Bitcoin and Cryptocurrency are not just a gimmick anymore. They are now an inseparable part of the trading industry. Today more than 80,000 businesses are part of the Bitcoin bandwagon.
There are innumerable benefits that Bitcoin offers over the stable coins. One of the primary advantages that it gives to you is that it is decentralized in nature. Decentralized means there is no governing authority over the Bitcoin network.
Decentralized is a new term in the financial trading industry. If you want to know more about decentralization, visit more details here.
Benefits Of Bitcoin Over Stable coins
Bitcoin was introduced in the market with the sole purpose of providing a decentralized network for financial transactions. And it had certainly fulfilled that purpose. Let’s explore more of its benefits.
1. Low Fraud Risks
Cryptocurrency transactions happen over a blockchain network within the minimum requirement of details. This practice makes every transaction super secure and restricts the divulging of any sensitive information. This is the reason why most traders and investors like to transact in Cryptocurrency.
Bitcoin offers a digital cash solution to the users, and with the Blockchain technology, hackers can’t get into the network.
2. No Risk Of Inflation
With the fiat currency, it will certainly get affected by inflation in due time. This happens because there is nothing that backs the price evaluation of the fiat currencies. And the more you print currency, the more depreciation you will see in its price. However, with Bitcoin, you have a 0% chance of inflation.
At the time of creating Bitcoin, Satoshi Nakamoto limited the number of bItcoin that can even be produced. The speculated amount of Bitcoin in the market is 21 million. Thus, with a limited amount in the market, it acts like digital Gold that will never see inflation.
3. Reduced Transaction Fees
With the traditional transaction methods, the whole financial system was involved in one transaction. For instance, transferring money from one nation to another, you have to contact your nearest bank. Your bank will contact the other where the transaction will happen. This long process involves central institution members at every level. Hence, you are asked to give a particular amount of fees for the services.
This problem has been solved with the Cryptocurrency transaction. Some platforms don’t even charge a fee after a particular threshold amount is reached.
4. Lack Intermediaries
What used to happen with the traditional banking system and financial transaction is that you had to wait for more than weeks to see your one money transaction to its completion. This process was not only time taking, but you also had to pay fees for the services. However, with bitcoins and Cryptocurrencies, you can do the same process without the involvement of third parties.
As Bitcoin is decentralized in nature, it does not need any intermediaries to perform its transaction. You only need a sender and receiver. The transaction happens over peer to peer networks, making every transaction safe and secure.
5. Asset Distribution
Bitcoin has become one of the top digital assets with more than billions of dollars in its name. People are enthusiastic about investing in Bitcoin to ensure that their future money is safe. Today most traders and investors are using Bitcoin as an asset distribution class.
With how Bitcoin performed last month, people are becoming optimistic about its performance in the future. Over the past decade, Bitcoin has secured its place in the market as one of the assets with store value. It is the first digital asset that has been considered a store value element.
6. A Safer Ecosystem
Every Bitcoin is safe. Before every translation, the data are authenticated by a digital signature. This digital signature is proof that the transaction has happened over a secure network. This practice maintains a safe ecosystem for the user to perform their daily trades and transactions.
The Bottom Line
Being a young technology, it is certainly true that the Cryptocurrency market is yet to reach its potential. However, we cannot wait for that to come when we can reap the benefits today. Hence, we can rightly conclude that the early adoption of these technologies will surely give you an advantage in the financial industry.