Bitcoin is a special type of currency. The invention of bitcoins has solved a lot of problems that were involved with our current currencies. Bitcoin is gradually gaining acceptance across the globe, and it could be the next big thing. What are the advantages that bitcoins have over normal currencies?
1. Low risk of inflation
The current currencies being used are prone to inflation. As time goes, currencies tend to lose their strong purchasing power, simply because governments are always printing new currencies. With bitcoins, this problem does not exist because bitcoins are meant to be finite. About 21 million bitcoins will ever be released into the market. New bitcoins are being released at a very slow rate, and within a few years to come, the mining will completely stop. By investing in bitcoins, you can be assured that your wealth will never lose value.
2. No third parties involved
There are several redundant transaction copies in the database, and as such, nobody can seize bitcoins. In the worst case scenario, a user can be forced to send bitcoins to someone else. As a result of this, it means that governments cannot freeze anybody’s wealth; hence, bitcoin users will be free to use their money in whichever way they want.
3. No taxes
Bitcoin transactions cannot be intercepted. This means that there is no clear way of taxing bitcoins transactions. This means that unlike other currencies, bitcoin owners will not pay any form of tax.
4. No tracking
Bitcoins cannot be tracked unless the user publicizes his wallet address. Transactions cannot be traced back. Apart from the wallet holder, nobody else can tell how much a bitcoin owner has. Even if the wallet address is publicized, it is very easy to generate a new wallet address. This is very good for privacy purposes as compared with traditional currencies where third parties, such as banks employees, have access to personal finances.
5. Bitcoins cannot be stolen
Its only the owner of bitcoins that can change the ownership address. Bitcoins can never be stolen, unless the thieves can physically access your computer. Unlike with the conventional currencies where a third party can hack systems and transfer funds to his account, bitcoins require physical access. This makes it harder to steal.