ALL ABOUT BITCOIN
What makes Bitcoin different ? (and better)
Bitcoin is a form of digital currency that is created, stored and used electronically. It is not controlled by any person or authority. Bitcoins aren’t printed, like normal currencies such as rupees or euros – instead they’re produced by lots of people simultaneously, who are running computers all around the world, using specialized software. Bitcoin is the first example of a new, expanding category of money known as cryptocurrencies.
You can use Bitcoin to buy goods or services electronically. In this particular way, the Bitcoin is much like conventional currencies, that can also be used for online purchasing.
control your money
The main characteristic of Bitcoin which stands out the most in comparison to conventional money is that it is decentralized (i.e. not a single particular institution or authority has complete control over the Bitcoin network). This is a very popular feature since people enjoy knowing that no large banks have control over their money.
Another difference is that with Bitcoin, there’s no charge for international transfers, unlike the traditional currencies. You can send money anywhere in the world and it will arrive in minutes, as soon as the Bitcoin network has finished verifying the payment.
Once the money has been sent, however, it’s important to note that you cannot get it back unless the recipient manually sends it back to you – whereas with normal bank transfers you have the possibility of doing a “charge-back”.
In comparison to currencies such as the USD, EUR, GBP, it may seem like the Bitcoin is very volatile. Therefore, you may see many fluctuations in price. However, when compared to currencies of countries such as Ukraine, Argentina, and dozens more, you will find that Bitcoin is much better from this point of view.
Bitcoin is a deflationary currency. This means that its supply is limited (a total of 21M Bitcoins are said to ever be produced), which means that its purchasing power will continue to increase, as long as the demand continues to be stable or to expand.
Western Union or other similar services will usually charge up to 1% – 5% in fees for money transfers. Whereas with Bitcoin, the usual transaction fee is only a couple of cents, with the possibility of paying even less than that if you’re not in a hurry to transfer your funds immediately.
Bitcoin is extremely portable. As long as you are able to store a 256–bit key, you can have Bitcoins. You can even write the key on a piece of paper and keep it with you.
With normal banks and currencies, if for any reason the bank goes down – it means you have pretty much lost your capital. With Bitcoins however, this risk is nonexistent. The only possibility of losing Bitcoin is if you lose your key – which is unlikely, as long as you make sure you store those carefully.
As might be, the definite beginning of chaos happened by the time Bitcoin was made known globally, for which it sooner or later became the most wanted and prominent crypto currency. The primary purpose of this project was to address the constant complains of people whose properties and money are controlled by only one centralized unit (which most of the time the government intervened also) as well as whose transfers are being frozen and limited from time to time.
With the Bitcoin’s emergence, several people had the choice to obtain a digital currency or money in which they can utilize similarly just like fiat money. However, obtaining this type of money really requires resources and is exhausting, still several people were amazed to it right from the beginning since a lot of people wanted to stop a single entity monopolizing everything with regards to the finances.
The future may look dim today however, as more inventive minds cooperate and work hand in hand in order to provide convenience and comfort in the way everything monetary and finance is being treated. We will never know, but maybe someday even the fiat money can vanish for good.
The remaining question is, will the governing bodies allow these kind of big changes with them possibly to have so much loss or will they open their mind and try to adapt to these new changes also?