Bitcoin: The Simple Overview
Bitcoin is a peer-to-peer payment system and digital currency used by thousands of people all over the world. Because it is open-source and decentralized, Bitcoin exists without national borders and can be used anywhere in the world (though legality varies by region).
Why do people use Bitcoin?
The world we live in is increasingly digital. The internet is the daily avenue for news, education, and even socialization.
Bitcoin has the potential to bring finance up to date with the digital age.
Everyone who uses Bitcoin has their own reasons, but here are the most common:
Transactions are nearly instant
Bitcoin transactions take seconds, are verified within minutes, and the bitcoins are ready to be spent again in under an hour. Transactions using debit or credit cards usually remain “pending” in consumer accounts for at least three days. For merchants, the wait is even longer. Restaurants often have to wait for weeks after a sale before they can use the funds received.
Transaction fees are minimal
Most Bitcoin transactions are free, but some require a small processing fee. The fee is based on the size of the data in the transaction–not the amount spent–and is generally less than ten cents. That’s opposed to the 2-3% fee on credit & debit card transactions, which the merchant usually pays and passes on to the consumer via higher prices.
Transactions are secure
Bitcoin is a push system, rather than a pull system, so there’s no need to reveal personal information when processing a transaction. Even if someone were to get your account number, the most they could do is view your public balance. As long as you keep your private keys safe, no one can access your funds.
Transactions are borderless
Because Bitcoin is digital, and not tied to any one government, people can send and receive bitcoin from anyone else no matter where they are on the planet (or beyond). This makes international purchases incredibly easy, compared to the typical process of currency exchange, wire transfers, and long delays