Did you know the benefits you could enjoy if you were to pay with Bitcoins? These benefits are accessible simply because the Bitcoin, like any digital currency, is decentralized and not issued or regulated by any government. So, transactions made in Bitcoins remain between the parties only without the presence of an intermediary like a bank. It is by analyzing the way in which the Bitcoin was designed can one understand the advantages of paying with this currency as against fiat currencies.
Top Advantages You Can Enjoy When You Pay With Bitcoins:
- To begin with, the biggest benefit probably is user autonomy. Since digital currencies are decentralized they offer a higher degree of autonomy compared to traditional fiat currencies, at least theoretically. In any kind of transaction, there are no third-parties or intermediaries like financial institutions or banks involved.
- Bitcoin transactions are anonymous; while you can find out the amount that has been transacted you will not be able to trace the identities of the sender or recipient. There is an anonymous address used for purchasing Bitcoins and this unique address will be different for each transaction made.
- Bitcoin is a peer-to-peer payment system which implies that users can get or transfer payments to anyone on the blockchain network anywhere in the globe. No approval is required from any external authority.
- When you pay with Bitcoin you do not have to pay for banking charges that are normally associated with traditional forms of payment. In Bitcoin transactions through crypto exchanges, there can be “taker” and “maker” fees, fees for deposits and withdrawals, transaction fees, etc but there are no fixed banking fees. Moreover, there are no requirements like minimum balance or account maintenance fees, returned deposit fees, or overdraft fees when you use Bitcoins.
- Bitcoin payments entail minimal transaction costs when compared to foreign purchases and regular wire transfer costs. This is possible because Bitcoin transactions do not involve any intermediaries. This benefit especially appeals to travelers who need to use multiple foreign currencies during travels. Moreover, transactions are quick and you do not have to experiences any inconveniences in terms of long waiting periods and authorization hassles.
- Just like other mobile payment system, Bitcoin payments are instantaneous and convenient; you can make payments through any device that is connected to the Internet. This indicates that you do not have to drive miles to reach a store or bank to but something you need. Moreover, unlike credit card or bank account payments, you do not have to submit personal information to get started.
- You know that in standard fiat currencies transacted through credit cards or banks, it is possible to reverse the payment. However, when you pay with Bitcoins, this is not an issue. The method is irreversible as data once added to the blockchain cannot be tampered with or altered.
- Since third parties cannot identify and track transactions made in Bitcoins, they will never know who made the payment and who received it. So, people that are using Bitcoins will typically not have to worry about getting taxed.
- Bitcoin transactions are hassle-free and can be performed no matter where you are. You are never asked to provide a location to carry out Bitcoin transactions. You simply have to download a wallet to store your Bitcoins safely and for conducting transfers online.