Bitcoin is gaining huge popularity day by day. Due to the unique nature of virtual currencies, there are some inherent benefits to transacting through Bitcoin that users of other currencies cannot get. Here we discuss how does bitcoin works and pros of bitcoins.
7 Pros of Bitcoin
Bitcoin has numerous advantage over using localized currency we will discuss some of the biggest pros of bitcoin.
There is no way for third parties to track, identify or intercept transactions that are denominated in Bitcoins, one of the main advantages of Bitcoin is that sales taxes are not added to any purchases.
2. No Paperwork
There is no need of ID card, proof of address that all conventional banks required to open an account. Anyone from any country can accept bitcoins within minutes. All you need to do to start sending and receiving bitcoins is to generate a Bitcoin Address and download a Bitcoin Wallet program. You could have 1000s of different addresses if you wanted, there is no limit to the number of Bitcoin Addresses that you can have.
3. Low Transaction Fees
Bitcoin transactions have no intermediary institutions or government involvement, and the transacting fees are kept extremely low. Any transfer in Bitcoins happens very fast, eliminating the inconvenience of typical authorization requirements and waiting periods.
Click on Below Video: Bitcoin Transaction Details
4. Irreversible Transactions
Existing merchants will be well aware of the transaction. When accepting credit card payments, or bank payments the sender can reverse or chargeback the payment. There is nothing worse than sending a products/services to a customer, only to receive a message that the amount has been reversed, you have been cheated, and there is nothing you can do of it.
5. User Anonymity
Bitcoin purchases are discrete. Unless a user voluntarily publishes his Bitcoin transactions, his purchases are never linked with his/her identity, much like cash-only purchases, and cannot be traced back to him/his. In fact, the anonymous Bitcoin address that is generated for user purchases changes with each transaction.
Click on Below Video: How to Remain Anonymous while using Bitcoin
6. No Third-party Interruptions
One of the most widely publicized pros of bitcoin is that governments and other financial intermediaries have no way to interrupt user transactions on bitcoin accounts. The system is entirely peer-to-peer; users experience a higher degree of freedom than with national currencies.
7. Mobile Payments
Bitcoin users can pay for coins from anywhere they have Internet access like many online payment systems. It means that purchasers never have to travel to a bank or a store to buy a product. However, unlike online payments made with U.K bank accounts or credit cards, personal information is not necessary to complete any transaction.
How Does Bitcoin Works?
- Bitcoins are generated with a bitcoin mining application by anyone. A certain amount of work is required for each block to be mined.
- The total amount of bitcoins is limited and predictable.
- Bitcoins are stored in a digital wallet on a smartphone or computer, similar to online banking.
- A transaction is verified by miners and permanently and anonymously stored on the network. Every single transaction is recorded in a public ledger called the blockchain.
- Bitcoin software is open source meaning anybody can review the code.
Click on Below Video: How does Bitcoin Works?