The cryptocurrency market is predicted to grow with a CAGR of 56.4% from 2019 to 2025 and Bitcoin accounts for $6 billion of daily online transactions today. Every passing day, there are more people willing to learn more about bitcoin and invest in it. While each person may have their reason, there are some advantages of bitcoin that will encourage anyone to start investing.
Lower Inflation Risk
Unlike other currencies with the risk of inflation over a period of time, Bitcoin is a deflationary currency, as its value increases based on demand. Other currencies are controlled by their respective governments while bitcoin is decentralized. As these governments print more money to meet the demand, the value will keep fluctuating, which is not the case for bitcoin that has a market cap. The price of bitcoin will only increase as more people show interest in it but it will always maintain its value throughout the years.
Simple and Easy Transactions
Transactions have been made easier both locally and internationally through bitcoin. You can complete a transaction within seconds with a lower transaction fee compared to traditional banks. More businesses and individuals are embracing bitcoin as a form of payment, as it helps reduce transaction fees and also simplifies the process.
There are several bitcoin apps, including the Bitcoin Storm, that makes this easier than ever. You can send and receive bitcoin through these apps for different purposes. Whether it is to pay your internet bill and taxes, eat at a local restaurant or even buy goods and services from an online store. You can easily make a transfer by scanning a QR code rather than entering a long public key or going through a long process like traditional banks.
This ease of transaction and ease of use encourages more people to opt for a digital currency such as bitcoin.
No Third Party
One of the major factors that influence the ease of transactions in bitcoin is the absence of a third party. Bitcoin is a decentralized currency, which means your funds are literally in your hands. This makes it free of all national monetary policies and you have a reduced risk of losing your funds due to failure from your financial institution such as foreclosure or bankruptcy. People who have limited access to the banking system due to several factors can opt for bitcoin instead, as it proffers an easier way to own an account and make transactions anywhere and anytime.
It is Anonymous
Every bitcoin user has a public key and a private key. While your private key is known only to you, everyone else sees your public key but it masks your identity such that no one can tell who is behind the account. Transactions cannot be traced to the buyer, which makes bitcoin a popular form of payment in the black market. The government will never be able to trace the source of your funds, since it is masked to the public.
If you are considering investing in bitcoin, these are some of the top reasons why most people choose to.