If you’re reading this, we’re sure you’ve definitely heard of Bitcoin by now. But what you may not understand are the benefits to the cryptocurrency, and why you should be investing in Bitcoin instead of using traditional saving methods available to you through your bank.
In this blog post, we’re talking you through the 5 biggest benefits of Bitcoin, that have made it the best performing asset of the decade!
OWNERSHIP
Bitcoin and cryptocurrencies are a decentralised form of value, meaning they are not at the control of a single individual or institution. There is no need for a middleman such as a bank or government, making it a completely peer-to-peer electronic cash system. It’s decentralised nature makes it globally inclusive, enabling millions of people around the world to take control of their financial future. You don’t have to rely on a third party service to give you access to your funds, and there is no entity that can lock you out or limit what you can do. You have complete ownership over your assets.
ACCESSIBILITY
Bitcoin allows any bank, business or individual to securely send and receive payments anywhere at any time, with or without a bank account. For many, the idea of not using a bank seems unimaginable, but there are places around the world where proximity or political situations make banking not an option. Take for example El Salvador, where roughly 70% of its people do not own a bank account or credit card. In such places, out of necessity, the concept of digital currency has been accepted more readily. El Salvador has recently become the first country in the world to adopt bitcoin as legal tender after Congress approved President Nayib Bukele’s proposal to embrace the cryptocurrency. This move will help El Salvador’s residents save, invest and obtain profits in a place with little access to bank branches.
TRANSPARENCY
Unlike fiat currency, which is backed by a central authority (the U.S. government for the U.S. dollar, the EU for the euro), bitcoin is backed by a widely distributed network. The transparency of this network is fundamental to the success of Bitcoin as a safe alternative to the standard banking system. Since Bitcoin transactions require verification and authentication, offering a permanent record of every transaction ever made, the use of Bitcoin is safe, secure, and actually offers more transparency about how funds are managed than regular, closed-off banking systems, where decision making is done behind closed doors.
DEFLATIONARY
One of the biggest issues we face with the current financial system is inflation. Fiat money can and is printed without end, which leads to its value and purchasing power decreasing, as there is then a larger supply of it. In contrast, Bitcoin has a hard-coded maximum supply of 21 million Bitcoins; once 21 million Bitcoins exist, no new ones will ever be created. The amount of Bitcoins created is set to decrease roughly every four years in an event known as the Bitcoin Halving. When this occurs, the newly generated Bitcoin is reduced by 50%, making it incredibly scarce. As currencies work through supply and demand, the decreased supply of Bitcoin is more likely to increase its value as the demand grows.
KEEPING YOUR FUTURE SECURE
With cryptocurrency, you can own your hard-earned money rather than leaving it to the mercy of a financial institution. And here at Coinstop, we want to help you secure your future! That’s why we stock the very best in digital security. From hardware wallets to recovery seed phrase storage devices, our products will help you to become your own bank. Cryptocurrency is the future, and it’s time to start securing yours!