Bitcoin celebrates its 11th anniversary in 2020. Since the release of the genesis block in 2009, the first cryptocurrency made a way from an unusual idea to the main digital asset with a capitalization of hundreds of millions of dollars. The “digital gold” has a lot of advantages, and due to this, its popularity is growing every year.
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The technical definition of Bitcoin
From a technical point of view, bitcoin is a kind of digital algorithm that requires a lot of computing power to be created. Bitcoin transactions should be understood as the transfer of bits from one computer to another.
Bitcoin wallet doesn’t literally hold a bitcoin. It holds a bitcoin address, which keeps a record of all transactions and a balance. This address – a row of 34 letters and numbers – is also known as “public key.” It’s not a big deal if the whole world can see this sequence. Each address/public key has a corresponding “private key” of 64 letters and numbers. This one is private, and it’s crucial to keep it secret and safe. The two keys are related, but there’s no way to figure out a private key by a public key.
What is Bitcoin in total
In economic terms, bitcoin is a limited currency that makes unnoticed deals truly possible, it literally doesn’t leave any trace.
It already seems a perfect alternative to familiar ways to pay and get paid, but there are more solid reasons to choose it for your business.
Why should you choose bitcoin?
The anonymity of Bitcoin is based on the fact that users can provide a new address for each transaction. Moreover, there is no need to write down your personal information, and this address is just a line of symbols not including any private data… In fact, the entire distributed Bitcoin network is a series of transactions between addresses, where no one knows the owner behind them. That’s why sending and receiving of your funds can’t be censored or restricted.
No taxes on purchases
This point follows from the previous paragraph, if nobody can find out who purchases goods or for what services this person is getting paid, so no third party will be able to add taxes or other commissions on the final cost. This benefit is especially significant for business owners.
In total, tax regulation of bitcoins depends on the country, in different laws cryptocurrency can be considered as property, private funds or just money, as a fiat currency.
Very low transaction fees for international payments
The fees for transactions in the bitcoin network and the speed of their execution does not depend on the distance over which the transfer needs to be made. If, when using the services of companies, such as Western Union, for example, sending funds can take several days, then Bitcoin will cope with this task on average in an hour. In this case, the commission will be incommensurate with the amount sent.
Transactions can’t be reversed
Unlike your funds in the bank, which can be reinvested, withdrawn, confiscated, Bitcoin transactions can’t be even canceled. If payment is recorded on the network, after one hour it is impossible to modify the operation. A few extra minutes to check the recipient information of your transfer is worth your safety.
This is a special plus for business owners, as it eliminates the possibility of becoming a victim of scammers.
Ease of transaction
Bitcoin transactions can be made from anywhere in the world, at any time convenient for you. Your business will no longer depend on time zones and bank schedules or on the national holidays of a particular country.
Besides, cryptocurrency transactions are instant, while traditional transfers between accounts take 3-5 working days on average, and even more for international transfers.
In conclusion, to use Bitcoin for your business, you don’t need to deploy expensive infrastructure. In the simplest case, it is enough to install a wallet on your smartphone and you can already receive and send payments. For example, the WELLCOINEX gives you access to all functionality you need after spending only a few minutes on the registration procedure, so you can forget about bureaucratic problems, difficulties and delays.