Why do people use bitcoin

Bitcoin is the oldest, most famous, and currently most valuable cryptocurrency. Bitcoin software was created in 2009 by a certain Satoshi Nakamoto, whose identity is still unknown. Bitcoin is created by mining, except that powerful computers are used instead of picks, drills and excavators, and bitcoins are searched for instead of ores.Bitcoin is digital money that is used and distributed electronically. It is a form of digital property that, like ordinary paper money, is used to exchange, savings, investment. However, unlike other forms of cash, cryptocurrency is based on cryptography – codes, which enables the protection and security of transactions.

Like any other currency, bitcoin can be bought, sold, used as a medium of exchange, used for bitcoin gambling, as an investment, as a stock, or as a form of savings. The essence of bitcoin trading is the same as any other type of trade – buy for less, and sell for more money. Just as many of us save in dollars in a bank, so some (mostly quite wealthy) save in bitcoins because it has excellent value.

There are several thousand cryptocurrencies, but a small number of them have made a breakthrough in the crypto market. In addition to bitcoin, among the most famous are etherium, dogecoin.

The reasons why people use bitcoin are:

Freedom

BTC is designed to be free from the government of the state, which controls transactions, disposes of people’s money, and introduces taxes. In recent years, cryptocurrencies have become a legitimate way to pay for the purchase of many things.

Portability

The main characteristic of this currency is portability, which can be easily carried and used. Furthermore, since bitcoin is digital, any amount of money can be taken to a USB or saved online.

This gives people the liberty to send and receive money by scanning a QR code or clicking on an online wallet. It does not take much time, and there are no high fees, and money passes from one person to another without unnecessary intermediaries. Internet access is all you need.

Free choice of commission

Another advantage of cryptocurrency is choosing the amount of the transaction fee or even non-payment of commission. The miner receives the fee after a new block is created with a successful hash. In most cases, the sender pays the full fee, while refusing to charge the recipient can be considered an incomplete payment. The fees are entirely voluntary and serve as an incentive and guarantee that a certain transaction will be included in creating a new block. This is also a source of income for miners, which brings them more money than mining, especially when you consider that mining will stop in the future when bitcoin reaches its limit.

That is why the cryptocurrency market requires users to choose between costs and waiting times. A higher transaction fee would mean faster data processing, while users can save money without a time limit.

No credit cards

Payment cards include debit, credit, prepaid cards, e-wallet, ATM and POS cards and other related card transactions. It is made up of all the organizations that store, process, and cardholder data, but strict security regulations and most major card brands are part of that.

Unified rules and regulations are suitable for large companies, but they do not consider each individual’s needs. When using bitcoin, you should not agree to the security standards of this industry, which offer people to separate to other markets where credit cards are not available, or the levels of fraud are too high.

As a result, users receive lower commissions and the opportunity to expand their markets and thus lower their administrative costs.

Security and control

Bitcoin users can manage their transactions: no one can remove money from an account without your knowledge, as sometimes with other payment forms. Likewise, your payment information from merchants is secure.

Bitcoin users can also protect their money with encryption and other copies. Moreover, their personal informations are always saved because none of them has to be revealed to make the payment.

Transparent and neutral

Every transaction and information related to it is always available and can be checked and used in real-time. The bitcoin protocol is protected, and therefore, no person or organization can control it. Besides, the system is decentralized so that no one would ever fully control it.

Impossibility of falsification

One way to counterfeit in the digital world is to use the same money twice, making both transactions fraudulent. This is called “double consumption.” Bitcoin, like other cryptocurrencies, uses blockchain technology with several additional mechanisms built into all bitcoin algorithms to counteract this.

The governments manage every currency in the world. Every transaction takes place through a bank, where huge fees are charged, and it usually takes a long time for the money to reach the recipient.

Bitcoin, on the other hand, is not controlled by anyone. It is a decentralized system built on the collaboration and communication of all participants. Bitcoin does not exist in physical form, which means that it cannot be damaged. Therefore, every bitcoin is essentially eternal, unlike paper or coin money.

If someone mistakenly sends money to the wrong wallet and wants to return it, they cannot do so. Like many other characteristics of bitcoin, this one is designed to prevent abuse. Sadly, when it comes to traditional money, most transactions can be canceled very quickly.

While some traditional currencies such as the dollar and the euro are accepted in many countries, most of the world currencies are used within the borders of the countries they originate from. On the contrary, bitcoin is an online currency, which means that the environment for its approved operation is global. The value of bitcoin today is very tempting for those who have a lot of money and are ready to play in this very lucrative market. However, it is not known how long that will last and when the price will fall again.

The enormous freedom and space for profit that this system enables carries both huge responsibility and uncertainty. No bank guarantees your deposit. If you forget your private key (PIN), millions go for nothing.