Bitcoins are an increasingly popular form of virtual digital currency that are directly based on their value and use today, and on speculation of their future value. Bitcoins have the capabilities to solve some of the problems we face today with our current currencies.
The worth of a Bitcoin is still volatile and changing, while its value is based more on speculation than the volume of its usage. Bitcoin is a phenomenon that has gained momentum over the past year but some people are still having hard time accepting it. Regardless, it has rapidly gone mainstream and it is here to stay. Bitcoin is an easy form of currency that doesn’t involve any sort of physical money or coins-they are purely digital. The value is derived on the market principles of supply and demand. Furthermore, additional coins could be released to market or mined by a series of computer calculations. The concept that each next batch of bit coins requires more resources to “mine” makes the process steady and stable. Furthermore, there has been a cap off point determined of the number of bit coins in the market. This way the value of “bit coin” will be held steady incase of drastic events or economical conditions which could impact its value.
There are many advantages to using Bitcoins over regular currency-especially when dealing with transactions that are performed solely online. Firstly, using Bitcoins is safer, simpler, and cheaper. That is really the bottom line. Money can be moved anywhere in the world in no time and with optimal privacy. Bitcoin transactions are secure and once the money is transferred, it is irreversible. No sensitive or personal information about the buyer is attached to any transaction, it is untraceable. It fully eliminated the risk of credit card fraud. The core principle of using Bitcoins is that there is a minimal transaction cost. There are no chargeback fees, no worries about exchange rates and no currency conversion fees. Another advantage is that there are no intermediaries to your personal transaction. It is a person-to-person system where your money is transferred directly to the other party.
It is very easy to carry vast amounts of money in Bitcoins on a USB stick right in your pocket. Bitcoin has all the characteristics of money but at the same time has the potential to ultimately be worth more than 1oz of gold. Bitcoin users have full control over their funds and because they are virtual, it is impossible for them to vanish. The value of Bitcoins is directly related to supply and demand. There will not be an infinite number of Bitcoins produced and therefore when the demand for them is higher, their price and value raises as well. Similarly, when there are fewer Bitcoins left, their value will go up to compensate for this. Bitcoins can be competitive to buy because of this, as their supply and demand fluctuates so will their price.
No single person or entity owns the Bitcoin network and an authority does not regulate it; all Bitcoin users around the world control Bitcoin collectively.
In order for a Bitcoin to be considered as a form of currency with value, it just has to be accepted as a form of payment by both parties. Its value comes directly from people willing to accept them as payment.
There is a large concern that Bitcoin system will further simplify transactions of illegal substances, which governments will no longer be able to trace. Having said that the real fear from governments and institutions comes from inability to tax and charge fees for processing payments. Either or, some of the benefits of bit coin far outweigh the risks. We at Nova Solutions are proud to announce that we accept Bitcoins as a form of payment for search engine optimization services.