There are lots of ways to send money - western union, paypal, bank wire, etc that are more established and fairly quick. What are the advantages of using bitcoin from a bitcoin-proponent's point of view?
asked Aug 31, 2011 at 18:27
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This question is too subjective for a stack exchange site. From the FAQ, you should only ask "practical, answerable questions based on actual problems that you face."– eMansipaterCommented Aug 31, 2011 at 0:00
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It could easily be rephrased as "What are the qualities of bitcoin as a currency and as a means of facilitating transactions that are unique"– lemongingerCommented Aug 31, 2011 at 0:02
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It needs to be rephrased. It is too vague/subjective right now.– nmatCommented Aug 31, 2011 at 0:13
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@lemonginger, et al - I changed to the suggested title, feel free to suggest more edits (just click on the edit button directly)– ripper234Commented Aug 31, 2011 at 0:15
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Maybe something like "What are the perceived advantages that bitcoin has over other currencies or other ways of sending money?"– lemongingerCommented Aug 31, 2011 at 0:38
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1 Answer
The primary advantages are:
Speed and price. You can transfer money anywhere in the world within minutes with negligible fees.
No central authority. Bitcoin is not dependent on any company or government to maintain its value.
You can start accepting bitcoins instantaneously, without setting up merchant accounts, buying credit card processing hardware, etc.
Bitcoins are less traceable than many types of monetary transactions (though not anonymous).
Bitcoins cannot be counterfeited and transactions cannot be reversed.
No transaction blocking or account freezing. We have seen governments freeze bank accounts of dissidents and payment processors refuse to process certain types of transactions (wikileaks, online gambling in the US, etc). With bitcoin this is impossible.
A known amount of inflation. Bitcoin is seen as a store of value because the total number of bitcoins that will ever be created is known in advance and it is impossible to create more than that.
answered Aug 31, 2011 at 18:28
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4Regarding 4., they're certainly more traceable than cash, which is arguably the most common type of monetary transaction worldwide. Might be worth mentioning that specifically. Commented Sep 21, 2011 at 14:45
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2In some circumstances, in others much less traceable than cash which often requires two people to physically meet somewhere and exchange it Commented Sep 22, 2011 at 1:11
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Regarding 1., it's not true since you need to wait for confirmations.– o0'.Commented Feb 2, 2012 at 11:53
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and confirmations take 'minutes', so 'within minutes' is certainly not incorrect. :)– nanotubeCommented Feb 2, 2012 at 18:46
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1#7 is incorrect. You conflated "inflation" with "debasement". Although the debasement rate is known, the inflation rate has been running wildly between deflation and inflationary drops from $35 to $2 then back up to $17. Commented Mar 21, 2013 at 18:10