A bitcoin can be defined as a stand-alone currency. Invented in 2008 by a person or group using Satoshi Nakamoto as their name, it exists as a cryptocurrency. That is, it represents a digital asset which is designed to function as a medium of exchange where individual coin holder records are stored in computerized databases in ledger form.
Bitcoins can be discovered online through companies such as btcrevolution.de. This article will explore some of the advantages of bitcoins over other forms of currency.
Bitcoins are becoming widely accepted as a currency and so useful in bringing together the world’s population and have them all transacting in one single currency. This makes international transactions easier by avoiding the need to convert currencies between the country of those paying and those receiving. It is the same principal as the Euro becoming a universal currency within the whole of Europe. All those paying in Euros can see instantly what they are paying in terms of the real cost to them. Easier comparisons can be made when buying online.
Lower Transaction Fees
As the use of bitcoins grows, the transaction fees are becoming lower. So, it makes sense to use bitcoins and avoid the kinds of transaction fees that are attached to say payments made via traditional bank accounts. To compare the fees of bitcoins with credit cards, the transaction fees for using a credit card can vary from 0.5 percent to 5 percent and include a 20 to 30 cent transaction fee charged at a flat rate, whereas bitcoin payments can be both sent and received at extremely low cost, and in some case, with no fee charged at all.
Bitcoins are an anonymous way of paying. This makes it an excellent payment method for protecting the privacy of its users. For example, if you are a business, you can purchase something without a competitor knowing or finding out. In the case of an auction, you can buy something world famous without the world becoming aware of it, other than if you choose to put say the painting on public display rather than keep it stored privately within your home. The anonymity makes the bitcoin a very secure way of paying for things.
As an investment, bitcoins are higher risk, but as a result, offer extremely good returns. For this reason, investors will have an amount of their money in his form on a longer termer basis to look for greater gains than leaving it in banks to earn low interest rates. One of the reasons for bitcoins becoming a good investment is the global acceptance of them increasing demand for this kind of currency. As with everything, demand does dictate price, and there is no doubt that bitcoins are now in greater demand than ever before. The strong performances of bitcoins have not gone unnoticed by, for example, Wall Street analysts. Historical price data is an indicator of just how well bitcoins have performed over the years in relation to other currencies and forms of investment.
As a volatile form of investment, bitcoin prices can rise to considerable sums. Comparing prices using the most popular exchanges, mid-2011 saw the price of a bitcoin hit $30, in April 2013 it would briefly manage $260, but then hit $1,000 mark in late 2013. Such buoyancy offers incredible investment opportunities for those timing their investments in bitcoins just right, or for those prepared to hang on to their bitcoins a little longer to achieve the highest levels possible.
So, at least four advantages here of investing and using bitcoins as a form of online currency. They are becoming widely accepted, so represent a way you can now pay for a variety of online goods and services. Bitcoins, due to their increasing appeal and wider use, have become a currency that will attract lower transaction rates when they are used for payment. It is an anonymous way to pay when your account is held online and not attached to an organisation that has a high street address. As a bonus, financial gains can be achieved from investing in bitcoins. The chance of large rises in their value is historically known, offering large potential gains in the future for those choosing to invest in this cryptocurrency.