As we all know, Bitcoin is an independent and decentralized currency with no government involvement in its monetary affairs. Through the BitAlpha AI, Bitcoin is becoming the preference of many traditional investors as it has given an appreciating return during a pandemic. It has given around four times of revenue on the money invested with Bitcoin during October 2021. Bitcoin not only facilitates investors and traders but is also in line to benefit businesses and other MNCs. It can provide a facility to transfer funds from one nation to another within minutes. In contrast, a traditional transfer system like wire transfer or swift can take around three to four working days two transfer funds into bank accounts.
Fiat currencies are regulated and under the control of the government as it is used as a medium of exchange with the government’s trust. But due to government involvement, the use of Bitcoin is regularly increasing as it is only possibleonly possible to transfer funds through centralized channels in some situationssome situations. For example, businesses like oil trading may need to transfer immediately, and transferring the funds through centralized channels can take around four to five days to complete the transaction. Therefore, it is clear that shortly Bitcoin will become a universally accepted medium of exchange, leaving Fiat currencies and precious metals behind.
The reason why Bitcoin is a secure option
Bitcoin is regularly increasing due to its benefits like decentralization, easy transfers, cost efficiency, and speedy transactions. One of the most valuable benefits of Bitcoin is that it is a decentralized currency that does not involve any government authority in its monetary affairs. Due to this, Bitcoin is regularly increasing in companies, technical giants, and oil trading companies. Due to decentralization, you do not have to involve the government in money transfers, as you can move money anonymously from one source to another. For example, El Salvador has accepted Bitcoin as a medium of exchange but up to a limit as it does not want to affect global trades with Bitcoin. Using Fiat currency for every transaction is sometimes not possible due to strict rules and regulations of the government.
Bitcoin is easy and secure, whereas blockchain adds another level of security to Bitcoin transactions. Blockchain is mainly used to store and hold the transactions of Bitcoin and other cryptocurrencies. It is an independent base without government involvement and uses a public Ledger to store essential information related to crypto transactions. On the other hand, Bitcoin uses peer-to-peer transactions, which means money directly flows from merchant to customer account without involving any other third parties in monetary transactions. Through this, the security of transactions increases compared to Fiat transactions, where the information flows from different centralized channels, and the chances of information leakage get multiplied.
Bitcoin is public
As the name public in monetary transactions does not seem safe, it Does not seem like that. It means transparency in the Bitcoin Ledger and the recorded transactions where the transactions of Bitcoin are recorded on a public Ledger which involve anonymous identities to whom we don’t know. Still, open Ledger transactions bring transparency to Bitcoin transactions.
As all the transactions are recorded publicly, it does not mean it challenges security. On the contrary, it means that no one can alter the recorded transactions of Bitcoin, although it makes the transactions more secure, and the chances of cyber-attacks and hacks can be completely diminished.
Transactions related to Fiat currencies are not recorded publicly, which creates a chance of making any alteration because using a manual system for recording transactions where anyone out of us having access to a PC or laptop can make the Unrequired changes to recorded transactions. On the other hand, transactions of Bitcoin are immutable or irreversible due to the presence of blockchain and Bitcoin transactions. So does it become a safer option than any Fiat currency transactions? One more thing that adds another level of security is that during the buy or sell of Bitcoin or any transfers related to Bitcoin, you do not need any personal information to verify the transactions like your credit card numbers, passwords, or any identity proof to prove the transactions is related to you. At the same time, Fiat transactions need your complete identification to move money from one source to another.
These are some of the facts that prove that Bitcoin is a safer option than Fiat transactions. Bitcoin also proves that it has the potential to become a universally accepted currency in the coming future. Also, Bitcoin could push the economy towards complete digitalization where the requirement of Fiat transactions and liquid money are diminished. On the other hand, Bitcoin transactions are still in their infancy and will take time to be entirely accepted globally. To get accepted globally, Bitcoin has to maintain price volatility and move toward a stable price. This is one of the most significant reasons the government is not accepting Bitcoin.