The fact that bitcoin has a unique nature gives it an advantage over the normal currency. There are a lot of benefits which ordinary currency users don’t have, but bitcoin users have. However, it is still important for prospective bitcoin users to weigh the benefits and limitations before adopting it fully. Bitcoin is obtained either through purchase or mining. It is easier to get them through mining if you lack enough finances to buy them. However, if you have money to buy bitcoins, you will have saved yourself time and effort which you would have invested in them. Here are some benefits of paying using bitcoin.
Low transaction fee
Foreign purchases and standard wire transfer involve both the exchange cost and the fees. However, compared with the fiat currency, bitcoin has lower transaction fee because of lack of intermediary institutions such as a bank or the government. This is significantly beneficial especially to travelers and tourists apart from low transaction fee, the transaction process is quick and can be completed within the shortest time. This eliminates inconveniences caused by transaction delays or waiting period before maturity of your finances.
Any purchase or transactions made by use of bitcoin doesn’t have a paper trail. This show the discretion attached to bitcoin purchases. It is impossible to have access to the transactions of an individual unless they publish it themselves. Even though one can publish their transactions, their identity can in no way be traced back to them. What makes this possible is the fact that transaction id change with every successful transaction. This is nothing compared with fiat currency which can always be traced back to the owner.
Lack of third party interruptions
One of the most important aspects of bitcoin is the fact that there are no interruptions from a third party such as a bank, the government or any other financial institution. These institutions cannot interrupt user transactions not even placing freezes on accounts holding bitcoin. This was made possible by creating a system with a peer-to-peer interface. Therefore with the use of bitcoin, users get to experience a greater degree of freedom, unlike the normal currency users.
Nevertheless, bitcoin and other crypto-currencies are not taxed. This is because there are no third parties which can identify and intercept or track the transactions. Moreover, bitcoin users aren’t taxed even after they have purchased goods or services.