What you can do with Bitcoin is the same as with ordinary currencies. With Bitcoin, you can pay for goods and services, whether you are an individual or a company
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In other words, Bitcoin is just virtual money and is a kind of money that can be used like a normal currency. Understand bitcoin more.
The difference with currencies like the yen and the dollar is that payments in bitcoin must be done electronically. It’s natural because it’s a virtual currency without physical banknotes and coins.
Since Bitcoin makes electronic payments, you can easily send money via the Internet. You can send Bitcoin to people far away or even in front of you in a short time.
Benefits of using Bitcoin
Since there is no state or company involved, there are the following merits in remittance between individuals, for example.
1. You can literally send money “directly” between individuals
2. No fee or cheap
3. No oversight or restrictions
1. You can literally “directly” send money between individuals
When sending money in a general currency, it is necessary to intermediate with a bank. However, in the case of Bitcoin, you can pay directly between individuals. The advantage of using Bitcoin is that you can pay directly to the other party using Bitcoin, just as you meet and pay directly from your wallet.
2. Free or cheap fees
Since there is no intermediary organization, you basically don’t have to pay any fees. This is a very important feature for small personal payments. There are certain fees for bank transfers and credit card payments. As a result, it becomes difficult to buy or sell a small amount of goods, and the profit margin of the business decreases.
Bitcoin enables payments that defy the conventional concept of fees, thanks to its direct transfer mechanism, which is the biggest advantage.
3. There are no restrictions
Since payments with Bitcoin are not made through banks, there are no bothersome procedures or restrictions. You will be able to distribute money more freely.
Also, since there is no characteristic that the unit of currency differs depending on the country, there is an advantage that the same currency can be used all over the world by using Bitcoin. To that end, Bitcoin will become more widespread and more shops will need to accept payments in Bitcoin, but even now, there are shops around the world that can make payments in Bitcoin.
Where are Bitcoins stored
Bitcoin has the concept of a wallet. This is a bank account in the case of yen and dollars. With the time there is great Bitcoin Evolution and many new terms add in this bitcoin trading.
Everyone who uses Bitcoin has a wallet where they store Bitcoin and use it for payment. In other words, anyone who wants to use Bitcoin needs to create a wallet.
It is like an email address assigned to an individual. In fact, the long string represents the wallet ID.
As it is difficult to remember as it is, it becomes difficult to transfer money between individuals. Therefore, generally, a code with a shortened ID is used, or it is converted into a QR code that can be read by a smartphone and exchanged.
Bitcoin challenges
Of course, as with yen and dollar payments, it is essential that both sides accept bitcoin payments even when making bitcoin payments. If the currency of Bitcoin is not “clear”, you cannot settle.
This is a very big issue for Bitcoin, which is still in its early stages of diffusion unlike Yen and Dollar.
Bitcoin payment may be invalidated if the following circumstances are found.
• When the setting of Bitcoin remittance fee is low when using “other” bitFlyer wallet
• If it is not possible to confirm the deposit within the valid time because it takes time to transfer money to bitFlyer Company using “other than” bitFlyer wallet
• When using a wallet that generates a special payment (GreenAddress, etc.)