Benefits With Bitcoins
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Benefits With Bitcoins

Bitcoin has numerous benefits and advantages over using localized currency; here are some of the biggest advantages.

Quick and Cheap Transactions

When making a Bitcoin transfer the fees are extremely low compared to conventional methods of moving money. A normal Bitcoin fee is usually less than 40 us cent. Accepting credit cards will generally cost 3-5% of the transfer amount, which is a lot more expensive than a Bitcoin transaction.

International wire transfers can take from a few days to more than a week, whereas Bitcoin transactions are generally confirmed with an hour.

No Paperwork

Anyone, from any country, of any age can accept Bitcoins within minutes. There is no ID card, passport or proof of address that all conventional banks required to open an account. All you need to do to start sending and receiving Bitcoins is to download a Bitcoin Wallet program and generate a Bitcoin Address.

You may have as many adresses you like, there is no limit.

Appreciating Value

bitcoinThe value of Bitcoins were initially highly volatile during the first few years of it’s inception, however during the last 6 months the currency has stabilized and has been steadily increasing in value on a daily basis.

Other Benefits With Bitcoin

There is low inflation risk : The biggest problem with our current currencies today is the inflation, due to governments keep on printing more money, which in turn reduces the current value.

How ever the Bitcoin is designed to be finite, there will be released only about 21 million Bitcoins. The last Bitcoin to be mined is estimated to be in 2050 and then there will be roughly 1 Bitcoin for every 500 people on earth.

Unlikely to collapse : Bitcoin does not rely on any governments wrong decisions, Bitcoin is not regulated it is a virtual global currency and will not suffer from hyperinflation.

Bitcoin is safe, simple and cheap to use : If you pay with traditional online transactions like f.ex credit cards, Paypal or others there is always a risk that the buyer claim his money back, With Bitcoin there is no way to do that, you can safely ship the product or service that the client purchased . The transaction is based on peer to peer and will be simpler and cheaper to carry out.

Money on a memory stick : You don’t need to carry a briefcase full of money, all you need is a memory stick in your breast pocket.

Not traceable : Which can be both a benefit and a risk.

Read this page and be surprised about where you can use your bitcoin

What gives the bitcoin this benefits and advantages ?

bitcoin-history from the very beginning

The bitcoin history timeline in words

2007

First we need to understand the history of bitcoin, it accordingly started with the legend Satoshi Nakamoto when he started to work on the bitcoin concept in 2007. Supposedly living in Japan, but there has been and still is many speculations around that Satoshi Nakamoto might be a collective pseudonym for more than one person. My guess is, that we will never get the answer to that.

2008

In August 15,2008 an application for an encryption patent is filed by Neal Kin,Vladimir Oksman and Charles Bry. Already in August 18 the same year a domain is registered anonymously and bitcoin... is borned.

Satoshi Nakamoto is publishing a white paper that describes the bitcoin currency and how to prevent it from double spending(copied). You can read the white paper here

November 9,2008 is the bitcoin project registered on SourceForge... which is a community focusing on development and distribution of Open Source software.

2009

And on the 3’rd of January, 2009 is block 0 (Alsoe called Genesis block) established, see it here

Version 0.1 is released January 9, 2009, it includes a bitcoin generation system that would create 21 million bitcoins through the year 2040. Many believes that it was develpoed by more than one person, but again that is a speculation we are not likely to get answered. January 12, 2009, the first transaction of bitcoin currency is done between Satoshi and Hal Finney alsoe referred to as block 170, which you can see here

Exchange rate is established in October 5, 2009 and published by New Liberty Standard, so the value of a bitcoin is US1$ = 1.309.03 BTC. December 16, 2009 is version 0.2 released

2010

The first bitcoin exchange is born, the Bitcoin Market is established on February 6, 2010, and on the 18’th February, 2010 the encryption patent application filed by Neal Kin, Vladimirbitcoin-banner Oksman, and Charles Bry was published.

May 22’nd Lazlo Hanyecz pays 10.000 BTC (US25$ at that time) for a pizza, that is the first real world transaction that took place.

Version 0.3 is released on July 7, 2010. In july 11’th, 2010 when Slashdot mention the version 0.3, drives a surge in bitcoin users and a large number of new bitcoin users. July 12, 2010 bitcoin value increases from US$ 8 cent to US$ 80 cent in just a few days.

MtGox (bitcoin currency exchange market) is established on July 17’th, 2010 and on the 18’th ArtForz establishes an OpenGL GPU hash farm and generates his first bitcoin block, read more at bitcoin wiki . Bitcoins are beeing exploited, and 184 billion bitcoins is improperly generated and verified in August 15, 2010.

In october 2010, the Financial task force issues warning, to warn about the use of digital currencies to finance terrorists at the same time the first public version of an OpenCL miner is released. October 7,th is the bitcoin value starting to climb. From October 16’th to October 28, the first escrow transaction, #bitcoin-otc trading channel is registered and the first short sale is recorded.

November 6, 2010 market cap exeeds US$ 1 million, the price where then US$0.50/BTC. December 8, the first mobile bitcoin transaction is carried out.

2011

Silk Road ( an unlegal marketplace for drug deals) opens for business with bitcoin. In January 28, with the generation of block 105000, 25% of total bitcoins to be produced is reached. silk roadFor the first time bitcoin value equals the value of dollar in February 9, 2011. In March a major update to the website Bitcoin Market is done and permits trading 24/7 and payments for trades are executed.

March 27 is the first bitcoin and the GBP exchange market opened by Britcoin followed by Bitcoin Brasil, Bitmarket EU and in April TIME magazine publish an article about Bitcoin and how it may challenge Governments, banks etc..

On April 23’rd bitcoin value equals the Euro for the first time and the bitcoin money stock value passes US$ 10 million. April 27’th VirWox integrates bitcoin and trades against Second Life and is the first market to trade bitcoins against a virtual currency.

June 2, 2011 bitcoin is exchanged for US$ 10/BTC. On June 8, the bitcoin all time high is reached with US$31.91 and has a market cap of US$ 206 million. June 12 The great Bubble of 2011 occurs, exchange rate plummeted to almost US$ 10/BTC. The MtGox database is breached and details of 60.000 accounts is obtained, and the price take a steep dive down to US$0.01/BTC. Trading of bitcoin are beeing put on a halt as security is reviewed, many of the users has the same username which were stolen(hacked) from MtGox database an many of the other exchanges loose bitcoins.

2012

The First month’s of this year there is many hack’s and bitcoins are lost, in June Coinbase is founded in San Francisco, California, read my review of Coinbase

September 27 is the Bitcoin Foundation formed and a core development team for the protocol and a body to overview the digital currency.

Wordpress... accepts bitcoin in November 15’th to purchase upgrades. Block reward halving day, block 210000 is the first with a block reward of 25 BTC, the next halving is expected in July 2016, read more about that in this article.

Bitcoin Central is licensed early in December as a European bank and is regulated within the European regulatory framework.

2013

In January 22’nd BitPay announces that they have surpassed 10.000 bitcoins without any reports of cases of payment frauds.

Version 0.8 is released in February 19’th, it improves download speeds and features Bloom Filtering. For the first time since 2011 the bitcoin price reaches US$30 in February.

March 11, a large glitch that involves two different versions of bitcoin software causes a halt in the transactions which again causes a panic sell of and a 23% drop in bitcoin value. See the chart here

In March 17 Lets Talk Bitcoin audio show is launching it’s first episode

March 21’st bitcoin value have a 70% sudden increase to US$ 74.90 and on the 28 March it reaches a market cap of US$ 1 billion.

When we reach April the bitcoin value surpasses US$ 100/BTC and the 10’th of April it goes all time high and reaches US$ 266/BTC. 20 April the bitcoin crashes, and the Bitcoin Central is hacked for a few hundred bitcoins which is fully compensated by the site owners.

Coindesk is launched in May and a gaming company is caught in secretly mining of bitcoins with their customer computers. In San Diego the first Bitcoin ATM has it’s debut, and is the first Bitcoin ATM in the world. The 7’th of May , Coinbase receives US$ 5 million in funding, the biggest funding of a Bitcoin start up.

The US Homeland Security seizes more than US$ 2.9 million from MtGox, du to a failed register. The first online casino that accept bitcoins is launched by PrimeDice and the Bitcoin Central is hacked again and is fully covered by it’s owners.

July 2013, the Winklewoss Bitcoin Trust is filed, A Texas jugde rules that “Bitcoin is a currency or form of money, and investors wishing to invest in BTCST provided an investment of money.” In Germany bitcoin is ruled as private money ” The German Federal Ministry of Finance announces that it recognizes Bitcoin as a form of private money, or a “unit of account,” and allows its use in commercial and private sales. Bitcoins become tax exempt when held for longer than one year.”

In September PrimeDice claim that they have generated more than US$ 15 million in just three months of operation. Silk Road is shut down by FBI and is seized for US$ 3.6 million.last ned

The bitcoin price has a short dop in value before it recovers again and settle at US$ 128/BTC. October 14 Chinese Baidu search engine is the first service of it’s kind to accept Bitcoin. BitMarket... shut down late in October.

In November 6, the bitcoin value reaches a new all time high at US$ 269/BTC, November 17’th it doubles it’s value and hits US$503.10/BTC. November 18’th there is a senate hearing titled ” Beyond Silk Road: Potential Risks, Threats and Promises of Virtual Currencies discusses legitimacy and challenges of virtual currencies.”

Then on the day after the senate hearing bitcoin surges to a record of US$ 1242/BTC and bitcoin is moving more money than Western Union. You can even buy space travel with bitcoin as Richard Branson accept bitcoin as payment.

E-commerce builder Shopify, read my review on Shopify officially integrates bitcoin as a payment option for it’s merchants.

In December the biggest bitcoin heist is carried out, 96.000 bitcoins are stolen from Sheep Marketplace (an online drug site). China’s Central bank bans bitcoin transactions and immediately the bitcoin price drop to below US$ 1000/BTC and Baidu stops to accept bitcoin. China’s Central bank further bans bitcoin from accepting yuan deposits which result in a new price drop this time it drops to nearly US$ 500/BTC.

2014

January 26 Charlie Shrem CEO of Bitinstant is arrested for money laundering at JFK airport and January 28 he resigns as Vice Chairman of the Bitcoin Foundation. The first insured bitcoin storage for institutional clients is launched. and all deposits are held in cold storage.

In February Uk classifies bitcoin as assets or private money, this means that no VAT will be charged on the mining or exchange of bitcoin.

On 28’th of February MtGox claims to have lost US$ 450 million and files for bankruptcy protection.

In September PayPal announces that they allow its merchants to accept bitcoin payments and Microsoft follows in December the same year and say they will accept bitcoin for certain products.

In May the bitcoin value goes from US$ 440 to 630/BTC.

In June there is an auction held by the US government where they auction off more than 29.000 bitcoins seized from the Silk Road, this states the fact that there is no easy way to avoid the rule of law even with bitcoin, and in that way it is helping bitcoin to gain legitimacy and bitcoin can no longer be considered as a currency for outlaws.

The first draft of the Bit licence is released by the New Yourk State Department and the European Banking Authority publish the opinion on virtual currencies. And alsoe later this month the first regulated Bitcoin Investment fund is launched, this adds more legitimacy to bitcoin.

2015

In March 2015 the bitcoin value is trading between US$ 200- 300/BTC, In the beginning of November the value increases to US$ 504/BTC.

2016

Today as i write this article, you can see todays chart from Coinbase, as you can see it is on a steady rise in value.Bitcoin price today

I personal recommend you read the Coinbase review, which is the one i use to store bitcoin.

Please feel free to comment or share your thoughts on my website


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