Bitcoin and cryptocurrencies make headlines almost every week. Celebrities and billionaires such as Elon Musk continue to endorse Bitcoin, making it a trending topic on Twitter and Weibo.
So why is everyone suddenly accepting this cryptocurrency as a payment method?
privacy
Bitcoin was built on the principle of providing anonymous transactions. When a payment is made, one receives an address to which the funds are sent, but not the name or address of the recipient. In other words, sensitive data is not exchanged in cryptocurrency transactions.
To put it bluntly, Bitcoin is not completely anonymous. It provides pseudonymity. It hides your basic identity information. But someone can still trace a transaction back to your IP address. In addition, some merchants require KYC identification, which reduces anonymity.
Likewise, transactions made through Bitcoin offer more anonymity than bank card transactions. This is especially true when the transaction is not made through the merchant's website. You can use VPNs and tools to anonymize transactions for increased privacy.
Decentralization
The most unique feature of Bitcoin is its decentralized nature. It is not printed like dollars or euros. Instead, it is mined from a digital record ledger called a blockchain. Unlike fiat currencies, Bitcoin is limited - the maximum number of BTC that can be mined is 21 million.
The decentralized nature of Bitcoin has many benefits. One of the main benefits is that no one person owns the cryptocurrency. Therefore, no one person can hack into the blockchain and bring down the entire network.
Given this information, blockchain can be used to store data without interference. Once you add information to a decentralized ledger, no one can change it. However, if necessary, the information can be verified as authentic.
Fast, low-cost transactions
Bitcoin is a fast payment method. On average, a transaction takes only a few minutes to complete. It also costs less than 1% of your amount. E-wallets like PayPal can process payments instantly.
But remember, Bitcoin isn’t the only cryptocurrency. Alternative coins like Ethereum, Litecoin, Cardano, and Bitcoin Cash were created to improve on Bitcoin’s shortcomings.
Many merchants that accept Bitcoin also support altcoins. So if you want faster and cheaper payments, choose altcoins instead of Bitcoin. That said, the benefit of using cryptocurrencies for payments is that transaction speeds and fees remain the same whether it’s a local or international transaction.
You won’t be charged more for sending money from Australia to the US or vice versa. And you won’t have to wait more time to receive your money. These are popular challenges among people who use direct bank transfers.
There are many misconceptions about the security of Bitcoin. Many people point to hacks on cryptocurrency exchanges and wallets as a sign that digital currencies are not secure.
Cryptocurrency transactions are immutable thanks to blockchain technology, they cannot be changed. You can confirm that the payment was made. But you cannot delete the record for the purpose of fraud.
Most importantly, many Bitcoin merchants use standard security tools such as SSL encryption to protect their websites. In addition, they allow users to protect their accounts and use additional security techniques such as two-factor authentication to keep their accounts safe. #币安合约锦标赛 $BTC
