Virtual currencies have a unique nature that gives them advantages over other currency types. Bitcoin is one such currency that is relatively new. It offers some advantages that make it an excellent currency for this day and age.
The said cryptocurrency offers unique possibilities that make it a great alternative to fiat currencies. Whether you own a bitcoin or trade it with a robot like the Bitcoin Revolution Trading Bot, you know that the said cryptocurrency is becoming more and more popular. In this article, we’ll explain why bitcoin is the new currency for this modern age. Read on to learn more.
What Is Bitcoin?
This cryptocurrency is a peer-to-peer, decentralized currency that allows you to process transactions online by using digital units of exchange known as bitcoins. It was created in 2009 by an unknown programmer with the pen name Satoshi Nakamoto.
Payments made through bitcoin are processed through a private network of multiple computers connected through a shared program. Every transaction is recorded within a “blockchain” on each of these computers. Thus, accounts are updated and informed with regard to the transaction.
Why Is Bitcoin The New Currency For This Modern Age?
There are a lot of reasons why Bitcoin is the new, viable currency for this day and age. Below are some of them:
- It isn’t vulnerable to interruptions made by third parties.
One benefit of bitcoin is that banks, governments, and other types of financial intermediaries cannot interfere with user transactions. They also cannot freeze bitcoin accounts. The entire system is peer-to-peer. Thus, users of bitcoin will experience greater freedom compared to national currencies.
- It offers user anonymity.
Purchases made with bitcoin are discrete. Only the user can publish their transactions voluntarily. Purchases are not associated with an identity and cannot be traced back to the person who made it.
- It charges very low transaction fees.
Foreign purchases and wire transfers usually involve fees and foreign exchange costs. Since transactions made with bitcoin have no intermediaries, costs are kept low. This is a significant benefit for people who travel a lot. Transferring bitcoins from peer to peer happens instantly since it eliminates inconvenient authorization requirements and long waiting periods.
- It allows purchases free from tax.
Purchases made with bitcoin are not imposed with sales taxes. This is because third parties are unable to track, identify, and intercept transactions done in bitcoins.
- It allows ease of payment through mobile devices.
The use of mobile devices for payments is a growing trend nowadays. Similar to online payments, bitcoin can be used to pay for products and services anywhere as long as you have access to the Internet.
You don’t have to go to a bank or a store just to pay for something. Unlike online payments done through credit cards and banks, purchases made through bitcoin doesn’t require any personal information for transactions to push through.
- It offers fewer risk for merchants.
Merchants are protected from possible losses that may occur due to fraud since bitcoin transactions are irreversible and don’t involve any personal information. Bitcoin allows merchants to do business in settings where fraud and crime rates are high. This is due to the fact that it’s almost impossible to con or cheat bitcoin transactions. The public ledger, also known as the blockchain, makes this possible.
- It helps reduce the possibility of identity theft.
Once you provide your credit card information to merchants, you are giving them access to your full credit line. Credit cards function on a “pull” mechanism. In this type of system, the merchant initiates payments and pulls in a specific amount from your account.
On the other hand, bitcoins operate on a “push” basis. The bitcoin holder will be the one who sends exactly what they want to the recipient. Further information is not necessary. In addition, bitcoins don’t require you to identify yourself or provide your name. It just requires digital wallet IDs.
- It offers ease of transaction.
Anyone from any place and at any age can perform bitcoin transactions. Identification cards, proof of address, or passports are not necessary to send and receive Bitcoins. What you simply need to do is to download a Bitcoin wallet program. Then, you just generate your own Bitcoin address. Finally, you can carry out Bitcoin transactions through the Internet.
- It allows for processing of large transactions.
This is another significant benefit of using Bitcoin. Large payments can be processed with ease and there are no monetary caps on payment size. This advantage is unique and different from regular banks, which usually charge larger payment processing fees for bigger amounts.
- It provides near-instant settlements.
Payments made through bitcoin are settled in a relatively short amount of time. Transactions using bitcoin are considered final after three different conformations. These usually take 30 minutes or less. In comparison, credit card payments and PayPal transactions aren’t finalized until the chargeback window of the sender has already been closed. This usually lasts for a few months or so.
- It helps non-profit organizations become more transparent.
Each transaction using bitcoin is made under a publicly verifiable ledger. Thus, non-profit organizations can offer more transparency when donations are accepted through Bitcoin. Being able to openly verify donations made to a non-profit institution can be very appealing to most donors. Some people are more willing to provide donations when they are able to see how much money is collected and spent in a transparent manner.
There are a lot of reasons why bitcoin is a viable currency for this modern age. It helps businesses thrive as it offers fewer risk for merchants. In addition, the bitcoin user is given freedom to purchase from anywhere within the world without being spied on by third-party intermediaries. It reduces the possibility of identity theft by providing user anonymity. Purchases made through bitcoin are free from sales taxes and charge very low transaction fees. Finally, bitcoin can be transacted from anywhere around the world, capitalizing on the trend of mobile payments.
This article was submitted by nobslink.com
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