In 2009 a cryptocurrency or digital currency was created named Bitcoin. It is not managed by any bank or intermediary. All the transactions are recorded by the public “blockchains”. The free bitcoin is been traded by people through the virtual world by cryptographic keys works like wallets.
It is been used in a huge amount and also got popular just because of the flexibility and facilitation in payment structure. It offers lower transaction fees than the online regular transaction and is controlled by a decentralized authority, not by the government.
It is also not issued by any banks or government entities. It doesn’t have any physical evidence, but a virtual footprint will be always there in the records. It is not a legal tender, despite the fact the charts go high on the market.
- It could be used as micropayments.
- It can be split into smaller pieces.
- These are known consumable. Which can’t be consumed rather than an exchange of value.
- It is much less linked to the person’s identity than some traditional payments.
- Portability is easier.
- No depreciation occurs.
- More Security
- Facilitation in transfers.
- It is fungible.
- It is also recognizable.
- The free bitcoin also eliminates the banking fees, whereas in the case of regular traditional payments it mostly consumes the mediator fees.
- It also consumes low transaction fees in international payments compared to the regular transaction of online payments.
- In this type of payment, users can make a transaction without somebody’s authorization across the world, which establishes a “peer-to-peer” focus.
It is a digital currency that is controlled in a decentralized network of users and is not linked with any mediator authorities like central banks or government authorities.