You probably have heard of the word bitcoin. In the cryptocurrency language, bitcoin surely rings a bell. Today, many institutions are jumping on the bitcoin bandwagon. If you are clueless or have limited knowledge about bitcoin, then you surely have a lot of questions in mind. First of let’s tackle the definition of bitcoin.
What is bitcoin?
Bitcoin is a digital currency that goes beyond the control of the federal government. It is a currency used all over the world, which functions the same way as real cash. You can use it to purchase almost anything for as long as the merchant accepts bitcoin. Merchants that have a dedicated bitcoin hosting service accept bitcoin as a payment method.
The significance of bitcoin
Unlike other payment methods, bitcoin is not susceptible to fluctuations and government control. The faith in bitcoin depends on you and your peers. Practicality wise, it is cheaper to use bitcoin as a means of payment when compared to typical money. Why? Well, if you use the conventional payment method, you would need to pay for the bank, and would take a few hours to even days for the payment to reflect on your bank account. It is especially true if the payment comes from other countries.
On the other hand, if you are going to use bitcoin, you can make payment and transfer funds in an instant without incurring additional fees. Many years ago, the anonymity, speedy, and practical method of payment using bitcoin is not recognized. However, as more and more people are recognizing the comfort, simplicity, and convenience that bitcoin payment offers, there are now plenty of merchants that accept such a payment method. In fact, bitcoin is not only used for payment but also used by many for investment purposes.