Benefits of Using Bitcoins Have you ever wondered what bitcoin is? Perhaps you have already heard the term but are not sure what to use it for. Its simple definition is that it is a digital currency system which one can use in online transactions. You can call it virtual currency since it can be used as a unit of exchange in the virtual world. Computer networks connected by a shared program can carry out bitcoin transactions and payment processing. The creation of bitcoins is based on increasingly complex mathematical algorithms and its purchase is made with standard national money currency. Bitcoins can easily be accessed through your smart phone or computer. There are certain distinct advantages that bitcoins have as a new and growing virtual currency over the conventional government flat currencies. Below are some of these benefits.
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When using conventional currencies for your online transactions, it will usually generate tax payments to the government. Every item has its own designated tax rate. Purchasing using bitcoins will not generate any tax for any item.
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So, if you are purchasing luxury items that are exclusive to a foreign country and you use bitcoins, you practically pay zero taxes. Government usually tax these items heavily. If you wish to buy bitcoins, you can buy them from anywhere there is internet connection to use in your online purchases. You don’t need to go to a bank to purchase coins, since everything can be done online. Using bitcoins to make purchases eliminates the need to fill details about your personal information. Hence, processing a bitcoin transaction is simpler than those carried out through US banks or credit cards. Standard wire transfers and international purchases normally incur fees and exchange costs. Transactions costs are very low when using bitcoin compared to using conventional currencies since bitcoins are not monitored by any intermediary institution or government agency. Using bitcoins involve very fast transactions with no need to authorizations or waiting periods. User anonimity is an option when using bitcoins in online transactions. If you pay with bitcoin it is just like paying with cash since your transactions can never be traced back to you and the purchases are not connected to your personal identity. As a matter of fact, the bitcoin address that is created for user purchases is never the same for two different transactions. However, you still have the option of voluntarily revealing and publishing your bitcoin transactions but most of the time users keep their identities secret. Third party interruptions are eliminated with bitcoin transactions. Your transaction cannot be disrupted by government, banks or any financial institutions and they cannot freeze any bitcoin account. Transactions using bitcoin are strictly peer to peer. With bitcoin purchase users enjoy more liberty than when using conventional national currencies.