There is almost no chance that you haven’t heard of the existence of cryptocurrencies like Bitcoin, Etherium, and others, especially in 2021. Many people use them just for trading purposes - they buy, sell, repeat. But paying for services with cryptocurrencies is more advantageous than paying with a credit/debit card, and in this article, we will talk about them. Bitcoin, as the first most popular crypto, is designed with some unique advantages over the traditional payment methods.
What is Bitcoin?
Bitcoin is a peer-to-peer and decentralized cryptocurrency that allows online users to send and receive digital units of exchange called Bitcoins (BTC). We said decentralized because the design of the Bitcoin network does not require a central authority to control and regulate it. This is probably one of the biggest differences with conventional payment methods. When you send money via Bitcoin, your transaction is recorded in the so-called “blockchain” which is distributed on many servers worldwide. Each one of these servers contains all committed transactions and everybody can create a Bitcoin node and become part of this. This blockchain removes the need for central authority to maintain and store such records. Amazing, huh?
The Bitcoins are not issued by a bank or government like fiat currencies. You can either earn some Bitcoins by “mining” them or buy them with standard national money currencies like USD or EUR. Your Bitcoins will be placed in a wallet, which you can create with just a few clicks.
In the whole world, there are only 21 million Bitcoins. This is strictly limited and nobody can change that. There is no chance to develop inflation in this system.
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Advantages while paying with crypto
Now, while you have some knowledge of the Bitcoin project, you can better see and understand the advantages of using Bitcoins for payments. We will give you some of them now! Let’s dive in.
The Bitcoin transactions do not reveal any personal information, just like you pay cash but digitally. You preserve your privacy. It’s just money from address X to address Y. This does not mean that the Bitcoin transactions are 100% anonymous and not traceable, but it is harder to do so.
Some people do not have access to the traditional banking system, credit cards, or other conventional payment methods. Bitcoin provides them with a payment solution. Creating a Bitcoin wallet is easy and fast, with no rules and no documents. Just a device and internet connection.
Autonomy and privacy.
You can send money to whoever you want. There is nothing to block you. And this is because this payment method is not controlled and regulated by a central entity. No regulations, no restrictions. For example, you want to send money to a friend via PayPal, but PayPal is blocked in their country. You would not experience the same issue with Bitcoin.
Transparency. Secure payments.
No more worry about your payments. You can always track them via the blockchain explorers. The Bitcoin system stores the history of all transactions that are ever made. This is called a sequential chain of blocks (blockchain).
You can send money anywhere in the world in a matter of minutes as long as your transaction is confirmed.
You can send Bitcoin transactions from your phone with just a few clicks. There are many useful mobile applications. Choose the best for you and start paying with crypto.
Cheap international payments.
Imagine you want to send money to a friend in a foreign country. The standard bank transfers are expensive (outside the EU). Bitcoin provides you with a stable and cheap solution to that problem because the fee is not based on these parameters. Well, in 2021 the Bitcoin fees are a little higher than before, but overall they are good enough. If you want your money to arrive faster, you should pay a higher fee.