The Social Benefits of the Bit coin as Currency

Technology has brought concepts that, fused with the economic field, have allowed solutions to problems that society has faced many times throughout its history, such as: inflation, economic cycles, unreliable financial institutions and the lack of universalization of financial services throughout the country. Population. This article aims What is bitcoin  to elucidate both the conceptual part of Bit coin dealing with historical, economic and legal aspects as well as the possible social benefits that the currency can bring as a first technology-based alternative to traditional money controlled by the State. The method used to do so is the deductive and the research technique is the bibliographical, starting with examples of the use of money throughout history and the rise of Bit coin as currency.

What is bitcoin

Mitigate the risk of fraud

Something very common in internet businesses are frauds to merchants. Many people can apply for goods and once they have them, they take protection from the buyer to request reimbursements as happens with companies such as PayPal . With Bit coin , transactions are fast, secure and irreversible, so it is not possible to commit this type of fraud.

In addition, no one can generate thousands of Bit coins because they want to, like banks and monetary entities that issue money without control or support, thus devaluing the value of fiduciary currencies. To generate Bit coins , a process known as mining must be carried out, which is governed by rules that are public, making it impossible to falsify Bit coins , as in effect if it happens with cash.

It is free of taxes

Motivated that Bit coin is considered a digital asset or a digital means of payment, it does not yet have legal currency status assigned in any nation or jurisdiction, so for now all transactions are free of fiscal responsibility in most of the countries.

While it is true, there are some countries in the world that have taxed Bitcoin as Australia or mining as in Spain and other countries, are really isolated cases. Currently no government in the world taxes for capital gains, income or payroll limits registered in Bitcoin , although there are already laws introduced for study and analysis that could change this situation in the future, this hardly happens in a handful of countries.