Bitcoin: The Fastest Emerging Electronic Payment Method written by: edwino4 Introduction
Bitcoin is the latest and hottest form of digital payment, it is a digital currency which has been created and it is held electronically. There is no specific individual who control it. There are not printed like the euro or dollars but produced by individuals, the businesses, and running computers all over the world, by using software which solves mathematical problems. Bitcoin is but only one of the first example of increasing category of currency known as crypto currency. Read on, enjoy and most importantly learn all about the bitcoin.
How is bitcoin different from all other currencies?
Bitcoin can also be used to purchase commodities electronically. Due to this fact, it is just like the Euros, yen, or the dollar which are all traded digitally.However the bitcoin has some unique characteristic, the important fact that makes it different from all the conventional currency, is that the bitcoin is decentralized. There is no institution in the world which controls the network of the bitcoin. This factor put most individuals at ease, because there have full control of their money and no bank will ever control them.
Benefits of bitcoin
Has a payment freedom
You can send and receive any amount of currency instantly from any part of the world at any time of your liking. There is no bank holiday. No imposed limits. No borders. The bitcoin gives the user full control over his or her money.
It has very low fees
The bitcion transactions are currently processed with extremely low fees or either on fees. The uses may only include the transaction fees in order to receive the priority processing, this will result to a faster transaction by the network. In addition, the merchant processor, which is a component that helps the merchants in processing all the transactions that they make, it convert bitcoin into the fiat currencies and also deposit funds directly to their merchants bank accounts on a daily basis. Due to the fact that these services are offered by bitcion, there are offered with lower fees than those offered by credit card networks or PayPal.
It has fewer risks for the merchants
The bitcoin transactions are all secured, irreversible, and most importantly it doesn’t have any sensitive or even personal information of their customers. This section fully protects the merchants from any kind of loss caused by fraud or a fraudulent chargebacks, with the bitcoin you will not need the CPI compliance. The merchants can expand with a lot of ease to newer markets where either the credit cards doesn’t exist or the where the fraud rates unreasonable higher. The net result will be lower fees, a larger market, and definitely a fewer administrative costs.
Control and security
All the bitcoin users have full control over their transaction; it is not possible to force the merchants with unwanted or even unnoticed charges that always happen with other forms of payments. The bitcoin payment can also be made without any personal details attached to the transaction. This protects users from identity theft. The users can also protect their funds with an additional backup and encryption.
It is transparent and also neutral
All the information attached to the bitcoin currency supply is readily available for anybody on the block chain if any person needs to verify all the transactions that they have made in real time. No institution or individual can ever manipulate or control the bitcoin protocols because the bitcoin is cryptographically protected. This allows core of the bitcoin transaction to be given full trust for being a completely neutral, organized, and transparent.
The development of the Bitcoin casino has taken on popularity in the last couple years. It has helped people avoid many of the general regulations associated with gambling. The bitcoin casino provides a level of identity protection that can not be found with fiat currencies. While the bitcoin casino does provide a level of anonymity it does have the drawback of changing the bitcoins back to fiat currency.
Problems and risks of the bitcoins
They are easy to lose
If it happens that someone hacks or even stales your credit card, the chances that you will retrieve it is very high because the bank will fix that problem. The cash can also be recovered if the cops act faster. But with the bitcoin if you lose then you better forget it because it is gone for good. The mechanisms that can track and restore lost or stolen bitcoin have not yet being created and this exposes you to hackers and the best way to be safe is by storing all your funds on a disk which is disconnected from the web.
It is untraceable
This factor of the bitcoin attracts crimes. Individuals can purchase and resell drugs and some other illegal items with a lower risk of being tracked by the authorities. In this regard, bitcoin is just similar to other regular cash which are probable used by criminals. These factor will definitely warrants unneeded attention from the authorities which will lead to the enclosures of the bitcoin
It is hard to trade
You can use your credit card to purchase bitcoin online, due to the facts that have been mention above. There is no proper guideline on how to buy and sell the bitcoin. There are numerous institutions that offer the exchange service for bitcoins, but it is definitely not an easy task as transferring funds from your PayPal account. But this will improve in due time because most institutions will compete to offer solution for the bitcoin transfer.
It is still new in the market
The bitcoin is still an infant, and it is possible that another crypto currency can emerge and over run bitcoin or even someone somewhere can also find a major flaw in the bitcoin system. It doesn’t have a decade of history but time will tell.
You cannot buy stuffs with the bitcoin
There only few places where the bitcoin currency are accepted as a form of payment. This may change in the coming years but current most individuals only buy bitcoins as part of their investment.
Bitcoin is very volatile
Currently bitcoin prices are increasing like crazy. May the price will stabilize in the coming days to around US$ 10 from the current price which is about US$200. The price is up because most of the webshops adjust their prices every single day. It is not that convenient for trade.
No one knows the future of the bitcoin but as you all know that change is inevitable and gradual it will definitely hit it big in the world market. With the above details you can now make the choose of whether to join the bitcoin legal because it is currently trending and it is the hottest invest point.