170916 Three Reasons Bitcoin Rules

Decentralized    mask    frees

There are three reasons bitcoin rules: it’s decentralized, it’s anonymous, and there are no costs associated with sending or receiving bitcoin except for a small processing fee paid to miners.

Decentralized, there are no clearinghouses or centralized banks which govern bitcoin. Bitcoin works on a blockchain network where every node of the network has a complete copy of the entire database of bitcoin transactions.  In that way, the network is extremely safe by design.  Bitcoin never shuts down or takes a holiday.  Bitcoin works globally, in every country in the world, wherever there is Internet access.  There are no log jams or choke points in the system.

Bitcoin transactions are anonymous.  You only need a bitcoin wallet address to be able to send bitcoin to someone.  There is a record associated with every transaction but there are no names or personal information attached to the wallet address in the blockchain. Whereas a traditional bank transaction must keep all of the information regarding a particular customer and transaction secret in order to secure its safety, Bitcoin transactions may be made public without fear of theft.

Transactions are free.  There are no rates for services or fees attached to bitcoin transactions.  Unlike Mastercard or Visa with their base transactional fee plus fees of 2.35% or more of the amount being handled, bitcoin has no fees.  Some MC or Visa customers pay even more than that.  Banks have additional fees for storage, for exchange rates, and processing.  In fact, between the banks, exchanges and credit cards, it is not uncommon for 5% or more to be paid to the banks for them to handle your money. Bitcoin has no such fees.


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