Bitcoin is a form of de materialized currency, relatively recent, which touches general markets that recently. For this reason, many people do not really understand the point. Why use Bitcoin?
Bitcoin is fast. Indeed, when one makes a check, issued from his bank and to another, it takes several days for it to be cashed, because the bank that receives it can be sure that funds actually exist.
A bitcoin transaction is almost instantaneous if it is done without confirmation. It is possible for the merchant to request a confirmation which takes 10 minutes, but always remains faster than a bank transfer of the classic type.
Bitcoin is not expensive. Indeed, conventional banking transactions are paying. With Bitcoin it is completely free and the price of the transaction is in no way passed on the selling price, which may be the case with more traditional transactions.
Bitcoin is not seizable, so it can not lend itself to the same scenario that we saw in Cyprus in 2013, where the European Central Bank had recovered all unsecured deposits of more than $ 100,000. , in order to recapitalize.
This scenario is impossible with Bitcoins, because the currency is decentralized, what is possessed is possessed, no higher authority has power over it, no bank, no government, no one can seize your Bitcoins.
There is no return possible. Indeed, a Bitcoin sent is a bitcoin less. Someone who sends a Bitcoin to another person can not recover it without the agreement of the same recipient, which makes fraud almost impossible unlike credit cards with which it is possible to buy a good, then d cancel the payment by calling his bank, once the product has been received, which represents a considerable advantage for the merchants.
It is impossible to steal data via a transaction as with a credit card. Indeed today, most payments on the internet are made via the latter, while at the time of their creation in the 1930s, the Internet was not yet part of the imagination of the designers. They have never been designed to make payments online, and are therefore not, or not secure.
A transaction in Bitcoin does not require to disclose sensitive information as with a card (card number, expiry date, cryptogram), there are simply two keys, one private, the other public. Only the private key remains secret, and by sending a Bitcoin, we “sign” the transaction by combining the two keys. A mathematical function is created and proves that the transaction has been generated by the owner of the Bitcoin address.
Bitcoin can not be a victim of inflation. The problem with fiduciary money is that governments can manage the amount issued at their whim. If there are not enough dollars to pay the debt, just print it, which induces the rise or fall of the currency. If the number of dollars is doubled, then the prices will be doubled, in order to keep the same profitability.
This is called inflation, which can be difficult to manage and usually causes a decline in purchasing power. The Bitcoin has been designed so that there is a maximum of available unit, which remains fixed. Only 21 million of these units will be created and issued. Inflation can not affect Bitcoin, which is not the case with deflation.
Bitcoin, allows a private payment, if desired. Sometimes we do not want everyone to know what we bought. Bitcoin offers a relative transparency, because on the one hand, it is necessary to identify with its Bitcoin address, where we will see the number of Bitcoin available, but also the transactions made, and on the other side but it is also possible not to reveal the owner of the address, which is completely impossible with a traditional banking system.
There is no need to trust a third party like in a traditional bank, or you have to trust the person who manages the deposited money.
Similarly when buying online, we give a lot of sensitive information to different entities (merchant site, Paypal …), which nduit to trust them 100%.
Because Bitcoin is completely decentralized, there is no need to trust anyone to make a transaction. These are digitally signed using two Bitcoin keys (public and private). The merchant does not need to know who we are, it’s up to us to tell him, or not.
Bitcoins belong to the owner, unlike other electronic payment systems, or the account belongs to someone else. Let’s take Paypal, if the company decides to suspend our account, it will be able to do it without even taking the trouble to consult us and without giving us reason or notice. It is up to the owner to demonstrate his good faith and generate all the requested documents in order to regain access to funds.
With the Bitcoin only the owner of the address used is holder of his Bitcoins. Nobody can take it from him. The only threat of loss is the owner himself because he is the only expert of his codes.