Advantages of bitcoin
The following are some of the major advantages of using Bitcoin versus other currency systems:
1. Open Source Software:
The software used in bitcoin transaction is completely open source, i.e. anyone can look at it to make sure that it does what it is supposed to.
2. Peer-to-Peer System:
Bitcoin transaction system is purely peer-to-peer. Users will have freedom to anything with their money as no third party like governments, banks or other financial institutions have no way to interrupt bitcoin transactions. There are multiple redundant copies of the transactions in database.
The bitcoin network is not controlled by any single institution. This makes it different to conventional money. Every machine that mines bitcoin and processes transactions makes up a part of the network, and the machines work together. And if some part of the network goes offline for some reason, the money keeps on flowing. This puts some people at ease, because it means that a large bank can’t control their money.
4. Easy to set up:
You may require producing a lot of information to open a bank account and it takes some time. Whereas, you can set up a bitcoin address in seconds, no questions asked, and with no fees payable. Sending bit coin is as simple as sending an email and you can purchase anything with these coins.
Nobody can know that we have bitcoin. We can hold multiple bitcoin addresses, but they are not linked to names, addresses, or other personally identifying information.
6. Transparent Information:
Bitcoin transactions can be verified by anyone at anytime in the bitcoin block chain i.e. a huge version of general ledger of transactions happened in the network. With this block chain all transactions are available for all. User’s public address will be available and private information is hidden. They don’t know whose bitcoin it is. Bitcoin protocol cannot be manipulated by any person, institutions or government since bitcoin is cryptographically secured.
7. Very low transaction fees:
Your bank may charge you some minimal fee for international transfers. But within bit coin payments currently there are either no fees or very low fees. Sometimes in order to make the transactions faster, user might include fees. If you pay higher fees, it gets processed quicker.
You can send money anywhere at any time and it will receive minutes later, as soon as the bitcoin network processes the payment.
9. No Risk of “Charge-backs”:
Once your bitcoins are sent, there’s no getting them back, unless the recipient returns them to you. Ownership address of bitcoins will get changed to the new owner, once it is changed it is impossible to revert. As there is only one private key associated with new owner, only she/he can change the ownership of the coins. This ensures there is no risk in receiving bitcoins.
10. Freedom in Payment:
Bitcoins can be sent and received anywhere in the world at any given time. We no need to worry about travelling, holidays or any other limitations might occur in money transfer. As there’s no any central control on bitcoins, you are in control of your money with bitcoin.
11. Control and Security:
As bitcoin transaction is controlled by user itself, it helps to keep bitcoin safe for the network. Without asking consumers, merchants cannot charge extra fees on transactions. It also protects against steeling identity as personal information is kept hidden.
12. No Taxes:
Since there is no third party interception with bitcoin transactions, there is no way to implement a bitcoin taxation system.
13. Mobile Payment:
Bitcoin users can pay for their coins anywhere provided they have internet connection like any other online payment system unlike personal information is not required to complete the transaction.