Bitcoin is the most popular virtual cryptocurrency for our generation. It offers us tremendous benefits and advantages.
Every payment ( called transactions as well) just costs no more than 3 cents. Comparing with the $15 or more of wire transfer fees charged by the banks or financial
institutions, the cost means nothing. Normally the senders’ banks or institutions charge some fee like $15 from the senders’s sending
account but the recipients’ bank or financial institutions still charge some fees like $10 for processing the transaction from the received amount of transactions. So let
me say, a senders from America wants to send $100 to his African family member. After 3-5 days tedious waiting, the receivers only have no more than
$75 in his bank account. What an unfair rate!
Visa and master companies are charging more than 0.1% from the total transaction amount. The more you pay, the more you are charged. Many
business, who are starting to accept bitcoin, can save a lot of cost and don’t need to worry about chargebacks, like the famous name
Microsoft, Dell, many airlines etc. The number is increasing day by day.
2. Instant transaction
Initiating a bitcoin transaction can instantly show up in the receivers’ bitcoin address but need to takes only 10 minutes for the money
to be able to be spent.How fast it is! Especially for today’s international business, money can be instantly sent to the sellers, then sellers will immediately deliver the required products out. Money needs efficiency as well. But wire transfer normally takes 3-5 days.It may take more
days, considering such circumstances like weekends or national holidays, the payment transferring institutions are going to stop
working. They doesn’t concern about the receivers’ situation. If the receivers need money urgently, what they only can do is to wait and
hope the money is arriving soon. And although visa and master card company offer instant payment at the counter, but the merchants still needs a few days to get the payment available in their bank accounts.
Bitcoin’s network isn’t controlled by any bank, financial institution or any third party. It is created by mathematical
protocol maintained by the massive nodes or peers in its network around the whole world. No one has the right or able to control or decide the amount of bitcoin
could be created at any given time (it avoids inflation or deflation being popular in our fiat world), or control which payment should
arrive at the recipient’s accounts at what time. The are all done automatically and ensured by protocol. So in digital world, you wouldn’t see the bank
failure, account being frozen, chargeback etc.
Your bitcoin is recorded in the public ledger called blockchain as well. Every one can check or verify the balance for any specific
address. Money is moved between bitcoin addresses – just like sending email. It is especially fit for the accounting and charity
donation. People can check the associated bitcoin address to see how the money is spent.
Bitcoin uses SHA-256 algorithm based on Proof-of-Work (PoW). It is complicated cryptographic algorithms and protocols. Even the most
powerful super computer in the world cannot brute force it.
You show your public key (bitcoin address)to public or the senders.You keep the private key for yourself. It likes the key of your bank
vault.You are the only one who has the key to open it and take or send the money. No one will be able to steal or break it without the key,
even they know the address of your bank vault. But you needs some tatics to safekeep your private key.
Although the transaction is transparent, but no one knows which address belongs to who if you don’t reveal to the public.You can create as many as address as you like, no way to link names, address,or other personal information. People can easily
make anonymous donation as well. You can easily make a purchase of any products even illegal things without leaking your identity, like
with credit card or debit card. The merchants who are accepting the payments will know all identity info related to your cards.