What if you could make online transactions much more secure, peer to peer removing any mediator like banks and hence completing them in a cheaper way. That is what bitcoin helps you to do. In simple words it is an online ledger of transactions of an online soft currency which is done between the users. Satoshi Nakamoto had published this invention and it has evolved and acquired a lot of attention. Some believe that a digital currency like this can replace US Dollars and will mark the new era for online payments. It might surprise you that no government r bank controls it, and a special computer code decides and regulates the flow of such currency in the market. The bitcoins are mined by miners who have to break mathematical equations to get bitcoins, the equations become harder to crack when the supply has to controlled and vice versa.
The price of the Bitcoin is decided on simple basis of demand and supply of Bitcoin. If you have not used Bitcoin till now, you might be thinking where is it generally used? We have seen its major usage in buying games and subscribing to applications. It has been a successful payment method which is regulated by the miners and tens and thousands of them have the ledgers of the online transactions making sure that no transaction is falsified. But what could be the advantages of Bitcoins, apart from the obvious which are already stated above.
Minimal Outside Intervention: Outside intervention in this case means unnecessary regulations and rules. As already stated Bitcoin is not controlled by any Bank or particular government. The flow of this digital currency is controlled by the systems, which puppet it easing or complicating the. Have you ever suffered the frustration when your bank freezes your account without any sane reason? Well with bitcoin no such thing can be done. As the system involves the basic parties, it gives greater independence and liberty to both the parties in the transaction.
Discrete Transactions: The only currency through which you can transact anonymously and thus makes tracking the particular transaction and attaching it to you becomes extremely difficult as your personal identity is not used rather a public address is given. That does not mean that your transaction is invisible, on the contrary it can be easily seen through block chain and hence is recorded in a world wide ledger.
Extremely Low Fees: The hefty payments that the credit card agencies or the bank transfers take for transferring money in accounts can be tackled with this digital currency. As the transaction is peer to peer, the transaction charges are further reduced. Also it is observed more the transaction charge, faster is it processed and vice versa.
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Tax avoidance: In all government controlled currencies, you generally have to pay taxes on exchange and additional taxes on every purchase. But unlike these conventional forms of currencies, bitcoins is totally free of taxes. Some luxury items that are niche to a particular market are heavily taxed, and here comes one of the greatest advantage of Bitcoin which is also termed as legal tax evasion, assuring no or lesser tax on a transaction.
Safety for sellers: The reversal of these bitcoin transactions is not possible. Hence the chances of fraud by the buyer is minimum. The makes it extremely difficult to falsify any transaction.
But thisis not free of faults, some of the basic advantages have lead to major side effects and faults in the currency. The bitcoins are used to as a currency in illegal trades and black markets. Also some of the online black marketplaces were run on the transactions mainly based in bitcoins. The Silk Road marketplace where drugs were dealt and hit men were hired was on the basis of this digital currency only as the transaction were untraceable towards private identity of any person itself.
The price of bitcoins is highly volatile. It jumps to and fro in each second. All of which is dependent on the fluctuating demand of such currency in the world. But with time as more and more people are accepting it, the currency is stabilizing. The stability is directly related to the awareness and the trust of people on this digital currency. Some companies have started accepting bitcoin as payment and which has increased the awareness and built curiosity in the minds of people for the digital currency. In future it is expected that bitcoin can emerge as maturer and a much stable currency which would be utilized all over the world because of its cost effectiveness and simplicity.
Bitcoin Miner Hosting has contributed this article for general public interest and awareness. Contact them for Bitcoin mining hardware and hosting solutions.