What is Bitcoin? Yes, Investing in Bitcoin is a digital form of currency that you use via a computer or your mobile, but it has no physical presence. It has no bank to look into its functioning or administer it. It is totally free of any third-party control. It basically functions on a peer-to-peer system. And all its transactions are recorded in a public ledger where only the nodes in the system have access to it. Very simply put it works on blockchain technology. This is safe and this is hassle-free.
Conversion Of Bitcoins Into Cash
There is one serious question here. Can Bitcoins be converted into hard cash? And the obvious answer is yes and so naturally you can use your coins to buy any number of services and goods with it. But you just cannot take it to a shop to buy anything.
The Purpose Of Bitcoins
Bitcoins were created with the intention of helping people carry out transactions virtually over the internet independently without the control of the government like in fiat money. It was created with the motive of making an alternate system of financial transactions where people would not have to suffer like as in the traditional financial system.
Benefits Of Paying With Bitcoins
Now that you know you can use Bitcoins to buy goods and services you should also know its benefits. In this alternative system of the financial system, you are not under anybody’s control. You can independently transact which results in the user’s autonomy.
When you transact no one will ever know your identity. Unlike that of the traditional system, you need not identify yourself. It is conducted pseudonymously. They are rather conducted on a peer-to-peer basis. Because it functions independently you require to pay no bank charges and even if you make international transactions, the fees are nominal. You must set your account in such a manner, that there is no tampering with the safety, and you get the best returns possible on the investment that you make.
The Utility Of Bitcoins that you must understand
Bitcoin has many features that make it very user-friendly. You can freely use your Bitcoins to do any amount of shopping provided the company accepts it. It is primarily used for:
- Bitcoins are transactions made extremely privately. There is no way anyone will know of your transactions. You can use it for anything that you wish to spend it on and everything only in absolute privacy. There is no need for verification.
- There are ways in which you can mix and invest Bitcoin and other types of currencies depending on the need that you have. Talk to the right investor and get the best deals possible.
- In the Bitcoin, ecosystem transactions work on a peer-to-peer basis which means you are not answerable to anyone while with fiat money you are answerable to the government. It means that you do not have to take anybody’s permission to make any transactions.
- You do not have to give any extra charge, and there is no middleman involved in the business, hence, trading in Bitcoin becomes safer with every use.
- In the Bitcoin system, you do not incur charges that might make you lose some amount of money which means that it is cheaper to use Bitcoins to buy goods and services
- You can do your transactions on the go meaning you can do it sitting just where you are. There is no geographical limitation
- You pay a certain amount as transaction money only when you make international transactions
These are five of the reasons why you can use Bitcoins easily as compared to the fiat money of any country. To top everything else you can say Bitcoins are very safe and secure which makes them more viable as a means of transaction for anything that you want to buy with it. And you are even safer when you make your transactions with Bitcoin.
While conclusion you can say that Bitcoins are very easy to handle and have a lot of positivity about it, but it has only one major drawback and that is their acceptance. It is still yet to be accepted by the masses before it can function side by side with the fiat currency. Only then can you fully call it an alternative system.