1) Financial Privacy
Bitcoin respects your privacy and the security of your transactions.
Centralization is how current monetary systems work, a single hub (central bank, BIS, Visa, etc.) in which government and law enforcement can query for unfettered access to customer data. In short, they do not respect your privacy, either the bank or those seeking customer data. Many times this information, your information, is repeatedly sold for profit, with or without your knowledge. Check out the supporting information below:
Treasury Discloses Limits on Bank-Data Sharing With Spy Agencies “U.S. banks file more than 15 million currency-transaction reports each year, spurred by movements of $10,000 or more into or out of an account, according to FinCEN. Financial institutions — including banks, brokerages, money-transfer businesses and casinos — also file more than 1.5 million suspicious-activity reports annually”
The Best Financial Privacy Is Here Bitcoin offers several advantages over the current system, first of which is decentralization. As a store of value, it is hardened against centralized authorities or verification by third parties. As we have seen recently in the news, even third parties are leaking sensitive data. Articles such as “Bitcoin – The Best Financial Privacy Is Here.. Probably” sheds light on the issue of privacy and how Bitcoin can aid as an alternative to the current monetary structure.
Banks are now sharing all available customer information with the NSA “While the flow of bitcoins or any other digital currency is impossible to control or consistently link to individuals, the question of government control of this flow is a perennial one.”
2) Bitcoin for Optimized International Transfer of Wealth
How do you transfer thousands of silver and gold coins without breaking your back – simple, Bitcoin. Convert your metals into bitcoin at point A, and then re-convert from bitcoin back into metals at point B anywhere in the world or across the States. Just ensure the transaction details prior to proceeding.
Carrying bitcoins internationally is so much lighter. This same means can be accomplished with currencies with higher transaction cost, less privacy, and increased currency fluctuation risk. This is not intended to bypass any laws as both metals and bitcoins are considered in the same asset class.
Gold coins seized at checkpoints. Why? Gold coins are not illegal. There have been numerous stories about parties or individuals attempting to cross borders with various amounts of wealth. Stories such as Border Police confiscate 800 gold coins from Romanian citizens coming from Austria and Bricks of Gold Hidden In Car Seized At Swiss Border Estimated To Be Worth Nearly $6 million. Regardless of the potential criminality of these situations, they could have been avoided with the use of Bitcoin. Bitcoin allows any two parties to complete a transfer of wealth, anywhere in the world within minutes. If not, you could find yourself in a situation like this man Man has undeclared $10,000 seized at border after exchange rate pushes him over the limits.
3) Bitcoin has Drastically Lower Transaction Fees than Credit Cards
The credit card issuers, such as Visa and MasterCard, charge -notice I didn’t say ‘earn’- $50 Billion annually for transactions within their card system. Whereas credit card transaction fees are incurred at several stages along the payment route. The typical two staged process called authorization and settlement provides the core of the credit card system. And if failure should occur at either the authorization or the settlement stage then fees would be increased or the sale is not permitted. In comparison, sending Bitcoin from one person to another – P2P, incurs only a small transaction fee to support the network.
“Transaction fees are small amounts paid to enable bitcoin transactions throughout the network and around the world – think of them as postage stamps…”
Previously, the average transaction fee for Bitcoin was 5 cents on the dollar, however due to the increase price of Bitcoin and the aim of enticing more commercial businesses to accept Bitcoin the transaction fees have recently been reduced to half a cent – a ninety percent fee decrease!
4) Sending Money to Family Overseas
In many parts of the world workers send money back home to their families. Whether their families are in Bulgaria or Mexico funds are flowing to the selected homeland to provide for parents and other family members. Presently, fees for Western Union, bank transfers, and other means of transitioning these funds are costing the workers a high percentage of the funds sent. In some cases a $45 fee is charged for sending $100 in a home-bound transaction. Bitcoin cuts this transaction costs to just a fraction, and is much quicker, in fact as quick as an internet connection.
5) Investment Opportunity Amid Upward Potential
By numerous estimates the market price of Bitcon (BTC) is expected to rise. To what level of market price is the real question. Estimates range from $4,000 to $400,000 per Bitcoin. This is an extremely wide price estimation for sure. Some just quietly suggest that Bitcoin is now where the Internet was in the nineties and suggest remembering the market capitalization of Yahoo, Google, and Microsoft to drop a few names.
Beginning with the price ramp up of 2013 until today there are many predictions, some with various caveats detailing the importance of Bitcoin as an investment tool. If investing in Bitcoin maintains the current pace, total investments will eclipse $250 million for the year. Below are a few of those price estimations for your perusal.
“Ex-Facebook executive Chamath Palihapitiya kicked things off in May last year, writing in a piece for Bloomberg stating that each bitcoin could go on to be worth more than $400,000, provided it establishes itself as a “useful reserve currency.”
“The price of bitcoin could increase to as much as $98,500, according to analysts at financial services and investment firm Wedbush Securities.”
“A report from analysts Gil Luria and Aaron Turner, which has been referenced on StreetInsider.com, takes an extremely positive view of bitcoin, suggesting digital currency has the potential to shake up the current payments space.”
Bank of America: “We get a (market capitalization) number that is somewhere around $15bn. Although this does not mean that bitcoin price cannot rise further (as an object of speculation), we think the recent rise of bitcoin price could soon run ahead of its fundamentals. Our current view implies a maximum fair value of bitcoin = 1,300 USD.”
“Bitcoin to never hit a low of $400 again.” – Max Keiser