One of the most common questions from those who are just learning about cryptocurrencies is questions like “Why do I need Bitcoin?”, “What are the advantages of Bitcoin?”, “What can Bitcoin give me?”. Since it can be difficult to immediately identify the most important advantages of cryptocurrencies in each case, we made a list of 20 advantages:
1. Zero or very low fees
The fees are practically independent of the amount transferred or the location of the sending and receiving parties. Transactions are often free. The commission is required only when forming technically large transactions that load the network, or very small amounts in order to avoid attacks on the network by spamming with a huge number of meaningless transactions.
There is also no subscription fee, limits or other restrictions.
2.2.24 / 365/365
Think about your business, not about when the bank has a weekend or lunch time. If you wanted to send the transfer at 3 a.m. on Sunday, it means that it will be sent at 3 a.m. on Sunday.
3. Instant transfers
For banks, transfers between accounts on average take 3-5 business days, and maybe more if they are foreign transfers. In cryptocurrencies, transactions are instantaneous. However, when working with large amounts, it is recommended to wait for a few confirmations by the transaction network, usually it takes no more than an hour.
4. Security, reliability, security
Cryptocurrencies use proven cryptography with the separation of public and private keys to store access keys to funds. Similar algorithms are used by banks and other financial institutions to protect their data. And the total computing power of the Bitcoin network, which is used to protect the history of transactions, back in 2012 exceeded the computing power of any supercomputer in the world.
5. Technological advantage
Excellent divisibility, easy transfer and verification of the authenticity of virtual coins while maintaining the many advantages of cash.
6. New features
Smart contracts, multi-signatures and other progress for the convenience of business and users. You can create transactions with a guarantor when, for example, two of the three signatures are required to complete a transaction. Smart contracts allow you to set much more complex conditions for operations.
7. Ability to send microtransactions
For example, thousandths of a dollar. This, including new opportunities for monetization of content and other business opportunities.
8. Easy start
Lack of complicated registration, age and any other restrictions. To get started, you do not need anything other than Internet access. You download the Bitcoin client to your computer or smartphone, it generates the address of your wallet. From now on, you can receive and send cryptocurrency.
9. Easy to accept and send donations
To receive donations, just publish your Bitcoin address. At the same time, the sender of donations can send them targeted, which guarantees the absence of abuse of power. As, for example, happened with bank transfers to the victims of the earthquake in Nepal, which were forcibly sent to the personal account of the Prime Minister. You can also donate to projects like WikiLeaks, without revealing your identity, and without fear of persecution by the state.
10. Supranational system
Cryptocurrency is the same supranational technology as the Internet. Across the world in recent years, the number of points working with cryptocurrency has only increased. Even a large business such as Microsoft or Dell already accepts Bitcoin for its products.
With further distribution, you will not need to think about converting between local currencies, lose on commissions and recalculate the cost of the goods in your usual currency in order to understand how much it costs. Rubles, lyres, crowns, shekels, rupees … Bitcoin!
11. Open Technology
The source codes of Bitcoin are open and accessible for anyone to study, to make sure that the program performs only the declared functions and nothing more. Software is distributed under a free MIT license. The system is much less dependent on the human factor, trust in the issuer or regulatory authorities is replaced by algorithms, mathematics and cryptography.
Decentralization and open source development guarantee that one day Bitcoin will not be closed, taken under control or other malicious acts committed.
12. Market pricing
The cost of cryptocurrency is not dictated by the authorities. You are not forced to accept cryptocurrency forcibly and only in it to make certain payments, as is the case with state money. The cost of cryptocurrency is determined only by the ratio of supply and demand in the market. Free market economy.
13. The ability to circumvent any sanctions
Despite the high volatility due to the free market, fluctuations in the cryptocurrency exchange rate may turn out to be much less than the depreciation of national currencies in the event of political instability in the state, or even a default. There is no dependence on central banks, local and not only laws, religion, politicians and other attempts to intervene and limit your operations. Including through sanctions.
14. Expansion of financial services coverage
The variety of current payment systems has not provided full territorial coverage and a significant reduction in the cost of money transfers. This is especially true for international transfers and small amounts. For example, the commission for the transfer of 100 rubles may amount to 250 rubles. And in some countries in Africa, payments via mobile phones and prepaid services are more common than banking services.
To use cryptocurrency, you do not need to deploy expensive infrastructure. In the simplest case, it is enough to install a light wallet on your smartphone and you can already accept and send payments. This is a sufficient condition for reaching those social strata who do not currently use banking services.
At the same time, there is no division into international and local payments, the transaction cost does not depend on this. You can give an analogy with long-distance telephony and Internet messengers such as Skype. They allow you to make calls over the Internet much cheaper, allows you to conduct video communications, conferences and has several other advantages. Similarly, e-mail correspondence replaced traditional paper mail in due time. Similarly, cryptocurrencies are now beginning to replace some traditional, but outdated payment instruments.
15. Disposal of intermediaries such as correspondent banks
This reduces transaction time, transaction cost, and also reduces the risk of errors. Decentralization, P2P interaction.
16. Full control over your funds
Most often, you cannot manage your property without your consent, it is prosecuted by law. But, as soon as you sold your property, that is, exchanged it for money, new rules come into play. You can manage your money. Including, it is quite legal. You can lock your bank account, you can cancel the transaction. Without any notice, invest your money, or give it to someone at interest. Information about the money in the account is nothing more than a record that the bank owes it to you, you no longer have control over it.
It is more difficult to carry out such manipulations with cash, but even without touching them in your pocket, banks can reduce their purchasing power by issuing new money. Essentially – eroding your share of ownership. For example, 3 months ago you could buy a laptop for a certain amount, but today only a calculator. Everyone is already accustomed to and do not pay attention to it; the term ‘inflation’ is known even to people far from the economy. Although, if someone takes your laptop from you, and in return leaves a calculator, this will cause a minimum of outrage.
In the same way, by directing emissions to certain groups of individuals or organizations, one can redistribute wealth without even having to get into the pocket of specific citizens.
With Bitcoin, such manipulations are impossible, due to the limited emission and lack of management of other people’s funds. Transactions cannot be withdrawn, your account cannot be frozen.
Lack of financial censorship. They cannot forbid you to transfer funds to someone or to receive them from someone. Only you are the master of your money. And even more so than when working with cash. Also, no one can limit you in the number of wallets and addresses, you can start them as much as you need. Though at a new address for each transaction.
18. Resolving Opacity
Now, when checking balances in bank accounts, it is often possible to find small inconsistencies in the smaller direction for the client. When contacting support, it most often turns out that it was some kind of technical overdraft when withdrawing funds. Even if the client has disabled the overdraft. Often during international transfers, banks or payment systems automatically convert money at their, far from the most favorable rate. Sometimes even double conversion takes place, when the funds are converted into local currency, and then again into the currency in which the transfer was nominated.
There is no such thing in cryptocurrencies. The commission, if at all needed, is indicated before the transaction, you know it in advance and know exactly how much the receiving party will receive.
19. Control where necessary
If desired, you can attach specific addresses to specific people or organizations to control financial transactions. For example, this can be done with the state. Institutions to control the targeted spending of funds.
20. Blockchain features
Cryptocurrency technologies can be combined with others, extracting additional advantages. For example, blockchain can be used for decentralized management of rights, registration of transactions, creation of alternative independent accounting systems. You can significantly reduce the cost of notarial services, simplify, automate or even eliminate some outdated organizations such as passport offices. Some banks are now experimenting with replacing SWIFT with a blockchain. Decentralized services are being developed for storing information, secure communications and other services. Including, it is also new business opportunities.
I would like to add that the genie has already been released from the bottle, back with all the desire not to stuff it. The cost of creating a new cryptocurrency or changing an existing one is incomparably lower than fighting it. Do not underestimate the capabilities of states, they certainly have the strength to destroy the same Bitcoin in its current form, if desired. However, it is very simple to change its code, complicating the task of the attacker, and restart the network. In this case, you can even use the old Blockchain to mark the time before the attack, that is, all user balances will remain the same. This does not require large time or financial costs, unlike an attack on a network. So sooner or later, but these technologies will occupy their niche in our daily lives. Welcome to the future!