BENEFITS OF USING BITCOINS

This is an era of innovation and development where there is a lot of research that is put into every field to make lives easier and comfortable. One such development is the cryptocurrency. It is digitally managed, unlike the conventional fiat currency that is being legally used across the world. Though it is still new to many of us and is not a legal tender in many countries yet, this is being widely used in certain areas across the world. There are a few hundred such cryptocurrencies but Bitcoin stands ahead of all with its unique features.

Bitcoin is one type of cryptocurrency which is the first of its kind. One of the key features of Bitcoin is user anonymity. Usernames of the handles can be any random name and can be changed whenever the user wants. This helps him protected from target attacks.  The end-to-end flow of bitcoins is such that any user can swap the flow and mix it with other bitcoin value using a few computer programs. This helps them keep their transaction anonymous and risk-free.

Bitcoin’s blockchain is indefinite. That means, as the transactions occur very frequently, there is a periodic and constant creation of new blocks. On average, there is a new blockchain created every 10 minutes with all the prior transactions recorded and a new block is created. Every two weeks, Bitcoin’s mining power is adjusted based on the new blocks created. With its unique technical features, transactions of bitcoin can’t be duplicated.

Quality of bitcoin currency

High liquidity is yet another key feature that makes bitcoins lucrative. Bitcoin exchanges try to keep its value relative to the conventional fiat currencies. Also, being one of the popular cryptocurrencies, it has high demand in the market and gets easily exchanged. Bitcoin units can also be exchanged with less popular cryptocurrencies.

Passwords of bitcoin units are highly protected and can’t be retrieved at any cost. Even if the original owner of the unit forgets their password, there is no alternate way to retrieve it. This ensures that bitcoins can’t be hacked.

International or cross border transactions are easier than the regular currency transfers and are no different than any intra-country transactions as bitcoins are the same everywhere. The high transaction costs and exchange costs of the traditional currencies can be avoided as the highest charged by bitcoin is less than 1% of the total value.

Supervised by any authority

Bitcoins aren’t supervised by any authority. Hence, there is no influence of any government on it and no one can touch your money under any circumstances. Also, there is no need to pay any taxes to anyone. If you want to trade in bitcoins you have to become a member

Bitcoins are built such that there exist only 21 million units of it. This helps to sustain the value of the currency for longer terms against traditional currencies which can be produced whenever the government wants to. (Though it’s not always done, there were instances where governments have resorted to such policies thereby reducing the value of the currency).

Considering all the above points, it is no wonder that the bitcoins have become popular among all the other cryptocurrencies that are actively being used now. They are already being accepted by many popular websites across the world. The fact that some countries see bitcoins as a potential threat to their conventional currency explains the popularity it is being gained. Hence, we can conclude that it is safer to invest and trade using bitcoins if it’s done cautiously.

Nowadays, we can buy anything from the bitcoin if the opposite party accepts the transaction in bitcoin. Each bitcoin transaction is recorded on the blockchain, whose work is to authenticate and protection of transactions. Generally, any currency usage is for transactions based trade, for buying or selling. But bitcoin is not generally accepted by all sellers or buyers, that’s why it is not recommended for general use.

Bitcoin exchange in India is increasing rapidly. Since RBI in India banned the regulation of cryptocurrency for any legal activities. This sweeping out of cryptocurrency, wind down the domestic trade of cryptocurrency.