What is Bitcoin/Cryptocurrency and what are its benefits?
Are there many people who don’t understand what virtual currency and bitcoin are? Certainly, it is not surprising that difficult terminology and unfamiliar graphs are used.
Why is Bitcoin needed?
Bitcoins and virtual currencies have the property that they are more prone to sudden price volatility than stocks. One of the attractions of cryptocurrency investment is that the hurdle to start bitcoin investment is lower than that of stocks and FX.
It seems that these factors make it easy to make money account for most of the needs for bitcoin and cryptocurrencies.
Bitcoin is a universal monetary system
The value of bitcoin is the same for everyone in the world. On the other hand, the value and units of the money we usually use vary from country to country. The unit of money has a different name for each country like yen and dollar. The price fluctuates according to the economic situation of the country.
Bitcoin is managed worldwide in units of BTC (Bitcoin). Bitcoin prices fluctuate according to the trust of people regardless of the situation in each country. Bitcoin only exists on the Internet, so there is no need to carry it in your wallet. Furthermore, there is no work to redeem at the destination.
If the need to go to a currency exchange office is eliminated and there is no need to pay cash exchange fees, the number of people using bitcoin will increase. Even now, these convenient elements of Bitcoin have been steadily reflected in daily life, led by the introduction of payment systems.
Bitcoin is becoming common money at every public institution and restaurant around the world.
The value of cryptocurrencies that contribute to society as a whole
Virtual currency is also said to be a dream currency that enables things that were not possible before. Did you know, for example, that traditional cash remittances in virtual currencies can greatly reduce commissions?
The option was given to allow anyone to make a small donation using cryptocurrencies, which became a bridge to help victims of the earthquake. If you raise cash donation, you will incur a large remittance fee. Even if you donate 1000 yen, only half of the 500 yen will be reflected as support money. In this case, even if there is a precious desire to help even a small amount, it will almost end with water bubbles.
Bitcoin and other virtual currencies, on the other hand, have the potential to embody those little good intentions as much as possible.
How virtual currency is more reliable than money
First of all, cryptocurrency trading information is monitored on networks all over the world.
For example, if you pay the stolen money when checking out at a store, the cashier will not notice the fraud, right? However, transactions such as bitcoin settlement and remittance are always monitored by an unspecified number of third parties.
And this groundbreaking principle provides strong security against data tampering. Bitcoin’s trust is supported by a mechanism that allows everyone to share information that cannot be grasped by cash so that no one can cheat.
Virtual currency is money that everyone can decide the value of
In the first place, Bitcoin is managed by an unspecified number of third parties using a computer network. In other words, no one person can unilaterally determine the value without an administrator. Money is a currency that guarantees value by being managed by everyone, and whose reliability and expectations directly affect the price.
Safe and secure transactions with blockchain
A big advantage of cryptocurrencies is that they minimize remittance fees. This minimization is because blockchain technology allows direct remittance between users and eliminates unnecessary intermediaries.
The following steps have taken the blockchain to make cryptocurrencies safer than cash.
First, the transactions we do use Bitcoin Era are called transactions and are grouped into one block every 10 minutes.
Next, everyone approves unapproved transactions in each block. Then, the newly approved block is inserted into the end of the chain of approved blocks. As a result, it is not possible to arbitrarily connect another unauthorized block later, and as a result, tampering of the bitcoin transaction is prevented.
It is no exaggeration to say that this blockchain technology supports Bitcoin’s high security.