Bitcoin is a digital currency that was created anonymously in 2009 by someone with an alias of Satoshi Nakamoto. When creating a transaction using this, there is no middle man involved. There are also no transaction fees being charged, and you can do it without the need of giving your real name. This has become so popular today that a lot of merchants are starting to accept them as the currency for payment.
The most important characteristic about bitcoin and the thing that makes it unique than paper money is that it is decentralized. This means that no single institution has control over the bitcoin network. It will simply put people at ease because no banks can manipulate their money.
a. It is a digital currency and because of this, you can easily back up your money and when you take good care of it, it can’t be stolen, lost, or frozen/seized.
b. It allows an immediate and direct transfer of the currency between two individuals in any part of the world.
c. No governments, organizations, or banks can influence or control it.
d. There’s no chance that it can be inflated, counterfeited, devalued, or printed over time.
e. A peer-to-peer network works as the distributed authority to log the transactions.
f. It is operated using a free, open-source software on your computer or mobile device.
g. There is no need for the use of transaction, start-up, or usage fees.
h. You can make a transaction anonymously.
i. There is no reversal on the transactions made.
j. Privacy is improved with bitcoin and will help reduce the crime of identity theft.
k. It can be exchanged in an open market for any type of currency.
If you plan on buying merchandise online, then bitcoins can be perfect for this since you will remain anonymous in your transactions. International payments are also made cheap and easy since it’s not bound to any country or subjected to any regulation. Small businesses can benefit from it because there are no credit card fees involved. For some people, they use and purchase bitcoins as an investment in case its value increases over the years.
If you are eager to know more about bitcoins before venturing into the industry, then perhaps it’s time to dig in on its advantages and disadvantages. That way, you will know what you’re up against and if it can benefit you the way you imagined it to be.
a. Payment freedom – You can easily send and receive money from any part of the world at any time. There are no borders, bank holidays, and imposed limits so this will surely give you total control of your money.
b. Low fees – If you process a payment via bitcoin, then the fees for the transactions are at a minimum or even none at all. Users can add fees during their transactions for them to receive priority processing wherein it will result in faster confirmation by the network. There are also merchant processors whose job is to assist the merchants in dealing with transactions and convert the digital currency to fiat currency and deposit the funds directly into their accounts.
c. Fewer risks for merchants – The bitcoin transactions are irreversible, secure, and private. This will help merchants be protected from losses due to fraud, and there is no need for PCI compliance.
d. Security and control – Bitcoin users are given full control over their transactions, and it is impossible for merchants to force unnoticed or unwanted charges that can happen with other payment methods. The great thing about the payments is that it can be done without being tied to personal information. This will surely provide protection against identity theft.
e. Transparent and neutrality – Any information involving bitcoin is made available on the blockchain that can be used and verified by anybody in real-time. No individual or any other organization can manipulate the Bitcoin protocol because it is cryptographically secure.
a. Not accepted everywhere – Even with its rise in popularity over the last few years, some people still don’t even know that bitcoins exist. A lot of businesses are trying to venture into accepting bitcoin payments because of the many advantages but it’s still not that extensive. Time is needed for the network to take its full effect so it can be accepted on a worldwide scale.
b. Volatile – The total value of bitcoins circulating in the market and the businesses that are using it are still small compared to what it should be based on how long it has already existed. With that in mind, small trades, events, or business activities can easily affect the value.
c. Ongoing development – The bitcoin software is still in beta mode wherein there are still incomplete features that are currently in active development. As of today, several advancements are being done to ensure that the industry will become more secure and accessible to the people.
We all want to live big and have more money than we can ever need. Just make sure that whatever you choose to invest in, it’s something that’s safe and legal.