Bitcoin has taken the world by storm and it is gaining popularity all over. Bitcoin does away with the need to carry debit/credit cards or money for shopping. It is a virtual currency that offers peer-to-peer transactions digitally without the need for any physical cash. It is a digital exchange that started in 2009 and is now considered to be a third type of currency. It is an alternative to the fiat currencies as well as commodity currencies. Many of the counties in the world have started to legalize bitcoin payments.
Introduction to bitcoin.
A set of computers connected privately through a safe and secure network that works on a shared program will process the Bitcoin payments. Each and every Bitcoin transaction will be recorded in a blockchain on the computers involved in this private network. All the accounts will be updated and informed about a transaction using Bitcoin. The Bitcoin can be mined on the computer by solving complex mathematical algorithms. It can also be bought using fiat currencies and can be stored in the Bitcoin wallet that can be accessed using your computer or a mobile device.
There are quite a lot of benefits that small and medium-sized businesses can gain by making use of the Bitcoin as an alternate payment option.
Benefits of using bitcoin.
The first and the most important benefit that Bitcoin payments bring to the floor is that it allows payments to be done internationally without the worry of any currency conversions.
Lower risks for buyers.
The payments can be completed by buyers using Bitcoins without needing to reveal any of their financial information and personal details. This is a big advantage for the buyers who feel that their personal data is not safe when doing online transactions. There is a certain amount of anonymity enjoyed by the Bitcoin holders as against those that use credit cards or debit cards to make their payments. As they are more or less like digital cash, hackers will not be able to intercept it easily. By making use of Bitcoin payments, the processing takes place in a decentralized platform and therefore it is not easy to find out your identity. Some of the popular money sharing platforms like Chase Quickpay and many others can offer more to their customers by making use of the Bitcoin payment system.
Anonymity of the user.
The purchases made by the user are not associated with his or her personal identity as it goes through a decentralized platform. It is more or less like a cash-only purchase and no one will be able to trace the purchase back to the correct user. The Bitcoin address that is generated for a transaction is anonymous and it will change for each and every transaction made by the same user.
Lower transaction fees.
The transaction fees for Bitcoin payments are very low when compared to credit and debit card purchases. It is also very low for peer to peer foreign purchases. The standard wire transfers and the foreign purchases charge the fees and the exchange costs. There is no third party or intermediaries involved in carrying out a Bitcoin transaction and hence the transaction fees are very low. This turns out to be very advantageous for all travelers. The transfer of digital currency also takes place very quickly and there is no need for you to go through waiting periods and authorization requirements.
Transactions cannot be reversed.
Most of the small merchants will be aware that the sender has the ability to reverse the payment when it is made through credit cards or banks. It would really hurt a business when the product is dispatched to the customer only to see that he or she has reversed the payment. This is not an issue at all when payments are accepted using Bitcoins. This payment method is 100% irreversible and it cannot be charged back.
No taxes on purchases.
There is no way a third party can identify or track a bitcoin transaction taking place. They will not know who is making the payments for a certain purchase as the identity of the buyer is anonymous. Hence, the people using bitcoins to pay for products and services do not need to worry about facing any taxes.
Ease of transaction.
Anyone from any country and with any age can carry out a bitcoin transaction. You will not be asked to furnish your proof of address, ID card, or passport details to send and receive bitcoins. All one needs to do is to download a bitcoin wallet program and generate a bitcoin address to carry out Bitcoin transactions online.