BERKELEY'S NEWS • SEPTEMBER 25, 2022

Why People Need Bitcoin as an Alternative Currency

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JIEVANI WEERASINGHE | CREATIVE COMMONS

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JULY 12, 2022

Satoshi Nakamoto released Bitcoin in 2009 primarily as an alternative transaction currency or means of payment. Its success in meeting that goal has impacted a revolution in financial transactions, with several merchants and individuals increasingly using Bitcoin to send and receive payments globally. Also, others use it as a store of value to diversify and safeguard their wealth. 

Nevertheless, Bitcoin continues to attract immense popularity as an alternative medium of exchange. So, why do people need Bitcoin as an alternative currency? Here’s why Bitcoin is swiftly gaining traction as a decentralized transaction currency. 

Prompt Cross-border Payment Processing 

Payments across international borders via fiat currencies usually last several hours, days, weeks, or even months. Sometimes, the banks and money processors can even decline payments. That is mainly because fiat currency transactions remain subject to government regulations and various institutional influences. 

For example, cross-border transactions usually involve multiple intermediaries that take a lot of time to process international payments. Bitcoin offers the best solutions because it is decentralized, without any central authority to regulate transactions. Thus, Bitcoin transactions do not involve third parties. 

Bitcoin’s decentralized network connects only the person sending the money to the recipient. Besides, all transactions occur on the blockchain digitally. That eliminates the common bottlenecks in cross-border remittances, facilitating fast payment processing. Bitcoin transactions take an average of 10 to 30 minutes to complete. 

Enhanced Autonomy in Financial Transactions 

The traditional systems assign governments and banks as the only financial custodians. That means they can control the amounts of money that one entity or individual can transact in a given period. Besides, the provisions also allow them to confiscate or freeze people’s bank accounts and even decline payments to and from some countries. Bitcoin enables users to transfer funds and receive payments worldwide seamlessly. 

Bitcoin is an alternative currency not controlled by any government or institution. Instead, it gives the user collective ownership of the network. That means you do not need any bank or money processor to transact Bitcoin. Anyone can join and use the Bitcoin network via a smartphone and internet access at their convenience. 

The decentralized Bitcoin network makes it extremely difficult for third parties, including government regulators, to monitor users’ transactions. That gives you the freedom to transact as much Bitcoin as frequently as you wish, without any external interference. You can transact Bitcoin directly through your wallet or a trusted crypto exchange platform like bitcoin up

Unlike the banks and money processors that require their customers to adhere to KYC rules, Bitcoin users are not subject to such requirements. Bitcoin users mainly identify themselves through their wallet addresses that do not reveal anyone’s real-world identity. That makes Bitcoin an excellent transaction currency for those wishing to remain anonymous.   

Lower Transaction Costs 

Many people are also increasingly using Bitcoin to transfer money because of its relatively lower transaction costs. That’s primarily because Bitcoin payments do not involve intermediaries, and all transactions occur digitally. The transaction costs vary across exchanges but are usually lower than debit cards, credit cards, and bank transfers. 

Better Transactional Security 

Bitcoin’s blockchain verifies and validates all Bitcoin transactions on a shared digital ledger. The ledger is irreversible and encrypted to keep out bad actors and prevent risks of double-spending. The blockchain ledger creates an accurate and reliable record of all Bitcoin transactions, helping users resolve payment disputes effectively. It maintains a high level of transparency and transactional security. 

Bitcoin plays a significant role in the global financial landscape. Many people mainly prefer using Bitcoin as an alternative currency because of its enhanced autonomy, security, prompt payment processing, and lower transaction costs.

Contact Patrick Miller at 

LAST UPDATED

JULY 12, 2022