Bitcoin: Peer-to-Peer Payment System Based on Virtual Transactions
Bitcoin, which receive lots of query from publics or professors, do have its positive side— both for the conveniences of international transfer transaction and for the healthy development of economics.
Since the Bitcoin is a peer-to-peer payment system based on virtual transactions, the transfer fee was little (even none). Compared to Bitcoins’ little transfer fee, the transfer fee of banks and transfer institutions is much higher. From the up to date report of the profit of western union, an international transfer institution, we can exactly see how big the underlying profit of the company: “Net income for the first quarter raised to $210.2 million, or 32 cents a share, from $207.9 million, or 30 cents a share, last year. The company earned 35 cents a share, excluding restructuring expenses. Revenue rose 4 percent to $1.28 billion.” In the "Five surprising facts about Bitcoin" by Jerry Brito and Andrea Castillo, it shows that “Immigrants send more than $400 billion to families at home each year.” In the first quarter of 2013, the global average fee for sending remittances was 9.05 percent," the researchers note. In contrast, the transaction fees on the Bitcoin network are negligible, raising the possibility that Bitcoin could disrupt incumbent money-transfer services like Western Union.”
Also, business people express their dissatisfying opinion towards the traditional transfer way and support the Bitcoins as an alternative way to make international money exchange. KimJongSurge uses his own experiences to point out the problem of too much transfer fee in his articles” Why Our Business Will Begin Accepting Bitcoin?” He says that,
“The problem that Bitcoin addresses for us specifically is the current state of the international wire transfer system. The SWIFT system is terribly out of date and receiving these payments (>100 per year) is a byzantine mess:
1) All of our customers pay an outgoing international wire transfer fee. This varies from $10 to $50,
Since the Bitcoin is a peer-to-peer payment system based on virtual transactions, the transfer fee was little (even none). Compared to Bitcoins’ little transfer fee, the transfer fee of banks and transfer institutions is much higher. From the up to date report of the profit of western union, an international transfer institution, we can exactly see how big the underlying profit of the company: “Net income for the first quarter raised to $210.2 million, or 32 cents a share, from $207.9 million, or 30 cents a share, last year. The company earned 35 cents a share, excluding restructuring expenses. Revenue rose 4 percent to $1.28 billion.” In the "Five surprising facts about Bitcoin" by Jerry Brito and Andrea Castillo, it shows that “Immigrants send more than $400 billion to families at home each year.” In the first quarter of 2013, the global average fee for sending remittances was 9.05 percent," the researchers note. In contrast, the transaction fees on the Bitcoin network are negligible, raising the possibility that Bitcoin could disrupt incumbent money-transfer services like Western Union.”
Also, business people express their dissatisfying opinion towards the traditional transfer way and support the Bitcoins as an alternative way to make international money exchange. KimJongSurge uses his own experiences to point out the problem of too much transfer fee in his articles” Why Our Business Will Begin Accepting Bitcoin?” He says that,
“The problem that Bitcoin addresses for us specifically is the current state of the international wire transfer system. The SWIFT system is terribly out of date and receiving these payments (>100 per year) is a byzantine mess:
1) All of our customers pay an outgoing international wire transfer fee. This varies from $10 to $50,