April 20th, 2018
It’s easy to understand why both of the terms ‘Bitcoin’ and ‘Blockchain’ often are used interchangeably. The blockchain is the technology behind Bitcoin; it’s the platform for all digital currencies. Without blockchain technology, there wouldn’t be any Bitcoin. It is important to know that the possibilities and potential of Blockchain extend far beyond just cryptocurrencies. Though it was created for Bitcoins, Blockchain is known for its transparent and secure way of processing all data. Because of this feature, Blockchain use and applications are endless in various fields. This ingenious technology has created a new online platform that is giving people and businesses, alike, wide range of options.
Blockchain technologies are proving to be quite useful, this technology will help in record keeping, voting procedures, financial instruments and many more operations. The difference between Bitcoin and Blockchain is crucial and by no means, are they the same thing. Digital currencies have been met with skepticism and even aversion, due to its volatile nature, whereas Blockchain, has proven its potential for revolutionizing the way data can be managed.
There are some inherent features of Blockchain, it ensures peer to peer transactions and requires no intermediary to overlook transactions. This digital data set is decentralized and distributed, which means you can run it on various computers and be updated on regular basis. As it is not stored in one system or one network, it is much more resilient to all types of cyber-attacks.
Bitcoin is a digital currency that can be used over the internet and it is made possible by using Blockchain technology. Bitcoin is undoubtedly the most widely used digital currency, though various other currencies also exist in the market.
Modern society is presently experiencing a digital currency boom and it is garnering the attention of people everywhere. Despite its increasing popularity, numerous questions are arising regarding the treatment of cryptocurrencies and its nature. One of the most frequently asked questions is whether digital currencies are a type of currency or commodity. How will it impact the global market? Many jurisdictions have already implemented laws regulating digital currencies and varied regulations have significant repercussions. Japan classified digital currencies as a mode of payment, whereas the US classified it as a commodity.
There has been a discrepancy with this digital currency in many places and it may severely hinder the way digital currencies are exchanged and traded in the future. The question is if digital currencies are used in various transactions, such as payment of meals in restaurants and tuition fees, why are regulators from different places finding it tough to classify digital currencies? One possible answer to this question may be that Bitcoin has more than one function. In this way, digital currencies can be used as an alternative to traditional currencies.
Bitcoin shares numerous intrinsic features associated with traditional money, but it lacks the basic attributes of widespread use and general acceptance. It is tough to regulate something randomly without knowing the role it will play and how it can be controlled. This inconsistency is creating issues for regulators around the world to keep pace and come up with ideas to regulate digital currencies. In the future, regulators may find it difficult to legalize digital currencies as it was created to be one viable method to bypass regulation and all centralized authorities following the catastrophic effects of 2008 global recession.