Merits of Bitcoin and its Functionality
In recent times more than 80,000 businesses are using Bitcoin. The Bitcoins are distributed systems, where there are no intermediaries like banks or central banks or any other controlling authorities. A transaction with a Bitcoin is both fast and secure at the same time. There are many possible ways to earn with Bitcoin. There are numerous benefits of using Bitcoin, which will be discussed in the following sections of the article. To know more about Bitcoin trading, you can visit the homepage.
Benefits of Bitcoin
The benefits of Bitcoin are:
- Offers financial anonymity
The buyers can freely exchange the Bitcoin for the goods from the sellers, without the fear of disclosing financial information like credit card or debit card. As the Bitcoins transactions are stored in the blockchain, which follows hashing and encryption algorithms, a transaction associated with a user’s identity will not be revealed at any cost. Thus you can expect some degree of financial anonymity with Bitcoin.
- No inflation
With a Bitcoin currency system, there is zero inflation, as there is a limitation that, totally only 21 million Bitcoins will be mined. With this limitation, both the buyer and seller will know the limits, thereby avoiding excess spending of Bitcoin. But in the case of a regular currency system, there is no limit to currency production, thereby reducing the buying power of people, leading to inflation.
- Minimal transaction fee
With the traditional banking system, people have to spend more money as transaction fees. For the international transaction, the transaction fee will be very high. But in the case of Bitcoins, for making a national transaction, there is no transaction fee, and for making an international transaction, very little transaction fees will be incurred.
Bitcoin is a convenient mode of transaction. The bitcoin transaction can be made 24 * 7, and you need a memory stick as you use for audio, video, and other executable programs. You can use Bitcoin as it without requiring visiting exchanges, to convert the Bitcoin to country-specific currencies.
- No controlling authorities
The Bitcoin happens in a peer-to-peer manner, where the transaction does not involve any controlling authorities. So the transactions are not incurred any additional fees, or there is no limit on the number of Bitcoins to be transacted. There is no limitation in the number of times a transaction has to take place.
- Fast transaction
As there are no controlling authorities, and as the Bitcoins functions daily, the national transaction takes place within 10 minutes or 24 hours. In the case of the traditional payment system, the transaction takes place for2-3 working days. With Bitcoins, the international payments take place within one or two days, but with a traditional currency system, it will take 15-days to complete the transaction.
- Secure transaction
The transaction of Bitcoins is initiated with a sender’s digital signature, ensuring that the message is reached to the intended receiver without any tampering. Every transaction is stored as blocks to the transaction chain. Before adding the block to the transaction chain, the miners will have to generate a hash for that block based on the previous block using the hashing algorithm. Then the hash has to be encrypted using an asymmetric encryption technique. By doing so, a small alteration in the transaction will be known to all the users in the block, and the hash becomes more complex, hence, the malicious user will not be able to tamper with the transaction.
- Facilitates international business for small scale ventures
With the traditional banking system, the small-scale business will not sell their products online to the international level, as it incurs a large number of transaction fees. However, the emergence of Bitcoin opened a big opportunity for small-scale sellers and retailers, as the Bitcoin transaction made internationally will incur only a minimal transaction fee.
- Earn with Bitcoins
The Bitcoins have opened wide opportunities, where people can earn with Bitcoins. The Bitcoin miners have a vast opportunity, where they will be paid for solving every transaction. Now with digital wallets, to enhance the existing technology, many skilled people are recruited to build a perfect Bitcoin wallet technology.
Thus, this article has discussed various benefits of using Bitcoins, where the transaction is made quickly and securely. Both the buyers and sellers will be benefitted from using Bitcoins for making transactions.
Disclaimer: This is a paid post and should not be considered as news/advice.