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Why is Bitcoin better than dollar? How to exchange these two?
05 December 2017 00:00, UTC |
By Paul GRAPES
Throughout the 20th century, history decided that the United States dollar had become the universal world currency which is used in the whole world for payments. But more and more often, we start to hear voices stating this pedestal is going to be taken by Bitcoin. And its recurring jumps, recently resulting into the record $11,000 per coin, are making these statements to sound more credible. But why is this happening? We are now going to give 4 reasons why Bitcoin beats dollar.
The dollar’s existence fully depends on the existence of the United States of America, because the power and wealth of this nation is backing the value of this currency. An economic crisis, a global cataclysm, war – dollar may easily fall after any of these events. Bitcoin, however, does not have the emission center, and its value is backed only by its demand.
Due to political reasons, free currency exchange may easily be forbidden or even become equal to crime by local laws, like it happened in the USSR. Cryptocurrency can be forbidden quite simply as well, but due to the features of the blockchain technology, namely, anonymity and decentralization, it is much more difficult for any authorities to track financial operations connected with it.
As all other world currencies, dollar is prone to inflation. The number of the virtual coins (in case with Bitcoin) is finite, and one can’t “print more” bitcoins, but it can be done with dollars.
For the same reason, Bitcoin is more secure when it comes to glitches and hacks – there can’t be a situation when hackers get the users’ personal data, as the system simply does not have any. Nonetheless, digital currencies are often attacked by hackers, for instance, they can be stolen from online wallets. But the open-source code of Bitcoin makes serious security breaches nearly impossible – all possible breaches by far were detected by the “white hats”, or hackers who do not maliciously use the exploits they found.
The owner of a currency always has a dilemma – either he keeps savings in cash without serious interest rate benefits and thus risking losing them in case of fire or theft, and he can also trust the bank with the keeping of these savings, while this bank might collapse. Basically, the cryptocurrency holder must face the same dangers – digital exchanges collapsed more than once too, carrying the user accounts with funds on them into oblivion, and forgotten password or the lost wallet.dat file will block access for the cryptocurrency wallet forever. However, in the case with Bitcoin, the finance security depends more on the owner of funds – it’s much simpler to backup the file and learn the password by heart than to ensure the safety of fiat currencies.
Well, the advantages here are obvious, and yet, everybody must use fiat currency from time to time. Which brings us to the question – what is the best way to convert BTC into USD?
Firstly, it’s necessary to find out the most recent price of one bitcoin, or how much is one bitcoin worth in USD, as the cryptocurrency exchange rates are very volatile. To do so, one can use the bitcoin-to-dollar exchange, there’s many of them on the Internet. Here it’s better to remind that the price may vary on different exchange services and platforms.
After this step, it’s time to find the place where you will convert bitcoins into dollars. There are many such places, and not all of them are completely honest and have crystal-clear morality. Because of this, you must read through the reviews on each and every site like this, and always check the terms and instructions these sites offer. Are there any withdrawal delays? What about fees, and how big are they? How to withdraw fiat funds?
The instructions the site uses should be followed right after you read and understood them. They vary from service to service, but usually, most terms are same, because all of these services have a single purpose – bitcoin conversion.
At the beginning, your own account must be created, and bitcoins must be stored on the wallet designed for this purpose. After that, a sale order is placed, with quantity of sold coins and desired price. Should any buyer deem this price for the offered quantity of coins good, the sale will happen automatically. That’s how most exchanges and sites work, for example, Bitstamp. If we are talking about converters like LocalBitcoins, the seller will have to contact the potential buyer in advance and cover any deal details. Of course, nothing stops from simply finding and choosing anyone’s purchase order – if it meets your requirements.
After making the deal, the system should convert Bitcoin to USD, and the sum returns to you – either automatically on the payment account you picked, or through the “My Account” section.
Congratulations! Now you know how to convert Bitcoin to dollar!
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