete the transaction for you.

  • Zero Control for Governments

    Most governments want to take control of banks. However, they can’t control any Bitcoin transactions. So, you can easily stay away from governmental control this way.

Challenges of Bitcoin

The drawbacks of Bitcoin are also bringing in a wide range of challenges. Price volatility is the major issue, as prices vary a lot. There’s also the potential for theft and maleficent use, which can be a huge problem. Some people use Bitcoin for criminal activity since payments are very hard to track. Then there’s also the fact that it can bring some tax issues.

Conclusion

Despite some of the drawbacks of Bitcoin, it’s clear that this is one of the top cryptocurrencies out there. The benefits of Bitcoin are outweighing the downsides, and the best part is that anyone can use Bitcoin. You just have to buy these coins and you can trade them, keep them in your wallet as an investment or use Bitcoin to buy stuff. It’s a great opportunity and the results can be well worth it. Just give it a try and we guarantee that you will have a very good experience.

Related Articles:

Best 6 Steps for Beginners to Have A Bitcoin Investment Strategy

Top 6 Digital Currencies You Need to Know

What the Bitcoin Split Means

Bitcoin vs. Litecoin Mining: What You Need to Know

Dogecoin vs. Bitcoin: What You Need to Know

Techfunnel Author

Techfunnel Author | TechFunnel.com is an ambitious publication dedicated to the evolving landscape of marketing and technology in business and in life. We are dedicated to sharing unbiased information, research, and expert commentary that helps executives and professionals stay on top of the rapidly evolving marketplace, leverage technology for productivity, and add value to their knowledge base.

Techfunnel Author

Techfunnel Author | TechFunnel.com is an ambitious publication dedicated to the evolving landscape of marketing and technology in business and in life. We are dedicate...

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