In this article, the most important benefits of Bitcoin, a decentralized digital currency. In particular, the business industry can profit from it.
From its inception, bitcoin has always been on the news. The views have been bipolar so far. While many people doubt the authenticity of this medium of exchange, some people still believe in it. This does not change the fact that the price, appreciation, and acceptance is on the rise. Before we continue, let us look at what bitcoin is.
What is bitcoin?
Bitcoin is a cryptocurrency or virtual currency, which is controlled by a decentralized system and it is not subject to the policies of central banking authorities or those of any government. Bitcoin is a cryptocurrency because its model is built on the foundation of crypto technology. Although there are dozens of cryptocurrencies, bitcoin is by far the most popular one.
Benefits of using bitcoin in the business industry
So far, I am yet to give details about the features of bitcoin. This is because its features are actually its benefits. Considering that it is a currency (a form of exchange), this implies that it is beneficial when it comes to conducting business. Below are seven benefits of bitcoin in the business industry.
Easier and faster transaction
With the use of bitcoin, you will be able to bypass many procedures. Even though commercial banks are getting better, there are still many issues with doing transactions using credit or debit cards. Going to the ATM, waiting for how many working days for the bank to process your transaction and so on.
Lower transaction fees
Besides the regular issues with regular transactions, you also have the issue of transaction fees. Depending on the destination, you are trying to send money to, transaction fees may amount to as much as 30%. With the use of bitcoin, the transaction fees are very minuscule that you may not even notice them.
Independence from national policies
This is another beautiful aspect of using bitcoin. It is not subject to the dictates of any government or central bank. This means that the policies in your country do not directly affect bitcoin. This means that nobody can restrict your use of bitcoin. You can also use it in the woo commerce coupon industry to make your transition process simple.
Value protection through scarcity
The issue of bitcoin mining did cause some uproar. People were of the opinion that what makes a currency valuable if you cannot regulate it. Permit me to state that bitcoin mining is not a way of gaining bitcoin without discretion. I will not dwell much on what bitcoin mining entails. I just want to state that only a maximum of 21 million bitcoin can be in circulation at any point in time. This to ensure value protection.
Security through wallet protection
Bitcoin is a virtual currency. This means that you cannot see or hold it. However, you can store it in a bitcoin wallet. Like your bank app, you can do all your transactions from your bitcoin wallet. A bitcoin wallet is very safe from most risks. With a password, you are good to go.
You will be hard to find
Most people tend to mistake this feature for anonymity. You are not exactly anonymous. The system is such that there is an extra layer of security that protects your privacy. While the person you are transacting with cannot get your details, the system can still trance your bitcoin address if there is a need for it.
High value after conversion
Unlike most other cryptocurrencies, you get to retain most of the value of bitcoin after converting it to regular or fiat currencies. The effect of scarcity becomes obvious here. Bitcoin is one of the most valuable virtual currencies. Truth is, you may not need to convert your bitcoin to fiat currency most often than not. This is because more people are accepting bitcoin as a mode of payment. It makes online businesses like woocommerce mix and match more flexible and easier. It is very rare to see someone reject bitcoin as a form of payment.
Conclusion
There are still issues of risks people tend to associate with bitcoin. It is important to note, however, that these risks are due to human errors than the blockchain system. Issues like wallet security, bitcoin fraud and the use of bitcoin by gray individuals have nothing to do with the system. If you had a doubt about using bitcoin for business, these seven reasons should clear those doubts.
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- 7 Benefits of Bitcoin in the Business Industry - March 30, 2020