Inititative Bitcoin for Switzerland

Bitcoin does not require intermediaries such as banks or payment processors. This eliminates the risk of intermediaries going bankrupt and losing customer funds, as was the case with traditional financial institutions in the past.

The power consumption of Bitcoin is relatively high. However, it does not exceed the power consumption of the global banking system by far.

Link to comparison chart

A blockchain is a distributed, public database. In the context of Bitcoin or other cryptocurrencies, this technology is used in the form of a decentralized database to manage asset transactions. This significantly reduces the risks and costs for all parties involved.

Blockchain is of great importance. The faster information can be transmitted and the more precise it is, the better. Blockchain delivers information immediately in a way that is shareable and transparent to participants in a network. Because all users can access truthful details of a transaction end-to-end, trust is greater, efficiency increases, and new opportunities open up. An ordinary bank payment is usually processed through a central computer system.

In this case, you have to entrust your sensitive data to the provider of this system. In a blockchain, on the other hand, you do not enter a transaction with your name, but with the so-called public key, which consists of a long sequence of letters and numbers. A transaction is synchronized across the computers of all blockchain participants, unlike an ordinary bank payment. Before a transaction is completed, it must be stored in a block visible to all members. This happens differently depending on the type of blockchain.

Bitcoin is primarily a protection against the devaluation of the purchasing power of paper currencies. In much the same way that gold has been able to retain its purchasing power over the last 5,000 years. Bitcoin is much easier to transport and use than gold because of its digital form. Bitcoin is becoming more and more suitable as an alternative currency for people who no longer trust the current monetary system.

El Salvador is the first country in the world to introduce Bitcoin as legal tender in 2021. The country wants to free itself from the IMF and the World Bank and, for example, no longer have to force government financing in U.S. dollars, but instead offer it directly to investors on the blockchain. Other countries with traditionally high inflation rates will follow this example as soon as Bitcoin will be even more applicable as a means of payment.

Numerous online merchants now accept Bitcoin as a payment method, including big names like Microsoft, Expedia, Shopify. The network of merchants accepting Bitcoin will grow rapidly.

The Lightning Network is an offchain solution for Bitcoin payments. That is, users can fix BTC off the Bitcoin blockchain and send it to other users. Sending value is almost instantaneous and, similar to on-chain transactions, does not require a trusted third party.