Cryptocurrencies, mostly bitcoin, have the potential to take over fiat currencies, but to date, no cryptocurrencies have been able to replace fiat currencies in any country fully. This is because cryptocurrencies still face many legislative limitations in many parts of the world, and due to this, it cannot be fully operational. However, using bitcoin confers several benefits to users that traditional currencies cannot; let us see how.
Benefits of Bitcoin over Fiat money
Traditional money or fiat currencies that are issued by the government have always been the primary medium of exchange for any financial transaction all over the world. However, people’s outlook on spending money is gradually changing, and decentralized currencies are gaining momentum.
Cryptocurrencies have exceptional features to offer to the traditional market, with bitcoin ranking on top in terms of market capitalization, value, and popularity in finance as well as in the technology market. Over time, the number of crypto coins will rise due to the wide mass adoption of the same across the world.
Faster Transaction Speed
This is perhaps the most important benefit that bitcoin or other cryptocurrencies have over fiat currencies. With fiat currencies, the time needs for money transfers vary according to the amount, location, or means of transmission in use. If the amount to be transferred is large, it will take more time to process. Similarly, for locations that are far, it will take more time to receive or send money.
But with bitcoin or other cryptocurrencies, money can be transferred almost instantly to and from any parts of the world. Users only need to have a digital wallet installed, and they can instantly proceed with the transactions, whether domestic or international.
Low Transaction Fees
Apart from faster transaction speed, bitcoin transactions also involve low transaction fees as compared to fiat currencies. Fiat currencies make use of third-party intermediaries, and therefore they require additional fees for processing funds. On the contrary, cryptocurrencies can make direct transfers to various financial institutions, and therefore do not require any third-party intermediary, thereby reducing the transaction costs.
Security of Identities
Transactions with fiat currencies require users to reveal their personal details like name, address, contact details, etc. which at times may become risky; hackers may use these details to embezzle users’ funds. With bitcoin, transactions are kept anonymous. Even the persons transacting will not know each other’s personal information. Due to this identity protection, the modern generation prefers to make transactions using bitcoins or other cryptocurrencies. Also, every transaction on the bitcoin network is recorded on a distributed ledger, and therefore any transaction history can be tracked through the wallet addresses at any time.
Fiat currencies or traditional money are authorized by a central authority that has the power to freeze a user’s account at any time. On the contrary, cryptocurrencies are not backed by any central authority, and they are completely decentralized. Traditional fiat money is regulated by the government’s central bank, but cryptocurrencies use several nodes to verify transactions entering the network. These verified transactions are stored in a distributed ledger called blockchain as distinct blocks that work in a similar manner as bank records. All personal details of the users are kept confidential in those blocks that prevent any possible breaches arising in the blockchain network.
With bitcoin or other cryptocurrencies, payments can be made anywhere across the world. There is no need to go to banks or other financial institutions to send out money; bitcoins can be sent anywhere and at any time with just a few clicks on your devices without any business holidays.
Coinitix is a licensed cryptocurrency exchange to purchase bitcoins with credit cards. The primary focus of Coinitix.com is to provide seamless user experiences while purchasing bitcoins using credit cards. The platform has the most straightforward registration procedure involving just two steps- account creation and verification. Once this is done, users can straightaway proceed to purchase bitcoins.
Some of the benefits of buying bitcoin at Coinitix, apart from being able to buy it with credit cards, is that Coinitix provides excellent payouts, faster payments, no hidden fees, secured buying, and an excellent customer support team.
Coinitix.com plays a pivotal role in reducing the gap between digital currencies and fiat currencies, resulting in the mass adoption of cryptocurrencies. Also, owing to the platform’s user-friendliness, more and more users are turning towards blockchain technology.