Bitcoin is a trend breaking the digital form of currency that came into existence in the year 2009. It scores high over other forms of currencies like dollars, euros, and pounds due to its lower processing fee. In the recent 2017 CryptoCoin picks, bitcoin was named as the most preferred form of currency that makes use of peer-to-peer technology to make payments. This is not surprising, considering the fact that www.profitconfidential.com predicts that BTG (abbreviated form of bitcoin) will sustain in the crypto market.
What Is A Bitcoin?
Unlike traditional forms of currency, a bitcoin has no physical presence. You cannot hold a piece of paper or a coin and brand it as bitcoin. All transactions that happen are stored in the cloud, and they are verified using complex lines of algorithms. It is interesting to know that despite this surge in popularity, bitcoin is not issued legally by any bank nor does it qualify as a commodity.
Let us understand how this intriguing cryptocurrency works. Using the concept of a ‘public’ and a ‘private’ key, information is secured on a bitcoin. You can compare a public key to your bank account number that serves as a medium for identifying your account. A private key is like your ATM pin number that is confidential and is used to authorize transactions.
Benefits Of Bitcoin
What makes a bitcoin the most preferred choice of digital currency? Here are several advantages in support of this fact.
Helps Maintain Secrecy
When you make a financial transaction using bitcoin, your details are safe and not made public to the world. It is similar to a cash-only transaction that cannot trace the user. Another added fact is that the bitcoin address that is generated for every purchase changes every time you make a transaction.
No Involvement Of Third-Party Users
If you are a bitcoin user and you have just made a successful transaction now, there is no way external sources will deactivate your account. There is plenty of freedom in this system when compared to conventional currencies.
Exempt From Tax
Let us assume you have made a purchase using bitcoins. Since this activity is not visible to third-party sources, you are spared from the sales tax or other local taxes that exist in your country.
Low Processing Fee
You would be aware that any foreign purchases or transfers involve a small amount of processing fee. When dealing with bitcoin, there is complete transparency with zero involvement by the government or other financial institutions. This has turned out to advantageous for people on the go as it eliminates long waiting periods and stringent authorization process.
Easy To Obtain
Just like any other online payment, you require Internet access to pay for your coins. You do not have to visit a bank or submit documents to buy more bitcoins.
Best For Your Business
Merchants and traders have an option to receive payments in the form of bitcoins. This is very helpful as it means opening the doors to business from any part of the globe. Merchants can decide whether or not to convert the bitcoin at the best exchange rate in the market. This is possible through services like Coinbase and Bitpay.