What Advantages Does Using Bitcoins Have?

Have you ever wondered what bitcoin is? Perhaps you have already heard the term but are not sure what to use it for. Its simple definition is that it is a digital currency system which one can use in online transactions. You can call it virtual currency since it can be used as a unit of exchange in the virtual world.

Transactions and payment processing in bitcoins can be carried out in computer networks connected by a shared program. Bitcoins were created based on complex mathematical algorithms, and it can be bought with standard national money currency. Bitcoins can be accessed by users with their smart phones or computers.

There are certain distinct advantages that bitcoins have as a new and growing virtual currency over the conventional government flat currencies. The benefits of using bitcoins in online transactions are given below.

When using conventional currencies for your online transactions, it will usually generate tax payments to the government. Every item has its own designated tax rate. But when you click here and purchase through bitcoin, taxes are not added to your purchase.

So, if you are purchasing luxury items that are exclusive to a foreign country and you use bitcoins, you practically pay zero taxes. Luxury items have high tax rates given by governments.

Bitcoins can be bought from any part of the world that has internet connection to pay for your online items. You don't purchase coins in a bank since it can only be don't online.

If you make payments using bitcoins, you do not need to fill in details about your personal information. Hence, processing a bitcoin transaction is simpler than those carried out through US banks or credit cards.

There are fees and exchange costs for standard wire transfers and international purchases. Since there are no agencies monitoring bitcoin transactions, they have very low transaction costs compared to using conventional currencies.

Bitcoin transactions are also fast since they do not involve the complications of typical authorization requirements and waiting periods.

You have the option of user anonimity if you use bitcoin to transact online. If you pay with bitcoin it is just like paying with cash since your transactions can never be traced back to you and the purchases are not connected to your personal identity. In truth, two different transactions will have different bitcoin addresses.

But it is your option whether you want to reveal and publish your bitcoin transactions or not.

There are no third party interruptions with bitcoin transactions. Your transaction cannot be disrupted by government, banks or any financial institutions and they cannot freeze any bitcoin account. Bitcoin is strictly a peer to peer system. Users of bitcoin, as you read at Bitcoin Market Journal, enjoy greater liberty when making purchase than they do with using conventional national currencies.