Difference Between Bitcoin And Normal Currency (Bitcoin Vs Normal Currencies)

hacker5 (48)in #bitcoin • 7 years ago (edited)

Bitcoin is a worldwide cryptocurrency and digital payment system called the first decentralized digital currency. System works without a central repository or single administrator.It was invented by an unknown programmer or a group of programmers under the name Satoshi.

In 2009 Bitcoin Was released through a open source Software.The system depends on peer and transactions take place between users directly, without an intermediary. Nodes verify The transaction and recorded in a public distributer leger called a blockchain.

Bitcoin has no use value only exchange value. Because it is has no worth in use other than what others are willing to pay for it.

Let’s take a deeper look and compare it to classic currencies.

Volatility:

It may seem that Bitcoin is too volatile and the price jumps like crazy
Compared to USD, EUR, GBP - Yes
Bitcoin is much better as Compared to the currency of Ukraine, Argentina and other currencies.

Value:

Bitcoin is deflational
Means that supply is limited and noone can just print more money
In the USSR there was a day, when the goverment decided to divide the value of it’s official currency by 10. With Bitcoin It is not possible.

Transaction fees:

Western union or other similar services usually take 1–5% for a transfer of money
With the Bitcoin the usual transaction fee is a couple of cents and you can even pay less if you are not in a hurry.

Portability:

As long as you are able to store 256 bits you can have bitcoins
You can write the key at the piece of paper or even remember it.

Transferability:

The usual transaction time is negligible (<1s)
But if your transaction is extremely important you need to wait for 6 blocks (6 confirmations) which is usually around 1 hour.

Security:

If your bank goes down - you’re screwed
In Bitcoin nothing can go wrong except that you can loose the key

Deniability:

The bank is a single point of failure
If your bank goes down - you’re screwed
Bitcoin has a distributed nature, which makes it extremely resilient to different types of attacks