August 24, 2019

Bitcoins and the World – Advantages of Bitcoin

By Rabah Hasan

To understand what bitcoins are doesn’t take much study? Basically, bitcoins are a digital currency that is used and obtained like regular dollars. A better name for them would be internet money. To get bitcoins you can ask your employer to pay in you in them or you can sell something you own.

It is not difficult to gather up a lot of internet money. Once you have some bitcoins, spending them is just as easy. Like American cash, all you have to do is find a business that accepts and uses the bitcoin payment system and exchanges your bitcoins for their product. It is that simple.

The advantage of bitcoins is that there is a cap on the supply, 21,000,000, which cannot be changed. Also, this currency cannot be inflated or counterfeited and unlike regular bank accounts the wallets holding your internet money cannot be frozen and payments cannot be blocked.

Another advantage to the money of the internet is that bitcoins are not tied to any world nation or government regulations plus they do not come with any credit card fees.

The place to buy and sell bitcoins are called exchanges. These are internet companies who strictly deal with the cyber currency. How they operate is simple. You exchange real currencies for the number of bitcoins you want to purchase. There is a small fee for the exchange but the sending and receiving of bitcoins is free of charge…always.

One of the top bitcoin exchanges is Coinbase. They are an American company who has the customer link their bank account to a Coinbase bitcoin account. It originally started as an American transaction only exchange but has since expanded into 18 countries in Europe. It takes Coinbase 3-5 days to release bitcoins into a customer’s account after the order has been placed.

Another exchange is Bitcoin source. This is a relatively new player in the bitcoin game and is based in Belize. One of its strengths is that it accepts deposits through a variety of sources including credit cards. They charge a 1% transaction fee but other charges may be added to the transaction depending upon the method of deposit. Biosource also charges 2.99% plus.30 on credit card transactions. Echecks receive a .25 charge per transaction plus look for a handling fee of $5 on both credit card and e-check transactions.

Just one warning about bitcoins and that is that because there is no government oversight or regulations the criminal and hacking opportunities are without limit. Two such crimes are money laundering and cyber kidnapping. The latter is where hackers will kidnapp’ your files on your computer and demand a ransom for release. So be careful when entering the world of internet money.