Benefits of Bitcoins
You might have heard the word bitcoin but don't know what it really is. The basic definition of bitcoin is that it is a decentralized, peer to peer, digital currency system, which is designed so that online users can process transactions using a unit of exchange called the bitcoins. We can also term this as a virtual currency.
This bitcoin asic miner system was created a few years back and has gained attention as an alternative to real currency liked dollars and Euros and commodity currencies like gold and silver.
A network of computers connected by a shared program is used to carry out transactions and process payments in bitcoin. Bitcoin is based on complex mathematical algorithms and you can purchase it using standard national money currencies. Bitcoin users can access their coins with their smart phone or computers.
What is bitcoin mining? Bitcoin, as a growing virtual currency, has advantages over the conventional currencies. Here are some benefits that you can gain when using bitcoin.
When you use your country's currency in making purchases you need to pay taxes to your government. There are taxes for everything you purchase. But if you are making a purchase using bitcoin, you are not charged any sales tax. It is tax evasion but is legal and is one of the major benefits of using bitcoin.
If there are no taxes to pay, then bitcoin can come in handy if you want to purchase luxury items in a foreign land. These items are heavily taxed by the government.
You can use bitcoin to pay for you online purchases from any part of the world that has internet connection. You don't need to go to the bank to get money to buy things but you simply need to purchase bitcoins online and make your purchases even without leaving your home.
When you pay online using bitcoin you don't need to give personal details online. Bitcoin processing and transaction are very simple and carried out through bank accounts and credit cards.
When you do wire transfers and international purchases, you are charge fees and exchange costs, but bitcoin is not monitored or moderated by any institution or government agency. Therefore transaction costs are kept very low.
Transactions in bitcoin are also not time consuming since it does not involve complications of authorization requirement and waiting periods.
Bitcoin can also make your transactions anonymous. This is similar to cash only purchases in a sense that your transactions cannot be traced back to you and the purchases and not connected with personal identity.