Although the bitcoin is still in its infancy, the benefit of using it cannot be gainsaid. To understand the relevance of bitcoins to the world economy, it is necessary that you understand what bitcoins is, its core and its benefits.
From the very beginning, humans traded goods with other goods. Eventually they started using money as proxies for goods and as a medium of exchange. Initially, money took the form of silver, promissory notes, sea shell before states started issuing officially minted currency that were used as a medium of exchange. Money is susceptible to being forged, stolen and decline in value with time. In the ancient times, kings did not pay off war debts; the subjects clipped the gold coins while weighing scales were tempered with. This and many other reasons made it necessary for the Federal Reserve to invent some methods of controlling money.These weaknesses led to the invention of bitcoins as a really trustworthy form of money whose value expected to be stable throughout.
These weaknesses led to the invention of bitcoins as a really trustworthy form of money whose value expected to be stable throughout.
Benefits of Bitcoins
There are many benefits of using bit coin. Here are few of them from Coinbox. Bitcoin allows for a secure system of exchanging value between machines and people. Theft and hacking of bitcoins can only take place if the keys to secure the coins are stolen. Thus bitcoin is the only secure and programmable form of money that can safely be used for global transactions. It is difficult to forge making it the most secure currency in the world.
Bitcoin is a bearer’s instrument meaning that the person holding it and who presents it for payment is a defector owner. It is not susceptible to hacking thefts as it has been witnessed in credit cards, and online payments. As consumers, when you use bitcoins, you do not risk your finances in any way. You can easily shop for Christmas, and pay using bitcoins because it is anonymous as far as the merchants are concerned.
The data left behind when you use bitcoins to transact is traceable making it the easiest method that can be used to fight both crime and terrorists. Bitcoins cannot be used to steal your identity or money. In addition, it cannot be used to impact on your credit rating. Thus it is considered one of the secure approaches that one can use to secure payments. In fact it is safer than the credit cards.
What Need To Be Done
For bitcoins to be adopted and used in trading, it may require some time. Already, there are major investments being made in bitcoins and the developers are developing a code that will avail solutions to problems that may bedevil the practical use of bitcoins. The system that is being developed will make bitcoins accessible to everyone, change the way we interact and trade.
The technology used in the system will allow for peer to peer lending, make formation and distribution of capital secure and usher in transparency.
Using bitcoins will also save the users from the enormous ATM fees, lost taxes, theft and fraud. The world will then evolve into a cashless society, a thing that will make entrepreneurs’ become smart investors. Feel free to checkout more about Bitcoin in Malaysia at Coinbox.