Bitcoin is a cryptocurrency, the currency that is hidden or concealed. Hidden in the sense that it is not issued by a central authority of a country. Transactions are made peer to peer without the mediation of any third party.Bitcoin has no physical existence; it is just a virtual currency. As it is not issued by a government, so has no legal tender. In case of any fraud with the Bitcoin account holder; there is no remedy available to him by law.
Bitcoins as a mode of payment
Now after that, we have seen an overview of what bitcoins-evolution is, we can understand how this currency is a useful mode of payment as compared to fiat currencies.
The most salient feature of bitcoin is its status to be unknown to any central agency. In the case of fiat currency, the account holder is bound by the third party, which may be the bank. Account holder as to declare his identity before the bank, while making a transaction. But this is not the case in Bitcoin.
Bitcoin transactions are not known to any other account holder unless a user voluntarily publishes his identity. The Bitcoin address that is generated for user transactions changes with each transaction.
TheBitcoin payment system is purely on peer-to-peer, meaning that the user can send or receive payment to or receive from anyone throughout the world without the involvement of any third party.
Elimination of Banking Fee.
The services charges as compare to banks are very nominal. There are no account maintenance charges, no overdraft charges, and no returned deposit fee.
Transactions through Mobile phone
One of the main features is that you can make transactions through your mobile phone. No need to issue a check or go to the bank that takes a lot of time, resulting in stopping your business activity.
Because users have the facility to make payments through mobile phones or computers. These two devices are available to most people as compare to the banking channel. Through the bank, you have to open an account, fulfill the formalities of the bank, showing your identity and other business-related information,that is a hard process.
The number of investors is increasing day by day. Due to Bitcoin technology (Blockchain) buying and selling are becoming easier. As compared to the past, bitcoins are accepting every ware in the world.
Rare chance of hacking
It has reported in the past, many banks have been targets of hackers, but Bitcoin exchange has powerful software and hardware technologies, like Blockchain and bitcoin wallet, so there are minimum chances of hacking.