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One of the most important inventions in today’s world is Bitcoin. It is a new form of virtual currency that is outside of the control of any organisation or government. It is purely digital and does not exist on paper like regular money.
Such a feature makes it impossible for third-party involvement regarding Bitcoin transactions. As a result, one can say that it is a secure form of currency that enables great online payment services. Many software engineers and developers who use blockchain have found this currency useful.
Therefore, most common individuals need to know about the uses of Bitcoin. This is also important since Bitcoin is now useful for several humanitarian purposes. Many companies like IBM, for example, are using Bitcoin to reach goals for the betterment of humankind.
The Advantages Provided by Bitcoin
Bitcoin has the potential to offer several advantages to people. These benefits of Bitcoin are as follows: -
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Reducing Chances Of Fraudulent Activities
As mentioned earlier, bitcoin is a digital currency. It uses algorithms and certain protocols to analyse the identities of people using the currency. As a result, no other individual can steal money from someone during an online transaction.
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Preventing Identity Theft
Even though bitcoins use protocols to confirm the identity of a user, it does not ask for too much personal information. This makes it impossible for fraudsters to enter a transaction illegally using another identity. Unlike credit and debit cards, Bitcoin only uses a push mechanism for initiating transactions. This also makes it harder for anyone to commit identity theft during Bitcoin transactions.
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Quick Transfer
Bitcoin can enable high-speed transaction services. The transactions involving this currency take a minute or two and are also very direct. It also does not allow any third-party involvement during such transactions.
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Independent Nature
Bitcoin is an independent currency. No government or bank in this world can actively interfere in the transactions that involve this currency. No nation can also claim this currency to be of their own. Therefore, one can use it to make payments and transactions anywhere in the world.
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Retention Of Value
Bitcoin can retain its value even after converting to other real-world currencies. This can enable one to use it anywhere. This is also one of the reasons why Bitcoin is still one of the best cryptocurrencies in today's world.
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Involvement Of Blockchain
All Bitcoin transactions involve blockchain. This makes the transactions secure and does not allow any fraudulent activity to happen. Therefore, one can use it safely even if they no nothing about cyber security.
The Use of Bitcoin in Financial Help Worldwide
Currently, many companies and governments are using Bitcoin to undertake developmental projects. Several software companies, such as IBM, also develop blockchain systems to enable anyone to use Bitcoin safely.
The development of blockchain systems allows several public and private organisations to provide loans to people. These microfinance loans aim to develop the condition of the lives of ordinary people. Many of these loans can also assist in developing properties or businesses.
Most of these activities are happening in developing nations. The governments of such nations are also using Bitcoin to create better water supplies for everyone. The main aim is to provide everyone with a constant drinking water supply in such places.
Companies like IBM are also helping governments of such nations undertake plastic recycling projects. The companies are providing all the necessary blockchain software systems that the governments need for funding these projects using bitcoins. The projects have been successful due to Bitcoin payments which have reduced the pollution rates in these places.
However, despite all this, Bitcoin's biggest contribution has been strengthening a nation's economy. The cases of fraudulent activities in developing nations are rampant. These often happen in nations that conflict with other countries. As a result, people and even governments of these places have to face cyber attacks that end up causing financial losses.
However, the use of Bitcoin has solved this problem very much. Bitcoin mainly makes all financial transactions stable and secure by using blockchain. Although Bitcoin does not seek users' personal information, blockchain systems do this.
As a result, the transactions that involve Bitcoin are fully secure. Most governments that have adopted such systems have been able to decrease online fraud incidents by a huge number. These nations have also helped their citizens secure their money by making most transaction systems involve bitcoins.
The securing of transactions has helped governments to secure their nation's economy. This has led to the nations becoming more developed than ever before. Thus, one can say that the advantages of Bitcoin have led to entire nations reaching economic development faster than usual.
More Cases Where Bitcoin Helped Provide Financial Assistance
There have been many cases worldwide that show the usefulness of Bitcoin. First of all, there is the case of the World Food Programme or WFP which has provided financial assistance to refugees in Jordan. The organisation has been able to do this with the help of bitcoins.
The organisation has been able to provide more than 1 million dollars to all of the refugees. The payments have been swift and secure. No refugee can say that they did not receive any payment.
Secondly, there is the case of financial assistance for the people living in the Asia and Pacific region. The people in these regions have a hard time living due to natural disasters like floods and tsunamis happening all the time.
As a result, several nations, including Australia, have given financial assistance to people living in these areas. The use of Bitcoin was a part of these programs, making them successful. The use of blockchain was also helpful in this case.
This is because blockchain allowed refugees and vulnerable groups in these places to create digital identifications. This enabled them to get the money they needed through cryptocurrency transactions. In this way, the nations have been able to improve these people's lives by using bitcoins.
Conclusion
The facts mentioned above show that Bitcoin is very helpful in providing financial assistance to people. Bitcoin can quickly make a person rich due to its rather virtual nature. Bitcoin has proven that a person can own money without access to banks.
With the rise of A.I. and the improvement of blockchain technologies, cryptocurrency will become the common form of money worldwide. More people will have access to it, which will only make their lives better. Governments can also eradicate poverty more easily by using this currency.
However, it will always be helpful if one has proper knowledge about Bitcoin in the first place. Half knowledge is dangerous, and this applies to Bitcoin as well. One should never invest in cryptocurrencies without having much knowledge about them. One can only benefit from it if one knows enough about this currency.
Author Bio
Prashant Pujara is the CEO of MultiQoS Technologies, a well-known backend development Company in the USA. He boasts 10+ years of experience in software development, intending to develop mobile applications for all platforms, including iOS and Android.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.