Archive of ‘Transactions’ category

Benefits and risks of Bitcoin

Bitcoins are the pioneers of the crypto currency and were the cornerstone for the blockchain. As the first crypto currency it still has some weak points. Let’s take a closer look at the advantages and disadvantages of the blockchain.

Advantages and chances of the Ethereum code

Bitcoin can be used worldwide. More and more countries accept it as a legal means of payment.
Due to the decentralization of digital currencies through blockchain technology, it is almost impossible to control or manipulate the currency. Thus, the Bitcoin exchange rate is not dependent on political decisions or economic developments in individual countries.
Thus, no central bank can trigger inflation by increasing the money supply.
The Bitcoin protocol specifies a maximum amount of coins. The greater the acceptance of the currency, the more valuable it becomes and the Ethereum code rate rises.

To be able to pay with BTC, you do not need a bank account, only a so-called wallet, which can be created e.g. free of charge online. Banks thus become superfluous.
Transactions are faster than with banks, especially when it comes to international payments. On average, a transaction takes 10-30 minutes from anywhere with an Internet connection. Impossible for banks to keep up.
Low transaction fees: It is not only much faster to transfer money via Bitcoins – it is also much cheaper. Regardless of where and to what location a transaction is carried out, the costs are usually in the cent range. Here too, banks cannot keep up.
No personal and sensitive data is required for opening a wallet (account) and for transactions.

Disadvantages and risks of the Bitcoin code

The acceptance of digital currencies has not yet fully penetrated the population. So far, there are only a few shops that offer payment through Bitcoin code. However, it must be mentioned that the acceptance points are becoming more and more. The trend speaks therefore for Bitcoin code.
Who acquires BTC, must store them somewhere. Regardless of whether they are stored on the computer, on a stick or elsewhere: If the storage medium is stolen or destroyed, the money is also gone. It can also be destroyed by malware. There is no bank here that can keep your money safe.
Once executed, transactions are no longer reversible. A recall of the money, as it is known from banks, is not possible.
The number of executable Bitcoin transactions is currently still limited. The more popular this crypto currency becomes, the faster it reaches its transaction limit. Then payments take longer (which is still much faster than with banks). Other crypto currencies offer better possibilities. But a solution is also being developed for Bitcoins.
How can I buy Bitcoin?
Where to buy Bitcoin? A so-called wallet (electronic purse) is required to store the Bitcoins or the private keys. This can be downloaded as an app to your smartphone, for example. There are several ways to purchase Bitcoins afterwards:

Bitcoin exchange offices, also called Exchanges, offer the purchase of Bitcoins or their conversion into the local currency. Payments are usually made via a normal bank account or services such as Paypal. An exception is the exchange office from the Netherlands. There Bitcoins can also be paid with a credit card. The fees for the purchase or exchange are between 1.5 and 5.0% of the sum that is exchanged.

On marketplaces like private individuals trade directly with Bitcoins. This works similar to eBay auctions. The Bitcoin course there is determined by supply and demand. One can acquire therefore on these Bitcoin stock exchanges possibly BTC more favorably. Also with them a small fee becomes due for each transaction, which depends on the height of the exchange sum.

Meanwhile there are also some stand automats, where one can acquire directly BTC against cash. These machines are located in cities such as Bochum, Berlin or Munich. The more popular the currency becomes, the more vending machines there will be.