Bitcoin is the first decentralized electronic cash payment network that enables value to be transferred peer-to-peer. Unlike traditional payments, Bitcoins bypass a “third party”, or centralized body of control, which is usually a central bank.
Transactions using Bitcoin are instead stored on a public ledger called the blockchain. The blockchain is verified by thousands of computers, called nodes. There are no middlemen in the blockchain.
The creator of Bitcoin, Satoshi Nakamoto defined Blockchain as: “Bitcoin is a peer-to-peer version of electronic cash that allows payments to be sent directly from one party to another without going through a financial institution. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work.”
Satoshi’s aim was to develop the first-ever viable cash-like payment system that can be freely used by any two people who don’t necessarily trust each other – without employing a middleman.
Bitcoin can be compared to the cash that you handed the cashier, but the transaction has limitless physical range. Yet, it is also like a credit card in that it requires passwords and protections in order to use.
Unlike cash, nobody can “find” your bitcoin on the ground like a $20 bill and spend it as they would cash.
Bitcoin is also traceable, as they are written into the blockchain, the cryptographic database Satoshi introduced. Every transaction can be viewed by anybody, and they can’t be tampered with, deleted, altered or disguised in any way.
Bitcoin has all the benefits of cash plus the security and traceability of digital money.
Why use Bitcoin?
“Instant transactions, no waiting for checks to clear, no chargebacks (merchants will like this), no account freezes (look out Paypal), no international wire transfer fee, no fees of any kind, no minimum balance, no maximum balance, worldwide access, always open, no waiting for business hours to make transactions, no waiting for an account to be approved before transacting, open an account in a few seconds, as easy as email, no bank account needed, extremely poor people can use it, extremely wealthy people can use it, no printing press, no hyper-inflation, no debt limit votes, no bank bailouts, completely voluntary. This sounds like the best payment system in the world!”
– Trace Mayer J.D
No middle man means lower transaction cost. Traditional wire transfers and foreign transactions are costly and slow. On average among national banks, it costs $25 for outgoing domestic wire transfers and $44 for outgoing international wire transfers; in comparison, most e-Wallets and cryptocurrency exchanges charge a nominal 0.25% to 1% fee to send bitcoins that reach your recipient in hours. Fees associated with bitcoins are negligible compared to fees of established banking institutions, credit unions, or companies like PayPal and Venmo.
Bitcoin gives the user payment freedom, a lower risk to merchants, and transparency. It is also not inflationary – Bitcoin is not subjected to inflation as Bitcoin is capped at a maximum of 21 million coins.
Protecting Your Cryptocurrency
Cryptocurrency and the blockchain stand to be a major driving factor in the technology of the future. However this popularity has attracted an element of cybercrime. There are several tools internet users should use to increase their online protection. One of these tools is SaferNet.
SaferNet is the perfect solution to the cybersecurity issues that individuals, families, and businesses face today. It not only connects every device using a secure, 24/7 always on, military grade VPN, but it also stops outside cyberthreats, malware and viruses as well. On SaferNet, all users are protected anywhere in the world, all the time, on any cellular or Wi-Fi network. In addition to SaferNet’s VPN and cyber protection, it also offers a range of employee or parental/family internet controls including internet filtering, monitoring, scheduling, and blocking access to websites or even entire website categories
Typically, a user would need 3 separate services for a VPN, Malware Protection, and Internet Controls; SaferNet offers all 3 features in one service. SaferNet truly is an endpoint security presence that can be implemented in minutes around the world, on phones, laptops, tablets, and computers at an economical price point that caters to all internet users. SaferNet guarantees a smooth setup and installation process that takes only minutes, and an easily accessible control hub for you to monitor all your employee’s or family members devices; including activity, time spent online, and threats blocked.