Payments of the future
Now that we have seen a brief overview of what bitcoin is, we can better understand how this leading cryptocurrency provides potential benefits to its users.
Why the need for bitcoin in the first place, if there are already so many traditional means of making payments? A key element of bitcoin is its decentralized status, meaning that it is not controlled or regulated by any central authority. This immediately distinguishes it from fiat currencies. Bitcoin payments are processed through a private network of computers linked through a shared ledger. Each transaction is simultaneously recorded in a “blockchain” on each computer that updates and informs all accounts. The blockchain serves as a distributed ledger and obviates the need for any central authority to maintain such records.
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Bitcoins are not issued by a central bank or government system like fiat currencies. Rather, bitcoins are either “mined” by a computer through a process of solving increasingly complex mathematical algorithms in order to verify transaction blocks to be added to the blockchain, or they purchased with standard national money currencies and placed into a “bitcoin wallet” that is accessed most commonly through a smartphone or computer.
Benefits of Bitcoin
Some important benefits of paying in cryptocurrencies are:
1. Immediate Availability
This is perhaps the first most important benefit of payment in cryptocurrency. Since there is no involvement of a third party, once a transaction has been made, the money is in the wallet of the receiver.
Bitcoin can be converted into local currency easily and received at the end of each transaction. Since bitcoin continues to fluctuate now and then, your payment will be by the rate which will be available at the time of transaction.
Time is very important in this day and age. With much advancement in technology, the world continues to become a lot smaller. The Internet has anyways made everything easier which is why people are so invested in looking for ways with which they can reduce time.
Paying in cryptocurrency is fast and reliable. Once you make a payment, it reaches the other person within the blink of an eye. This means one can save a lot of time with paying in cryptocurrency as compared to paying in cash or through credit cards which is often time-consuming.
3. Companies offer good discounts
You will be surprised to know, companies that offer payment in cryptocurrency offer huge discounts to their customers. Many online pharmacies offer a whopping discount of 35% if payment in bitcoin is. Similarly, many companies offer bulk discounts with payment in digital currency.
First of all, digital money takes less time to reach the other party. Secondly, it saves a lot of time. So if you’re shopping online, you must check if the company provides the option of payment via digital currency.
4. Less transactional cost
This is another major benefit pf payment in digital currency which customers can enjoy. Ever since the bitcoin evolution in the digital world, things got a lot easier for companies who had to navigate products to people worldwide. Bitcoin is one such digital currency whose transactional costs are very low as compared to pay via credit cards and another medium. So if you pay in digital currency, you’ll incur fewer taxes and transactional costs.
5. Make a payment anywhere
Since cryptocurrencies are decentralized without a defined platform, you can make a payment from anywhere in the world. If you compare this with conventional payment methods, it would be anyways difficult to make payments after traveling to the host branch of a company or through a bank. With digital currency, as long as you know the password of your digital wallet, you can navigate a safe payment from any part of the world and save time along with commute.
These are just some of the common benefits which cryptocurrencies offer. More than the customers, the companies are at the receiving end of benefits of payment in digital currencies. Hadn’t it been for cryptocurrencies, the world would have slowed down in terms of payment.
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