Launched in 2009, Bitcoin is a form of digital currency—essentially a new kind of money—that is tradable worldwide. However, Bitcoin is not an official currency like the euro or US dollar, meaning it is traded without banks or clearing houses.
Bitcoins can be transferred between individuals or businesses to pay for goods and services. This process works without banks as an intermediary. Accordingly, the fees for this exchange are lower. Since bitcoins have a monetary value, they are also subject to government taxation. So, very similar to cash in your local currency.
What are the advantages of using Bitcoin?
Compared to other e-commerce payment processing options like PayPal or even your bank, Bitcoin has several advantages:
- You can use the digital currency in any country without currency conversion.
- It is cheaper per transaction to send money to a company or person via Bitcoin.
- There is no limit to the number of transactions you can initiate each month.
- Your account cannot be frozen or blocked.
- Transactions are irrevocable, uk email list unlike PayPal payments.
- You can store Bitcoins in a digital wallet that is accessible from your phone, tablet or computer.
Some of these advantages stem from the fact that, unlike banks, there is no central regulatory authority. Of course, live streaming: the ultimate guide to the successful production of digital content this can also be a disadvantage. Bitcoin is considered “experimental” by the organization itself, so you should be aware of the risks you are taking when offering Bitcoin as a payment option in your business .
What fees are charged when trading Bitcoin?
The fee for transferring bitcoins between people or businesses does not depend on the amount of the transaction. Other payment networks usually charge a percentage of the transaction value. With Bitcoin, the fee depends on the ability to reverse the transaction – the easier the cancellation, the lower the fee.
On average, switzerland leads a Bitcoin transaction takes about 10 minutes, with a maximum of 90 minutes. During this process, automated confirmations are made that the transfer of Bitcoins is taking place. The fewer confirmations requested – you can also request zero – the lower the fee for sending coins. However, you can also request up to 36 confirmations. This way you can ensure that once the Bitcoins arrive in your account, they cannot be withdrawn without your permission.
This is especially useful if you sell expensive goods. For example, some payment networks allow buyers to claim there was a problem with an order and receive a refund almost immediately – without your intervention or consent. With Bitcoin, this can’t happen. Once the payment is in your account, it’s yours.