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What is Bitcoin?

What is electronic money?

"Bitcoin" and "Electronic Money" are similar concepts, but in reality there are some important distinctions. Below, we will outline some important differences between Bitcoin and electronic money.

Electronic money is a method of settling payments in a specific currency without using bills or coins. Settlement methods include online or contactless payment, which are often used at convenience stores or when paying your train or subway fare.

Many of us have already used this form of payment in our daily lives. Electronic money is convenient and quick, as there is no need to physically take coins or bills out of your wallet.

Bitcoin also has no bills or coins, and enjoys all of the above benefits, such as speed and convenience. In this sense, it is natural to think of Bitcoin as electronic money.

Why should I use Bitcoin?

1)Transfers are directly from person to person - there is no intermediary involved

Normally, to send money to a person you are not physically near, you need to use a bank or other money remittance service to facilitate the transfer. Using Bitcoin to send funds, however, is the same as passing somebody cash from your own wallet.

2)Fees are nearly zero

With Bitcoin, there are no middlemen. This means fees paid to send and receive Bitcoin funds are basically zero, or extremely small. This is a key advantage of Bitcoin, particularly for tiny payments. Bank transfers and credit card payments carry significant fees, making it difficult to effectively send small amounts of money. This limitation can easily affect a business bottom line. Due to its ingenious and advantageous structure, settlement fees approaching zero are readily achieved with Bitcoin!

3)here is no monitoring performed or limits imposed by any third party

As Bitcoin does not require banks or third parties to settle payments, the process is faster, paperwork is not needed, and funds can flow freely. Further, Bitcoin is global - there is no difference in the unit of currency between countries. There are already many stores and websites around the world that accept Bitcoin today, and as Bitcoin increases in popularity, this number will only grow!