Bitcoin as a virtual currency was designed to be controlled by a decentralized network in such a way that it is not directly under the control of any national government or subject to the influence of any central banking authorities. Despite the fact that there are several other hundreds of cryptocurrency in active use today, it remains yet the most popular and commonly used amongst them all and even in relation to it’s the equivalent of state-owned minted currencies.
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In addition, just like the traditional currency equivalent, Bitcoin is highly versatile in usage and popularity amongst other cryptocurrencies around the world. This has led to it becoming a popular merchant currency for purchases from a wide range of merchants (including well-recognized companies such as Overstock.com and Expedia. In addition, it has been employed in private user to user transactions for goods and service, including settlement of outstanding debt profiles. In the same capacity, it can be easily exchanged for traditional hard-printed currencies and even for other virtual currencies, on electronic transactions just like in forex exchange transactions. And quite unfortunately, it is also being actively used for illicit criminal activities due to its anonymous nature, such as the purchase of illegal drugs and weapons on dark web marketplaces.
Another worthy note about it is that it can be subdivided into smaller decimals, representing smaller units of value just as the traditional currency equivalents. The smallest unit of Bitcoin is Satoshi or 0.00000001 Bitcoin. This cannot be further broken into smaller units. However, the Bitcoin token network has been built in such a way that should there be necessary need for future subdivisions if the currency’s value appreciate to such a point, it cannot easily allow for such, beyond even its current subdivision.
Despite all of these fabulous promises of Bitcoin, there are still several other factors concerning its wild value fluctuations that makes it a subject of debate among investors as to being a safe portfolio for future investments. However, it stands unparalleled in comparison to other cryptocurrency due to a host of factors, making it a safe haven for one to save up your Bitcoin fund for the future. Some of these factors in favor of Bitcoin are:
Its Liquidity Relative to Other Cryptocurrencies.
Being more popular than its peers by a significant margin, it has a far surpassing liquidity than other crypto currency. This allows its users in transaction, retain much of its intrinsic value during conversion to fiat paper currency like the British pounds or U.S Dollar. In contrast, other cryptocurrencies cannot be directly exchanged for fiat currency and even when this is carried out, they tend to lose substantial value in the course of such exchanges. This makes Bitcoin more like the traditional fiat currency in this regards, unlike other forms of cryptocurrencies.
Rapid Wide Range of Acceptance as a Payment Method
It is no longer news that today, a wide range of merchants now accept Bitcoin in transactions, as a means of payment method. This makes it highly usable in transactions involving huge volumes of consumer products and services, being virtual.
This is large due to the aid of heavyweight companies like overstock.com who has made it virtually possible to buy any physical item using Bitcoin. This is also a good way of ensuring a cashless economy and reducing the hassles, with carrying large volumes of fiat currencies for merchant transactions or purchases.
Ease of International Transactions as Against Regular Currencies
Bitcoin allow cross-border transactions at international levels to flow seamlessly without any difference from local or transactions within a locality. This is because there are no international fees for its transactions across border, no credit cards or ATM withdrawal fees, no high interest bank charge fees or international money transfer fees.
This makes it highly feasible for both local and international transactions involving bulk purchases without extra charges or cost, greatly reducing transactions cost. Normally for fiat currency transactions, the cost of international credit card or ATM withdrawal fees may amount to 3%o f transaction fees while some money transfer fees can be as high as 15%. However, when it comes to Bitcoin transactions, all this is not found, making it easy to save up one’s fund for future transactions, without fear of extra charge cost.
This cannot be said to be same for other cryptocurrencies, which often lack this international red tape for cross-border transactions, making Bitcoin more popular and in a class of its own from them.
