2014 has been rightly called the “Year of Bitcoin”. The digital currency has managed to capture the attention of almost everyone; from a consumer to a retail merchant, from state governments to entire nations and small bitcoin-backed businesses to big corporations. Yet there are many among us who do not fully understand the benefits of using bitcoin in day-to-day life and as a result, they are missing out on some great opportunities.
Bitcoin is Anti-Inflationary
Bitcoin can protect you from inflationary trends, thereby leaving more money in your hands and improving the purchasing power. You ask how?
Well, inflation is generally caused by a mismatch in demand and supply; when supply is more than demand, prices drop and inflation falls. We have seen how the Federal Reserve has been printing money to pay off the national debt but as a result, it is actually devaluing the US dollar.
Assuming that the number of dollars in the system is doubled due to money printing, the value of dollar will be halved. Businesses, who were selling a product for $1, will then have to double their prices to negate the drop in the currency value and make the product as worthy as before, which in turn causes inflation. Bitcoin lends an advantage that since only 21 million coins will ever be created, there won’t be a problem of plenty and hence, inflation won’t be a problem.
Bitcoin as Your Money
We have seen how the monetary policies of central banks have often affected our daily routines and most of the times, they have been troubling. Hence, to give more power in your hands, this digital currency is decentralized i.e. no central authority or no single person can alter the currency his way or force on us a monetary policy that could lead to a financial meltdown.
With Bitcoin, you get a private key and a corresponding public key which makes up a bitcoin address. Hence, even if anything goes slightly wrong, you don’t have to worry about your account getting frozen (from the authority) for an undisclosed amount of time.
Monetary Benefits of Bitcoin
Apart from buying your favorite products in seconds, now you can also enjoy huge discounts on some of the most sought after products. Dell has announced a 10% discount on a new Alienware system if purchased through bitcoin. Other major names that offer huge discounts on bitcoin-backed purchases include online florist BloomNation, bitcoin-focused e-commerce site BitDazzle and gift card discounter eGifter.
Zero transaction Fees
While your bank charges you a hefty fee each time you swap a credit/debit card or when you make an international transfer, Bitcoin offers you close to zero transaction fee and in most of the cases, not even that.
Time is Precious
In this era when things are changing at the blink of an eye, nobody wants to be left behind because of the processing delays which a cheque has to take for getting cleared. International wire transfers also generally take a week or two because of security reasons and ancient banking structure. This digital currency provides you instantaneous money transfer; you send it to your friend and the money is received at the other end in a matter of minutes.
Bitcoin is Safe and Secure
Unlike credit and debit cards which are easily hacked and lead to huge personal financial losses, Bitcoin offers you immense safety and security to safeguard against all hacks. Unless and until you don’t publish or share your private key, you can easily sleep well at night.