Our modern-day lives are fast. We work more, earn more, and spend more than any other time in history. Our future selves may look back on our current days with disbelief at the speed we travel while getting nowhere. But what if there was a decentralized cryptocurrency that could be mined by anyone with computer skills enough to crack an algorithm? What if you could spend funds immediately without waiting for banks to authorize your transactions?
A new technology called Bitcoins has made its way into our society, and it is quickly gaining popularity even among the non-computerized folk out there. There are many practical reasons why people use Bitcoins every day over traditional currencies, but today I’m just going to discuss two of them:
How often have you had to wait 5-7 business days for a check to clear? Or how many times have you been forced to pay extra fees because your bank wire will take 3-5 days to process? Bitcoins allow instantaneous transactions at nearly no cost. The only fee that bitcoin ever charges is a voluntary transaction fee.
On top of this, websites are now being built by those within the Bitcoin community that enables instant purchasing from major retailers, including Walmart and Amazon, through a clever workaround called a “market peg” where Bitcoins are instantly swapped for USD or other fiat currency. This makes purchases with Bitcoins as easy as logging onto your shopping cart and checking out as usual. There is no need to convert your money and wait for it to transfer either!
There’s a prevalent idea that comes along with Bitcoins that is not true, and it’s one of the leading causes behind all of the negative media attention they get. The facts are that Bitcoins are not completely anonymous because you can keep track of all transactions made on the blockchain (the public ledger). However, this does not make them inherently less private than other forms of currency. You see, although there is a public ledger that identifies wallets by their unique address, everyone also has their purse, which only they have the key to unlock. So unless someone could guess your wallet password with absolute certainty, your cash is safe even if there’s a record of your wallet address.
On top of this, you can also encrypt your wallet file, which makes it even more difficult to unlock without knowing the password. There are good reasons why bitcoin might be considered more private than our current banking system. Banks have been known recently to refuse service to specific customers based purely on their legal activity – something many people consider an invasion of privacy and personal rights. However, in a decentralized cryptocurrency such as Bitcoins, everyone can choose how they use them, so nothing is ever forced upon anyone by any central authority!
So how did Bitcoins become so valuable?
Well, since anyone can get started mining with a simple computer, it’s pretty much the most accessible way to acquire coins for many people in different parts of the world. With millions of new Bitcoins being minted by hundreds of thousands of miners each year, the community is constantly growing, meaning that there are more individuals capable than ever before when it comes to making large purchases.
Another reason why people find bitcoin so attractive is because they offer an unprecedented level of security compared to traditional forms of payment like credit cards which require your personal information to be leaked out to third-party merchants to confirm a sale.
Since Bitcoins exist as a product on the internet which you can trade with someone for whatever their asking price is, you don’t have to pay up until you both agree on any amount! If no one else accepts bitcoin cash, your money is practically useless, whereas some people are still willing to take it despite its volatility against major currencies due to some of its benefits listed below.
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