One of the initial steps for using bitcoins with total confidence and in a productive way is to know the advantages of using them; know how this model of currency is different from the conventional and what it can offer benefits. That's what we'll see next!
- 1- Rates lower than traditional currencies and zero taxes
When making transactions with conventional currencies, users can pay rates ranging from 2 to 9%. Obviously, transactions are different from person to person.
The costs associated with bitcoins are lower. The average transaction fee usually costs less than 1% of the transaction.
Therefore, from the tariff point of view, the advantages of bitcoins are greater than traditional transactions. On the other hand, there is also no way for a third party to intercept such transactions. Therefore, there is no viable way to implement a tax system for this digital currency.
- 2- Bitcoin can be used anywhere in the world
Bitcoin is a global currency. Unlike conventional currencies, it can be used extensively without border blocks, without the traditional bureaucracies of the international market. This is the great turning point of the currency bitcoin: an economic revolution that is eliminating the trade borders around the world.
- 3- Bitcoin is a coin that can not be frozen
As much as the world calls itself globalized, in practice we see several countries practicing what is called "protectionism". There are currency embargoes, surcharges and taxes that insulate international transactions to discourage free trade.
This is not possible when it comes to bitcoin. It is a currency that can not be frozen because it is not controlled by any government or business.
- 4- Bitcoin does not incur risks with the collapse of a financial system
In 1971, the United States abolished the gold standard (the value of the currency quoted from the value of the mineral). Since then, the Dollar varies according to the confidence of those who manufacture it: the Treasury and banking institutions.
The Real is also a fiduciary currency. The problem is that, when the economy collapses, for many reasons (politics, environmental incidents, corruption scandals), conventional currencies lose their value.
Theoretically, bitcoin comes to solve this problem as it is not regulated by any body and does not rely on confidence in the traditional financial market. It only depends on mathematics, on an algorithm managed by a decentralized network around the world.
- 5- Bitcoin can be donated without government authorization
Any and all values of the movement of traditional coins are controlled by the State. So when making a donation, a sponsor needs to explain to the Union where it comes from and for what purposes the values are intended.
In 2010, for example, when the United States went to war against the Wikileaks organization, it banned banks and companies from donating to fund the initiative. Soon Wikileaks organizers asked users to make donations using bitcoins, which could not be controlled by the government.
Bitcoin payments can be made and finalized without the need for personal information. It does not seem like much, but this freedom is revolutionizing the way philanthropy is done or funding initiatives that governments do not want to support (obviously, this freedom can also be used for evil, for buying and selling drugs).
- 6- Bitcoin is safer than conventional coins
Due to the fact that personal information is kept hidden from prying eyes, Bitcoin also protects against identity theft. With it, you can back up and encrypt the information to ensure the security of the money.
Unless a user discloses their wallet address publicly, no one can track their transactions. No one, except the owner of the wallet, will know how many Bitcoins they have.
Even if the portfolio address has been disclosed, a new one can be easily generated. This increases privacy when compared to traditional foreign exchange systems where third parties have potential access to personal financial data.
- 7- Bitcoins are harder to steal than traditional coins
The whole structure of the bitcoins system converges so that the control of the portfolio is entirely of its owner. No one can steal them unless you have physical access to a user's computer and they send the bitcoins to your account. Unlike conventional currency systems, where only a few authentication details are required to gain access to finance, this system requires physical access, which makes it much more difficult to steal.
What do you think of these advantages of bitcoins? Leave a comment!