Many people have heard of the Bitcoin concept but have no clear idea what it really is. Simply defined, Bitcoin is a digital currency network that is decentralized, peer to peer, designed to give online users the ability to process transactions through the digital exchange unit known as Bitcoins. That is a virtual currency, in other words. see post
The bitcoin system was created by an anonymousprogrammer(s) in the year 2009. Since then, as an alternative to US dollars, euros and commodity currencies such as gold and silver, Bitcoin has gained huge attention as well as controversy.
In Bitcoin, a private computer network connected by a shared program is used to execute transactions and process payments. Bitcoins are created based on increasingly complex mathematical algorithms, and their purchase is made from regular national money currencies. Bitcoin users may take their smart phones or computers to access their coins.
Bitcoin as a new and growing virtual currency has certain distinct advantages over traditional flat currencies in government. Here are 5 benefits that you will enjoy when you use Bitcoin 1) No Taxes If you make purchases through dollars, euros or any other flat currency of government, you will have to pay the government an additional sum of money as tax. Every purchasable item has its own tax rate allocated for it. However, sales taxes aren’t applied to your purchase when you make a purchase with Bitcoin. This is considered a legal method of tax evasion, and is one of the great benefits of being a Bitcoin consumer.
Bitcoin can come in handy with zero tax rates particularly when purchasing luxury products that are unique to a foreign land. These products are heavily taxed by the Government, more often than not.
2) Mobile online payments Bitcoin is an online payment system and just like any other such system, Bitcoin users have the privilege of paying for their coins from any corner of the globe with an internet connection. This means that instead of taking the pain of going to a particular bank or store to get your work done, you might lay on your bed and buy coins.
In addition, an electronic payment through Bitcoin doesn’t allow you to fill in your personal information details. Therefore, the execution of Bitcoin transactions through Bitcoin is much easier than those performed through the U.S. Bank and Credit Card Accounts.
3) Minimum transaction fees The fees and exchange rates are part and parcel of regular wire transfers and international acquisitions. None of the intermediary organizations or government departments track or regulate Bitcoin. Unlike international transactions made through traditional currencies, the transaction costs are therefore kept very low.
Besides this, Bitcoin transactions are not considered to be time-consuming as it does not entail the complexities of traditional authorization criteria and waiting times.
4) Masked User Identity All Bitcoin transactions are anonymous, or in other words Bitcoin gives you the option of User Anonymity. Bitcoins are similar to cash only purchases in the sense that you can never trace your transactions back to you and such purchases are never linked to your personal identity. The Bitcoin address generated for user purchases is in reality never the same for two different transactions.
If you want to, you have the right to disclose and publish your Bitcoin transactions on a voluntary basis, but users keep their identities secret in most cases.
5) No outside interference One of Bitcoin’s main benefits is that it prevents interruptions from third parties. This means governments, banks, and other financial intermediaries do not have the authority to block consumer transactions or freeze a Bitcoin account at all. As already stated, Bitcoin is strictly based on a peer to peer network. Hence, Bitcoin users enjoy greater flexibility when making Bitcoins transactions than they do when using traditional national currencies.