With so many different forms of money around the world, it can be hard to keep track of them all. However, there’s one currency that is doing things very differently than any other – Bitcoin.
What makes Bitcoin so unique and where can i buy bitcoin? Here are some answers to frequently asked questions about Bitcoin and its growing influence in the modern world of finance and economics.
A defining characteristic of Bitcoin is that it’s fully anonymous. While your bank account number can identify you to a third party, there’s no such identifying information attached to a Bitcoin address.
This distinction has huge implications for banking: most people don’t think twice about having their name attached to a bank account number but can be much more hesitant when it comes to anonymity and security.
In some ways, the virtual currency could prove even more secure than regular currency because all transactions are registered on an online ledger, which makes counterfeiting nearly impossible.
There are no borders to crossSection: No intermediary
Bitcoin puts many people off because they’re worried about credit card fraud. Credit cards rely on banks, which in turn rely on complex networks of verification that can take days to complete.
With Bitcoins, however, buyers and sellers deal directly with each other-that means there are no borders or third parties to deal with.
This is also why there’s no risk of identity theft or fraud when buying products with Bitcoins. Once you buy your coins and open an account on a virtual exchange like Mt Gox, it’s up to you where you spend them.
If somebody gets hold of your login details, they still can’t use them without access to your computer.
Low transaction fees
There’s usually a fee for every transaction when you use a credit card. With bitcoin, however, there are no such fees.
You can send as much money as you want without going over your monthly limits or spending an extra dime.
The network will even automatically route your payment through a variety of exchanges and markets to ensure that no intermediary gets paid along the way (this process is known as clearing).
In short, bitcoin transactions are borderless, transparent and free-which makes them great tools for merchants and privacy-minded users alike.
Ease of use
Like cash, Bitcoin is easy to use. There are no registration forms to fill out and no passwords to remember.
You simply download a free application for your PC or cell phone and get bitcoins by accepting them as payment for goods or services.
Several major retailers are already accepting bitcoins as payments, and you can buy gift cards with bitcoin.
What’s more, many of these companies offer special discounts or incentives if you pay with bitcoins rather than traditional currency.
It doesn’t cost anything to start using bitcoins. You just need an Internet connection, which is why they have become so popular in developing countries like Argentina and Zimbabwe.
It may not be long before they become mainstream in America.
While bitcoin has many desirable features, such as a stable monetary policy and low fees, it does have its drawbacks.
For example, there’s a good chance that bitcoins will be stolen or lost forever if left unprotected. Also, bitcoin doesn’t provide protection against inflation or deflation.
If you trade your bitcoins for U.S. dollars today, you’ll likely be able to buy fewer goods and services tomorrow due to rising prices and falling currency values.
To avoid these risks, it’s best to store your bitcoins in a secure virtual wallet-an encrypted piece of software that sits on your computer hard drive until you’re ready to spend them on real-world purchases.