It’s a network of decentralized digital currency built on block chain technology which uses cryptographic methods to operate independently and can be traded for goods and services with vendors who accept them as a mode of payment. Its value depends entirely on the demand for the same. Launched in the year 2009, the value had both peak and troughs until now.
Bitcoin has its own significances which are as follows,
- Allows you to send $0.1 to millions from/to anywhere in the world instantly with almost no transaction fee which helps the small scale industries to save some extra money in their business.
- It allows any merchant to start accepting money over the internet without the need of a credit/debit card.
- It serves as a medium for transactions and also maintains the record of each transaction. Unlike traditional currency; it is stored in a wallet digitally termed blockchain and are able to transfer to any other wallet in the world, to pay for our own purchases.
- It is one of the cheapest and quickest transactions available today. Even for the international wire transfers, it only takes an hour to complete.
- Third parties like financial sectors, bank or government can never track or interrupt the users and do not have the authority to stop a transaction happening through this system.
- Users need not pay sales tax for the purchases made through this system.
- You can invest and earn returns with this crypto currency and usually gives more interest compared to the other types of currencies.