Merits of Transacting using Bitcoin

 

Cryptocurrency is a decentralized form of payment which allows people to send currency to each other on the website without the need for a third party such as financial institutions and bank. Bitcoin is a form of cryptocurrency, and its popularity has risen with many people around the world using it.

 

The supply and demand ratio determines the prices of Bitcoin. The rates increase as the demand increases and go down when the demand falls. Bitcoins have a small cash reserve to move the market price which makes its prices very unpredictable. They are limited in circulation, and new ones are produced at a slow rate.

 

The popularity of Blockchain can be attributed to its favorable characteristics. The risk of inflation is low meaning they reserve their purchasing power. Their limited supply makes it hard to be affected by inflation. This feature appeals to many traders.

 

The risk of Bitcoin collapsing is also very low. The fluctuations of currencies are influenced by the government trade policies that can lead to hyperinflation that might eventually result in a collapse of the currency. The virtual and universal feature of Bitcoins exempts it from such vulnerability since it is not affected by trade policies of any government.

 

The Bitcoin payments are made between individuals without any intermediary. This makes it simple and cheap, a feature that is favorable to many people.

 

Bitcoins are easy to carry because you can take a lot worth million dollars in a memory stick or your pocket, something that cannot be said of gold or cash. Again, Bitcoins are untraceable since any government does not regulate it. Its level of anonymity is very high.

 

However, there has been controversial views of Bitcoins anonymity nature by the media and the public. It is considered vulnerable to exploitation and that it aids criminal activities online as the authorities are no able to retrieve or reverse these payment transactions. But, the scale of the problem of crime with cryptocurrency and the extent to which technology has facilitated criminal activities is not known. The verification of this claim would have made it possible to come up with strategies that will deal with the alleged crime with Bitcoin.

 

The media is paying a lot of attention to the criminal aspects of Bitcoin which undermines the legitimate value that comes with it. Bitcoin technology has enabled fast and quick payments for traders and individuals doing transactions on the web. To read more about the benefits of using bitcoins, go to http://www.huffingtonpost.com/entry/why-the-real-identity-of-bitcoins-founder-matters_5669a9b3e4b0f290e5223446.