Bitcoin is a relatively new form of currency, that is just beginning to ‘hit’ the mainstream, is completely global and subject to few laws and restrictions from central or other banking institutions. More specifically it’s a new form of payment that enables you to send money to another person. The only thing you need to know is his bitcoin address. In fact, they operate as e-mail addresses, which consists of random letters and numbers. The following are the most important advantages, when you use bitcoins as a form of payment method.
- You can maintain you anonymity
Bitcoins can protect your identity and you don’t need to disclose any of your personal information in a bitcoin transaction if you don’t wish to. This way your purchases can never be associated with your personal identity and also can not be traced back to you. Moreover, you don’t need to provide any number of your credit card, that could be stolen. In fact, the anonymous Bitcoin address that is generated for your purchases changes with each transaction you make.
- No third-party interruptions
Another very important advantage of using bitcoin is that banks, governments or other financial institutions have no way in interrupting your transactions or to freeze your bitcoin account. By using this method, you have more freedom than with the national currencies to do anything you want with your bitcoins. In addition, they can not be refunded by any other person – just by the person receiving the funds, so there is no recourse in case it goes to the wrong bitcoin address.
- There are no taxes involved
No one can ever make you pay any taxes by using bitcoins, since there is no way for a third party to identify or track you or any of your transactions. So, they can’t implement you with any taxation system. This way you just have to pay for the things you buy, with no additional payments.
- Bitcoins cannot be stolen
There is no way for anyone to steal your bitcoins, unless they have an access to your computer. Only then they can send the bitcoins to their account. In addition, unlike the usual currency systems, this system needs physical access and not just a few authentication details. This way it makes it a lot harder for anyone to be able to steal them from you.
- Low transaction fees
Since bitcoin transactions don’t require any intermediary involvement of government or other institutions, the costs for bitcoin transactions are kept very low. Especially if you are traveling, this can be a major advantage for you. Moreover, any transfer that is done with bitcoins happens very quickly, thus eliminating the inconvenience of the usual authorization requirements and wait periods.
- Mobile payments
Like all the other payments that you do online, you can pay with your bitcoins from anywhere as long as you have an internet access through your mobile. Which means you don’t have to go to a bank or a store in order to buy a product. Above all, unlike any other payments that are made in the bank accounts in the US or with credit cards, your personal information when you use bitcoins is not necessary.