Categorized | Bitcoins

5 Advantages of Bitcoin

Bitcoin has been quite a hot news item over the past few months and it managed to gain hundreds percent in value in just a couple of months. But what is it that makes bitcoin and cryptocurrency in general so special and why do people believe cryptocurrency could be the next big thing?

  1. Low risk of inflation
    The total number of bitcoins that will be created, 21 million, is already set in the source code of bitcoin and it is impossible to create more coins. So unlike normal currencies, such as the US dollar, there is no central bank that can decide to print some more money because the need is high.
  2. Freedom of transactions
    We’ve all heard about banks and credit card companies refusing to cooperate with controversial causes such as Wikileaks. With bitcoin this will never be an issue and you can use your money to send it to whomever you like. No censorship from governments or third parties here.
  3. Sending money is fast and cheap
    Sending money anywhere in the world is fast and cheap with bitcoin. A transaction can be made and confirmed within an hour and the fee is close to zero. There is not a single alternative that comes even close when using regular currencies.
  4. Safe
    Holding bitcoins is relatively safe if you know what you are doing. You can have a private password protected wallet on your computer or you could even make a paper wallet where you just write down your private key on a piece of paper. No one will ever be able to use your bitcoins without your password or your piece of paper.
  5. Stable
    Bitcoin should be a stable currency in the future as it’s a worldwide currency and price fluctuations should be limited. Due to the fact that there is a set number of coins, the chance of the coin collapsing should be close to zero. Unfortunately at the moment of writing bitcoin is still very volatile, mainly due to unreliable exchanges and governments debating whether bitcoin is a legal means of payment.

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