As a new type of digital currency, Bitcoin BTC comes with cryptographic keys. It is decentralized to networks of workstations used by miners and users across the world. Likewise, this cryptocurrency is not under controlled of any single government or financial organization. Bitcoin BTC is the first digital currency to gain people’s attention and has still been increasingly accepted by a large number of traders.
Like traditional currencies, you can use bitcoin BTC to purchase goods and avail services online. Interestingly, there are some physical stores too that have started accepting this digital currency as a form of payment. Many currency traders have also attracted to its popularity and so are trading it at bitcoin BTC exchange. The value of digital currency is observed against flat currencies, primarily versus the US dollar. With all trading transactions in bitcoin BTC, traders can shield themselves from the fluctuation of this currency whilst making more of it through profit gained in trading.
Difference between Bitcoin BTC and Traditional Currencies
There are numerous major areas where bitcoin BTC differs from traditional currencies, such as Australian dollar or UK pound. Let’s find out here how this digital currency is different.
- Decentralized – Unlike traditional currencies, bitcoin BTC is not controlled by any government, bank, or Visa network which makes it completely decentralized. Instead, it works with a peer-to-peer network which is controlled by miners and users across the world. This digital currency is anonymously transferred from one user to another through the internet without any need to go through a clearing house. That’s why the transaction fees for bitcoin BTC are much lower as compared with traditional currencies.
- Mining – This is the main term used for the process of creating bitcoin BTC around the world. Users who make use of mining software and a computer to create the currency are known as miners. Their job is to solve complex mathematical problems to generate new bitcoin BTC as well as to approve the transactions made with the currency. They are normally paid minimal transaction fee for every transaction they make. Accordingly, the cryptocurrency can only be acquired through mining process or bitcoin exchanges.
- Limited Circulation – The difficulty to create new bitcoins through solving algorithms significantly becomes harder as more currency is generated. This has led to a limited amount of bitcoin BTC to be in circulation. The maximum amount of the currency in circulation has been capped at 21 million while the limit is not expected to reach until the year 2140. With this fact, bitcoin BTC is likely to become more valuable as more people are attracting toward its use.
- Transparency – When it comes to cryptocurrency, every transaction is recorded through a public ledger known as blockchain which also shows holdings of each individual owning the bitcoin BTC. Since it serves as the public ledger, anyone can access it to verify transaction. This feature not only makes the cryptocurrency transparent and predictable but also helps prevent fraudulent activities and double transaction of the same bitcoin BTC.
- Acceptance – Unlike traditional currencies, the bitcoin BTC is not accepted by everyone. While there are some brick-and-mortar retailers who accept the digital currency as a form of payment, you will find a limited number of merchants and businesses over the internet doing the same. Some of the major companies that announced their acceptance of bitcoin BTC as a medium of payment for their goods include Subway, Paypal, Shopify, Microsoft, Pizzaforcoins, Newegg, Overstock, and Namecheap. Furthermore, you can also make purchases on Amazon using its Amazon Direct feature. If we talk about countries, Japan is the first one to legalize it as a medium of payments. Other countries may follow the same soon and the value of the cryptocurrency may increase further.
- Bitcoin Wallets – These digital wallets act as PayPal accounts that are used to store bitcoin BTC, public addresses, and private keys. Also, they are also used to anonymously transfer bitcoins between users.
- No Insurance – Contrary to traditional currencies, bitcoin BTC is not insured or protected by any governmental agency. Therefore, you cannot recover them if you lose the secret keys to failed hard drive or a hacker or because of the closure of a bitcoin exchange. In such situations, the associated digital currency goes out of circulation and cannot be recovered.
Doable Things with Bitcoin BTC
Bitcoin BTC can be used to make transaction, trade, accept, and store. They can be sent it to your friends, requested from a friend or stored in your digital wallet. Some stores also allow you to top-up your DTH or mobile immediately by paying with the digital currency.
Transacting with bitcoin BTC is associated with lower transaction fees if compared with other intermediaries, such as credit cards and Paypal. Additionally, you can protect your privacy that is subject to leak over the internet while making payments with credit cards. It is very secure since it cannot be stolen or seized by anyone. Thanks to its system transparency, nobody can manipulate bitcoin BTC because of the public ledger which allows you to verify transaction at any time and from anywhere around the world.
Future of Bitcoin BTC
Bitcoin BTC is buzzing all over the world. It is now widely used currency and there are many trading portals that are accepting it as a form of payment. Many experts believe that digital currencies, such as bitcoin BTC or litecoin, will gain further acceptance from people because it helps users remain anonymous while transactions and purchasing goods or services online. Also, their transaction fees are much lower than other payment networks, such as credit cards.
The ease of accessibility to the public ledger is another important feature that makes it more transparent and can be used to prevent fraudulent activities. The supply of the digital currency has capped at 21 million in such a less period of time. Most importantly, the payment network of bitcoin BTC is managed by miners and users instead of a centralized authority, such as a government or bank. The demand of digital currency is likely to rise in years to come because of its limited production.