Benefits of Bitcoin and How to Use It

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Cryptocurrencies have exploded in popularity since they first came into existence a few years ago. However, many people are just starting to learn about the idea of Bitcoin and other cryptocurrencies. Why are they worth so much? How come people are investing in them? What are the advantages of using Bitcoin and other cryptos? Well, you've come to the right place. Here is some general info about Bitcoin and the benefits of using cryptocurrencies in everyday life and for investing, too.

What is Bitcoin, exactly?

Bitcoin may contain the word "coin," but this form of money is all digital, meaning that it can't be physically touched or held like standard US currency. In fact, it would be impossible to go to a bank and withdraw them since they only exist in the cloud, A.K.A., in the virtual world. So, what's the deal? Why is bitcoin worth so much? As of June 1, 2021, the value of a single Bitcoin is over 35,000 USD that's a lot of money!

You can get Bitcoin without paying for it by mining it, which involves using an incredibly expensive mining rig (computer set up) to mine them from the blockchain. However, without the correct type of computer equipment and software, it wouldn't make financial sense. But there are ways to get Bitcoin without mining. All you have to do is use a crypto exchange to reap the benefits and start investing in Bitcoin. You can get some assistance from xCoins.io, a secure Bitcoin exchange that allows for instant purchasing of the crypto on a safeguarded system.

How Do You Store Bitcoin?

Since Bitcoin is only digital and doesn't have a physical form, how can it possibly be stored? Well, it's simple. Bitcoins are stored in something called a "digital wallet" or a "crypto wallet," which only exists on the cloud. Essentially, a digital wallet is a type of virtual bank account. It allows for spending Bitcoin, saving it, using it to pay for services, anything the user wants.

What Types of Companies Accept Bitcoin as Legal Payment?

While the IRS or any government entity doesn't accept Bitcoin, its use is becoming far more widespread than it once was. The crypto was created in 2009 by somebody under a pseudonym (nobody knows who actually created Bitcoin) and its been becoming more and more popular as the years go on. In fact, many companies are starting to realize the benefits of using Bitcoin as a payment method, and it's becoming accepted by more and more mainstream companies like Starbucks, Microsoft, and Overstock.com. Here are the top seven benefits of using Bitcoin and why it's so popular.

Top 7 Benefits of Using Bitcoin

Totally Free to Use

One of the best benefits of using Bitcoin is that it's totally free to use. It's sort of like Wikipedia, in that anyone can edit or improve it the source code is free to use and study whenever you want. In fact, hundreds of people all over the globe spend their free time collaborating to make Bitcoin and the source code better.

Finite Amount

One of the reasons Bitcoin is worth so much money is because there's a finite amount. Eventually, every Bitcoin that's available on the blockchain will have been mined, and once they're gone, they're gone. The best benefit to this is that it eliminates somebody (like a big bank) suddenly creating thousands of Bitcoins because they feel like it. There is only 21 million Bitcoin in existence, and that's all there will ever be.

No Hidden Fees

While there are going to be some fees when using a third-party site like a bitcoin exchange, or "maker" and "taker" fees, using Bitcoin means there's none of the traditional banking fees like you would with a typical checking or savings account. There's no minimum balance, no account maintenance, nothing.

Easy Access

Another great thing about using Bitcoin as a payment method is that it's extremely easy to access. As long as there's Internet access, you can make any type of transaction you like. So, if you want to purchase a product, there's no driving to the store simply pull out any mobile device or computer and make the purchase you want.

Virtually Anonymous

One of the main reasons why Bitcoin is so popular is because it's totally anonymous. That means that you aren't required to give any sort of personal information when you make a transaction. While it's not 100% anonymous, it has a much higher level of discretion and anonymity than other money systems or payment methods.

Think about it: to sign up for a bank account, you must supply personal information like name, birthday, address, and social security number. With Bitcoin, there's no identifying information, which is why so many people have started using this crypto. There's no chance of the government seeing every transaction or your spending habits.

With Bitcoin, every single transaction is logged on the blockchain and can be viewed by anyone at any time. So, how is this anonymous then, if anybody can view any transaction at any time? Well, every transaction is only identified by a wallet ID, which is anonymous. That's why it's so easy to use Bitcoin to buy things without worrying about somebody tracing it back to you.

It Cannot Be Seized

If you have a crypto wallet with Bitcoin, it's yours, no matter what. Since Bitcoin is not housed at any type of bank, government, company, or the like, it can't be seized. Part of the attraction of Bitcoin is the ability to essentially "be your own bank."

No Charge-Backs

Once a Bitcoin transaction has been made, there's no possible way to reverse it. This eliminates the risk of charge-backs, which can be very costly. Once the Bitcoin has been given to somebody else (it runs on a peer-to-peer system), it can't be given back unless they choose to return it.

Try Investing in Bitcoin

While Bitcoin is still something a little confusing for most people, it's actually quite simple to use. It's easy to see why it's so beneficial and why so many people are attracted to using a decentralized, anonymous currency. Though its value has fluctuated greatly, Bitcoin has always rebounded too higher than ever before. Try investing in Bitcoin today for a totally free and anonymous method of paying for goods and services.