Most people have heard of the term Bitcoin but don't have a clear idea of what it really is. Simply defined, Bitcoin is a decentralized, peer to peer, digital currency system, designed to give online users the ability to process transactions via digital unit of exchange known as Bitcoins. In other words, it is a virtual currency.
The Bitcoin system was created in the year 2009 by an undisclosed programmer(s). Since then, Bitcoin has garnered huge attention as well as controversy as an alternative to US dollar, Euros and commodity currencies such as gold and silver.
As a new and growing virtual currency, Bitcoin has certain distinct advantages over the conventional government flat currencies. David Zimbeck explains following benefits that you will enjoy when using Bitcoin
1) No Taxation
When you make purchases via dollars, euros or any other government flat currency, you have to pay an addition sum of money to the government as tax. Every purchasable item has its own designated tax rate. However, when you're making a purchase through Bitcoin, sales taxes are not added to your purchase. This is deemed as a legal form of tax evasion and is one of the major advantages of being a Bitcoin user.
2) Flexible Online Payments
David Zimbeck says that Bitcoin is an online payment system and just like any other such system, the users of Bitcoin have the luxury of paying for their coins from any corner of the world that has an internet connection. This means that you could be lying on your bed and purchasing coins instead of taking the pain of travelling to a specific bank or store to get your work done.
3) Minimal Transaction Fees
Fees and exchange costs are a part and parcel of standard wire transfers and international purchases. Bitcoin is not monitored or moderated by any intermediary institution or government agency. Therefore, the costs of transacting are kept very low unlike international transactions made via conventional currencies.
4) Concealed User Identity
All Bitcoin transactions are discrete, or in other words Bitcoin gives you the option of User anonymity. Bitcoins are similar to cash only purchases in the sense that your transactions can never be tracked back to you and these purchases are never connected with your personal identity. As a matter of fact, the Bitcoin address that is created for user purchases is never the same for two different transactions.
5) No outside interventions
“One of the greatest advantages of Bitcoin is that it eliminates third party interruptions. This means that governments, banks and other financial intermediaries have no authority whatsoever to disrupt user transactions or freeze a Bitcoin account” David Zimbeck. As mentioned before, Bitcoin is based strictly on a peer to peer system. Hence, the users of Bitcoin enjoy greater liberty when making purchases with Bitcoins than they do when using conventional national currencies.
The Bitcoin system was created in the year 2009 by an undisclosed programmer(s). Since then, Bitcoin has garnered huge attention as well as controversy as an alternative to US dollar, Euros and commodity currencies such as gold and silver.
As a new and growing virtual currency, Bitcoin has certain distinct advantages over the conventional government flat currencies. David Zimbeck explains following benefits that you will enjoy when using Bitcoin
1) No Taxation
When you make purchases via dollars, euros or any other government flat currency, you have to pay an addition sum of money to the government as tax. Every purchasable item has its own designated tax rate. However, when you're making a purchase through Bitcoin, sales taxes are not added to your purchase. This is deemed as a legal form of tax evasion and is one of the major advantages of being a Bitcoin user.
2) Flexible Online Payments
David Zimbeck says that Bitcoin is an online payment system and just like any other such system, the users of Bitcoin have the luxury of paying for their coins from any corner of the world that has an internet connection. This means that you could be lying on your bed and purchasing coins instead of taking the pain of travelling to a specific bank or store to get your work done.
3) Minimal Transaction Fees
Fees and exchange costs are a part and parcel of standard wire transfers and international purchases. Bitcoin is not monitored or moderated by any intermediary institution or government agency. Therefore, the costs of transacting are kept very low unlike international transactions made via conventional currencies.
4) Concealed User Identity
All Bitcoin transactions are discrete, or in other words Bitcoin gives you the option of User anonymity. Bitcoins are similar to cash only purchases in the sense that your transactions can never be tracked back to you and these purchases are never connected with your personal identity. As a matter of fact, the Bitcoin address that is created for user purchases is never the same for two different transactions.
5) No outside interventions
“One of the greatest advantages of Bitcoin is that it eliminates third party interruptions. This means that governments, banks and other financial intermediaries have no authority whatsoever to disrupt user transactions or freeze a Bitcoin account” David Zimbeck. As mentioned before, Bitcoin is based strictly on a peer to peer system. Hence, the users of Bitcoin enjoy greater liberty when making purchases with Bitcoins than they do when using conventional national currencies.