The Difference Between Bitcoin and Traditional Currencies

Bitcoins are token issues from the Bitcoin Blockchain, nothing more nothing less.

This token may be programmed to execute different functions, hold different values and uses implicitly not to forget its ability to be divisible into a million portions for trade.

The reason Bitcoin is so valuable today, is because, there can only be 21 Million Bitcoins within the network and after that people shall begin trading in smaller and smaller amounts making it more and more valuable due to limited supply for the unlimited demand faced by this cryptocurrency.

One might ask, What is it that makes Bitcoin so unique?

As mentioned previously, Bitcoin happens to be a token issued from a Blockchain which makes in quite secure to an extent where it cannot duplicated, manipulated, or forged.

For further insight as to why Blockchain technology is of paramount importance,
I’d recommend reading this article: Will The Blockchain Outlive Bitcoin? by Ellery Davies .

Bitcoin is different from a Fiat Currency in numerous ways, some of which have been mentioned below:

  • Bitcoin has no central authority, unlike other currencies which are backed by the government.
  • Bitcoin is subject to inflation alone due to scarcity caused by an artificial limit. Country backed currencies are subject to deflation as well.
  • Bitcoin transaction are registered in the Bitcoin blockchain which acts as a ledger whereas cash transactions may or may not be recorded.
  • Bitcoin transactions are immutable whereas majority of digital records can be duplicated.
  • Bitcoin transaction require fees to be paid to miners which is quite similar to taxes that we pay to the government, except taxes can be evaded quite easily compared to having a transaction registered in the blockchain without paying fees.
  • Bitcoin transactions are made over the internet and are public where your addresses are known whereas cash transactions are pretty much anonymous.

Bitcoin is infamously also known as the internet’s currency for it is resident on the internet with scores of people (miners) keeping track of each transaction happening by recording it within the Blockchain.

Bitcoin is different is many ways from the normal currency that we’ve all been used to, but it is quite essential for our world to technologically advance in a progressive manner.

References:

Blockchain – Wikipedia
Bitcoin – Wikipedia
Bitcoin – Simple English Wikipedia, the free encyclopedia
What is a Bitcoin and what is the difference between normal currency and a Bitcoin?
What is Bitcoin and How is it different from Normal Currency
How Is Bitcoin Different From The Dollar?


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