Cryptocurrencies, Bitcoin and Digitalization: Everything You Need to Know
What is digitalization?
Digitalization has innovated each and every aspect of today’s world. The age of technology makes everything possible. Everything is one click and tap away thanks to the endless possibilities and opportunities technology has provided. Technological advancements have made everything accessible from every part of the world. Thanks to the internet, Blockchain was introduced. The innovation in the business world let to the use of cryptocurrency globally.
Cryptocurrency and Bitcoin?
Cryptocurrency is digital money. Digital cash and wallets are counted as cryptocurrency. It is used as a payment method in many parts of the world. Cryptocurrency is another way of going cash-less. You don’t have to worry about carrying bills, money, and coins. Everything is electronically stored in blocks on the internet.
People switch to cryptocurrency because it has made living very easy. It is cheap, fast, safe and reliable since it is easy to trade value all over the world. You only need a smartphone and a high-speed internet to enjoy the opportunity of using crypto. Many people don’t like waiting for approval from third parties to perform transactions which is why switching to crypto has become popular. Securing and verifying information has become so much easier and faster since everything is stored on the internet.
Bitcoin is the most popular cryptocurrency. It was introduced back in 2008. Because its digital, dividing, storing, securing and transferring it is really easy. It is more valuable than gold since it is in limited supply as only 21 million bitcoins are expected to be produced. All cryptocurrencies process transactions differently. Bitcoin is the oldest cryptocurrency to exist which is why it is more reliable and popular among crypto enthusiasts.
Diversifying your portfolio is important and choosing the right cryptocurrency can help with that. The transfer of money is controlled by a decentralized platform that allows efficient transactions. Through Bitcoin, you can perform transactions in a completely digitalized way. Just like your cash and wallet, Bitcoin needs to be treated with the same value.
Why should I choose Bitcoin?
Cryptocurrency has many benefits and Bitcoin being the oldest type of cryptocurrency has definitely made a solid reputation about the use of cryptocurrency nowadays. Bitcoin has made anonymous transactions possible. Because of its popularity, it has proven to be a viable option for investment.
- Complete anonymity
When using Bitcoin, you can send money to any part of the world anonymously. You can send money at minimum costs to perform a successful transaction. Since there is no third party involved, the chances of secure anonymity increases. While the transactions are stored on the internet, the user identity behind any transaction remains anonymous until a purchase is made. Bitcoin addresses are advised to be used only once to maintain privacy.
Bitcoin is volatile by nature. The price can decrease or increase unpredictably due to the changes in the economy and liquid markets. But despite the fluctuation in the prices of Bitcoins, it is still considered more stable than many other existing currencies in the world right now. Bitcoin is a risk asset and the bigger risk you take, the more you win.
- High security
Just like you want your cash and credit cards to be safe and secure, Bitcoin requires the same care. You can transfer value anywhere around the world with Bitcoin as its super easy and you’re the one controlling your transactions. You’re in charge of your money. These transactions are safe and secure since everything is stored in blocks on the internet. Because of such features, Bitcoin incorporates a high-level of security to maintain secure transactions. Because of its high-security levels, you don’t need to worry about anyone stealing your money.
- Impossible to hack
The complexity of Bitcoin cannot be matched with any other technology. The algorithms used behind the network cannot be configured by just anyone. To create any digital issues and hack the system, some serious skills would be needed. The technology doesn’t allow Bitcoin to be messed with at all. Every identity, every transaction and every single piece of information cannot be misused, shared, sold or distributed by anyone.
- Great investment tool
Because of its volatility, it can be used globally across boundaries without passing through a conversion process. This beats cash and gold in terms of providing a successful open market to the users and avoiding restrictions imposed by third parties such as the government or banks. The value of Bitcoin increase and decrease over time, because of its high risk, it can prove to be a great investment.
- The smooth online shopping experience
Because of digitalization, everything has become accessible. Online stores are one of the products of digitalization. Just like cash and card, Bitcoin allows us to do online shopping. Since its an e-wallet created by blockchain technology, you can store, spend and track your digital money. It allows faster and secure transactions on the web.
- No banking fees or charges
Most cryptocurrencies do charge a maker and taker’s fee along with deposit and withdrawal fees, but Bitcoin users do not have to follow the guidelines of paying traditional banking fees. Along with that, there’s no need to pay any account maintenance fees, overdraft charges, withdrawal charges, deposit charges etc. As a Bitcoin user, you are exempted from paying multiple types of fees. Because there is no government involved, the transaction charges are very minimal. This can be super beneficial if you’re traveling as foreign transactions charge multiple fees.
Because of these reasons Bitcoin has shown more potential than other cryptocurrencies over the years which only speaks volumes about its reliability and security.