Bitcoins are currently growing in popularity with the number of individual investors willing to denominate part of their money in this new digital currency, as well as a growing number of businesses that are willing to accept Bitcoin cash payments. This is a new type of digital money that is completely decentralized in nature and relies on a peer-to-peer network connected to the internet in order to function and process payments. Here are three of the most important reasons why you should consider using Bitcoins for payment.
Bitcoin Is The First Decentralized Currency
For most of modern history our money and currency has been controlled by a central bank and a network of smaller banks, and electronic payments having been facilitated using an electronic automated clearing house facility. But the Bitcoin network changes this drastically because transactions are processed on a peer-to-peer basis rather than having to be processed through a central electronic clearing house or other centralized financial institution. The fact that Bitcoin is decentralized means that it is not issued by any government as regular currencies would be, and therefore the value of Bitcoins is not tied to any type of geopolitical events while still being accepted as payment and a medium of exchange.
Bitcoin Acts As A Hedge Against Inflation
One of the reasons that this type of digital currency has been growing in popularity at such a rapid rate is that many people are increasingly becoming mindful of government policies designed to erode the value of traditional currencies over time and are looking for a financial hedge against this erosion of value. One of the reasons that money denominated in Bitcoins is largely immune from inflationary pressure is that there is a fixed money supply of 21 million Bitcoins that can never be exceeded, meaning that the owners of Bitcoin cannot simply print more money the way that central banks and governments can.
Transaction Fees Are Lower With Bitcoins
Because of the decentralized nature of the Bitcoin payment network and the block chain that makes Bitcoin financial transactions possible, there are little to no fees when it comes to transferring Bitcoins from your digital wallet as payment. This can save money for both the vendor or merchant and also for the individual who is using Bitcoin to make a purchase. By learning about the important benefits of using Bitcoin over any other regular currency, you can see if this type of digital currency is the right choice for you.