Most people have heard of the term Bitcoin but don't have a clear idea of what it really is. Simply defined, Bitcoin is a decentralized, peer-to-peer digital currency system, designed to give online users the ability to process transactions via 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 received enormous attention as well as controversy as an alternative to the U.S. dollar, the euro, and currencies such as gold and silver. .
A private network of computers connected by a shared program is used to transact and process payments in Bitcoin. The creation of Bitcoins is based on increasingly complex mathematical algorithms and its purchase is made with standard national currencies. Bitcoin users can access their coins with their smartphones or computers.
As a new growing virtual currency, Bitcoin has some distinct advantages over conventional government flat currencies. Here are 5 benefits that you will enjoy when using Bitcoin
1] No tax
When you make purchases through dollars, euros, or any other fixed government currency, you must pay an additional amount to the government as a tax. Each purchasable item has its own designated tax rate. However, when you make a purchase through Bitcoin, sales taxes are not added to your purchase. This is considered a legal form of tax evasion and is one of the main benefits of being a Bitcoin user.
With zero tax rates, Bitcoin can be useful especially when purchasing exclusive luxury items in a foreign country. Such items, more often than not, are heavily taxed by the government.
2] Flexible online payments
Bitcoin is an online payment system and, like any other system of this type, Bitcoin users have the luxury of paying their coins from any corner of the world with an Internet connection. This means that you could lie on your bed and buy coins instead of bothering to go to a specific bank or store to do your work.
In addition, online payment via Bitcoin does not require you to fill in the details of your personal information. Therefore, the processing of Bitcoin Bitcoin transactions is much simpler than those performed via bank accounts and credit cards in the United States.
3] Minimal transaction costs
Fees and exchange fees are an integral part of standard wire transfers and international purchases. Bitcoin is not monitored or moderated by any intermediary institution or government agency. As a result, transaction costs are kept very low unlike international transactions made using conventional currencies.
In addition to that, Bitcoin transactions are not known to take time as they do not result in complications from typical authorization requirements and wait times.
4] Hidden user identity
All Bitcoin transactions are discrete, or in other words, Bitcoin gives you the option to remain anonymous to the user. Bitcoins are similar to cash purchases only in the sense that your transactions can never be traced back to you and these purchases are never linked to your personal identity. In fact, the Bitcoin address created for user purchases is never the same for two different transactions.
If you want, you have the option to voluntarily reveal and publish your Bitcoin transactions, but in most cases, users keep their identities secret.
5] No outside intervention
One of the biggest advantages of Bitcoin is that it eliminates third-party interruptions. This means that governments, banks and other financial intermediaries have no power to disrupt user transactions or freeze a Bitcoin account. As mentioned earlier, Bitcoin is strictly based on a peer to peer system. As a result, Bitcoin users have more freedom when shopping with Bitcoins than when they use conventional national currencies.
Digital currencies such as Bitcoin are relatively new and have not yet undergone major testing. As a result, many believe that using Bitcoin carries certain risks. Regardless of the potential downsides of Bitcoin, it's clear that its merits are strong enough to make it a legitimate competitor to challenge conventional currencies in the not-too-distant future.