9 Reasons for Using Bitcoin instead of Cash
Bitcoin, the most emblematic cryptocurrency, is now more than 10 years old. Bitcoin can therefore legitimately be considered a success even if things can, and must, be further improved to achieve mass adoption by the general public. Despite the success of a decentralized P2P digital currency, many people are still reluctant to get into Bitcoin. In this article, I suggest you discover 9 reasons why Bitcoin is already preferred to cash by many people.
1. Hiding his Wealth
Without repeating Donald Trump’s great tirade on money laundering that Bitcoin and cryptocurrencies would promote, it is obvious that using Bitcoin instead of cash makes it possible to hide one’s wealth.
Whatever the reasons, some people simply do not want Nations to know everything about their assets. Recent laws passed in recent years virtually ending bank secrecy are now pushing some billionaires to use Bitcoin rather than cash to hide the exact amount of their assets.
In a way, Bitcoin, as well as other cryptocurrencies, could replace the famous Swiss banks that were once used to hide their money by ultra-wealthy people. Even if you are not rich, you may prefer to hide the exact amount of your assets. Bitcoin can allow you to do this while for cash, it is no longer really possible.
2. Banking the Unbanked
By living in a highly industrialized country, one may tend to forget that some people in the world still do not have access to banking services. Why? Simply because the banks believe that these people do not have the financial resources to pay for their services. Bitcoin is therefore a blessing for unbanked people as it can provide them with access to equivalent services.
Even better, some cryptocurrencies have specialized in this sector by offering more specific banking-type services to non-banked people. This is particularly the case for Stellar and its Blockchain, which have a certain IBM as their major partner. This strong support clearly shows that the field is promising.
3. Bitcoin is P2P
Bitcoin is the first successful implementation of a decentralized P2P digital currency based on the Blockchain. Thus, Bitcoin has the advantage of allowing payments between people without the need for a trusted third party to guarantee the transaction.
This is one of the major advantages of Bitcoin, which allows people to carry out transactions anonymously. On platforms such as PayPal, this is clearly not possible.
4. Bitcoin is Decentralized
Bitcoin has a very high level of decentralization. No central authority controls it. Again, this is a major advantage because no authority will be able to arbitrarily prohibit you from carrying out a transaction in Bitcoin. On the other hand, cash is controlled by the central banks of the countries. In fact, these banks may very well prohibit you from using your assets.
With Bitcoin, that’s impossible. You really own your Bitcoins. You have them on your hardware wallet and no one can grab them. You are free to keep them and be part of the HODLERS or spend them through purchases. In any case, you are the only master on board with your Bitcoins.
5. No Duplication Possible
Bitcoin is based on the concept of Blockchain. The Blockchain is a technology for storing and transmitting information without any control body. From a technical point of view, the Blockchain is a distributed database in which the information transmitted by users is verified and grouped at regular time intervals into blocks.
These blocks are linked and secured through the use of cryptography forming a chain of blocks: the famous Blockchain. The latter can, therefore, be seen as a distributed and secure record of all transactions made since the start of the distributed system. The Blockchain removes the need for an intermediary.
Due to its architecture, the Blockchain is immutable. Once a transaction is validated, it cannot be canceled. There can be no duplication. This provides you with a high level of security when carrying out transactions and eliminates a major problem with bank-managed cash.
6. Effortless and Anonymous Online Payments
Online payments made with your credit card are not always easy. Worse still, they clearly lack confidentiality. You must provide your personal information very often. However, you may not want to share this information. Indeed, although you have nothing to hide, you value your privacy. In fact, you want your purchases to remain confidential.
Cash does not allow this additional level of confidentiality since banks can know everything about the purchases you have made. With Bitcoin, this problem is solved. You can make online purchases effortlessly while preserving your privacy.
Of course, all the transactions you have carried out are stored in the Bitcoin Blockchain. However, only the addresses of your wallets are listed. If you do not tell anyone that these addresses belong to you, no one will know what you have done with your Bitcoins.
7. Reduced Risk for Merchants
Bitcoin has a number of important benefits for consumers. But it also presents a significant number of them for merchants who choose to take the plunge and support it. Indeed, a merchant may have problems with people making purchases and then trying to have them canceled at their banks for various reasons.
With Bitcoin, this problem no longer exists. The merchant only has to wait for the transaction to be validated, which only takes a few seconds. Once the transaction has been validated, the operation is irreversible. Indeed, as we have already explained, any transaction written in the Blockchain cannot be withdrawn from it. This offers an additional guarantee to merchants who should see a huge advantage in Bitcoin over cash.
Because of its youth, Bitcoin is subject to great volatility. This high volatility is also found throughout the cryptocurrency market. As an individual, you can choose to buy Bitcoins to make investments with high capital gains potential. Thus, the people who bought Bitcoins in 2013 are now millionaires in Bitcoins!
9. Be Part of a Revolution
Bitcoin can therefore be seen as an accelerator of wealth. Moreover, let’s not lie to ourselves, many people buy Bitcoins with the aim of making huge profits. These people then hold their positions at all costs because they are convinced of the phenomenal potential of Bitcoin for the future. These people are called HODLERS and I imagine you’ve probably heard that term before. You may even be one of them.
In any case, whether or not you are convinced of the benefits of using Bitcoin instead of cash, you should buy Bitcoin as a long-term sleeping investment. You never know…
For many, the Blockchain is the greatest revolution since the arrival of the Internet. It must be said that this technology makes it possible to do what the Internet has never been able to do. While the Internet has allowed information to be exchanged in a decentralized way, we have not been able to do without platforms that act as trusted third parties when we wanted to send money over the Internet, for example. Blockchain solves this problem by eliminating the need for an intermediary.
As the first successful implementation of a cryptocurrency via the Blockchain, Bitcoin is therefore closely linked to it. For many, Bitcoin is therefore a revolution. Members of her community clearly feel that they are part of a revolution, which makes them fervent supporters of Bitcoin. Some even swear by Bitcoin. For them, all other cryptocurrencies have no value. These people are called Bitcoins Maximalists.
Without going as far as the Bitcoin Maximalists, you could choose to buy and use Bitcoins to be at the beginning of a revolution that will have huge impacts on the future of money.
We are only at the beginning of Bitcoin and cryptocurrencies. Bitcoin celebrated its 10th anniversary and has been able to meet all the challenges that have been presented to it so far. Each time, it came out of it stronger. Proof if necessary that Bitcoin will have a major role to play in the future of money.
If it wasn’t obvious to you, I hope this article has allowed you to discover some of the main advantages of using Bitcoin instead of cash while convincing you to take the plunge.