After the economic abysmal of 2007, Satoshi Nakamoto, a Japanese programmer, realized that government authorities failed to manage our economy. So, Satoshi Nakamoto started working on a cryptocurrency concept to eradicate the reliance on government authorities and national banks. In October 2008, he announced that he was working on a complete peer-to-peer network electronic cash system.
In January 2009, Satoshi Nakamoto released the first-ever software of a cryptocurrency named bitcoin. Satoshi Nakamoto released bitcoin merely as a currency. However, people only used bitcoin as an investment and trading equipment for a very long time. Undeniably, you can make a massive amount of money with bitcoin trading and investment progression.
All the more, there are websites like bitcoinx which can help you in getting profitable results in your bitcoin trading expedition. But bitcoin is also an excellent payment ecosystem. Unfortunately, people are still unaware of most of bitcoin’s features as a payment method. Below mentioned are some of the prominent advantages of bitcoin as a payment method for buyers and sellers. And with so many ways to mine bitcoin it is super accessible. Especially cloud mining services might seem like an attractive way to get involved with cryptocurrency mining without purchasing expensive hardware and managing it yourself, but before signing up with a mining pool for cloud mining services, be sure to read our guide on how to find a reputable service provider. It will help you avoid fraud and find a service that fits your needs and budget. So without wasting any further ado, let’s have a look.
Since there are no government authorities controlling bitcoin, it offers tons of features for buyers and sellers as a payment method. You can pay for any goods and services with bitcoin just like you pay with fiat currencies. Here are some advantages of bitcoin as a payment method.
The traditional banking system involves ample third parties and intermediaries to increase the security and ensure the legitimacy of a particular transaction. Due to the involvement of these third parties and intermediaries, the transaction fees of processing transactions are very high.
However, bitcoin is devoid of third parties and intermediaries, so the transaction cost of processing transactions in the bitcoin complex is significantly less. You can transfer bitcoin from one individual to another using a bitcoin wallet, and these bitcoin wallets levy you exceedingly less transaction cost.
No international barriers
Traditional banking systems are exceedingly slow while processing international transactions. All the more, the cost of processing international transactions by the conventional banking system is very high. Even the receiver has to pay a transaction cost while receiving transactions globally. E-banking platforms like PayPal levy a massive transaction cost while both are sending and receiving bitcoin.
On the other hand, bitcoin as a payment method processes seamless and smooth international transactions. Because Bitcoin underlies a technology of peer-to-peer network that helps bitcoin process transactions without the involvement of third parties; as a result, the transaction cost of international transactions using bitcoin as a payment method is significantly less.
All the more, you don’t have to pay any transaction fees while receiving transactions. As a result, international transactions in the bitcoin complex consume a nominal deal of time compared to the traditional banking system. Moreover, you can send any amount of bitcoin globally; there are no restrictions.
Anonymity is one of the popular features of the bitcoin complex. The anonymity of bitcoin defines that you can make bitcoin transactions without revealing your actual identity. The Bitcoin complex requires merely a single detail while processing the transactions, which is the wallet address. A wallet address is an alphanumeric string, and bitcoin wallets assign you a wallet address.
Even the blockchain of bitcoin broadcasts only wallet addresses when it comes to information regarding a transaction. Therefore, no one can track your actual identity with the help of a wallet address. However, if you are a regular trader or transaction maker, you should choose the bitcoin wallet, which gives you a different wallet address for every transaction.
The feature of the irreversible transaction is a blessing for high risk merchants. You are familiar with the fact that credit card companies and most e-banking platforms have the features of buyer’s protection. But, unfortunately, ample buyers use this feature to fraud small-scale businesses.
However, if you accept bitcoin as a payment method in your small scale business and even large scale business, no buyer can reverse the transaction. To build trust with the consumers, you can come up with a good refund policy. In a nutshell, you cannot reverse your bitcoin transactions at all.
These are some of the fascinating advantages of using bitcoin for purchases.