Got questions about bitcoin? Looking for simple answers that don’t confuse you with technical jargon?
If so, you’ve come to the right place. This guide will help you to understand the benefits of using bitcoin, including its pros, cons, and advantages.
Many people talk about the “digital benefits” of bitcoin but forget about the “human benefits”. Here are just a few examples of the advantages of using bitcoin.
Bitcoin was designed for people to make “small casual transactions”Link to: https://github.com/bitsblocks/bitcoin-whitepaper that were secure and private.
When bitcoin was first launched in 2008, it was difficult to make or receive bitcoin payments. But today in 2024, you can use a secure wallet appGo to /wallets page to send or receive bitcoin as easily as sending or receiving a text message.
Every year, people transfer over $800 billion to family and friends in other countries. Sending and receiving these payments can be very slow and expensive, especially if you don’t have a bank account.
You can transfer bitcoin instantly to anyone, anywhere in the world. It’s secure, it arrives almost instantly, and it can cost just a few cents. You don’t need a bank account to send or receive bitcoin.
Over 1 billion adults in the world have a smartphone but don’t have a bank account. These people have to save for their futures with cash, which is not secure.
With bitcoin, anyone can save or invest for their future using a wallet app on their phone. Even if their phone is lost or stolen, they can use their secure recovery keys to regain access to their bitcoin.
There are many pros of bitcoin that people love but also a few potential cons that you should be aware of.
Accessible to anyone with a mobile phone (even if they don’t have a traditional bank account).
Instant payments to anyone, anywhere in the world (no more waiting for the banks or paying them transfer fees).
Not controlled by any governments, banks, or businesses (and therefore free from political influences).
Easy to use (sending a bitcoin payment to someone is as easy as sending a text message).
Private (bitcoin payments use private, pseudonymous wallet addresses instead of names or emails).
Payments are irreversible (if someone has paid you with bitcoin, they can’t ask a bank to reverse that payment).
Bitcoin is secure (it’s over 15-years old but the bitcoin blockchain has never been hacked or compromised).
Not always easy to pay with bitcoin (though more retailers are accepting crypto payments every day).
No government protection (it’s more like saving or spending with cash than using a traditional bank account).
Price volatility (long-term asset value of bitcoin continues to increase but there are short-term price spikes).
Payments are irreversible (if you’ve paid someone with bitcoin, you can’t ask a bank to reverse that payment).
Some people use bitcoin to spend a little bit on everyday things.
Some people use bitcoin to save a little bit for their future.
Some people use bitcoin to send a little bit to family and friends.
Some people also use bitcoin as an investment, hoping that its value will increase over time like a rare Pokemon card.
There’s no right or wrong way to use bitcoin. You can use it in every bit of life.
One of bitcoin’s advantages is for people who don’t have (or don’t want) a bank account. They can receive bitcoin from anywhere in the world and then use it to buy groceriesLink to: https://www.nasdaq.com/articles/south-african-retail-giant-pick-n-pay-now-accepts-bitcoin-payments-at-all-locations, gift cardsLink to: https://www.bitrefill.com/, and more.
For example, people like Kgathosto in South AfricaGo to /learn/articles/how-kgothatso-uses-bitcoin-in-south-africa-instead-of-a-bank-account page and Tristan in MexicoGo to /learn/articles/how-tristan-in-mexico-uses-bitcoin-for-his-daily-expenses page use bitcoin instead of a bank account for their daily expenses.
Another of bitcoin’s advantages is for international payments. Bitcoin transactions are secure, instant, and processing fees are typically just a few dollars. You also don’t need a bank account, a passport, or a local Western Union office to send or receive bitcoin.
For example, people like Giovanni in BrazilGo to /learn/articles/how-giovanni-gets-paid-in-bitcoin-in-brazil page get paid from overseas while people like Misha in DubaiGo to /learn/articles/how-misha-uses-bitcoin-to-pay-freelancers-around-the-world page use bitcoin to pay freelancers around the world.
Bitcoin is also ideal for personal savings, especially in countries where people don’t trust the local currency. You don’t need a bank account or passport to buy small amounts of bitcoin and you can save it securely in your smartphone walletGo to /wallets page.
For example, people like Tania in Costa RicaGo to /learn/articles/how-tania-uses-bitcoin-for-her-everyday-purchases-in-costa-rica page and Sarah in South AfricaGo to /learn/articles/how-sarah-used-bitcoin-to-save-for-her-move-to-europe page use bitcoin to save a little bit every month for their futures.
Here are just a few bitcoin advantages compared to traditional payment methods.
You need approval to open a bank account or even to make payments using your bank account. If the bank or government doesn't give you permission, you can’t open a bank account or send payments.
Anyone can use bitcoin and you don’t need anyone’s permission. You don’t even need a bank account or a computer to use bitcoin securely. If you’ve got a mobile phone, you can use bitcoin to spend, save, or send.
Traditional bank payments usually take several hours and sometimes even several days. You may also need to pay bank fees, especially if you’re sending money to someone in another country or currency.
Bitcoin transactions are instant and virtually free if you use a lightning bitcoin paymentGo to /help-en page. If you prefer to use an on-chain bitcoin paymentGo to /help-en page, your transaction may take a few minutes and cost a few dollars.
Local currencies are controlled by governments who can influence them for their own political purposes. Bank accounts are controlled by companies with a mission to maximize profits for their shareholders.
Bitcoin is not controlled by any governments, banks, or businesses. It’s controlled by a secure set of global rules and a decentralized digital network of computers (“miners”) that process bitcoin payments.
If you want to start making payments using a traditional bank account, you’ll need to open one first. This can take several weeks and you’ll need to provide confidential information such as a passport or payslip.
If you want to start making payments using bitcoin, you just need to download a secure bitcoin wallet appGo to /wallets page for your smartphone. You can then buy a bitcoin voucher for as little as $10Go to /buy page and use your wallet to send bitcoin to anyone, anywhere in the world.
Traditional banks can always share your payment history with governments and other companies. Your bank account transactions are not private.
Bitcoin transactions are private and secure. They use pseudo-anonymous digital bitcoin addresses (created by your crypto wallet) instead of your real name or email address.
If someone makes a payment to your bank account, the bank can always reverse that transaction. For example, many companies suffer from fraudulent chargebacks that can threaten the existence of their business.
If someone makes a payment to your cryptocurrency wallet, no one can reverse that. Bitcoin payments are instant and irreversible, which makes them ideal for businesses that need to protect their assets.
While there are many bitcoin advantages, there are a few potential disadvantages that you might want to consider.
New payment technologies always take time to become widely accepted by retailers and other businesses. Today, bitcoin isn’t universally accepted as a payment method but more businesses are beginning to accept it every week.
For example, Pick n Pay in South AfricaLink to: https://www.nasdaq.com/articles/south-african-retail-giant-pick-n-pay-now-accepts-bitcoin-payments-at-all-locations now accepts bitcoin payments in over 2,200 stores. People who get paid in bitcoin or who have bitcoin assets can now use it to buy their groceries and clothes.
Some people expect their governments to reimburse them for making mistakes or bad decisions. Other people would argue that regulation is ineffective if people don't take responsibility for their own assets.
Bitcoin transactions are not protected by government regulations. For example, if you transfer bitcoin to the wrong wallet address, the government can’t get it back for you or compensate you for making a mistake.
Bitcoin has been designed so that there will never be more than 21 million bitcoins in circulation. These bitcoins will be issued over the next 100 years and no one can “print” or create more bitcoins.
The limited supply of bitcoin is considered one of its many strengths. It’s also one of the reasons why the asset price of bitcoin continues to rise. However, the volatility of bitcoin prices are expected to declineLink to: https://www.coindesk.com/markets/2024/05/02/bitcoins-volatility-is-falling-and-this-will-continue-as-it-matures-fidelity in the future as more people adopt it for their everyday payments.
If you make a bank payment to another person or a business, your bank may be able to reverse that transaction. For example, if you’ve paid for something online and it doesn’t arrive, you can file a chargeback claim against the seller.
If you make a bitcoin payment to another person or business, no one can reverse that transaction. Bitcoin payments are instant and irreversible.
The easiest way to learn about bitcoin is to just try it out. You’ll learn more by actually using bitcoin than you will from reading dozens of articles.
Step 1: Download a free bitcoin wallet appGo to /wallets page to your smartphone.
Step 2: Buy an Azteco bitcoin voucherGo to /buy page for as little as $10.
Step 3: Redeem your Azteco voucherGo to /help-en page to your bitcoin wallet (it takes less than 30 seconds).
Step 4: Experiment with sending small amounts of bitcoin to family and friends anywhere in the world.
That’s it. You don’t need to create an account with a crypto exchange, verify your identity with a passport, or spend more than $10 to get started with bitcoin.
Yes, bitcoin is safe if you take care.
First, you should always use a reputable wallet appGo to /wallets page to manage your bitcoin. You should also keep your passwords and recovery keys private at all times.
Second, you should avoid using bitcoin as a speculative, short-term investment. Remember that the price of shares, currencies, and bitcoin all go up and down over time.
The blockchainLink to: https://en.wikipedia.org/wiki/Blockchain is a public ledger for all bitcoin transactions. Everyone can see transactions in the blockchain but no one can change them or delete them.
On-chain transactions are always recorded on the blockchain. Lightning transactions use peer-to-peer payment channels (which can be closed to record transactions on the blockchain).
Bitcoin is generally considered to be a reliable long-term investment. It’s over 15-years old, it’s never had any security issues, and its usage continues to grow.
However, the price of bitcoin (like the price of stocks and shares) can fluctuate in the short term, so it’s not recommended to use bitcoin for day trading or speculation.
Cryptocurrencies (apart from bitcoin and ethereum) are generally to be very risky investments. These “alt coins” are often used to trick investors with “pump and dump scams”. Cryptocurrencies and “alt coins” are also prone to cybersecurity attacks.
Cryptocurrency exchanges have a mixed record of safety. For example, popular exchanges like FTXLink to: https://www.reuters.com/technology/sam-bankman-fried-be-sentenced-multi-billion-dollar-ftx-fraud-2024-03-28, BinanceLink to: https://www.forbes.com/sites/qai/2022/10/09/what-happened-with-the-570-million-binance-bnb-hack-and-what-does-it-really-mean-for-crypto-investors/, and CoinbaseLink to: https://www.reuters.com/business/finance/coinbase-says-hackers-stole-cryptocurrency-least-6000-customers-2021-10-01/ have suffered fraud and cybersecurity problems in recent years.