Why Should You Make The Effort To Use Bitcoins?

A worker shows a gold bar ready for sale in Istanbul Gold Refinery, after being melted in the refinery, on February 10, 2009. After the Turkish Lira gained in value against the gold price, Turkish people start selling their homestocked gold. AFP PHOTO / MUSTAFA OZER (Photo credit should read MUSTAFA OZER/AFP/Getty Images)
A worker shows a gold bar ready for sale in Istanbul Gold Refinery, after being melted in the refinery, on February 10, 2009. After the Turkish Lira gained in value against the gold price, Turkish people start selling their homestocked gold. AFP PHOTO / MUSTAFA OZER (Photo credit should read MUSTAFA OZER/AFP/Getty Images)

If you ask some store personnel if they accept Bitcoins as payment, you will most likely get a quizzical look. “Bit what?” Bitcoin is a virtual currency that is just beginning to hit the mainstream. Some people may have an idea of what Bitcoins are while others may have never heard of Bitcoins before. Explaining Bitcoin to people will be like explaining the internet in its inception stage. Why should you make the effort to use Bitcoins, then? Here are some great reasons why it is worth taking the time to use Bitcoins.

Lower Transaction Costs

Since there are no third parties involved, Bitcoin transactions are less expensive for users compared to other payment methods like credit card or PayPal. Traditional payment systems charge merchants substantial fees to validate electronic transactions. Bitcoin transactions fees are minimaland some even free in certain cases. Although it may take around 10 minutes for a transaction to be confirmed by the Bitcoin blockchain, the waiting time will be worth it to save on transactions costs. This timeframe is still faster than inter-bank transfer, which may take around several days to confirm that funds are readily available.

Increased Privacy

Using Bitcoins for commercial and financial transactions will be beneficial for people who seek a heightened degree of privacy. Unlike credit card information, which keeps on being stolen, Bitcoin transactions do not require you to provide any sensitive information.  Digital purchases are possible without revealing your identity. All you need are two keys – a private and a public key. Identities are encrypted and no personal information is transferred from one to the other.

No Chargeback

Bitcoin sales are nonreversible. Once Bitcoins had been sent, a person cannot retrieve them without the recipient’s consent. This removes the possibility for misuse of chargeback to reverse the transaction. Merchants no longer have to worry about fraudulent purchases that can result in chargeback and avoid paying high transaction fees. They can easily expand to new markets where fraud rates are high or credit cards are not available.

Transparent

All information about bitcoin transactions are readily available on the block chain. A full transaction record for every Bitcoin is maintained in a public ledger to verify the validity of transactions. No entity can control or manipulate this virtual currency because it is cryptographically secure. This allows bitcoins to become completely transparent and predictable.

Not Inflationary

Inflation causes the prices of goods and services to increase and the people’s buying power to decrease.

A Relatively Private Currency

There are instances when we do not want people to know what we have purchased. Bitcoins are useful for people who need to purchase embarrassing or ill-revealing drugs. Any type of transaction where the buyer wishes to remain anonymous is now possible with Bitcoins.

You Own It

With other electronic payment system, someone else owns your account. If the company decides that your account has been misused, they are capable of freezing all assets held in that account.

There are a number of benefits in using Bitcoins. For merchants, accepting Bitcoins will result to lower fees, fewer administrative costs, and larger markets. For consumers, using bitcoins gives you more control over your money with minimal transaction fees and increased privacy.

Bitcoin is a growing innovation and with any new business opportunities comes risks. Although Bitcoin have developed at a very fast rate, there is no guarantee that it will continue to grow. It is up to each individual to make proper evaluation about the costs and risks involved in any business transaction.

June 10, 2016

Posted In: Finance

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