Traditional currencies such as the US Dollar have undeniable drawbacks, most of which seem to be overlooked or taken for granted by most people. As a digital currency that is decentralized and not dependant on fluctuating currencies, Bitcoin stands as an undoubtedly ideal currency to use especially in a crowdfunding environment like Bitprince.
Here are a few reasons why:
1. It is Decentralized
As mentioned, Bitcoin is a decentralized currency. No central entity regulates or controls it. Not having a central entity means no party has the ability to inflate or devalue it by manipulating its supply. With bitcoin, there is no risk of money printing by a government that could dilute your savings. The creation of bitcoin happens at a stable rate and halves every four years, creating a limited supply of 21 million units.
In addition, there is no single point of failure. If the US Government were to fail, it could have harmful effects on the currency. Bitcoin was started, and is growing, without a central entity. It is a distributed network. If one part of the network were to fail or go offline, Bitcoin would keep working.
2. Free to Transfer and Hold
As Bitcoin is not a company or a business, it does not charge its customers to use the service. It is an open source technology. As such, bitcoin is completely free to transfer and hold.
The US Dollar is predominantly controlled by financial institutions that often charge fees to transfer it. Some services have been built for Bitcoin that charge fees but there is no obligation to use them.
3. Privacy Protection
Bitcoin has stronger privacy protections than other payment portals. On the one hand, Bitcoin is extremely transparent as the public ledger gives complete visibility into transactions. On the other hand, accounts are only given identity numbers and are not personally identifiable with any detailed information. Hence, if you do not wish to be identified, you can stay anonymous while using bitcoin. Your privacy is always ensured.
4. Freedom to Transact
With traditional currency, funds can be frozen or seized by an intermediary (such as PayPal, a bank, or a credit card company) or by the government. Intermediaries may also prohibit transactions for goods or services as they desire. However, because Bitcoin does not have a controlling intermediary, there is more freedom to transact.
5. Easy to Use
With traditional banks, it can be challenging and time consuming to even open a bank account. Setting up merchant accounts for payments is even more complicated. A Bitcoin address can be set up very quickly and with no fees. Bitcoin is also easy to send, where, instead of filling out forms with your address, credit card number, etc., you can simply send money to a designated electronic address/account.
6. Fast Transfers
While traditional wire transfers can take a long time to process, Bitcoin transactions can take just about 10 minutes to complete. Bitcoin can be sent anywhere and it will arrive just minutes later. As soon as the Bitcoin network processes the payment, it is transferred. Physical banks often have business hours and are closed on nights and weekends. Even PayPal has restrictions on amounts that can be withdrawn in a given month, which means you might have to wait a significant amount of time for a transaction to be completed.
7. No Chargeback Risk
Bitcoin does not subject merchants to chargeback risks the way credit cards do. Once Bitcoin is sent, it can’t be retrieved (unless the recipient returns them). Bitcoins, like cash, are irrevocable. Merchants don’t have to worry about a customer voiding the transaction after the service/product has been rendered/delivered, which can happen with credit card transactions. For some businesses, chargebacks can have a significant negative impact on profit margins.
Bitcoin can not be destroyed or damaged. Supply of Gold can be manipulated if more gold is found or if it is destroyed. Physical currency (cash) can be counterfeited or destroyed. Changes to supply result in changes in price and this is much better regulated with Bitcoin thanks to the nature in which it functions.
Because Bitcoin is electronic, it is easy to store and carry. Cash and gold do take up physical space, which subjects them to the possibilities of being lost. Bitcoin can be stored on a portable credit card-sized device or simply online.
10. Reduced Fraud
Bitcoin eliminates the risk of credit card fraud. Criminals can steal personal customer information and credit card numbers and use it to make fraudulent purchases. Since Bitcoin is purely digital, the receiver of a payment does not see any information from the sender that could be used to steal money from the sender in future. That information could be taken by the payment receiver (merchant) or by a criminal who steals that information from the merchant.
Credit card fraud can be a major expense for merchants and credit card processors. Some online merchants are forced to reject some purchases out of fear that it could be fraudulent.