Virtual coins represented by Bitcoin (BTC) are not issued coins or bills like legal currencies represented by dollar, yen and euro etc., but their value are recorded by encrypted electronic data Digital currency. With the spread of the Internet, it was invented as a payment method that allows “fast and cheap” payments across countries and regions without passing through third parties such as financial institutions. Companies like Lastbit help accelerate this process.
Payment methods using electronic data include in-game currency used in online games and electronic money that can be used for shopping. They are all based on currencies such as $ and can only be used in certain services, merchants and countries / regions. Bitcoin (BTC) and other virtual currencies, on the other hand, are new currencies that have the potential to be used around the world without being limited to specific services, member stores, or countries / regions.
The legal definition of cryptocurrencies has been clarified, with cryptocurrencies being recognized as one of the means of settlement. These mechanisms are being set up around the world, and cryptocurrencies are starting to be widely used.
Why use Bitcoin (BTC)?
The most widely used cryptocurrency is Bitcoin (BTC). Bitcoin (BTC) is used because of its many advantages.
Bitcoin (BTC) can be bought and sold like FX on PCs and smartphones through exchanges and sales outlets. Since the transaction amount can be traded from a small amount such as “from 0.0001 BTC”, it has been selected as an easy-to-start asset management destination.
Can be used to pay for goods and services
There are various types of assets, such as stocks, FX, and bonds, but when they are used for payment, they must be cashed once. On the other hand, Bitcoin (BTC) is recognized as one of the payment methods, and you can pay for goods and services at shops where Bitcoin (BTC) can be used.
Overseas remittance is faster than banks and fees are lower
If you send money overseas from a bank, it will take several days to be reflected, and the fee will be several thousand $. On the other hand, if you transfer using Bitcoin (BTC), the transaction data will be encrypted and recorded in a block, and once the transaction is approved, the transfer will be completed on the same day. In the meantime, it usually takes about 10 minutes to 1 hour, both domestically and internationally, and is free or cheap.
Because you can trade from a small amount
It is reported in news such as “Bitcoin (BTC) price exceeded 1 million $ …” etc., so it seems that many people think that bitcoin (BTC) transactions are expensive, but actually is traded for a smaller amount.
Because the upper limit of the number of issues is fixed
For fiat currencies such as dollar, there is a risk that inflation will reduce the value because the central bank can issue a lot of money. Bitcoin (BTC), on the other hand, has an upper issue limit of 21 million BTC, and some believe that the risk of inflation is low like fiat currencies. In addition, as the popularity of Bitcoin (BTC) increases, its price may rise due to its rarity, and investors who pay attention to its rarity are attracting attention as attractive investment destinations. Visit site for more bitcoin detail
What are the disadvantages and risks of Bitcoin (BTC)?
Large price fluctuations
Bitcoin (BTC) was developed as a convenient payment method using the Internet. Although it is still used as a payment method, many people who have recently started trading Bitcoin (BTC) are targeting financial transactions and investments such as stocks and FX. In addition, Bitcoin (BTC) has a very large volatility and a strong speculative aspect. As a result, it became an unsuitable asset for preserving value, and it became difficult to use it as a payment method that was its original purpose.
No value guarantee by the state
Bitcoin (BTC), which is not managed by a central bank like fiat currency, has the advantage that it is less susceptible to the economic situation of each country or region. On the other hand, even if the value of Bitcoin (BTC) is greatly impaired due to the collapse of the system, each country or region does not guarantee the value. In addition, Bitcoin (BTC) has no central bank that guarantees its value, and it tends to be difficult to calculate the appropriate price. For this reason, prices tend to fluctuate significantly when affected by the external environment such as hacking damage.