Bitcoin is not an original coin but it is actually cryptocurrency or digital medium of payment mined or produced by a large number of people throughout the world. Bitcoin makes way for peer-to-peer instant transactions worldwide at very low cost or even free. It is because of fast Bitcoin payments that people across the world use it as one of the leading forms of payment. It came into effect after several years of research on cryptography. The research was initiated by Satoshi Nakamoto, a software developer. It was Satoshi who came up with the design of this algorithm introducing it in the year 2009.
Where does Bitcoin Come From?
Bitcoin is a currency that is in no ways backed by a certain tangible commodity like silver or gold. It is traded online and this is something that makes it a commodity in itself. It works in the form of an open-source item, accessible by almost any individual who seems to be a user. The only thing needed for gaining fast Bitcoin payments is an email address, money for getting started and a good internet connection. Bitcoin is produced on a distributed computer panel of users with specialised software. This panel or network solves different mathematical proofs and even searches for a specific data block or sequence that makes way for a specific pattern when the Bitcoin algorithm is applied to it. The entire procedure of mining Bitcoin is energy-and-time-consuming and complicated at the same time.
What can Bitcoins be Used for?
Practically speaking, almost any service or products that can be purchased using different currencies can also be purchased using Bitcoins. However, it is worth noting that the high volatility of Bitcoin comes in as a great risk for the ones looking forward to using this cryptocurrency. Some of the main features that make Bitcoin perfect for online payments include:
Fast Bitcoin Payments
Fast Bitcoin payments or transactions can be processed in not less than ten to fifteen minutes. Therefore, it can rightly be said that Bitcoin transactions are faster than bank transfers that take several hours and even days for the funds to get transferred from one account to another. It is absolutely true that e-wallets like PayPal are faster than Bitcoin but there are several other features not available with the wallets and these include smaller commissions and complete privacy.
Smaller Commissions
0.002 BTC is the average commission for a Bitcoin transaction. This is smaller in comparison to the commissions that need to be made when making PayPal transactions or the banking commissions. Furthermore, the users do not have the mandate to pay the commissions. Bitcoin users have the possibility of not paying the commissions but in this case, they might have to wait for two or three days for their transactions to get processed.
Complete Privacy
Bitcoin transactions are registered in blockchains and therefore the users can remain fully assured of their privacy staying intact during such transactions. There are specialised websites that can be used for verifying the list of Bitcoin transactions that are always public. Number of merchants and service providers now directly accept fast bitcoin payments.
It is not that Bitcoin is the only cryptocurrency perfect for online transactions.There are others in this category but using Bitcoin would always be advantageous for the users.
