What Are Bitcoins?
Bitcoins a cryptocurrency, we don’t want to overwhelm you with computer engineering terms, so to put it simply: Bitcoins are just digital money generated by high-performance computers.
In contrast to dollars and euros, which you can physically hold in your hands, bitcoins exist solely as computer code with monetary value. Nevertheless, you have the option to exchange for cash. On May 1st, 2018, the value of bitcoin stood at $9,244.32 at the beginning of the day.
Although some perceive investing in digital currency as too risky, its intricate algorithms actively safeguard against fraud and hacking attacks. Satoshi Nakamoto, which is a pseudonym, first introduced bitcoins in 2009. Actually, nobody ever found out Satoshi’s true identity, although there are many theories about it.
Pros And Cons Of Bitcoins
Now that you know a little bit more about it, you’re probably wondering if it’s something you would use. To help you make a decision, here’s a list of some of the advantages and disadvantages of using bitcoins:
- You can store bitcoins offline on your hardware.
- Banks do not create bitcoins, and no government regulates them.
- You remain anonymous and free of taxes imposed by banks.
- There’s a limited supply of bitcoins controlled by an algorithm.
- Bitcoin’s value is increasing fast. If you had purchased $100 of Bitcoin in 2011, you would be a millionaire today.
- Losing your bitcoins can happen if your hard disk or other hardware becomes permanently damaged.
- Your money is gone once a transaction is made. The process is irreversible.
- Governments are discussing bitcoin taxation more and more. Banks aren’t happy with the bitcoin boom. We’ll probably hear some news about it in 2018 and 2019.
- Bitcoins are still considered a risky investment. It’s common to see the value flux drastically by hundreds of dollars in one day
If you have more questions, feel free to contact us through our website or call (800) 719-9198. American Verification Processing Solutions provides personalized payment solutions tailored to your business needs. Our solutions have proven instrumental in enabling numerous businesses to achieve success and foster growth!