Are you wondering what Bitcoin is? Well, it isn’t an actual coin rather a type of electronic currency (cryptocurrency) that is decentralized to a network of computers used by online traders around the world. It isn’t controlled by a single government or organization. It allows peer to peer transactions at once, worldwide, for free or at low cost. It’s an autonomous from traditional banking and came into circulation in 2009.
Bitcoin is the first digital electronic currency that has gained public’s attention and is generally accepted by a growing number of merchants. Just like other currencies, it is used by users to purchase goods and services online. In addition, Bitcoin may be used in some physical stores that accept it as a form of payment as well as being traded by currency traders in Bitcoin exchanges.
Are you questioning how it is being valued? Well, Bitcoin isn’t controlled or held by a financial institution, but rather is completely decentralized. In contrast to real world money, Bitcoin can’t be de-valued by banks or governments. Instead, Bitcoin cost depends on the level of confidence its users have, as the more major companies accept it as a form of payment, the more successful it will become. The currency isn’t backed by a tangible commodity, but rather traded online, and thus making them a commodity in themselves.
Benefits of Bitcoin
The major benefits to merchants and consumers who want to use this option include;
- Fast transactions
Bitcoin is easily and instantly transferred over the internet
- No or low fees
In contrast to credit cards, Bitcoin may be applied for free or at a low fee. With no centralized institution as intermediary, there are no authorizations needed, and thus improving profit margins sales.
- Secure data
The information on Bitcoin is safe as users do not give-up private information. With it is two keys- public key serving as bitcoin address and a private key with personal information. Also, the transactions are signed digitally-by combining the private and public keys.
- Does away with fraud risk
Bitcoin owner only can transfer payment to the intended recipient- who is exclusively the one to receive it. The transactions are validated and can’t be taken back or challenged once the network experiences that the transfer has occurred.
- International payment
As Bitcoin is used all over the world, service providers and e-commerce merchants can easily accept it in international payments, which open-up new potential market-places for them. Their are even new sites dedicated to Bitcoin gambling such as these.
Ok, so are you still thinking of accepting Bitcoin? Well, using it will be of great importance as you will be able to trade fast online with your information being secured. In addition, you will be able to use Bitcoin free or at low fee with no fraud risk. Isn’t that amazing!