Introduction to Bitcoins
Bitcoins is a digital currency, created by a coder known by the name 'Satoshi Nakamoto', in late 2008. According to the definition of Bitcoin.org, Bitcoin uses peer-to-peer technology which is also decentralized. No central authority or banks is involved in the transactions, nor is it supervised by any supreme regulatory body. The management of transactions and the issuance of bitcoins is carried out collectively by the bitcoin network. The details of transactions are stored in a publicly accessible yet secure ledger, also known as the blockchain. Bitcoin is open-source i.e. the design of the network is publicly accessible, without anybody's ownership. Bitcoin allows exciting uses through many of its unique properties, unlike many other payment systems in the past.
Here are 5 main benefits of using Bitcoins as the method of payments;
1. Bitcoins Are Decentralized
The nature of bitcoins is decentralized and peer to peer . They are defining characteristics of the coin. By the term "decentralized", it means that it is not influenced by a single central authority. Bitcoin's operations are rather based on the activity of the buyers and the sellers. Being decentralized also means that it cannot be inflated or devalued by external regulatory bodies such as the banks or governments, contrary to what happens regularly with fiat currencies. You can have a quick overview of benefits of paying through bitcoin from bitcoin trader
2. Bitcoins Offer User Privacy
Bitcoin transactions can be both transparent as well as very discrete. They are transparent because there is a public ledger which permits visibility on all transactions. It's discreet as the ledger does not reveal any identities of the people involved in the transactions. Bitcoin's transactions cannot be traced or tracked by any regulatory authority as well.
3. Bitcoin Payments Are Quick
Sending a fiat currency to another place could take a few days to a week However, with the use bitcoin, it would be a matter of a couple of minutes. Banks also have working hours. When it comes to bitcoin, there is no pressure coming from a schedule, as the bitcoin network does not stop and stays on.
4. Bitcoins Provide High Portability
Bitcoins are intangible. This means that they cannot be damaged or destroyed. When put in contrast with gold and fiat currencies, this is a very significant aspect. For example, the price of gold and silver can be manipulated if the supply fluctuates. The physical currency bills and coins can be wrecked. Bitcoins are safe from such things.
The emergence of the bitcoin has also given rise to another technology - the virtual wallet, which allows its users to store, pay, and receive their cryptocurrencies from anywhere.
Although this technology has already been utilized since the first software client for cryptocurrencies was created, it does not signify that this area has progressed with zero innovation.
More and more advanced wallet technologies are being built now to secure the entire bitcoin network. This has actually created numerous business opportunities, where companies are focusing more on the wallet-building part of the job making a good amount of money. An example is BitGo, a company focusing solely on the creation of wallet technologies. Without bitcoins, essentially this would not have been possible.
5. Relatively Lower Transaction Charges
Bitcoin's transaction payments are also very slight, in comparison to the charges of the debit and credit card transactions. Same is the case with foreign purchase transactions with bitcoins. Due to the inexistence of a third party between the two parties involved in the bitcoin transactions, bitcoin transactions also cost relatively lower, proving to be very beneficial for local and international travelers. Bitcoin electronic transfers are also very quick, and spare you from all the hassle of transferring fiat currencies and going through third parties.
A Final Word
Bitcoin is the world's leading cryptocurrency, and has started revolutionizing the day to day commercial activity. The use of Bitcoins, as explained above is beneficial for the buyers as well as the sellers, thus, we can rightly conclude that early adoption of this digital currency for at a minimal cost might prove to be really advantageous for the investors.
