Why use Bitcoin

Satoshi Nakamoto originally created Bitcoin as an alternative decentralized payment method. Unlike international bank transfers, it was cheap and almost immediate.
You’ve probably heard that Bitcoin and cryptocurrencies, and all the hype around them, is the “future of finance.” The main philosophy behind Bitcoin was to create an electronic payment system that does not rely on third parties or central government for confirmation, payment, or issuance.
In addition to eliminating third parties, Bitcoin transactions were considered irreversible, immutable and relatively cheaper than traditional payment options. Compared to government-controlled fiat currencies, Bitcoin is public and operates independently of any state entity. Transactions are digitally validated by a type of accounting technology called blockchain that is connected to the computer’s global network rather than a central server. This makes Bitcoin transactions less susceptible to fraud and refunds.
Imagine waking up one morning with your PayPal account locked. This is because the business claims that fraud is associated with your account. This cannot happen in a decentralized environment, as your funds are not managed by a centralized entity. Similarly, the government of your country cannot shut down the blockchain because it is not hosted on a single server or in a single location.
These features are especially beneficial to online merchants, allowing consumers to enjoy a wider range of local and international markets without worrying about high prices or geographical constraints. In addition, Bitcoin transactions are pseudonyms. In other words, it provides users with some degree of anonymity when trading or exchanging money.
Bitcoin for cross-border payments
To some extent, Bitcoin also addresses issues with current payment models, especially price and speed issues. Traditional payment services often cost exorbitant fees, and it can take several days for the transfer to arrive at your destination. Bitcoin, on the other hand, is not only fast, but much cheaper. This is because the Bitcoin network does not rely on intermediaries to confirm transactions. There is a network of volunteer contributors around the world who manage their IT team 24/7 to confirm Bitcoin transactions.
It takes about 10 minutes to confirm your BTC payment. Depending on how busy the Bitcoin network is, it can be low or high. The more people who use the network all the time, the longer it takes to process a transaction, and vice versa. You can think of it as highway traffic. The busier you are, the longer it will take for each car to reach your destination. Bitcoin has proven to be a more efficient and cheaper way to transfer money across national borders. For example, according to the World Bank, the average global cost of sending a $ 200 overpayment in the third quarter of 2020 was 6.82%. This can be very important when the numbers are large. The average transaction fee for the Bitcoin network is currently around $ 2.37. Therefore, countries like El Salvador have also moved to turn cryptocurrencies into legally recognized forms of money.
Bitcoin is generally decentralized, giving people the freedom to exchange value without resorting to intermediaries. And thanks to the institutional boom of 2020 and 2021, many traditional businesses are now accepting Bitcoin as a payment.