11:31 13th Sep, 2021
Why Bitcoin Is Better than Traditional Banking [Sponsored] | TechTree.com
Why Bitcoin Is Better than Traditional Banking [Sponsored]
Today, the world has Bitcoin, a virtual currency without regulatory entities, governments, or geographical borders restrictions
You're reading this because you've heard many things about Bitcoin. However, you could be familiar with this digital currency already. Blockchain and cryptocurrency technologies are in their early stages. And like most innovations, these technologies promise to change how people live and do business. At the same time, some people are skeptical about Bitcoin's ability to change the conventional banking systems.
Bitcoin's concept began as a grassroots movement with people who saw the traditional banking systems' limitations. These people realized that the conventional banking system was dangerous because it didn't protect their privacy and money. Consequently, they didn't give people peace of mind. Therefore, they developed something that a handful of influential people or a single government can't control. Instead, all people could access and use this payment system provided they had internet access. Today, the world has Bitcoin, a virtual currency without regulatory entities, governments, or geographical borders restrictions.
But Bitcoin may not usurp fiat currencies, credit, and traditional banking any time soon. When credit and paper currency replaced gold as an exchange medium, this precious metal maintained its value. Nevertheless, Bitcoin has several advantages that make it better than traditional banking. Here are some of them.
Bitcoin Eliminates Intermediaries
To understand how Bitcoin removes intermediaries, think about what happens when making a significant purchase like a car, a house, or a property. The process is long, with several hurdles to jump. It involves notaries, lawyers, and other players. However, Bitcoin allows you to make contracts without involving third parties. And this reduces the costs and time for settling the transfer.
Everyone Can Access Bitcoin
In the current world, many people can't access traditional banking systems. However, these individuals have mobile phones and internet access. That means they can visit https://immediate-edge.co to purchase Bitcoin with fiat money. That way, they can invest, trade, or use Bitcoin for daily transactions. Ideally, anybody that can't access the traditional banking system can use Bitcoin to get capital. And that's particularly essential for people in developing and underdeveloped countries where some people are under-banked.
No Government's Control
Being decentralized means no single entity or government can control Bitcoin. And this is a primary factor differentiating Bitcoin from traditional currencies. Since no single entity, person, or government controls Bitcoin, nobody can devalue it or take it away from the owner, depending on their whims.
Bitcoin is fraud-proof because it's decentralized and digital. What's more, nobody can counterfeit this virtual currency the way they can do with fiat currency. Additionally, a person can't reverse a transaction after sending bitcoins. Thus, this virtual currency eliminates charge-backs.
Bitcoin Prevents Identity Theft
Traditional debit and credit card transactions are "pull" transactions. That means the vendor pulls a good or service's cost from the customer's account. What's more, they get the personal information of the customers. However, Bitcoin uses "push" transactions. That means you only send the amount you want the vendor or merchant to receive. Additionally, you don't share personal information with the merchant. Thus, you don't expose yourself to identity theft when using Bitcoin.
The Bottom Line
Bitcoin is a relatively new invention, with most people starting to learn about it and use it. Nevertheless, this virtual currency has several potential benefits compared to traditional banking systems. However, Bitcoin comes with risks like a volatile landscape that makes its value fluctuate more often than fiat money. What's more, the lack of a centralized authority regulating it means you can't file a claim anywhere if you lose your bitcoins. Nevertheless, these challenges are typical with a new invention like Bitcoin.
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