Bitcoin financial advantages
No, do not enter Bitcoin just for speculation. This is a bad idea and you will lose your time. Bitcoin is a rising value secure asset not controlled by anyone perfect to preserve own values and long term holding. It can be purchased and accumulated for holding and many categories of people can take advantage of that. Let’s see some of great advantages connected in such activity and most important persons impacted.
- Bitcoin is deflationary. Infact the effect of inflation is that the financial value of one’s savings is reducing over time. In Bitcoin the number of new issued Bitcoin is decreasing over time (each 4 years) until a fixed amount of 21 million will be reached; This means that this asset is scarce and deflationary with great advantages for all the people holding as saving for long term;
- bitcoin transactions are not reversible. this eliminates chargeback risks;
- you can (and should) directly own your bitcoin without any custodial service or intermediary. You own the private keys which are controlling the funds. funds cannot be freezed, locked or controlled by a third party;
- Low transactions fees with Lightning Network for payments. With this bitcoin improvement it will be possible to send even small amount of bitcoin very fast and with an incredibly low amount of fees; This improvement infact resolves speed, cost and efficacy of transactions on Bitcoin network;
- No central authority and no third party. This asset is free from monetary policies. Bitcoin can be used to preserve value even in countries where monetary policy is lowering the internal currency or making other disadvantages and impacts on people’s savings;
- Possibility to achieve more privacy and security using mixing techniques, cold wallets, full nodes and additional technologies;
Cards for spending Bitcoin prepaid amounts
In case you hold bitcoin and just want to use fiat for ordinary expenses, dont worry you can easily do it. Infact there are many services which provide a standard debit card which can be funded with bitcoin and therefore can be used for small expenses like a normal card (because it is). In this way you can use Bitcoin as your main deposit and just use a card like this for ordinary expenses without needs of exchanges or banks;
Categories of people who can benefit
For all those reasons storing bitcoin for long term holding is something that can carry a lot of advantages. People who are interested:
- Banks (yes even banks can benefit). They can store their values in this assets, create funds, invest for customers;
- Private investors. Finally a private person, for example a business man, can store his savings with this digital gold. Anyone can make himself a saving account or a retirement asset for the future. Just to take precautions to be secure and private;
- Insurance companies. to create reserves for expenses and negative events;
- Medium and large companies. To keep Bitcoin as reserve of value that increase in value and produces also capital gains;
- Freelance. Professionals can use Bitcoin in order to get paid for their services. They can invoice and be paid in Bitcoin; This makes possible to own directly bitcoin without any need to exchange and benefit of the value storage feature of Bitcoin;
- Ecommerce shops. Being paid in Bitcoin and Lightning Network is a great advantages for the seller. Fast transactions, chargeback protection, immediate access to funds and full control of the shop;
Why buy and hold and not mining?
In order to mine it is necessary a great investment, powerful hardware and low cost electricity. All of this is not possible for the most of people and small companies. Purchase and hold bitcoin for years can make the same result with very very lower investments needed.
