Bitcoin – What are the advantages of using it?

Hello my dear readers,

I took a break from writing due to several family events and Easter holiday, but now I’m back with a fresh article. I have noticed that many people are still unclear about why they should use bitcoin.  That’s why I hope this article will clarify a lot of aspects about the advantages of using bitcoin.

 

Anonymity

Would be one of the reasons and I could agree to that to a certain extent (unfortunately Bitcoin is pseudonymous unlike everyone else thought about it)

Well, here I am not so sure about the anonymity because according to cybersecurity researchers, web merchants leak data about purchases lots of times, and that can link individuals with their bitcoin purchases easily. The biggest problem are the web trackers and cookies. These small pieces of code deliberately embedded into websites send information to third parties about the way people use websites. Common web trackers send information to Bing, Google, Facebook, Yahoo and others to track page usage, purchase amounts, browsing habits, and so on. Trackers can also send personally identifiable information such as your real name, address or e-mail. A pro for bitcoin anonymity would be that Bitcoin purchases are time-stamped, so it is hard to track them down if the time is not known accurately.

There are some ways buyers can protect themselves using tools that can be found online easily such as AdBlock Plus or Ghostery. These are useful tools but can sometimes miss trackers and sometimes even prevent purchases entirely.  Such defenses can help, but they are far from being 100% effective.

All that said, anonymity might be actually a disadvantage rather than an advantage.

 

No limits in making a transaction

 

One can make Bitcoin transactions in any part of the world without having to worry about bank holidays or having to fill tons of unnecessary forms, it is also borderless. An individual is free to have transaction as he is in control with his bitcoin, there is no term like a central authority.

 

Very low transaction fees

 

Well, this is also arguably, the congestion on the Bitcoin blockchain led to a bidding war over the block space, especially because the interest in bitcoin continued to rise more and more over the course of the year.

Here is an example so you get a better idea of what it’s trying to say – in early 2017 transaction fees were around $0.30 USD while in December 2017 they reached $40 USD.

Bitcoin fees are now lower again because the FOMO around getting some bitcoin before the price goes to the moon has become less intense, leading to a decline in demand for block space, and since transaction fees are denominated in bitcoin, a falling bitcoin price can also mean a decrease in USD denominated transaction fees.

 

Transaction speed

 

Looking at the Blockchain graph we can see that on 23d January 2018  the transaction waiting time had the peak at 11.453 minutes which is insanely high for a bitcoin transaction, while in April 2018 the waiting time for a transaction is around 10 minutes max.

 

 

Decentralized Network

 

Decentralized cryptocurrencies like Bitcoin have strong advantages over centralized financial systems, mostly because of their ability to function and operate without a single point of failure, which hackers could target easily.

Bitcoin is a decentralized, peer-to-peer, cryptocurrency system designed to allow online users to process transactions through digital units of exchange called Bitcoins.
It is the first decentralized digital currency, as the system works without a central bank or administrator.

Centralized networks are more vulnerable to attacks/hacks comparing to decentralized networks.

In a few words, there is no need for mediators in transactions such as banks, and it’s not controlled by any governments or any other entities, it belongs to normal people like you and me.

 

Last thoughts: Bitcoin is not perfect but it is by far better than a centralized network and it has so little fees that one can barely feel them.

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