What Makes Bitcoin Different from Traditional Currencies?
BTC or Bitcoin is a new digital currency which is being used by many around the globe. The key feature of this new digital currency is that it is decentralized to computer network used by miners and users around the world. It is not controlled by any government or financial institute making it easy to use. In the past few years Top Bitcoin Exchange companies are coming up in the market, and it is all because of its growing use. Users from around the globe can use this digital currency to buy services and goods from physical stores as well as online stores at ease.
Differences with Traditional Currencies
There are numerous differences between traditional currencies, some are:
- Bitcoin have no clearing house or centralized authority such as Central Bank, Government, Visa or MasterCard network. Miners and users manage this peer to peer network from around the globe. Currency is anonymously transferred between users over the Internet; users don’t have to wait as there is no clearing house in-between. This also means that transaction fees are negligible or much lower.
- Bitcoin is created through a technique named “Bitcoin Mining.” There are miners around the world using mining software and system to solve all complex bitcoin algorithms to approve Bitcoin transactions. Miners are awarded new Bitcoins and transaction fees generated by solving Bitcoin algorithms.
- A limited amount of Bitcoin is in circulation, Top Bitcoin Exchange companies are coming up in the business now where you can get the best of deals. As per a report, there were around 12.1 million in circulation as of 2013. The mining process of bitcoin makes it harder to generate more bitcoins, and the maximum amount is capped at 21 million. This limit won’t be reached until the year 2140, and this makes it more valuable as more number of people starts using it.
- This digital currency is known to be predictable and transparent, making it different from any other national currency. What’s more interesting about this digital payment is that it effectively prevents double spending and fraud of the same Bitcoins.
- There are limited numbers of merchants available on the internet who accepts this digital currency, but it is expected that in days to come the number will increase considerably.
- All Bitcoin wallets can be used for storing, sending or receiving Bitcoins from around the world. This wallet can be used for storing public addresses and private keys between users safe and secure.
- Bitcoins are not protected and not insured by government agencies. As a result, it can’t be recovered if by any chance the secret keys are stolen or lost by any means.
In days to come, bitcoin will gain more acceptance from people around the world and because of that many Top Bitcoin Exchange companies are coming up in the market. It’s time that you start using Bitcoins for all kind of transactions online and offline.