Virtually any product or service that can be bought with dollars or other currencies can also be bought with bitcoins. On the other hand, the high volatility of bitcoins poses a great risk to some people who may want to use this cryptocurrency but are afraid of price differences. However, the characteristics of bitcoins make them perfect for online payments:
1. Fast transactions
A bitcoin transaction is processed in 10-15 minutes. In case of bank transfer, it can take hours or even days for the money to arrive from one account to another. Some might say that PayPal or other ewallets are even faster. True, but there are other aspects that ewallets cannot give: privacy and smaller commissions.
When you send bitcoins to a partner over the Internet, the transaction will be recorded in a blockchain. The list of transactions is public and can be verified on specialized websites. Only the identification number, sum and time are recorded. There is no way anyone can find out where bitcoins come from and where they are going. This is characteristic of the bitcoins that attracted a lot of people. Well, some of them are interested in it because they can buy illegal products with them, but most bitcoin users are people who want to buy legal items and services but don’t want to reveal their identity. Porn and betting websites can be immoral, but they are not illegal, so people who want to subscribe to these services can safely pay in bitcoins to websites that accept this currency, knowing that their reputation will not be affected.
3. Smaller commissions
The average commission is 0.002 BTC for one transaction. It is significantly lower compared to bank or PayPal fees. Plus, you don’t even have to pay for it. When paying a commission, you “reserve” the computing power of a group (or at least a party) to process the transaction faster. You even have the option of not paying the commission. In this case, you may have to wait two or even three days for your transaction to be processed. If you’re not in a hurry, this could be the perfect opportunity to make money-free transactions.
Of course, there are also disadvantages to using bitcoins, such as the possibility of losing them. If someone steals your bitcoins or deletes your wallet files, it is impossible to recover them. As long as bitcoin is not regulated, there is no central body for arbitration between divergent parties. In other words, you can’t complain if you lose or have your stolen bitcoins, simply because no one can complain.