5 Benefits of Bitcoin You Didn’t Know

Most people have heard of the term Bitcoin, but they don’t have a clear idea of ​​what it actually is. Simply defined, Bitcoin is a decentralized, peer-to-peer, digital currency system, designed to provide online users with the ability to process transactions through a digital unit of exchange known as Bitcoins. In other words, it is a virtual currency.

The Bitcoin system was created in 2009 by an undisclosed developer. Since then, Bitcoin has attracted enormous attention and controversy as an alternative to the US dollar, the euro, and commodity currencies such as gold and silver.

A private network of computers connected by a common program is used to conduct transactions and process payments in Bitcoin. The creation of bitcoins is based on increasingly complex mathematical algorithms and their purchase is made with standard national currencies. Bitcoin users can access their coins from their smartphones or computers.

As a new and growing virtual currency, Bitcoin has certain clear advantages over conventional government currencies. Here are 5 benefits you will enjoy when you use Bitcoin

1) No taxation

When you buy with dollars, euros or any other national currency, you have to pay an additional amount of money to the government as a tax. Each purchasable item has its own specific tax rate. However, when you buy with Bitcoin, sales tax is not added to your purchase. This is considered a legal form of tax evasion and is one of the main advantages of Bitcoin users.

With zero tax rates, Bitcoin can be beneficial especially when buying luxury items that are exclusive to a foreign country. Such items, more often than not, are heavily taxed by the government.

2) Flexible online payment

Bitcoin is an online payment system and like any other such system, Bitcoin users have the luxury of paying for their coins from any part of the world that has an internet connection. This means you could lie on your bed and buy coins instead of going through the pain of traveling to a specific bank or store to get your business done.

Moreover, paying online with Bitcoin does not require you to fill in your personal details. Therefore, Bitcoin transactions are much simpler to process than those made through US bank accounts and credit cards.

3) Minimum transaction fees

Exchange fees and costs are an integral part of standard bank transfers and international purchases. Bitcoin is not monitored or moderated by any intermediary institution or government agency. Because of this, the transaction costs are kept at a very low level, in contrast to international transactions carried out through conventional currencies.

Additionally, Bitcoin transactions are not known to be time-consuming as it does not involve the complications of typical authorization requests and waiting periods.

4) Hidden user identity

All Bitcoin transactions are discreet, or in other words Bitcoin gives you the option of user anonymity. Bitcoins are similar to cash-only purchases in that your transactions can never be traced back to you and those purchases are never linked to your personal identity. In fact, the Bitcoin address that is created for user purchases is never the same for two different transactions.

If you want, you have the option to voluntarily disclose and publish your Bitcoin transactions, but in most cases, users keep their identity secret.

5) No external interventions

One of the biggest advantages of Bitcoin is that it eliminates interruptions by third parties. This means that governments, banks and other financial intermediaries do not have any authority to interfere with user transactions or freeze a Bitcoin account. As already mentioned, Bitcoin is based strictly on a peer to peer system. Therefore, Bitcoin users enjoy greater freedom when purchasing with Bitcoins than when using conventional national currencies.

Digital currencies like Bitcoin are relatively new and haven’t gone through major tests yet. As a result, many feel that there are certain risks associated with using Bitcoin. Regardless of Bitcoin’s potential drawbacks, it is evident that its merits are strong enough to make it a legitimate contender to challenge conventional currencies in the not too distant future.