Bitcoin, cryptocurrency, blockchain…You likely have heard these terms, especially in 2021. Bitcoin hit its highest value at $58,332 on February 21 and mainstream companies, like Tesla, MicroStrategy, and Square, have invested. Elon Musk, the CEO of Tesla, has invested in bitcoin and can boost the whole Bitcoin industry with a single Twitter bio update. 

What is the phenomenon of cryptocurrency? Revolutionary opening of cryptocurrency in the absence of controlling institutions, such as the Central bank. Also one of the attractive features is that cryptocurrency can be spent and received by anyone, anywhere, anytime. Lumps of the economy that invested in bitcoins have increased the credibility of the currency in the eyes of investors, which means they have raised its value. 

If you have always been interested what bitcoin is and why you should buy it, then continue reading to learn the five benefits of cryptocurrencies like bitcoin:

No third-party

Bitcoin’s operating system is built on blockchain and it is decentralized, which means there is no regulating authority such as banks or government. No central system can freeze, block, or tax your coins. Governments and banks cannot interfere in the process of transactions because of blockchain technology. Blockchain is a continuous sequential chain of blocks (linked list), built according to certain rules, containing information. Unlike regular databases, you cannot change or delete these records, you can only view them and add new ones.

Anonymity

Bitcoin does not request personal information such as email, social security number, ID card. Anonymity makes it much harder for the government to find out about made transactions. Anonymity ensures safety for those, who fear data leaking during making transactions online.

No Banking fees

Even though there are some fees in the bitcoin system such as “maker” and “taker” fees, occasional collateral, and withdrawal fees, they are fewer than fiat currency fees. There are no such fees as account maintenance or minimum balance fees, no overdraft charges, and no returned deposit fees.

Accessibility

The other difference between cryptocurrency and fiat currency is availability. Unlike the traditional banking system, a digital wallet is less of a headache. Anyone who wants to invest in bitcoin or other cryptocurrencies, and buy or mine them are able to. Cryptocurrency is also very easy to use; it is enough to have a phone or a computer at hand to make any transactions. 

Investments

Bitcoin is not only a means of payment but also an investment tool. Proof of this is the skyrocketing prices. When it first launched, bitcoin was worth $0.003, but it costs $48,565 at the time of publication. 

Despite skeptics’ disbelief, Bitcoin continues to gain momentum and become more popular. Therefore, it may be worth thinking about modern investments in the new year.