What is Bitcoin (BTC)? Easy-to-understand explanations for people learning from scratch

Bitcoin (BTC) is known as a representative of virtual currency. As the name recognition increases, Bitcoin (BTC) is becoming more talked about among people who have never been associated with virtual currency. However, some people may find it to be “somewhat difficult”.

Bitcoin (BTC) is just one type of virtual currency, like the Japanese yen, the US dollar, the euro, etc., which exist within the group of “currencies.”

What is BitcoinBitcoin is different from electronic money

Bitcoin (BTC), which is a virtual currency, is different from electronic money.¬†Both are the same in terms of “recording the currency value as digital data”.

However, electronic money, like various prepaid cards, is a digitalization of the currency issued by the country. For example, Suica and PASMO that can be used on trains and buses are IC cards that convert Japanese yen into electronic money.

Cryptocurrencies such as Bitcoin (BTC) have nothing to do with currencies issued or guaranteed by countries or central banks. This is the crucial difference between Bitcoin (BTC) and electronic money.

What are the benefits of Bitcoin / BTC? Three advantages

Bitcoin (BTC) offers many advantages over cash and credit cards. Therefore, we will explain the excellent three advantages of Bitcoin (BTC) (remittance, fees, overseas use) in an easy-to-understand manner even for beginners.

  1. Direct remittance between individuals

Virtual currency may be able to send money directly, but it may not come out very well. But this is a huge benefit.

It is common to use a bank transfer when buying and selling on the Internet or sending money to children who live apart.¬†However, when transferring money through a bank, there is a time lag between the transfer and the payment. It’s not uncommon for a check to be sent to another bank to take a credit check

  1. Very low fees

The advantage of Bitcoin (BTC) is that the fee for sending money is cheap. In the case of banks, a large amount of cash must always be available in preparation for withdrawals from depositors. It requires a sturdy safe and personnel to manage it. To avoid inconvenience, we have to set up branch offices in various places and ATMs so that we can handle nights and holidays.

Naturally, the equipment cost, system maintenance cost, personnel cost, etc. will be charged accordingly, and the cost will be covered by the user’s fee.¬†As a result, even withdrawing cash from your account will incur a commission.

However, with Bitcoin (BTC), which is a virtual currency, that is not the case.¬†It costs money to operate, but it’s cheaper than a cash bank.¬†Therefore, the transfer fee can be kept very low. It is easy to do bitcoinslifestyle.com.

For example, comparing 100,000 yen when sending money overseas, a bank costs a few thousand yen including the exchange and remittance fees. On the other hand, Bitcoin (BTC) requires only a remittance fee and can be remitted in a few hundred yen.

  1. You can use the same currency around the world

When traveling abroad, it is inconvenient if you don’t have the currency of your travel destination in cash.¬†In most cases, you will need to change the local currency or traveler’s check at a Japanese bank in advance, or exchange at the local airport.¬†However, this exchange fee is surprisingly expensive.

For example, in the US dollar, the fee for domestic banks is 3 yen per dollar. If you exchange 1,000 dollars, it will cost as much as 3,000 yen. Whether you are going abroad or traveling back and exchanging local currencies to Japanese yen, you will earn a solid fee.

However, if you pay with Bitcoin (BTC), you do not need the exchange fee, only the settlement fee.

Whether you are traveling to a restaurant or shop that supports Bitcoin (BTC) payment, the QR code for payment will be displayed on your tablet. Just read the code with your smartphone app and send it, you can pay as if you were paying with cash from your wallet.

This is one of the reasons why Bitcoin (BTC) payments are more popular and widespread than credit cards, which require payment of a few percent of fees, for stores.

Video – Cryptocurrencies

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Interesting related article: “What is a Cryptocurrency?