What are Bitcoins?
Bitcoins are the worlds fastest growing currency, recently surpassing the $1 Billion dollar value mark.
Key benefits of Bitcoin.
- Transfers without banks using Peer to Peer (P2P) technology.
- No frozen accounts or blocked payments.
- No Governments or regulators to regulate it or steal it form you.
- No risk of fraud payments for sellers.
- Cheap transactions, fees vary from zero to a fraction of a percent.
- Better privacy and security.
- Money without borders, accepted 24/7 anytime anywhere.
- Hedge against inflation of faith currencies.
- Scarcity, only 21 Million Bitcoins will ever be in existence.
How do Bitcoins work?
Bitcoins are a digital currency that isn’t produced by any central banking authority such as the Federal reserve or the Bank of England. It changes hands digitally and can be transferred into cash. Bitcoins are created by complex mathematical formulas that are solved by computers.
When more Bitcoins are created more mathematical problems are created therefore creating the need for more computational power which sets a floor price of the Bitcoin currency.
PayPal versus Bitcoin?
Bitcoins are used as an alternative to PayPal to avoid transaction fees and has the added benefit of making digital transactions anonymous.
Bitcoin is starting to look attractive to online businesses, WordPress, Expensify, Namecheap, Mega and Reddit amongst many others are excepting payments of Bitcoin.
The United States treasury is seeking to regulate the virtual currency like a real one to fight money laundering, however if this succeeds it may add credibility to the currency.