Most people have heard of the term Bitcoin, but have no clear idea of what it really is. Simply put, Bitcoin is a decentralized, peer-to-peer digital currency system designed to give online users the ability to process transactions using a digital exchange unit known as Bitcoins. In other words, it is a virtual currency.
The Bitcoin system was created in 2009 by one or more undisclosed programmers. Since then, Bitcoin has attracted huge attention and also controversy as an alternative to the US dollar, the euro and commodity currencies such as gold and silver.
A private network of computers connected by a shared program is used to conduct transactions and process payments in Bitcoin. The creation of Bitcoins is based on increasingly complex mathematical algorithms and their purchase is done with standard national currencies. Bitcoin users can access their currencies with their smartphones or computers.
As a new and growing virtual currency, Bitcoin has certain different advantages over conventional government flat currencies. Here are the 5 benefits you will enjoy when using Bitcoin
1) No taxes
When you make purchases using dollars, euros, or any other government flat currency, you must pay an additional sum of money to the government as tax. All purchasable items have their own tax rate. However, when you make a purchase through Bitcoin, sales taxes are not added to your purchase. It is considered a legal form of tax evasion and is one of the main advantages of being a Bitcoin user.
With zero tax rates, Bitcoin can be very useful, especially when buying exclusive luxury items from a foreign land. These items are often engraved by the government.
2) Flexible online payments
Bitcoin is an online payment system and, like any other system, Bitcoin users have the luxury of paying their currencies from anywhere in the world that has an internet connection. This means you could be lying in bed and buying coins instead of taking the pain of traveling to a specific bank or store to get the job done.
In addition, an online payment via Bitcoin does not require you to fill in data about your personal information. Therefore, processing Bitcoin transactions in Bitcoin is much simpler than those done through US bank accounts and credit cards.
3) Minimum transaction fees
Commissions and exchange costs are part of standard bank transfers and international purchases. Bitcoin is not supervised or moderated by any intermediary institution or government agency. Therefore, transaction costs remain very low, unlike international transactions made using conventional currencies.
In addition, it is not known that transactions in Bitcoin require a lot of time, as they do not involve the complications of typical authorization requirements and waiting periods.
4) Hidden user identity
All Bitcoin transactions are discrete, or in other words, Bitcoin offers you the option of anonymity of the user. Bitcoins are similar to cash-only purchases, in the sense that transactions can never track you and those purchases are never related to your personal identity. In fact, the Bitcoin address created for user purchase is never the same for two different transactions.
If you wish, you have the option to voluntarily disclose and publish your Bitcoin transactions, but in most cases users keep their identity a secret.
5) There are no external interventions
One of the biggest advantages of Bitcoin is that it eliminates third-party interruptions. This means that governments, banks and other financial intermediaries do not have any authority to interrupt user transactions or freeze a Bitcoin account. As mentioned before, Bitcoin is strictly based on a peer to peer system. Therefore, Bitcoin users enjoy greater freedom when shopping with Bitcoins than when they use conventional national currencies.
Digital currencies like Bitcoin are relatively new and have not yet undergone major testing. As a result, many consider that there are certain risks associated with using Bitcoin. Regardless of the potential disadvantages of Bitcoin, it is clear that its merits are strong enough to make it a legitimate candidate to challenge conventional currencies in the not-too-distant future.