What is Bitcoin?

November 22, 2014 Updated: April 23, 2016

Why should anyone use this currency?

There are so much illegal activities which are related to money all over the planet and this has led to the emergence of checkbooks and later to credit and debit cards in an attempt to resolve the money problems which were encountered. Eventually as new technological advances were revealed more companies are coming forward which has created digital currencies like PayPal and Bitcoin. Such monetary systems have grown to the point where they are an acceptable alternative which are used by many people to do business or to purchase products on the Internet. However so many reports are constantly released about the financial fraud on the Internet that many people are skeptical regarding the safety of such digital transactions.

How safe is Bitcoin as a financial payment system?

The reality is that Bitcoin are set up in such a way that any illegal activity is virtually impossible. That is because the personal information of the person that is doing a transaction is never revealed. Therefore it is absolutely impossible to obtain any information regarding any person who is using this system for their financial transactions. In this regard Bitcoin is safer than credit cards because with such cards a lot of information about the person doing the transaction is revealed which makes it possible to use such information for illegal activities. This could never happen with the BitCoin system because that kind of information is never revealed. Procedures which have been built into the Bitcoin system are presenting business people with an alternative to other forms of transactions.

How cost-effective is Bitcoin?

Apparently the fees which are charged are considerably lower than those which are charged for credit card transactions and this is one of the primary reasons why especially smaller merchants are drawn to this way of doing business. Those small transaction fees which are applying to Bitcoin are converting to more profits in the pockets of the merchants. Naturally this is making Bitoin a very attractive payment system. The credit card fees which are accumulated by such small merchants are normally a substantial portion of the overall profits and this is exactly why these merchants are attracted to Bitcoin. The average credit card fees are anywhere between two and 4% of the amount paid while the fees which are charged by Bitcoin are often less than 1% of the amount which has been spend.

Healthy cash flow benefits all businesses

The quicker that cash can be received into the account of a business the more beneficial will it be for the business who has sold that specific product or service. I am currently in the situation where it takes between five and seven days for any money which are paid into my PayPal account to clear in my bank account and this delay can be frustrating and such a situation is even further aggravated when you are a business which relies upon healthy cash flow. With Bitcoin such a transaction are done within two days and that is just one more reason why Bitcoin are becoming so popular especially among the smaller business communities.

A lot more has to be done in order to promote Bitcoin better

There are a general agreement among business people and other individuals that one of the main reasons why Bitcoin are not used by more people is simply because not enough people are aware that this system exists and they do not have knowledge of all the advantages which are provided to them through the use of Bitcoin. However it seems that Bitcoin has a tremendous amount of benefits which it could provide to consumers and businesses alike. For those people who are already using Bitcoin it is providing a very necessary service and it is doing so effectively and safely.