Bitcoin is making use of peer-to-peer technology as it operates without any central authority or any kind of banks. All the transactions are carried out by the network. It is open-source. Even the issuing of bitcoin is done collectively by the network. This is a public design. There is no one who owns or controls it. Hence everyone can take a part in it. It has a number of unique properties too. There are various exciting uses that were not covered earlier by any payment system. We can look at how Bitcoin is benefitting all.
As an individual, Bitcoin is the simplest way for exchanging money at a low cost.
Mobile Payments
Bitcoin on mobiles means that you can pay easily. There is a simple two-step procedure where you need to scan and then make the payment. This means that there are no sites where you need to sign up or some machine to swipe your card. You do not have to type a PIN on any machine or sign on any paper slip.
Receiving Bitcoin Payments
In order to receive Bitcoin payments, download the Bitcoin wallet app and display the QR code. Now ask your friend to scan your mobile. Do note that Bitcoin transactions are completely secure as they are using military grade cryptography. Hence you will not be charged money and no one can make a payment on your behalf. Just make sure that you take adequate steps in order to protect your wallet. This way Bitcoin gives you adequate control over your money. You will also get a strong level of protection against any kind of fraud.
Your next question will be about Bitcoin working where and when. Here you do not have anyone to use the same software or even the same service providers. They can continue with their own favorites. They would still be compatible with the same open technology. Another great thing about Bitcoin network is that there are no holidays, ever!
Make use of Bitcoin to do international payments too. You can easily send bitcoins across borders. There are no banks involved means no waiting for money transfer. Besides, there will be no extra charges on international transfer, no limitations on the minimum or maximum amount that you may send and so on, which are typical with any other form of transfer.
There is no fee charged when you receive bitcoins. There are a number of wallets that let you control the fee that you need to pay when spending. Typically these wallets have default fees that are quite reasonable. Higher fees would lead to faster confirmation of those transactions. Do note that fees will not be related to the amount of bitcoins being transferred. Hence sending 100,000 bitcoins will entail the same fee as sending 1 bitcoin.
Security
With Bitcoin, you are completely secure. This is because there is no credit card number involved that can be used by someone to impersonate you. It is possible to send a payment without even revealing your identity. But you need to make some efforts in order to protect your privacy.
For business, Bitcoin is a secure as well as inexpensive way for handling payments. They do not have to pay a fee to receive bitcoins, and there are a number of wallets that allow them to control the amount of fee to be paid when spending bitcoins. The reasonable default fee of wallets is another advantage for businesses.
Businesses accepting credit cards or PayPal are well aware of the issues related to payments that are later reversed. There are a number of chargeback frauds this way. All this has resulted in limiting their market reach and increasing their prices. All this, in turn, leads to penalizing customers. On the other hand, Bitcoin payments are completely irreversible and secure. Hence there is no question of fraud and hence no such penalties being levied on the shoulders of the merchants.
Businesses are making use of the easy and fast international payments through bitcoins. There is no waiting time and there is no limitation on the amount that can be sent across.
There is No PCI compliance required in case of businesses making use of bitcoins. While using credit cards online extensive security checks are required in order to comply with the PCI standard. Even in the case of bitcoin, you need to secure your wallet along with your payment requests. But you have the benefit of not being forced to carry the costs as well as responsibilities associated with the processing of sensitive information such as credit card numbers.
Businesses are able to get some free visibility as Bitcoin is an emerging market. There are new customers joining in all the time who are searching for ways to spend their bitcoins. Hence businesses can accept them and this is a good way for them to get new customers. Besides, this is a new payment method and this is considered as a clever practice for the online businesses.
Bitcoin includes a multi-signature feature. This means that bitcoins can be spent only when a group of people has authorized that transaction. This way a board of directors is able to prevent any member making expenditures without getting consent from other members. This way it becomes easier to track which members had allowed any payment.
Businesses are able to achieve accounting transparency this way. Typically organizations have to produce accounting documents in order to account for their activity. Making use of Bitcoins offers the highest level of transparency as you can provide information that can be used by others to verify your balances as well as transactions. There are non-profit organizations that would like to allow the public to see how much they are receiving in donations. This can be done through bitcoins.
This is the simplest of all payment systems. Just a link or displaying a QR code is good enough. This has a simple setup that can be utilized by any user and is able to fulfill the needs of many clients. It is especially suitable for making transparent donations and giving tips.