Despite where you land on the financial spectrum in the modern-day, there are high chances that you must have heard of cryptocurrency. As a matter of fact, approximately 46 million Americans tend to have at least a share of Bitcoin, which proves that cryptocurrency has gained immense popularity with passing time.
Being the oldest of all, Bitcoin happens to be the king in the land of cryptocurrency. Many individuals who show interest in making a crypto portfolio of their own often consider starting off with Bitcoin. But don’t you think that it’s better to know what you’re investing in before you make the investment?
What Is Bitcoin?
Bitcoin happens to be a peer-to-peer and decentralized cryptocurrency system that uses digital units of exchange to process transactions. Since its origin in the year 2009, the Bitcoin network has dominated the crypto world .
As Bitcoin serves to be an alternative to pure commodities like gold coins and flat government currencies like the U.S dollar, it has managed to grab the attention of many people.
Yet another reason for the increased attraction of people towards Bitcoin is its decentralized status. Neither is it controlled nor regulated by any central authority, which immediately distinguishes it from other fiat currencies issued by central banks.
You would be surprised to know that there are countless sites from where you can purchase Bitcoins. However, to stay away from scammers and to ensure a safe transaction, it is essential that you only consider buying from credible sites such as Coingate .
Even though Bitcoin was created in 2009, people are still not aware of the benefits that this currency provides. Learning all about it can undoubtedly help you make an informed decision whether you should invest in it or not.
So, since now you have gained knowledge on what Bitcoin is, let’s move forward and have a look at the benefits that this digital currency serves.
1. Pseudonymous Transactions
We all know that most online transactions require an array of information for the identification of the people involved in the transaction. The transaction only occurs when information for both the receiving and the sending party is verified.
Even though this verification process may prevent crime, it also puts an intermediary firmly in charge of the transaction, giving them the authority to control the provisioning of services to the selected parties.
On the flip side, Bitcoin transactions are classified as pseudonymous. This means that the transactions are not completely anonymous, however, they can only be identified by using a blockchain address.
Hence, no solid identifying information is required to complete the transaction. Along with that, if by any chance the address of your crypto wallet becomes public, you can generate a new wallet address to keep your information safe.
2. High Return Potential
Bitcoin prices tend to be highly volatile, which means that they can change drastically over a short time.
In March 2017, one Bitcoin was equivalent to $975.70 only. However, in just a matter of months, the price spiked up to a whopping $20,089 in December 2017. The price of Bitcoin reached an all-time high value in April 2021, which was equivalent to approximately $64,000.
Do you know what this means? It means that you can get an insane amount of profits over a very short time span. So, why not take the risk that may end up making you as rich as Croesus.
3. Low International Transaction Fee and Independence from Regular Bank Fees
Maker and taker fees, along with occasional deposit and withdrawal fees, are a part of the regular fiat currency exchanges. However, where a digital currency like Bitcoin is concerned, you would be able to attain freedom from all such recurring and sometimes hidden charges and fees.
Not just that, you would also be free from account maintenance, minimum balance fees, overdraft charges and returned deposit fees, etc.
As far as international payments are concerned, their cost generally tends to be lower compared with bank transfer fees. The prime reason behind this is that no intermediary institution or government is involved in the process.
To top it all off, you would be glad to know that Bitcoin transfers are not like many other bank transfers that require you to wait for long periods. In fact, Bitcoin transfers are pretty fast and take place almost instantly!
So, after getting information on what Bitcoin is and the benefits that it serves, you must be wondering whether it would be a smart decision to invest in it or not. Although cryptocurrency tends to present its fair share of benefits, many individuals still view it as a relatively risky investment.
However, just like any other investment, it would be a wise choice to do your research properly and weigh your options before you decide to invest in it.
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