During economic turmoil and unforeseen situations, such as the one that has arisen due to this pandemic, people are concerned about their finances. In such a situation, Bitcoin turns out to be a better option than cash to utilize for transactions and also for investment. Let us look at some reasons behind the rising popularity of Bitcoin.
Top Reasons Behind Popularity of Bitcoin During Uncertain Times
Reason 1: Bitcoin is Decentralized and Digital
There are no intermediaries when Bitcoin is exchanged, resulting in lower fees and greater control over the transfer of funds. Moreover, it is cheaper, faster, and a lot more secure.
Reason 2: Tracking Transactions is Easy
Blockchain is the underlying technology used for Bitcoin. Here, multiple computers, which are part of a distributed network, utilize cryptographic methods for creating a public record of all the transactions that happen. This record can be used for tracking payments while tracking conventional currency like cash is not possible.
Reason 3: Duplication Not Possible
Contrary to cash, it is not possible to duplicate Bitcoin in any way.
Reason 4: Excellent for Tax Purposes
When a Bitcoin is transferred, its ownership gets transferred as well. Due to this reason, several people can never transact on the same value. This helps people keep proper records and is ideal for tax purposes.
Reason 5: Secured Transactions
In Bitcoin, blockchain technology is used, which consists of a public record of transactions that happen. This is a complex process where miners verify all the transactions and after that, only any particular transaction gets added to the blockchain. Moreover, data is distributed over thousands of computers, making it impregnable.
Reason 6: Lower Transaction Fees
Unlike fiat currency, Bitcoin has low transfer and transaction fees. For example, it is easy to transfer Bitcoins worth a hundred million dollars by paying a transaction fee, just about a few hundred dollars.
Reason 7: Bitcoin is Always Open
If any disaster happens or there is a crisis, we face the risk that the banks will stop working. Also, operating hours continue to change in traditional banking and you cannot guarantee that meeting your banker will be possible on a particular day. But, in Bitcoin, these problems are not faced and you can transact 24/7/365.
Reason 8: Ease of Shopping, Even from Home
Bitcoin is an entirely electronic way of doing transactions. More importantly, there is no waiting time or middlemen during the processing of your transactions. Almost instantly, you will check the publicly distributed ledger and find that funds have been sent to the selected destination.
Reason 9: Less Volatility Compared to Cash
Fiat currencies such as cash can be forged if the government deems it right to do so. Also, the value of money drops if the government produces more money. On the other hand, Bitcoin has a fixed number of units available and as such, its value will not get affected by the total amount, which is circulating.
Reason 10: Great for Investment
The good thing about Bitcoin is that it can be used without requiring any conversion. Bitcoin is considered to be on par with other investment options such as gold. Bitcoin is considered to be a combination of the best features of gold and cash. Moreover, it provides an open market for you to invest in and there are no restrictions, as are imposed by governments or banks. You can also check out Bitcoin Era to make your profit double through Bitcoin trading.
As we can see, Bitcoin is fast becoming a popular online currency that can be used for different purposes. It is safe to use and helps you save charges on transaction fees that you have to pay when you are using fiat currency usually.