What is a bitcoin? In simple words it is a form of digital currency that does not have any central bank of its own and it can be used as a medium of exchange for goods and services with the vendors if they accept bitcoins. Though it seems a brilliant idea for the currency to go digital, but it carries some risk as well.
Advantages of using bitcoins :-
1) The very first advantage you can think of bitcoins is ease in payment. The person who has bitcoins with him can send the bitcoins to any person who also possesses bitcoins. You don’t have to worry about the holidays or a long journey to get money or give money; if you have bit coins then you can get it in the seconds of time. Also there is no controlling authority controlling, so you have full control over your money.
2) Once you know you have control over your digital money, you feel more secure. The payment can be made without giving your personal details. Since the details are not given, there is no chance of identity theft. No one can charge you with extra fees without talking to you first, hence increasing the safety point.
3) Your final transactions are visible to all but not the personal information. Only your public address can be seen by others, but nothing more than that. Anyone can verify the transaction on Bitcoin block chain.
4) Presently there are no fees or very little fees for bitcoin payment.
5) The bitcoin protocol cannot be controlled by any person, government or organisation.
6) Since one cannot reverse the transaction, and they do not carry private information, it keeps the merchants in confidence that their money is safe. With lower risks, the payments can be done in a city with high crime rates.
Though the bitcoins are still developing, but there is no doubt in it that bitcoins can be a revolutionary idea. There is always a risk of hacking, phishing or any crime related to internet transactions. If you have bitcoins with you then you can use them in the Bitcoin stores. There so many firms who already are using bitcoins as medium for monetary transactions. But if you are afraid to use bitcoins thinking that something wrong might happen to your money, then remember that there are people using bitcoins for different purposes. Come out of your shell and spend bitcoins for a better tomorrow.