Did you know that the country El Salvador has brought 400 bitcoins and plans to use the currency as a legal tender? So, what is Bitcoin, and why are people buying it? I will try and explain the benefits of this currency later in the article but first, let us look at the meaning of Bitcoin.
In simple terms, Bitcoin is digital money that does not have a central bank or an administrator.
Instead, it uses the peer-to-peer bitcoin network for transferring money from one user to another.
Even though bitcoin is a currency, it has no physical form like currency notes. Balances are in the form of a public ledger that is accessible to all Bitcoin users. Transactions are verified through computers.
Benefits of Using Bitcoins
Let us now look at some of the benefits of using Bitcoins.
- No sanctions: While using traditional currencies, there are restrictions from banks, financial institutions, and governments on how you must use them. On the other hand, you can use Bitcoin anywhere in the world. There are no restrictions on how you can use it.
- No fear of seizure: No one can claim ownership over your Bitcoin because it is your money. You are essentially your own bank.
- No Censorship: As said before, transactions are verified through computers, so no one can block or control the transactions you do.
- Quick transactions and easy to use: Transactions with Bitcoins are quick and cheap. The cost of transferring money is even lower than payment networks like PayPal and Mastercard.
- It is real money: This currency can be used just like paper currency. You can buy food, electronics, furniture. Basically, it can be used for anything from purchasing to transactions.
- Transparency: The information about all transactions done on Bitcoins are available to everyone.
- ANONYMITY: The great thing about using Bitcoin is that you do not need to verify yourself while making transactions. Purchases are not associated with your personal identity, and the Bitcoin address changes after every transaction.
Conclusion
These are some of the benefits of using Bitcoins compared to paper money. It is safe, secure quick, transparent, and anonymous. I hope you enjoyed reading my article.
