This feature differentiates the cryptocurrency from a traditional currency, causing the former to be more versatile. This unique aspect has allowed consumers first-time access to specific uses, driving the popularity of the virtual currency to rise above all. Here some of these uses have been explained.
1. Spending Money Privately
The transaction process does not reveal your real-world identity when you spend Bitcoin. Instead, it identifies you through anonymous public keys. This application is not possible in traditional payment methods, so this digital currency is considered more desirable for people in this aspect.
This feature allows users to flee from domestic violence, get controversial surgeries like abortion, and operate outside the constraints of an oppressive government. However, cryptocurrencies are not always used for such noble purposes. This technology has already led to some questionable transactions on the deep web, such as purchasing illicit drugs. There is always a fear that criminals can use cryptocurrency to help in money laundering and fund terrorist activity.
2. Money Transfers
Bitcoin has a low transaction rate compared to other traditional money transfer methods. In fact, the payment fee is almost negligible compared to credit cards and money transaction software like PayPal.
This feature is especially beneficial for immigrants sending money to their families back home. According to the world bank report, The global price average for such a transaction fee was 7.72%, but when done through Bitcoin, the transaction fee was only 0.000155 BTC, which comes to around $0.04. Other than sending remittances to foreign countries, you can also use the feature to pay for large purchases that would otherwise have a hefty transactional fee, like buying raw materials for your factory or purchasing plots of land.
3. A Form of Investment
Bitcoin is often used as an investment, a lucrative advantage of the virtual currency because by investing in Bitcoin, you can potentially generate an immense profit quickly as the market faces a drastic rise and fall. To capitalize on your investment, you need to be aware of the proper timing of the market, such as when you should sell and purchase cryptocurrency. Many financial experts consider Bitcoin the currency of the future, so your investment could also hold long-term advantages.
However, while it can bring you a considerable profit, Bitcoin is highly volatile, and you can quickly lose your investment money if you’re not careful. After the end of the buying surge, the value of Bitcoin can fall drastically. To avoid loss, you can sell your portion of coins before this happens, but it is difficult to predict when a low or high will occur.
To avail of these specialized Bitcoin uses, you can purchase the virtual currency through online platforms like Netcoins. It is always a good idea to do some market research before you go to buy a cryptocurrency. This research is required because trends change daily, and you do not know if the current day is most amiable to purchase cryptocurrency. If you successfully purchase, you can use Bitcoins to buy items, benefit from small transactional fees, and have your privacy intact when purchasing products. You can also choose not to use the coins for your means and instead trade them back to the market to earn a profit.