Virtual currencies have a unique nature that makes it beneficial to transact using such virtual currencies as bitcoin. There are advantages to bitcoin that you will enjoy when you transact with it, which you would not enjoy if you used fiat currency. Because these currencies are new and unregulated, you should be careful when you use them as a medium of exchange. However, due to the unique Bitcoin Loophole system, there are numerous advantages to transacting using bitcoin.
Before itself is a peer-to-peer cryptocurrency which runs on a decentralized public ledger known as a blockchain. It was launched in 2009 by an unknown programmer or programmers only known by the name Satoshi Nakamoto. It has since generated a lot of interest and invited a swarm of investors looking to make a profit by trading it. It has also been adopted by numerous businesses that have begun to accept bitcoins as a mode of payment. So, what are the advantages of making payments in bitcoins?
You Enjoy Anonymity
Every purchase you make with bitcoins is discrete. Unless you decide to publish your transactions for the whole world to see, no one will ever be able to connect your wallet address to your personal identity, such as your name or email address or phone number.
Paying in cash affords anonymity as well so long as it’s pure cash and not a credit card or bank transfer or any of the other methods that involve some kind of intermediary. However, that anonymity does not match the kind offered by bitcoin. Just as a demonstration of how powerful anonymity is on the bitcoin network, the address generated for a user changes with every different purchase made.
No Third-party Involvement
This is one of the greatest benefits of bitcoin and is even the reason why bitcoin saw a large adoption in the beginning. Admittedly, most of that was by crooks operating on the Silk Road. They used bitcoin for its anonymity and the lack of involvement of a third party in transactions. However, these benefits can also be enjoyed by honest folk like you and me.
Since there aren’t any third parties involved in any bitcoin transactions, they have no way of freezing your account or interrupting your transactions. The system is peer to peer, and there is much more freedom than you would experience with regular fiat currencies.
Since there aren’t any financial. Intermediaries snooping in on your transactions and determining how much you’ve been spending. There is no way for sales tax to be levied on you unless you voluntarily decide to report your bitcoin earnings and pay tax.
Low Transaction Fees
A simple foreign purchase using a credit card, debit card or even a standard wire transfer typically involves hefty transaction fees and foreign exchange fees. With bitcoin, there aren’t any intermediaries to levy these fees, and there aren’t any borders to be observed. The network exists independently of any national borders. As a result, the transaction fees are very low. Bitcoin, therefore, becomes advantageous to use when you’re making purchases online or when traveling.