Know all about the advantages of Bitcoin

Once we have ascertained that bitcoins are not physical objects, and that they can exist as currency exchanged with a technological mechanism but without the need for a central bank that regulates it, we can examine the advantages that derive from buying or possessing them.

Keep in mind that the exchange mechanism of the blockchain has been tested because it has been running smoothly for about 10 years. Indeed according to experts it is safer than that of normal bank transactions. Therefore in the analysis of the benefits of crypto investment are many people assuming that the blockchain is neutral from this point of view? On the one hand because it is immune from risks and on the other because it’s possible competitive advantage can only manifest itself in future.

  • Keep the money hidden from the tax authorities?

If you think of buying bitcoins to hide your assets from tax purposes, you are wrong. In reality, based on current legislation, bitcoins are considered in all respects as income produced or held abroad.As such must be declared to the tax authorities, inserting them for their amount held in the tax return, where a specific RW framework is provided in the Income model.In this way they also become subject to all reporting obligations for monitoring and anti-money laundering purposes.

The fact that sometimes the mechanism of exchange through the blockchain allows to evade them does not mean that this possibility of concealment is legitimate; on the contrary.It makes it even more illegal, because it is made in a way that makes its discovery more difficult.

  • Earn with trading

This is the best known, and also the most publicized, way to profit from bitcoins: buy them and wait patiently for their value to rise, or speculate on price fluctuations. That are very frequent, carrying out even intraday trading operations, i.e. during the same day.

So, in reality, there are two ways to earn with bitcoins: buy them in a long-term perspective and keep them for a long time (who had done it years ago today would have multiplied the capital dozens of times.It is the most fruitful strategy) or buy them quickly, so as to earn even when the prices turn down; but here you have to be a trading expert and you can’t improvise. It is played with real money, which must be purchased in hard currency, such as the euro or the dollar, in order to start trading.

  • Earn by mining

There was a time not too far away – up to 4 or 5 years ago – in which you could earn a lot by being a bitcoin miner.In essence, with your computers you were building pieces of the blockchain chain, essential for recording transactions and more and more exchanges. But then, as the number of bitcoins in circulation is fixed, while the owners have increased.The chain has grown exponentially, and also the miners enticed by the gains have become many.

So their fees have been reduced to infinitesimal and the profitable line has run out: it is no longer convenient.Also because to do it you need very powerful computers that consume a large amount of energy.To the point that the cost of the electricity supply of the processors far outweigh the small gain that can still be achieved. So if someone were to propose to make available on your computer to do the miner (miner, in English) not accept: you lose.

  • Zero limits and costs

Bitcoins are cheap because you don’t pay account maintenance costs like in normal banking relationships.They are fast and universal because they can be exchanged all over the world without any limit, neither of quantities nor of subjects. Transaction and operating costs are kept to a minimum because there are no intermediaries that charge commissions on exchanges. Nor are there any prerequisites for starting to operate in bitcoin, unlike the other types of financial relationships that are subject to stringent regulation. They can be seized and confiscated in the event of offenses, but it is very difficult to do so.Both for the technical and practical difficulties of identifying the portfolios and their actual owners, and for the regulatory obstacles.

Johny Deol
Johny Deol

Finance content writers are the storytellers of the economic world, translating intricate financial concepts into accessible narratives. With a keen eye for detail, they create engaging content that demystifies markets, investment strategies, and economic trends. Their words empower readers to make informed financial decisions, bridging the gap between complexity and comprehension in the financial landscape.

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