Bitcoin surfaced in 2009 and swept the world away with the revolutionary blockchain technology. The aim of creating such tech was to eliminate the presence of any third party in transactions, and that did happen. Bitcoin soon got recognised as a means of cheaper and safer payments.
The blockchain technology that was introduced with bitcoin for its use was a first of its kind. Security and transparency were the two most important factors that were responsible for its existence.
Since that happened in 2009, a lot of cryptocurrencies have emerged in the scene. But Bitcoin still dominates with a market cap of more than $60 billion.
Here, we will tell you why bitcoin is beneficial for business.
1.Hacking to bitcoin is next to impossible:
It is technically impossible for someone to hack bitcoin & get some of them for free. The primary reason behind this is the blockchain technology bitcoin uses. Even if a hacker wanted to hack into it, theoretically, he would need more than 51% of the total computing power responsible for all the transactions, which is pretty hard.
Hard because bitcoin miners do not use our day to day PCs. What they use are highly powered computers and that too, in huge numbers. Gathering more than 50% of such power would be a goliath task for a hacker or a group of such people.
2. The risk of inflation does not exist:
Inflation occurs when the prevalent currency is produced more than the current demand.
Such a situation does not exist with bitcoin because only a few bitcoins will ever see the light of day.
The number is expected to be somewhere around twenty million.
As a result, the concept of inflation is practically non-existent with bitcoin; a user can buy them, and hold for as long as he wants.
3. Lower transaction cost:
If compared with its competitors, Bitcoin has a low transaction cost. As of 2018, it was less than two dollars for each transaction.
4. No need for forex:
Foreign exchange or forex is a process where a user( traveller, for example) has to exchange the currency used in his country, to the currency used in the visiting country.
The case isn't the same in bitcoin. Since it is a digital currency with no central exchange, it can be used anywhere worldwide. You have to be sure that the place you are visiting has bitcoins as a legal tender.
5. Fast transaction:
Wire transfers into foreign banks take almost a week to transfer. Bitcoin does not follow any such rule or timing. It takes mostly 48 hours for the transaction to complete.
6. User is king:
Unlike a fiat currency, bitcoin does not involve any central banks for its operations like transactions. The user can stay autonomous and decide where he wants to spend his coin. The spending and buying coins do not charge for a change of currency or transaction, like banks involved with fiat currency.
7. Everything is peer-to-peer:
Anything that involves a transaction has to go through a mediator of some sort. Mostly, these mediators are central banks. But in bitcoin, a user can send coins over to another user without any third party involvement.
Bitcoin offers its users to send coins and receive them through a smartphone or a mobile.
When a user is banking through a traditional banking service, he has to be a part of it by paying some bank fees. Some people have access to a phone but not a banking service like a credit card. Bitcoin comes in handy for such a population.
Are you looking for a broker that can help you with bitcoin investments?
The market of cryptocurrencies is volatile and not just bitcoin, there are at least 2000 different types of digital currencies available. If you want to invest in this sector, it is advised that you undergo proper research before putting in real money inside the market.
Always remember, the right math will give you the right results, not intuitions.