Bitcoin: how to utilise daily transactions
1st Jan 2015 Managing your Money
What is Bitcoin?
A digital currency that can be distributed electronically in crypto. Bitcoin is one such cryptocurrency. The abbreviation of this peer-to-peer transactional digital currency is BTC. This digital currency cannot be manufactured in an infinite amount. There is a maximum permissible limit of 21 million above which no Bitcoin can be created. A group of programmers designed open software and this gave birth to the concept of Bitcoin. There are many other cryptocurrencies but Bitcoin is the most famous one out of them.
Who is controlling the Bitcoin network?
Banks, corporations, and governments are not involved in Bitcoin transactional fees. No one can claim any kind of fee on the transaction. The blockchain which acts as a public ledger stores all the information regarding the transaction. Hence enough transparency is guaranteed. The user can have full control over the financing. The main theme of BTC was to make it an autonomous mode of payment. Though the government is thinking of putting some kind of tax on BTC so that the revenue is generated in the government treasury.
How do Bitcoin works?
The person can witness the Bitcoin storage only in the wallet and during the transactional results. The digital records of the transaction are called block hence the algorithm involved storing the personal data is called blockchain technology. If someone tries to modify one of the blocks, the rest of the following blocks will automatically be pursued. In this way, the scammer can be spotted very easily. Digital signatures are used for maintaining the authenticity of the transactions. The validity of each transaction is witnessed very easily by the wallet holder.
What are the characteristics of Bitcoin?
- Bitcoin is the most decentralized mode of transaction. There is no interference of government authorities. Hence no tax is deducted on the Bitcoin transaction.
- It is a non-refundable mode of payment. The transaction can only occur in one way. Hence there is no possibility of scam.
- Bitcoin is the fastest mode of transaction. It takes just a few minutes to conduct the payment. There is no paperwork involved. Normal bank transfer takes a much longer time.
- The Bitcoin recipients are anonymous. The sender of the Bitcoin will not reveal the actual identity. Hence there cannot a single authority that can track the credit history or account details of the Bitcoin wallet holder.
What are the positives aspects of Bitcoin?
- Portability: Bitcoin is easy to carry and use. No transactional amount is required to carry in the purse. A mobile device is sufficient to carry out Bitcoin transactions. Scanning a QR-Code will do the transaction in the fastest way possible.
- No involvement of PCI: Payment Card industry is the business regarding e-cards, debit, and credit cards. These agencies keep the user’s information and personal details. It is a very risky thing. The hacker is always keen to crack those data. Bitcoin does not involve any kind of such complicated things.
- The safest mode of transaction: Backup copies and encryption are enough to keep records of the transactions. The identity and personal information of the wallet holder are kept confidential. No one can steal the Bitcoin or make a fraud. Blockchain will easily scan the process and find out the guilty. For bitcoin trading online visit the website bitcoin code
How does Bitcoin differ from the traditional currency?
- Bitcoin has the fungibility that the traditional currencies lack. This online mode of transaction is accepted anywhere across the world. There is no requirement of conversions like euro and dollar.
- Bitcoin is durable than traditional currency. It is a mode of asset that is eternal and cannot be damaged like traditional cash. It is better in every sense.
- Counterfeiting is a common feature of traditional cash. But Bitcoin was designed to avoid the counterfeit problem. Blockchain technology and numerous advance defense mechanisms are provided to make Bitcoin the most flexible mode of payment.
More investment can be done in the business sector, thus nurturing the economy as a whole. The world should accept cryptocurrency since it is the safest mode of transactions from all perspectives.
