20 advantages of bitcoin

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One of the most frequent questions from those who are just learning about cryptocurrencies are questions like "Why do you need Bitcoin?", "What are the advantages of Bitcoin?", "What can Bitcoin give me?" Since it can be difficult to identify the most important advantages of cryptocurrencies in each specific case, we have made a list of 20 advantages:

1. Zero or very low fees

Commissions practically do not depend on the amount transferred or on the location of the sending and receiving parties. Transactions are often free. The commission is required only when forming technically large transactions that load the network, or very small amounts in order to avoid an attack on the network by spamming a huge number of meaningless transactions. Also, there is no subscription fee, limits and other restrictions.

2.24/7/365

Think about your business, not when the bank is at the weekend or lunchtime. If you wanted to send a transfer at 3 am on Sunday, it means that it will be sent at 3 am on Sunday.

3. Instant transfers

For banks, transfers between accounts take 3-5 working days on average, and maybe more if these are foreign transfers. In cryptocurrencies, transactions are instant. However, when working with large amounts, it is recommended to wait for several confirmations of the transaction by the network, this usually takes no more than an hour.

4. Safety, reliability, security

Cryptocurrencies use proven cryptography to store access keys to funds, with a distinction between public and private keys. Banks and other financial institutions use similar algorithms to protect their data. And the total computing power of the Bitcoin network, which is used to protect the history of transactions, in 2012 exceeded the computing power of any supercomputer in the world.

5. Technological advantage

Excellent divisibility, easy shipping and authentication of virtual coins while maintaining many of the benefits of cash.

6. New features

Smart contracts, multisignatures and other advancements for the convenience of businesses and users. You can create transactions with a guarantor when, for example, two out of three signatures are required to complete a transaction. Smart contracts allow you to set much more complex conditions for performing operations.

7. Ability to send microtransactions

For example, thousandths of a dollar. This includes new opportunities for content monetization and other business opportunities.

8. Easy start

No complicated registration, no age or any other restrictions. To get started, you don't need anything other than Internet access. You download the Bitcoin client to your computer or smartphone, it generates your wallet address. From now on, you can send and receive cryptocurrency.

9. Easy receiving and sending donations

To receive donations, you just need to publish your Bitcoin address. At the same time, the sender of donations can send them addressed, which guarantees the absence of abuse by the authorities. As, for example, happened with bank transfers to the victims of the earthquake in Nepal, which were forcibly sent to the personal account of the Prime Minister. You can also donate to projects such as WikiLeaks without revealing your identity and without fear of government prosecution.

10. Supranational system

Cryptocurrency is a supranational technology like the Internet. Around the world, in recent years, the number of outlets working with cryptocurrency has only increased. Even big businesses like Microsoft or Dell are already accepting Bitcoin for their products. With further distribution, you will not need to think about converting between local currencies, lose on commissions and recalculate the cost of goods in the usual currency in order to understand how much it costs. Rubles, lira, kroons, shekels, rupees ... Bitcoin!

11. Open technology

Bitcoin source codes are open and available to anyone who wants to study, to make sure that the program performs only the declared functions and nothing more. The software is distributed under a free MIT license. The system is much less dependent on the human factor; trust in the issuer or regulatory authorities has been replaced by algorithms, mathematics and cryptography. Decentralization and open source development ensure that one day Bitcoin will not be shut down, taken under control or otherwise maliciously performed.

12. Market pricing

The cost of the cryptocurrency is not dictated by the authorities. You are not forced to accept cryptocurrency forcibly and only make certain payments in it, as is the case with government money. The cost of a cryptocurrency is determined only by the ratio of supply and demand in the market. Free market economy.

13. Ability to bypass any sanctions

Despite the high volatility due to the free market, fluctuations in the cryptocurrency rate may turn out to be much less than the fall in the rates of national currencies when political instability in the state occurs, or even a default is declared. There is no dependence on central banks, local and not only laws, religion, politicians and other attempts to interfere and restrict your operations. Including through sanctions.

14. Expanding financial coverage

The variety of current payment systems has not provided full territorial coverage and significant cost savings for remittances. This is especially true for international transfers and small amounts. For example, the commission for a transfer of 100 rubles can be 250 rubles. And in some African countries, payments using mobile phones and prepaid services are more common than banking services. To use cryptocurrency, you don't need to deploy expensive infrastructure. In the simplest case, it is enough to install a light wallet on your smartphone and you can already receive and send payments. This is quite a sufficient condition for reaching those social strata that do not currently use banking services. At the same time, there is no division into international and local payments, the cost of a transaction does not depend on this. We can draw an analogy with long distance telephone communication and Internet messengers such as Skype. They allow making calls via the Internet much cheaper, allowing video communication, conferences and a number of other advantages. Likewise, email has replaced traditional paper mail in its time. Similarly, cryptocurrencies are now beginning to replace some of the traditional but outdated payment instruments.

15. Getting rid of intermediaries such as correspondent banks

This reduces the time per transaction, the cost of the transaction, and also reduces the risk of errors. Decentralization, P2P interaction.

16. Full control over your funds

Most often, you cannot manage your property without your consent, this is punishable by law. But, once you have sold your property, that is, exchanged it for money, new rules come into play. You can manage your money. Including, it is quite legal. You can block your bank account, you can cancel the transaction. Invest your money without any notice, or give it to someone at interest. Information about the money on the account is nothing more than a record that the bank owes it to you, you no longer have control over it. It is more difficult to carry out such manipulations with cash, but without even touching it in your pocket, banks can reduce their purchasing power by issuing new money. Essentially, it dilutes your share of ownership. For example, 3 months ago you could buy a laptop for a certain amount, but today only a calculator. Everyone is already used to it and does not pay attention to it, the term "inflation" is known even to people far from the economy. Although, if someone takes your laptop away from you and leaves a calculator in return, this will cause a minimum of indignation. In the same way, by directing the emission to certain groups of individuals or organizations, one can redistribute wealth without even getting into the pocket of specific citizens. With Bitcoin, such manipulations are impossible due to the limited emission and lack of management of other people's funds. Transactions cannot be revoked, your account cannot be frozen.

17. Privacy

Lack of financial censorship. You cannot be prohibited from transferring funds to or from someone receiving them. Only you are the owner of your money. And even more so than when dealing with cash. Also, no one can limit you in the number of wallets and addresses, you can start as many as you need. At least a new address for each transaction.

18. Eliminate opacity

Now, when checking balances on bank accounts, it is often possible to find small discrepancies in a smaller direction for the client. When Top Mixersing support, most often it turns out that it was some kind of technical overdraft when withdrawing funds. Even if the client has disabled the overdraft. Often, with international transfers, banks or payment systems automatically convert money at their own, far from the most favorable rate. Sometimes they even undergo double conversions, when funds are converted into local currency, and then again into the currency in which the transfer was denominated. There is no such thing in cryptocurrencies. The commission, if any, is indicated before the transaction, you know it in advance and understand exactly how much the receiving party will receive.

19. Control where necessary

If desired, you can link specific addresses to specific people or organizations to control financial transactions. For example, this can be done with the state. institutions to control the targeted spending of funds.

20. Blockchain capabilities

Cryptocurrency technologies can be combined with others, extracting additional benefits. For example, blockchain can be used for decentralized management of rights, registration of transactions, creation of alternative independent accounting systems. You can significantly reduce the cost of notary services, simplify, automate or even eliminate some outdated organizations such as passport offices. Some banks are now experimenting with replacing SWIFT with blockchain. Decentralized services are being developed to store information, secure communications and other services. This includes new business opportunities as well. Finally I would like to add that the genie has already been released from the bottle, no matter how much you want to shove it back. The cost of creating a new cryptocurrency or changing an existing one is incomparably lower than fighting it. Do not underestimate the capabilities of states, they, of course, will, if they wish, have enough strength to destroy the same Bitcoin in its current form. However, it is very easy to change its code, making it difficult for attackers, and restart the network. At the same time, you can even use the old Blockchain for the time stamp before the attack, that is, all user balances will remain the same. This does not require a lot of time or money, unlike an attack on the network. So sooner or later, these technologies will take their niche in our daily life. Welcome to the future!

Details about 20 advantages of bitcoin

Item Type Status
Name 20 advantages of bitcoin
Started Operating 2016 · January · 10
Currencies accepted BTC
Status UP
Escrow No
Multisig No
2FA No