The hype around Bitcoin is far from over as the cryptocurrency is breaking new records during its bull market phase. Actually, the price of Bitcoin hit 50,000 in February 2021, after a long winning streak in 2020. On the one hand, everyone is looking to invest in BTC, including renowned brands like MasterCard, Square, and many other investors.
On the other hand, as the cryptocurrency is already over a decade old, there is no shortage of businesses that accept BTC payments. Hence there are a lot of organizations that are aware of the benefits of Bitcoin. In this article, we’ll take a closer look at those advantages for both companies and individuals.
Bitcoin – Definition
Bitcoin is a virtual cryptocurrency that is designed for online payments. It is completely decentralized, and no single entity has control of the current supply of the currency (otherwise, Satoshi Nakamoto limited the number of BTC to 21 million) as it is powered by a peer-to-peer- based decentralized blockchain network.
There are many inherent advantages of using Bitcoin, mainly due to the way the blockchain network operates. The primary draw for users is that it operates without interference or control of any authority. The payments are processed on the blockchain network, and the transactions are validated by the miners.
Low Processing Fees for Cross-Border Payments
The main advantage is that there are low processing fees for every transaction. It is also very beneficial that each transaction is processed quickly, and the average time of adding blocks of transactions on the blockchain network is about 10 minutes.
So, this is the main advantage for anyone that is looking to use BTC for online payments, or if you are looking to trade online, you’ll be glad to know that the transaction fees are low. One innovative exchange platform that you should visit this website. The trading site uses AI-trading software and has partnered with reliable brokers to provide the best experience for its members.
One reason why crypto newbies are interested in trading here is that there is a comprehensive trading guide along with a demo trading platform which is very useful for anyone that is just starting out as an investor. If you want to start trading here, you need to make a deposit of $250
Moreover, any business that is looking to accept BTC will be at a competitive advantage, as it is easy for Bitcoin users to make payments online, while the business owners get to sell their products to another target audience.
Thanks to the blockchain network, the identity and personal information about each user on the platform are confidential. It is not visible to any user on the platform. But this doesn’t mean that the data about the transaction is also concealed. Actually, everything is transparent of the network except for the sensitive, personal data about its users. So you can choose not to publish your identity, and there won’t be an association of the transactions with you. This isn’t a possibility when you’re making a payment with traditional currencies.
Independence From Financial Markets
As we mentioned before, the blockchain network is independent of any external influence, and therefore Bitcoin is not affected by fluctuation on the financial markets or any civil unrests and financial crises, don’t have an effect on the price of Bitcoin. Actually, the price of Bitcoin is formed as a result of the interaction between the supply and demand on the market.
Regarding the supply, we said that there is only 21 million Bitcoin from the beginning, and this means that new BTC can never be generated after the last Bitcoin is mined. This is why Bitcoin is considered a good store of value as it is very rare and because the demand is increasing for BTC, the price is rising.
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