Bitcoin has been hailed as the next big thing since the invention of the internet. For over 25 years cryptographers and innovators have been trying to come up with a secure decentralized working digital currency, but none succeeded until the invent of Bitcoin. There are many reasons for this, but do you know what all the benefits are and why it’s such a game changer?
There are many benefits to Bitcoin, here are just a few of them to give you a better idea of what Bitcoin brings to the world.
- Bitcoin is permissionless: Traditional currencies and forms of money require permission to use (from banks, financial institutions, governments). Bitcoin requires no permission from anyone and is free and open to use globally. There are no borders or limits with Bitcoin.
- Bitcoin is immune to seizure: Nobody can confiscate your Bitcoin since you own it; it’s not housed at any central bank or company. You can be your own bank with Bitcoin.
- Bitcoin is censorship resistant: Using a computational algorithm called proof-of-work (PoW), no one is able to block or censor your transactions.
- Bitcoin is decentralized: The network is distributed globally among many thousands of nodes (computers) and millions of users where you don’t have to rely on trusted third-parties.
- Bitcoin has a limited supply: There will only ever be 21 million bitcoins created and are generated at a predictable rate. Bitcoin is scarce and deflationary.
- Bitcoin is open source: Anyone can contribute to developing Bitcoin in a myriad of areas including different Bitcoin software clients.
- Bitcoin is fast and easy to use: since Bitcoin is a digital peer-to-peer currency as outlined in the original Satoshi Nakamoto whitepaper, transactions are near instant and are very low-cost, much less than central payment networks such as PayPal, Visa or Mastercard.
- Bitcoin is a push system: With Bitcoin, there is no risk of charge-backs because once Bitcoin are sent, the transaction cannot be reversed. Bitcoin is akin to cash — once you give someone cash, you cannot get it back (unless they give it back to you).
- Bitcoin is real money: Bitcoin is used around the world to pay for things such as coffee, food, electronics, travel, and more. Some even like to call it magical internet money because of all it’s amazing properties and it’s ability to not be double-spent.
- Bitcoin is provides anonymity: If used correctly, Bitcoin can be used as an anonymous currency free from spying governments. When you use Bitcoin, you don’t need to provide your email, name, social security number, or any other identifying information when making peer-to-peer Bitcoin transactions. Bitcoin is just numbers, 1’s and 0’s, traveling through the internet. If not used correctly though, Bitcoin can just be psuedo-anonymous providing people with a lot more privacy than using traditional currencies.
- Bitcoin is freedom: using Bitcoin gives you the financial freedom to transact globally using all the properties mentioned above. As such, Bitcoin provides economic stability and newfound freedoms to the world, which are life changing events.
Want to learn more about Bitcoin? Visit our Getting Started page to begin!