Bitcoin is based on an incredible technology known as the blockchain technology that makes bitcoin a ground-breaking payment method. While some people are disappointed with bitcoin because the government doesn’t back it, more than half of the world is praising bitcoin for being a decentralized currency. The invention of bitcoin has benefitted individuals, investors, and traders, and some people even became millionaires after investing in it. But if you are new to the bitcoin world, you might be thinking about what things make bitcoin the best money or form of money.
Let us learn some reasons and learn why people appreciate bitcoin and its incredible technology.
Bitcoin transactions are economical because there are no intermediaries involved in the processing of transactions. Sometimes the cost of bitcoin transactions is free, and sometimes there is only a small fee charged for processing the transactions by miners when they login to the App. Even if bitcoin users transfer money internationally, they have to pay a low transaction fee. To know more about this, you can click here
Bitcoin is a peer-to-peer currency that enables all its users to send or transfer bitcoins to any part of the world in a time of few minutes. There are neither restrictions on the number of bitcoins that can be sent nor restrictions on destinations where the money is sent. Bitcoin transactions get processed fast because of no involvement of banks.
Bitcoin is a global currency which means users can send and receive bitcoins from any part of the world. Bitcoin enables borderless transactions, and only a bitcoin address is required to send and receive bitcoins. It provides the freedom to all users to make payments without permission or approval of any third parties.
No central banks, government, and individuals are involved in the approval of bitcoin transactions. No central authority can control or restrict the supply and distribution of bitcoins. Bitcoin is a digital currency created to benefit people by eliminating the entire control given to the bank for controlling the fiat currencies.
Bitcoins work on blockchain technology, and the exclusive feature of blockchain is that it has made all transactions public. Each bitcoin transaction is recorded in a shared public ledger that is transparent means viewable to all bitcoin holders. Users can know what bitcoin address holds what amount of bitcoins, but along with transparency, bitcoin also maintains anonymity.
Unlike fiat currencies that can be printed by central banks every time required, no authority or individual can generate bitcoins. Bitcoin is a computer code, and it has only a limited supply, and no one can increase or decrease the supply. The bitcoins are mined, and the miners have to solve complex cryptographic puzzles to mine bitcoins. There are 21 million bitcoins that could ever exist in the world.
Based on proof-of-work
Like fiat currencies are based on trust in banks and government, bitcoin is entirely based on the consensus known as proof-of-work. In the development of the bitcoin network, if improvements are suggested in code that is required to be changed that those improvements got implemented, even the majority votes for it and accept the change.
Why have merchants started accepting bitcoin?
No one believed the potential of bitcoin and thought that the government would ban it. In reality, bitcoin has made revolutionary changes in the entire monetary system. Unlike debit/credit cards, where payments can be reversed, bitcoin payments are irreversible. Irreversible transactions are one of the main advantages for merchants. Despite irreversible transactions, there are many other advantages that bitcoin provides to businesses that are:
Less risk of theft and fraud
Merchants now don’t require to add extra cost in the actual product price that produces scams and instead for sale and purchase of products. The merchants offer heavy discounts for bitcoin payments because, with blockchain, it is impossible to counterfeit bitcoin.
Additionally, no person can get access to your funds without your permission. This eliminates the risk of theft.
No cost of marketing
The best thing about accepting bitcoin is that merchants don’t have to do marketing of their business. Merchants only have to put stating that “Bitcoin Accepting Here.” Customers are attracted to businesses that accept cryptocurrencies. Your business will grow, and you’ll see the difference after accepting bitcoin.