How useful is Bitcoin?

Most people have heard about bitcoin and even know how to get it, thanks to the relentless campaigns and endorsements by a section of industry leaders. Bitcoin is a digital revolution that allows people from around the world to acquire wealth through trading. It also enables users to pay for goods and services conveniently via the internet. The following article discusses some of the common uses of bitcoin to help you understand its value.

Faster cross-border money transfers 

The traditional banking institutions and fiat currencies have been the basis of international money transfers for decades. However, they are usually subject to a series of restrictions and regulations. On most occasions, financial institutions must consent before one can be allowed to transact specific amounts of money. As a result, most cross-border transactions often take much longer to process or even end up being rejected.

Since it’s a decentralized digital currency, Bitcoin is not subject to government or political influence. That means people can use it to send and receive payments worldwide without the risk of government intervention. Besides, the lack of a central authority to monitor and approve ensures faster payment processing, reducing the redundancies of fiat currencies.

As of 2015, the average time between transaction blocks was about 9 minutes. And this will reduce even further due to the ongoing bitcoin scalability. In the future, bitcoin transactions would take lesser time to process, ensuring greater convenience for users.

Widespread application 

While most people know that bitcoin is a digital currency, only a few understand its applications. Bitcoin works just like other paper currencies but, it is digitized and only accessible online. In the ten years of its existence, bitcoin has proven to be a lucrative store of value and exchange medium whose applications go beyond just the financial circles.

Bitcoin has several applications, including trading, payment of goods and services, and wealth acquisition. Bitcoin is a high-value asset traded on stock markets, just like other asset classes. That is why established trading platforms like New Yuan Pay Website now allow users to trade bitcoin alongside other cryptocurrencies and financial instruments.

Even when bitcoin trading isn’t your interest, you can still use your bitcoin reserves to acquire property and other investments worldwide. Bitcoin users could also loan their bitcoins to others to earn interest. On the other hand, people in many parts of the world now accept Bitcoin as an exchange medium that people can use to pay for goods and services from physical and online stores.

Low-cost transactions 

The low-cost money transfers associate with bitcoin are among the key reasons why most people are increasingly using it to invest, trade, and pay for goods and services. Unlike fiat currency exchanges that involve intermediaries, bitcoin transactions exclusively occur on blockchain that does not require any third parties. That significantly cuts the transaction costs, making bitcoin transfers more affordable than using credit cards, banks, or other electronic payment systems.

High-level accountability 

Bitcoin’s blockchain technology verifies and validates all the transactions on the network. A shared digital ledger, accessible to all users anywhere, anytime, encrypts the data. Bitcoin transaction data is distributed in blocks on different nodes worldwide, making it difficult for users or other parties to manipulate. That ensures the irreversibility of transactions, contributing to high-level transparency and accountability.

Although bitcoin is still in the initial phase of mainstream adoption, it has already proven its usefulness beyond measure. Bitcoin offers its users faster and low-cost cross-border money transfers. It is also a high-value investment asset with prospects of enormous returns for investors. Bitcoin also doubles up as an efficient means of payment for goods and services.