5 Merits of Bitcoins That You Didn't Know


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 digital unit of exchange known as Bitcoins. In other words, it is a virtual currency.

The Bitcoin system was created in the year 2009 by an undisclosed programmer(s). Since then, Bitcoin has garnered huge attention as well as controversy as an alternative to US dollar, Euros and commodity currencies such as gold and silver.

A private network of computers connected by a shared program is used to carry out transactions and process payments in Bitcoin. The creation of Bitcoins are based on increasingly complex mathematical algorithms and its purchase is made with standard national money currencies. Users of Bitcoin can access their coins with their smart phones or computers.

As a new and growing virtual currency, Bitcoin has certain distinct advantages over the conventional government flat currencies. Here are 5 benefits that you will enjoy when using Bitcoin

1) No Taxation

When you make purchases via dollars, euros or any other government flat currency, you have to pay an addition sum of money to the government as tax. Every purchasable item has its own designated tax rate. However, when you're making a purchase through Bitcoin, sales taxes are not added to your purchase. This is deemed as a legal form of tax evasion and is one of the major advantages of being a Bitcoin user.

With zero tax rates, Bitcoin can come in handy especially when purchasing luxury items that are exclusive to a foreign land. Such items, more often than not, are heavily taxed by the government.

2) Flexible Online Payments

Bitcoin is an online payment system and just like any other such system, the users of Bitcoin have the luxury of paying for their coins from any corner of the world that has an internet connection. This means that you could be lying on your bed and purchasing coins instead of taking the pain of travelling to a specific bank or store to get your work done.

Moreover, an online payment via Bitcoin does not require you to fill in details about your personal information. Hence, Bitcoin processing Bitcoin transactions is a lot simpler than those carried out through U.S. Bank accounts and credit cards.

3) Minimal Transaction Fees

Fees and exchange costs are a part and parcel of standard wire transfers and international purchases. Bitcoin is not monitored or moderated by any intermediary institution or government agency. Therefore, the costs of transacting are kept very low unlike international transactions made via conventional currencies.

In addition to this, transactions in Bitcoin are not known to be time consuming since it does not involve the complications of typical authorization requirements and waiting periods.

4) Concealed User Identity

All Bitcoin transactions are discrete, or in other words Bitcoin gives you the option of User anonymity. Bitcoins are similar to cash only purchases in the sense that your transactions can never be tracked back to you and these purchases are never connected with your personal identity. As a matter of fact, the Bitcoin address that is created for user purchases is never the same for two different transactions.

If you want to, you do have the option of voluntarily revealing and publishing your Bitcoin transactions but in most cases users keep their identities secret.

5) No outside interventions

One of the greatest advantages of Bitcoin is that it eliminates third party interruptions. This means that governments, banks and other financial intermediaries have no authority whatsoever to disrupt user transactions or freeze a Bitcoin account. As mentioned before, Bitcoin is based strictly on a peer to peer system. Hence, the users of Bitcoin enjoy greater liberty when making purchases with Bitcoins than they do when using conventional national currencies.

Digital currencies such as the Bitcoin are comparatively new and haven't yet been put through major tests. As a result, many feel that there are certain risks involved in the usage of Bitcoin. Regardless of the potential disadvantages of Bitcoin, it's evident that its merits are strong enough to make it a legitimate contender to challenge conventional currencies in the not so distant future.
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