5 Advantages of BitCoin
Introduction of Bitcoin
Today we will talk about a virtual currency called “BitCoin”, only reason to write about this thing is to increase the existing information and knowledge on this crypto currency. On internet and even on television we more often hear about new electronic currency/virtual/crypto currency. At the moment the information on “BitCoin” is not very much due to the fact that only few people knows perfectly about it, but the popularity is rapidly gaining momentum.
Even some states have begun to express their opinions about this virtual currency. In this article I will try my best to explain that what is “BitCoin” and how it can be produced and other introductory matters. Definition of BitCoin is hard to explain, but let me try to gather some valid information to make an understandable definition.
“BitCoin is a crypto currency or in common it’s a digital currency that can be created and held electronically. No one controls it. It’s not in a printed form like other currencies like Dollar and Euros or Yen. It can be produced only by the users and exchange within the businesses.”
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If we compile this definition on the basis of our knowledge, we can create a brief definition of our own, such as; “BitCoin is a virtual currency that exists on the network and can be exchanged for real money.” Even Wikipedia is unable to define the word “BitCoin” properly, so you will find random and anonymous definition about “BitCoin” each time you search.
Who is the Creator?
Well that’s a valid and common question will pop up in our mind, the answer of this question is not very satisfactory, however existing information shows that “BitCoin” was created by a Japanese person named “Satoshi Nakamto” in between 2008 – 2009. No such information is available about the identity of Santoshi, and it is also not found anywhere in the “BitCoin” network, it s mystery that is not resolved yet. Although some researchers published some details about “Santoshi Nakamoto” but that is just a myth.
Only 21 million “BitCoins” are released exactly till now, not one more. This is a clear limit which will gradually commit the number. This figure was counted in the beginning of 2014, recent stats may vary. Despite the fact that number of “BitCoins” becomes more and more every day, but their path to real money recently rather abruptly goes up. The recent cost of one “BitCoin” is 700 USD, in summer 2013 the currency was worth 100 times cheaper. It is an enormous growth that could earn you even 10000% of your currency.
“BitCoin” is often compared to “Virtual Gold”. In the real world gold is just a metal that has a cost, as there is great demand. “BitCoin” have the same meaning, but to maintain them is impossible due to its virtual existence. “BitCoin” will have same value as long as demand is there, and the demand of a new growing yet steady currency gives the large prospects. By the way, in future, maybe manufacturing the real gold “BitCoins” is possible.
What is Mining?
You will be surprised, “BitCoins” can be mined, but it is not always be profitable. Honestly and personally, I have never mined “BitCoins” through mining, but judging by the user feedback and the online stats an idea can be taken. Because the more they create, the harder it will be to creating the new form, but due to the growth rate of “BitCoins” the chances of profit was increased, so the production was much easier due to less complexity.
Most of us said that the “BitCoin” is the currency of future, but it is early to say so. This can happen only if it will legalize all the countries according to the laws of “BitCoin”.
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Let’s look at what significant advantages have the new crypto currency?
BitCoin Advantages :
Due to the decentralized network, “BitCoin” works anonymously.
You can only track the last transaction, but to whom and what was transferred before will stay as really private. That is why it is not allowed in all countries around the globe.
- The alternative to the Existing Money
BitCoin is an alternative rather convenient method of payment. Now there are a lot of places, both online and in real life that take BitCoins.
- No Taxes
When paying through BitCoin, taxes will not apply, since officially BitCoin is not a printed currency.
This gives the opportunity to buy the good a bit cheaper.
- International Currency
BitCoin is a truly international currency, it is same everywhere, and it is very convenient as well.
For example in US and in other countries to pay for everything you can use BitCoin without worrying about currency exchange.
- No Fee
No fee for transferring BitCoins. However, if the transfer is to be implemented immediately.
You will have to pay the commission that you will decide to pay, the more you pay, the faster the transfer.
Well, as with advantages there are also some negative points of BotCoin such as the risk of security as any virtual currency cannot be secured properly, it is also outside the law by some countries to use BitCoin, fluctuation of rate is also a bad thing in order to maintain your balance.
I think that is enough information on BitCoin, because other things might not be necessary or important, your questions and comments are appreciated more than anything. However such information is based on my personal use and experience. If my any chance I forgot something to mention, you can ask me through the comment section or I can be reached easily through email.