Many people are not aware of what a Bitcoin is. Even before knowing people can register their account in blockchain technology, which will let you further. The Bitcoins are peer-peer, and they are not like physical coins. These are virtual cash or digital cash, which can be stored in an e-wallet. E-wallet software has to be downloaded to transact with Bitcoins. The Bitcoins came to the trading industry during the year 2009-2010. Satoshi Nakamoto proposed Bitcoins.
At first, Bitcoins were just mined. It was not led into the trading industry as no one was not able to fix the rate for a Bitcoin. Later on, two peoples stepped forward to sell 10,000 Bitcoins for buying 2 Pizzas. Later on, the Bitcoins have been rated, and there was a frequent fluctuation in the Bitcoin values. Sometimes it was $10000 for 1 Bitcoin, or sometimes it would fall to $500.
The Bitcoin payments were made by connecting confidential computers to a shared system, where the transaction takes place between the seller and the buyer. Keep reading to know more about benefits of cryptocurrency
With much advancement, the usage of Bitcoins has been increasing day-day due to the following advantages:
With the traditional banking system, if we perform a transaction or buy anything in fiat currencies like Euros, INR, and Dirham and so on, an extra fee or in other words tax will be incurred. Even if there is a less minimum balance or if you try to withdraw money from ATM than the allowed transactions, you would have to pay an extra fee. But in the case of Bitcoin, you do not have to pay any additional money or tax for any transaction.
Easier online payments
Like conventional online banking, Bitcoins are also online. You can be able to send or receive Bitcoins from any part of the world and at any time quickly and easily, provided there is an internet connection. When compared to Banking online, the Bitcoin payments does not have any rules and regulations and transacts within 1 or 2 days as Bitcoin transaction functions 24 * 7.
Hidden User Identity
Every Bitcoin transaction will be recorded in a public ledger known as ‘Blockchains’. Every transaction is recorded as blocks in the blockchain, and these blocks will be linked to the address of the receiver’s wallet. From this address, it is not possible to identify the personal details of the person, associated with the wallet address.
Low international payment fee
For International Bitcoin transactions, there will be only a minimal amount as a transaction fee, unlike traditional banking, where a high amount will be incurred for international payments.
No inflation risk
Our traditional currency system has no limitation on the quantity of currency printing. Sometimes we have heard that the Reserve bank is printing currencies due to the underflow of money. So there will be very heavy inflation in the currency system. But in the case of Bitcoins, a total of $21 million alone will be mined, and hence there will be a limitation in expending Bitcoins, which leads to no risk of inflation with the Bitcoin system.
As there are no middle-men like Banks or any other government agencies, the payments will be made very quickly and easily. In a conventional banking system, it will take 2-3 working for completing a transaction. But in case of Bitcoins, the deal will happen within one day or 2 hours as there are no payment verification steps and the Bitcoin agencies will also function 24 * 7.
Boon for small scale Business ventures
Generally, small scale business sellers and retailers will not be able to market their products internationally with a conventional payment system, due to high transaction fees. But with Bitcoins, where the very minimal fee is incurred for international payments, the small scale businesses are blooming and progressive.
Opportunities through Bitcoins
The emergence of Bitcoins has opened up several opportunities in the field of small agreements, asset allotment, Bitcoins Mining, E-wallet software building tools, and so on.
Thus Bitcoins with lots of benefits are emerging a significant trading technology. It is in the hands of the industries, to accept Bitcoins for trading, for making it as one of the successful cryptocurrencies.