From developing oilfields to transportation and refining, the entire process involves a complex web of suppliers, employees and customers in which every transaction affects another. In the platform Oil Profit makes the best utilization of artificial intelligence and perfect trading strategies to help newbie traders in their trading journey. Bitcoin transactions are also global in reach and complexity.
As with the oil industry, bitcoin transactions affect many people who are part of the process. However, rather than trading barrels of crude oil for dollars or euros (or vice versa), you trade bitcoins for barrels of crude oil or dollars or euros (and vice versa). The below-listed portion explains how to enter the oil trading market with bitcoin.
Entering Oil Trading Market with Bitcoin:
A lot of bitcoin’s recent publicity has focused on replacing cash, and other traditional currencies, with digital money. It’s a new way to enable people to pay for things online—fast, convenient and secure. But, how does this affect the global trading market? Well, it allows participants to buy physical assets instead of virtual or intangible ones.
Using digital currency to exchange value is new but not entirely unheard of. Many commodity producers have used digital currency for years to sell their goods directly to consumers without going through third-party vendors.
Bitcoin makes a perfect medium to exchange value between an actual oil field and its rightful owner. You can not only buy the oil but also pay for any other physical commodity or service in your possession—like cars, planes or houses. There are even more uses for bitcoin currency trading for individuals and large companies such as Amazon, Expedia, Overstock and WordPress.
Benefits of using bitcoin in oil trading:
The first question that needs an answer is: How does the conversion from bitcoin to oil take place? It is possible to purchase oil and commodities with bitcoins using a third-party service like Bit Pay. They make it easy for merchants to accept bitcoins and payout in dollars or any other currency they want. Now let’s discuss the benefits of utilizing bitcoin oil trading.
1. Lower transaction fees:
Bitcoin transaction fees can be as low as .05% or sometimes even less. Moreover, the number of bitcoin transactions increases daily, making it a tamper-proof and mainstream monetary system.
Bitcoin is a peer-to-peer currency meaning that buying and selling are directly linked to the internet with no middle man involved. As a result, there is no need to go through a traditional exchange outlet which charges high fees or other fees that have nothing to do with the actual trading process.
3. High Security:
Blockchain technology is secure and difficult to hack because of its elegant encryption algorithm. As a result, banks, government and financial institutions like the Federal Reserve are implementing their blockchain systems to make their security measures more efficient.
4. No Charge-backs:
Since there are no charge-backs, you can be sure that once the bitcoin transaction is complete, it will not get charged back because of fraud or any other reason. You can trade with total confidence and peace of mind knowing that your money is in safe hands.
Trading bitcoins for commodities allows for complete transparency, eliminating any possibility of fraud or misuse by scamming third parties who try to misappropriate your funds in any way possible.
Buying and selling commodities with bitcoin allows for lower transaction fees because you don’t have to pay the middle man’s markup. Also, there is no longer a need to maintain an active bank account or worry about your funds floating away in the event of a bank failure.
The great thing about digital currency is that it is readily available to anyone from all over the world who has access to the internet. In addition, buying or selling bitcoin doesn’t require any paperwork, credit check, passport or identification, making transactions much easier and cheaper than traditional means.
High-profile political figures, financial leaders and other wealthy people have been using bitcoin to buy and sell commodities and physical assets without ever knowing.
Is entering oil trading with bitcoin a wise decision?
Yes, because it allows for complete transparency, eliminating all possibilities of fraud. Also, it is an entirely new and innovative way to eliminate third-party transactions, which can be very expensive. Oil companies have started accepting bitcoin payments via Bit-Pay and many other payment processors. In addition, big companies like Expedia, Overstock.com and WordPress have started accepting bitcoin.
The bottom line is that the future is very bright for bitcoin, and we are seeing more and more proof that it has the potential to be not only used as a store of value but also as a medium of exchange.