Bitcoin is also known as digital money or digital currency that can be used as a form of payment for the money that exists in electronic form. As technology is developing day by day, payments are becoming digital, which has resulted in less use of traditional currencies. Cryptocurrency transactions allow anonymous payment from peer-to-peer, and it is the most preferred payment option. It also paves the way for criminal actions that are carried out on the internet. Recently, several businesses are starting to accept Bitcoin as a form of payment.
Bitcoin – Digital Money on the Internet
- Bitcoin was invented by Satoshi Nakamoto, the most popular digital currency by market cap, that has its beginning in 2009. When compared with traditional currencies, which are controlled and distributed by the government, Bitcoin is not regulated by any Central Authority. The user can send and receive Bitcoins without disclosing their name or address, and they need not pay any fees to the bank.
- Even though Bitcoins are not physical, they can be purchased at various exchanges across the internet and can be traded by using fiat currencies. Bitcoins are created by a mining process and can be mined by anyone globally.
- If you are holding Bitcoins, you can save them in an e-wallet. It is a kind of software that can be used to manage your virtual currency. You can use Bitcoins to buy and sell products and services from individuals who accept Bitcoin as a payment. When you are transferring payments, your special ID is transferred over the internet and not your identity. Bitcoin can be used as a means of receiving and sending money anonymously.
- Bitcoin’s value can be determined by its popularity and its demand. When businesses start accepting cryptocurrency and people start using Bitcoins to make transactions, the currency value goes up.
Is Bitcoin Really Money?
Bitcoins are accepted as a form of payment around the world for products and services provided by various individuals. The Bitcoin transactions could be handled by using hardware terminals or a wallet address either by scanning a QR code or with touch screen apps. Any online business can accept Bitcoins by adding it as a payment option, just like adding credit cards, debit cards, Paypal, etc. Several self-employed individuals are getting paid in Bitcoins for their services.
Advantages & Disadvantages of Bitcoin as a Digital Money
- Lower Fees
When you compare cryptocurrencies to some of the widely used payment gateways and methods like PayPal, we can see that the transfer fees are lower. By using a cryptocurrencies payment gateway, the standard cryptocurrency fees are between 0 to 1% which is significantly lower when compared to credit card fees.
- International payments are made easier.
By using cryptocurrencies for international payment, it works out cheaper and time-saving. Going for Bitcoin transactions is much quicker, and the transactions are irreversible, anonymous, and the other party can receive the payment instantly.
- Protection from fraud
You need to be careful about your personal information when you are dealing with online payments. By using Bitcoin as a form of payment, your details are not revealed as well as your identity, where the payment is transferred to an unknown third party within seconds. By using cryptocurrency as a form of payment, you need not reveal your personal information like your name or address, and the transaction is kept anonymous.
- One of the major drawbacks of Bitcoin is, it does not have any standardized policies for refunds or chargebacks like the credit card companies and online payment processes provide their customers. If there is any online fraud, it is very difficult to trace where the money went.
- Although it provides security for the online payments by using Bitcoins is increasing, cybercriminals are devising fraudulent plans to steal the money by different means are increasing and have not decreased over the recent years.
From the above points, we can say that Bitcoin is becoming a mainstream cryptocurrency that can act as a means of exchange. Even though it has several advantages over traditional currencies, it has its drawbacks. Some of the advantageous features like cheap, fast, powerful means of exchange make it the most preferred form of exchange. Crypto enthusiasts see Bitcoin as the digital currency of the future, although it is not accepted by everybody. Currently, many investors are investing in Bitcoin and making huge profits from it. You can also make investment or trade in Bitcoin by using the Bitcoin Pro platform to make profits, It is an automated trading platform which will help you to earn massive profit. Check out Bitcoin Pro Review to know more about this unique platform along with its legitimacy.