What is Bitcoin?
Bitcoin is the newest form of digital currency, or ‘cryptocurrency’, capable of operating without having to rely on a bank account, or any government body, to process the transaction. In under fifteen minutes, a Bitcoin transaction can be completed between buyers and sellers across the world. These transactions incur minimal processing fees, allowing both parties to have complete, unrestricted control over their funds.
How does it work?
Bitcoin, or ‘BTC’ transactions are facilitated through a Digital Wallet, that provides users with a unique address. These digital currencies can be transferred from one wallet to another, in almost no time! Here are the steps to begin your Bitcoin experience –
• Download an official Digital Wallet, and obtain your Bitcoin address.
• Earn or procure Bitcoins through a number of exchange services, at the current exchange rates.
• Transfer Bitcoin to a merchant or friend by adding their provided BTC address.
What are the benefits of using Bitcoin?
- Payment Independence – Bitcoin allows users to transfer money to and from any part of the world, with no worries about any Political, Socio-Economic or other restrictions usually faced when transferring money. As there is no intervening central authority, it is completely possible for Bitcoin users to experience full independence in their financial transactions.
- Counterfeit-proof – Bitcoins are entirely digital, with no reliance on a physical form for transactions and trading. This ensures that they are free from the risk of counterfeiting, as digital currencies are protected by sophisticated systems that prevent tampering or duplicating the currency in any way.
- Security & Control – There is safety in using Bitcoin as it allows users complete control over their transactions. Users are free from the threat of any taxes or extra fees being levied on their transactions, without adequate notice. A Merchant can only add these additional charges once Customer Approval is received for the same.
- Anonymity & Identity Theft – There is no personal information or data that is attached to these digital currency transactions, which helps protect users against identity theft or forgery. Through sophisticated encryptions and back-ups, it is possible to completely protect Bitcoin and ensure the safety of your transactions.
- Transparency – Every finalised Bitcoin transaction is visible to everyone, with only the user details being hidden. Every user’s public address can be monitored, allowing full transparency in transactions and the ability to verify the Bitcoin blockchain.
- Low Processing Fees – Bitcoin transactions incur little to no processing fees whatsoever. While users have the option of including charges to encourage a quicker processing period, there is no obligation for parties to do so. The purpose of this fee is to establish which high priority transactions that require network attention and faster processing times. There are also Digital Currency Exchanges that help merchants process their transactions by converting Bitcoin to a ‘flat currency’, and these services usually incur lower fees than the average credit card transaction.