What is it?
The truth is Bitcoin is a hard concept to understand. It completely changes the way we think of transferring monetary value. The good news is that you don’t need to understand how it works to understand the benefits it offers. Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is like cash for the Internet. Over $50 million is transferred every day over the Bitcoin network, and it is constantly growing.
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In the last year alone, over 100 million consumers have been affected by credit card breaches at businesses such as Target, Home Depot, and Michaels. It has been proven time and time again that credit cards are not a secure form of conducting transactions. It leaves consumers with a target on their back for identity theft. Bitcoin offer many advantages in this regard. Every transaction on the Bitcoin network is signed with a secret key that is known only to the user using a secure one way cryptographic function. This means that it is mathematically impossible to create fraudulent transactions. In addition, merchants no longer store and process PINs and account numbers that can later be used for fraud. The transaction is meant to be public by design.
2014 Data Breaches
Bitcoin shares may commonalities with using cash in terms of anonymity. To pay in cash you do not need to prove your name, show identification, or provide your address. Bitcoin works exactly the same way. If a business can not be trusted with your credit card information; they can certainly not be trusted with any other personal details.
Bitcoin has recently come a long way in terms of usability. It is a seamless and easy experience using Bitcoin on a day to day basis. While Bitcoin shines in consumer to business transactions, it is also an efficient and cheap way to send money between consumers. Paying someone money that is owed is fast, cheap, electronic, and instantaneous.
Try It Out
Bitcoin does not care about distance or international borders. You can send any quantity of money anywhere in the world instantaneously and much cheaper than traditional methods. For example, to send $100 to China via Western Union it costs $12. Bitcoin costs $ .48 and you or the recipient does not have to make the trip to Western Union.
There are many disadvantages that Bitcoin introduces as well, so please do your research. However Bitcoin is a tremendous step in removing dependency on an outdated and insecure transaction system.