Advantage of Bitcoin
1. Private, secure transactions anytime — with fewer potential fees. Once you own Bitcoin, you can transfer them anytime, anywhere, reducing the time and potential expense of any transaction. Transactions don’t contain personal information like a name or credit card number, which eliminates the risk of consumer information being stolen for fraudulent purchases or identity theft.
2. The potential for big growth. Some investors who buy and hold the currency are betting that once Bitcoin matures, greater trust and more widespread use will follow, and therefore Bitcoin’s value will grow.
3. Decentralization. After the financial crisis and the Great Recession, some investors are eager to embrace an alternative, decentralized currency — one that is essentially outside the control of regular banks, governing authorities or other third parties.
4. Accessibility and Liquidity
One of the biggest advantages of cryptocurrency is it often sees no borders, and Bitcoin is no exception. A major benefit of Bitcoin is that it's a very accessible and versatile currency. Since it only takes a few minutes to transfer bitcoins to another user, it can be used to purchase goods and services from the ever-growing list of places accepting it. This makes spending money in another country and exchanging for other currencies easier, with a bonus of having little to no fees applied. Bitcoins can also be easily sold at any moment.
5. User Anonymity and Transparency
Although not completely anonymous, Bitcoin users are identified by numerical codes and can have multiple public keys. This ensures there's no public tracking, and transactions can't be traced back to the user. Despite the transactions being permanently viewable, which gives you transparency, they're still kept safe from fraud due to the blockchain technology. On top of that, only you, as the wallet owner, would be able to know how many bitcoins you have.
For added security and anonymity, even if the address for your wallet became public, you could generate a new wallet address to keep your information safe. Compared to a traditional currency system in which personal information could be leaked from a bank, no other personal information is required to conduct Bitcoin transactions, which increases user privacy.
6. Independence From Central Authority
Bitcoin is a decentralized currency, meaning it’s not regulated by a single government or central bank. This means that authorities will likely not freeze and demand your coins. There's also no viable way that a taxation would be implemented for Bitcoin. Theoretically, this gives users autonomy and control over their money, because the price isn't linked to government policies. And generally, cryptocurrency users view this as one of the main advantages of Bitcoin.
7. High Return Potential
Bitcoin prices can be highly volatile, changing drastically on a monthly and even daily basis. For instance, in March 2017, Bitcoin was priced at $975.70, and in just a matter of months it spiked to $20,089 in December. A couple of years later, the price of Bitcoin reached an all-time high of $64,000 in April 2021.
This goes to show that although there's high volatility in prices, cryptocurrency users might view this as one of the benefits of Bitcoin because it can result in a high return potential. And with a growing number of users believing Bitcoin is a promising global currency, many investors and businesses have decided to adopt it. This helps with increasing the higher return potential, especially for those who bought it at a lower price.