Why use Bitcoin?

[Elokane]

Hi all,

During my time with the community and while visiting other forums discussing Bitcoin, I've found that this question pops up quite often. The information is certainly out there, but I believe it's time to create a good resource summarizing all the answers to this important question. Why use Bitcoin?

I'm going to make a bullet list with concise points that I've written. Please contribute in any way you wish: correct the text, add your ideas, discuss the format, etc. I am going to maintain the first post and update it constantly with the goal of having it included in the Introduction thread. The second post in this thread will be reserved for "testimonials": short write-ups about why YOU want to use Bitcoin. Post these in the thread or PM them to me to be included.

Remember: this isn't the place for complicated talk about the underlying technology. This is a resource meant to be used by everyone, regardless of technical knowledge.

Why use Bitcoin?

• Ownership: Bitcoin is YOURS. Unlike government-mandated fiat money, your Bitcoins belong to you and no one else. You can use them in any way you want or even destroy them if you so wish. Your account will never be frozen or otherwise appropriated.

• Privacy: Bitcoin can be used anonymously. Your Bitcoin wallet can generate a new address for each transaction you wish to carry out, and these are abstracted from your identity. Using further means, one can become completely anonymous and untraceable when sending or receiving Bitcoin. See thread by Satoshi for more details.

• Security: Bitcoin is more secure than ANY monetary system in existence. The mathematical technology used in the network for creating Bitcoins and validating transactions guarantees that no entity can manipulate the Bitcoin system. See the wiki for more details.

• Trust: With Bitcoin, the need to trust anyone beyond yourself and the recipient of your money disappears. No intermediaries or third-parties are required! Neither king nor bank will stand in the way of your transaction. See the "What problem Bitcoin solves" in the the introduction thread for more details.

• Mitigation of Risk to User: If an entity you've sent Bitcoin to has its security breached, you are 100% safe! The merchant doesn't store any extra information related to your payment beyond what is immediately relevant to the transaction. No more will your identity, credit card and contact details be stolen because of the negligence of others.
  

• Transaction Speed and Cost: Bitcoin's digital nature allows you to send and receive money to and from anyone, anywhere – and almost immediately! Since transactions are handled by a network of Bitcoin users rather than maintained and logged by the banks of old, they happen with the Speed of Internet. Fees are completely eliminated or reduced to a fraction of what one may pay for a dollar-based transaction today. See the wiki for more details.

• Divisibility: Bitcoins are divisible up to the 8th decimal. Along with the lack of transaction fees, this opens up a whole new world of micro- and nano-transctions.

• Decentralization and Lack of Authority: Bitcoin has NO central authority. We ALL use the same basic software and have the exact same privileges. There are no single points of failure, no federal banks to inflate the currency at their will, and no authorities to lay down new rules and regulations. It is likely impossible to shut down Bitcoin without shutting down the Internet as long as its users wish to use it. Bitcoin does not answer to any single political entity and is not subject to the whims of any politician or politics system. There is no consideration to race, religion, social status or gender.

• Limited Quantity: The amount of Bitcoins in existence and the amount that will be created over time is known at any point and is unchangeable. There is no possibility for further inflation or for the manipulation of the money supply.

• Transparency : While Bitcoin can be completely anonymous, it also allows complete transparency. Since all transactions are logged by the network, it is easy to publicize them if one so wishes and allow everyone to examine them with the utmost confidence in their authenticity.
  

In essence, Bitcoin is the perfect form of digitized cash. It is anonymous, easy to use, secure, fast, and can be accepted anywhere at any time.

[Elokane]

This post will contain testimonials by the community, starting with this excellent post by Satoshi himself:

The root problem with conventional currency is all the trust thats required to make it
work. The central bank must be trusted not to debase the currency, but the history of
fiat currencies is full of breaches of that trust. Banks must be trusted to hold our
money and transfer it electronically, but they lend it out in waves of credit bubbles
with barely a fraction in reserve. We have to trust them with our privacy, trust them
not to let identity thieves drain our accounts. Their massive overhead costs make
micropayments impossible.

A generation ago, multi-user time-sharing computer systems had a similar problem.
Before strong encryption, users had to rely on password protection to secure their
files, placing trust in the system administrator to keep their information private.
Privacy could always be overridden by the admin based on his judgment call weighing the
principle of privacy against other concerns, or at the behest of his superiors.

Then strong encryption became available to the masses, and trust was no longer required.
Data could be secured in a way that was physically impossible for others to access, no
matter for what reason, no matter how good the excuse, no matter what.
Its time we had the same thing for money. With e-currency based on cryptographic
proof, without the need to trust a third party middleman, money can be secure and
transactions effortless.

[evoorhees]

Thanks for posting. My recommendation is to tone down the "excitement" level of the text. Don't make it sound salesy. There shouldn't be any exclamation marks. Also, don't use terms like "IMPOSSIBLE to shut down Bitcoin." Statements like that invite controversy because they are almost certainly wrong. Fact is, there might be a way to shut it down and only time will tell if it overcomes these challenges. Simply change that sentence to something like "Bitcoin may be impossible to shut down."  It's actually a stronger, more confident way to write.

Understate the benefits, and remain humble.

Bitcoin is good enough that it doesn't need caps and hyperbole  

[Electrongolf]

One thing I think your list is missing is a REAL reason to use BTC.

Most people don't use money for any of the reasons in your list. Regular people don't really think about that stuff.

I think a better list would be actual products/applications that people want to use, that depend on BTC to work.

[MtRev]

I used to use eGold, but I'm got tired of it pretty quickly. The BitCoin community seems to be more active and many more developers.

[CurbsideProphet]

Security: Bitcoin is more secure than ANY monetary system in existence. The mathematical technology used in the network for creating Bitcoins and validating transactions guarantees that no entity can manipulate the Bitcoin system. See the wiki for more details.

I understand you're talking about the system but when you mention security to someone, a new adopter for example, in addition to the system they will care about how secure their personal Bitcoins are.  The fact remains that a persons cash held in a bank is much more secure than their Bitcoins held in an unsecured wallet.  

Your statement is not wrong, I just think it might be misread by the average person, particularly your target audience.

[drrussellshane]

I used to use eGold, but I'm got tired of it pretty quickly. The BitCoin community seems to be more active and many more developers.

haha!

I shoulda known you were a fellow e-golder... 

[MtRev]

Yeah, I been online since the 'late' 90s, so I tired to have an open mind and gave a few things a try lol.

[cypherdoc]

I used to use eGold, but I'm got tired of it pretty quickly. The BitCoin community seems to be more active and many more developers.

+1

[rafval]

the only reason I can see is that its cheaper and quicker for many transactions, and thats a pretty good reason

[billyjoeallen]

If you make a payment, the recipient can't claim that they didn't get it. The block chain tells all.

[MtRev]

Yeah, I love the block chains, now that's something egold don't have lol

[mouse]

• Anonymity: Bitcoin can be used anonymously. Your Bitcoin wallet can generate a new address for each transaction you wish to carry out, and these are abstracted from your identity. Using further means, one can become completely anonymous and untraceable when sending or receiving Bitcoin. See thread by Satoshi for more details.

In my opinion, you should change this to Privacy.

[FlipPro]

They are technically divisible to infinity. That 8th decimal can be changed with a simple client update and no changes to the core system.

[NO_SLAVE]

• Security:

• Trust:

• Mitigation of Risk to User:
  
  

• Transparency : 
  

Surely you jest! look BTC is going nowhere if you keep lying to yourself. These issues are major points that need adressed.
Lets get real here.

[cypherdoc]

• Security:

• Trust:

• Mitigation of Risk to User:
  
  

• Transparency : 
  

Surely you jest! look BTC is going nowhere if you keep lying to yourself. These issues are major points that need adressed.
Lets get real here.

LOL!  you're such a troll!

[muyoso]

LOL!  you're such a troll!

Why is he a troll?  What he said is right. 

[cypherdoc]

LOL!  you're such a troll!

Why is he a troll?  What he said is right. 

b/c every one of his posts slams btc.  i wonder why is he here?  if you're that negative on something, why do you hang around?

as far as the above pts:

security is already a feature if you know what you're doing.  and if you don't encryption of wallets will be a feature of the next version.  ease of use is coming along with security.  thats clear.

Trust:  you don't have to trust anyone.  thats what the block chain is for.

Mitigation:  again, no risk if you know what you're doing

Transparency:  way more than our Federal Reserve and banking system.

[mouse]

People tend to either get labelled trolls or fanatical supporters.

It doesn't have to be either. I support bitcoin, I think it has promise, but NO_SLAVE has

security is already a feature if you know what you're doing.  and if you don't encryption of wallets will be a feature of the next version.  ease of use is coming along with security.  thats clear.
<snip>
Mitigation:  again, no risk if you know what you're doing

The reality is when you say "if you know what you're doing" you really mean "if the average user would consider you can expert" which applies to most fo the people on this forum. It doesn't apply to most of the people bitcoin wishes to reach.

[FlipPro]

• Security:

• Trust:

• Mitigation of Risk to User:
  
  

• Transparency :  
  

Surely you jest! look BTC is going nowhere if you keep lying to yourself. These issues are major points that need adressed.
Lets get real here.

Everything he said was true.

Security: We process more power than the worlds top 500 super computers combined. That's our current networking hash power, and all of it is focused on securing the network through the very same encryption that most banks and governments use.

Trust: We all put trust on the system (network) that anyone can see (open source) and that anyone can participate in (through mining or open public exchange). What we have created here is the fairest system man has ever known.

Mitigation of Risk: Bitcoins cannot be destroyed, and the network at the current hash power is virtually indestructible. While right now there may be hacking problems within the community, the community will only grow stronger from it. Exchanges will continue to become more secure, prices will continue to stabilize leading toward a steady upward trend, and businesses will continue to make Bitcoins more accessible.

Transparency: BlockExplorer.Com