5 Merits of Bitcoin you didn't think of

Most of us have heard of the expression Bitcoin but don't have a clear idea of what it really is. Simply defined, Bitcoin is a decentralized, peer to peer, digital currency system, designed to offer online users the ability to process transactions via digital unit of exchange known as Bitcoins. To put it differently, it is a virtual currency. Since then, Bitcoin has garnered huge attention in addition to controversy as an alternative to US dollar, Euros and commodity currencies such as gold and silver.A private network of computers linked by a shared program is used to carry out trades and process payments in Bitcoin. The production of Bitcoins are based on increasingly complex mathematical calculations and its purchase is made with standard national money currencies. Users of Bitcoin can access their coins with their smart phones or computers.As a new and growing virtual money, Bitcoin has certain distinct advantages over the traditional government flat currencies.

1. No Taxation
   If you make purchases via dollars, euros or any other authorities flat currency, you must pay an addition amount of money to the government as tax. However, when you're making a purchase through Bitcoin, sales taxes aren't added to your purchase. This is deemed as a legal form of tax evasion and is one of the most significant benefits of being a Bitcoin user.With zero tax rates, Bitcoin can come in handy especially when purchasing luxury items that are exclusive to a foreign land. Such items, more often than not, are heavily taxed by the government.

2. Flexible Online Payments
   Bitcoin is an online payment system and just like any other such system, the consumers of Bitcoin have the luxury of paying to get their coins from any corner of the world that has an internet connection. This means that you might be lying on your bed and buying coins instead of taking the hassle of travelling to a particular bank or store to get your work done.Moreover, an internet payment through Bitcoin does not need that you fill in details about your personal information. Hence, Bitcoin processing Bitcoin trades is a good deal easier than those carried out through U.S. Bank accounts and credit cards.

3. Minimal Transaction Fees
   Fees and exchange costs are a part and parcel of regular wire transfers and global purchases. Hence, the costs of transacting are kept very low unlike international transactions made via traditional currencies.In addition to this, transactions in Bitcoin are not known to be time consuming since it does not involve the complications of typical authorization requirements and waiting periods.

4. Concealed User Identity
   All Bitcoin transactions are discrete, or in other words Bitcoin offers you the option of User anonymity. Bitcoins are very similar to money only purchases in the sense that your transactions can never be tracked back to you and these purchases are not connected with your personal identity. As a matter of fact, the Bitcoin address that's created for consumer purchases is never the same for two different transactions.If you need to, you do have the option of voluntarily publishing and displaying your Bitcoin transactions but normally users keep their identities secret.

5. No external interventions
   Among the best advantages of Bitcoin is that it eliminates third party interruptions. This means that governments, banks and other financial intermediaries don't have any authority whatsoever to interrupt user transactions or freeze a Bitcoin account. As stated before, Bitcoin is based purely on a peer to peer system. Thus, the consumers of Bitcoin enjoy greater liberty when making purchases with Bitcoins than they do when using conventional national currencies.Digital currencies such as the Bitcoin are comparatively new and haven't yet been put through major tests. As a result, many feel that there are certain risks involved in the usage of Bitcoin.

Whatever the possible disadvantages of Bitcoin, it's evident that its merits are strong enough to make it a legitimate competitor to challenge conventional monies in the not so distant future.