Bitcoin

Everything you need to know about bitcoin

Bitcoin was created in 2009 by an unknown person using the name Satoshi Nakamoto. The key is that transactions are made with no middle men. These coins can be used to buy books on Amazon, shop for furniture on a shop online and buy Xbox games. But much of the hype is about getting rich by trading it.

 

Why Bitcoin?

 

It can be used to buy merchandise anonymously. In addition, international payments are cheap and easy because are not subject to regulation or tied to any country. Small businesses may like them because they don’t have to pay card fees. There are people who buy bitcoins as an investment because they hope that they’ll go up in value.

 

What are the advantages of paying?

 

Bitcoin has, as we can see previous section, a lot of advantatges.

 

Anonymity

 

Bitcoin purchases are absolutely discrete. If the user doesn´t publishes his Bitcoin transactions, his purchases will never been associated with him . In fact, the anonymous Bitcoin address that is generated for user purchases is different in each transaction.

 

No Third-party Interruptions

 

One of the more famous benefits is that Banks, governments and other financial intermediaries can’t  interrupt user transactions or place freezes on Bitcoin accounts. It is a pure peer-to-peer system.

 

No taxes

 

One of the most important advantages is that sales taxes are not added onto any purchases because it is anonymous.

 

Low Transaction Fee

 

Foreign purchases and standard transfers  typically involve exchange costs and fees. But in this transactions have no intermediary institutions or government involvement and the costs of transacting are kept very low.

 

What are the disavantatges?

 

Bitcoins Are Not Widely Accepted

 

Nowadays are only accepted by a very small group of online shops and markets.

 

Wallets Can Be Lost

 

If you lost your Bitcoin there is nothing that can done to recover it because there will be forever orphaned in the system.

 

Bitcoin Valuation Fluctuates

 

The value of these coins is constantly fluctuating according to demand. Therefore, there are people who buy bitcoins as investiment.

 

No Buyer Protection

 

When you buy something using these coins, and the seller doesn’t send the promised goods, nothing can be done to reverse the transaction.

 

And also you have to know that there aren’t physical form or valuation guarantee.

 

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