The first and foremost reason why people opt for Cryptocurrency is because it does not fall under the purview of any central authority. It is a decentralized form of currency, and Bitcoin is the most popular among them. Bitcoin is chosen over fiat currency while making online transactions due to the fact that it remains unaccounted for. No taxes are levied on the transaction since the central authorities have still not been able to get this under their control.
What is Bitcoin?
Bitcoin was first invented in 2009 by Satoshi Nakamoto, an anonymous individual or group of people, who placed this Cryptocurrency out for public use and made transactions extremely convenient. With the mining of each Bitcoin, its value kept increasing, and so did the interest of the investors.
People started accumulating Bitcoins like they accumulate Gold. Even though the value of Bitcoin is not as stable as that of Gold, Bitcoin investors are quite sure of the enormous amount of wealth that they have stored in the form of Cryptocurrency.
All the transaction records are encrypted in a blockchain technology. Each block contains various transactional details known as Hash. No information can be deleted, removed or tampered with. The blocks together form a ledger. All the investors have access to the public ledger. This ensures that everyone knows about the transactions made. This avoids the problem of thefts, fraudulence and double transactions. If you too want to be a Bitcoin user you may find Crypto Code useful.
This article will look into the specific reasons as to why Bitcoin stands out.
Advantages of Bitcoins
- User autonomy: Bitcoin users experience complete autonomy while dealing with their assets. They are also not subject to scrutiny on the basis of their expenditures, as is the case of fiat currency. This avoids the problem of taxation.
- Discretion: The Bitcoin transactions are not accounted for like it happens in case of other modes of transactions online. Only cash transactions are untraceable. Even then, the income of an individual is recorded for taxes. Bitcoin is not. No taxes are levied on it, and nobody ever gets to know about it unless an individual willingly makes a show of it.
- Peer to peer focus: The Peer-to-Peer technology refers to the fact that any Bitcoin transaction just requires the sender and the receiver’s approval to make transactions in any part of the world. This process of transaction does not involve any external party. This speeds up the entire process too.
- Elimination of Banking Fees: With every transaction, the bank deducts a certain amount of money from the recipient and depositor. When the entire involvement of an intermediate authority is eliminated, the banking fees are off the table. The time that it usually takes to get a transaction authorized by the banks is also eliminated in case of Bitcoin transactions.
- Low Transaction fees: Transactions across the country and continent incur a lot of extra charges when it comes to any government authorized platform. The charges are usually huge. With the arrival of Bitcoin, this problem is dealt with easily. Depending on the range of money that can be transacted, the transaction fees of Bitcoin is negligible. The process of transaction too becomes much speedier.
- Mobile Payments: Unlike for fiat currency, the Bitcoin users do not have to rush to the bank whenever there is a big transaction that needs to be made. Everything is easily accessible on the phone. They can just sit back and make mobile payments as per their convenience.
- Accessibility: Bitcoins can be accessed in not just laptops and computers, but also on the smart-phones now. The user can log in to their account, make transactions, or invest at any point of the day with just their mobile phones.