The virtual currency is a form of decentralized payment, it means that it has no connection with a bank or financial authority. In physical, it literally does not exist, but it gives the possibility of being used to trade with it through the so-called virtual purses. As time goes by, the currency is booming and gaining in popularity and acceptance among internet users, those we call online customers.
- 1 Cryptocurrencies
- 2 Are cryptocurrencies safe?
- 3 Advantages of decentralized systems
- 4 Instant Transactions
- 5 User identity is hidden
- 6 Value added tax exempt
- 7 Mining entities are also exempt from value added tax
- 8 Ease in international transactions
- 9 Earn profit with speculation
- 10 Original cryptocurrency
- 11 Secure transactions
- 12 You can pay from any mobile
- 13 The accounting book is free
They are also known as cryptocurrencies, it is a conglomerate with cryptographic encryption that is stored on the network. The security of the account statements of this currency is presented through transfers of various files that allow us to verify each other and we call this mining. The transfers are made by a group of users who frequently use the coins and who also receive a reward for their work. The purpose is to process algorithm actively.
Are cryptocurrencies safe?
They are very safe, since hacking or doing a computer attack is very expensive, large technology companies have a computer progress of the level of cryptocurrency development, to get an idea, Google could split the Bitcoin security barrier, and even then, You have only 50% chance to do it.
Advantages of decentralized systems
There are advantages in the use of decentralized systems, which make the use of cryptocurrencies more and more popular, which will soon occupy the large spaces that fiat money leaves. Next, we want to mention some of the most important ones so that we can understand how this change from economic systems to economic software will occur.
Making transactions with cryptocurrencies is quick and instant, remembering that being a decentralized system, the authorization of any governmental entity or bank is not required. In such a way, that a transaction in Bitcoin is received in a few seconds and is confirmed within 10 minutes, however, you have to wait for 1 to 6 confirmations, depending on the amount. Each confirmation exponentially decreases the risk of reversing the transaction.
Transactions with Bitcoins are required to hide the identity of the user. Any user has the possibility to see the funds and transactions of any Bitcoin address. The identity is not known, unless you reveal it in a purchase or for another reason. This is why good practices should be adopted, such as Bitcoins addresses being used only once.
Value added tax exempt
Transactions with cryptocurrencies are subject and in turn are exempt from value added tax, the explanation is that it must be understood that other commercial effects are included in the concept and this concept is linked to some payment instruments that allow money transfers, and as such Financial operations are exempt from the tax.
Mining entities are also exempt from value added tax
The reason is that the stipend paid to the service provider is not the counter value of the service provided, since the new Bitcoin that we talked about in the previous article titled Bitcoin Gold vs. Bitcoin Standard: 5 things you should know, are generated automatically through the network, that is, there is no mining process as in its origins.
Ease in international transactions
Blockchain technology has earned the respect of financial and technological companies, has achieved that businesses, people of different nationalities or financial entities, have the possibility to operate and make electronic payments with the same virtual currency at the same time.
Earn profit with speculation
Knowing that Bitcoin is a highly volatile market, because it has not yet achieved economic maturity. There are periods of high volatility that interest investors, for the opportunities to market or trade and for the purchase and sale of this cryptocurrency. Speculations are necessary, as they contribute to the Bitcoin market, liquidity, which would otherwise be very difficult to achieve.
Bitcoin is the most popular and largest blockchain in existence, as it was the first one created by Satoshi Nakamoto, beginning operations in 2009. This emergence of this cryptocurrency represented a change in the way the world of finances and those who bought in the beginning were able to acquire it at really very low prices, however, the growing demand for cryptocurrency has made transactions more expensive.
The transactions that are made through the systems are very safe, because of the impossibility of reversing them, they can only be reimbursed by the user benefited from the payment. The system is capable of detecting typographical errors and therefore will not allow the sending of money by mistake to an invalid address.
You can pay from any mobile
Making cryptocurrency payments is possible from any mobile device, only internet connection is required. This is unlike fiat money that cannot be used if cash or credit, debit and credit cards are not available, that is, a physical means is always required to carry out the transaction.
The accounting book is free
The registration of the transactions or the book of the accounting of the operations is free, that is, it can be verified and it is not possible to modify, for example, inflate or decrease the figures given. This is one of the great advantages of blockchain technology, we can have in a large accounting book all transactions, access them and evaluate when they were made, by what means and in what accounts, however, that does not mean that the transaction is lost. Anonymous nature of cryptocurrency transactions because this sensitive information is only accessible by authorized users and the account owners themselves or involved in the transaction.
What do you think about this topic? Did you know all the advantages of decentralized systems?
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