Description: Bitcoin is medium for performing digital transactions, the same way all other digital existing currencies do. These currencies are based on encrypted cryptographic algorithms. This is what makes them decentralized, thus giving users all ownership.
The interest in bitcoin today keeps growing. So, it’s crucial for people to learn more about it. This is actually better compared to other currencies in many ways.
How Bitcoin is Better Compared to Currencies
1. Preventing Stealing
It is impossible, steal bitcoin unless the thief acquired a secret key linked to the wallet of a user. So, bitcoin digital currency offers safety through design. For example, users must not reveal their secret key like in credit cards when they perform a transaction.
2. It Can Never Get Falsified.
Whenever a person transfers bitcoin to another person, he/she does not hand over bitcoin. The person submits his/her transaction to a network that ensures the address is correct. So, there is nothing to falsify.
3. Divisibility, Portability, and Durability
Durability: If bitcoin private key is on a machine and machine is destroyed, the digital currency will die with that machine. With the best precautions, keys can be as durable as the medium. To damage network, a person should remove every machine that has software including those operating in space. That does not happen many times.
Portability: People may travel anywhere in the globe with millions of bitcoins provided they have their secret key.
Divisibility: Presently, bitcoin may get divided into one hundred million units which are called satoshi. But that is not the set limit, it may be divided further.
A person can travel anywhere in the globe and use bitcoins. There are safer, having compared to having cash, mostly when people are carrying a huge sum of money in a region where crime is high. This digital currency is even much easier to change bitcoin to USD and other currencies.
5. Not Subject to Government Whims
From most bitcoin news, supply is steady, and the cost gets determined by the demand in the market. It is easy to tell a number of bitcoins which will be there in 10, 20 or 70 years from now.
6. Immediate Transactions
Once it is sent, bitcoin spreads via a network immediately. The person receiving will see it immediately or after a few seconds. This is why most
top online casinos are using bitcoin these days.
7. Securing Value of Store
This is important for places where people do not trust those companies responsible for their money. For instance, in Venezuela, the property of people including their savings may get confiscated bylaws. Most citizens are not able to get old exit forms such as emigration or getting better currencies. With the best bitcoin exchange, they have a way out. They may choose to buy or mine a safe store which will not get confiscated since they will be controlling their secret keys.
8. Smart Contracts
For instance, if you want to buy someone a gift, you can just program a smart contract to do everything without involving a third party. This is done by simply creating a bitcoin wallet for yourself and for the person you are getting the gift for. You can then send money to your wallet and program a smart contract to send money to the person you are buying a gift on the preferred date. The recipient will automatically earn bitcoin money on the date you specify.
9. Banking the Non-Banked
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With bitcoin, you can escape traditional banking systems, surveillance and high charges. It eliminates the need of depending on 3rd parties such as Paypal for performing a transaction.
10. No Fraud and Chargeback Risks
There are no fraud or chargeback risks in bitcoin. That is a serious issue for the traveler because of huge payments. For example, most European online shops block or prevent credit card payments from other nations without chargeback risks. So, both the seller and the buyer benefit, a buyer accesses the goods and seller sells without dangers.
We believe with information we have shared here you will never need to ask how does bitcoin work. You also now know the reasons to use bitcoin instead of conventional currency. Write to us if you still have any questions about bitcoin after reading this.
The author of this bitcoin article is a popular writer who most writers look up to. There are plenty of informative articles written by him online. Joe always writes about recent technologies and advises people on whether they are good or not. Besides being a writer, he enjoys playing no deposit casino.