What is Bitcoin and how is it Different from traditional Money?
Bitcoin is a cryptocurrency, or a digital currency, that uses rules of cryptography for regulation and generation of units of currency. Bitcoin falls under the scope of cryptocurrency and was the first and most valuable among them. It is commonly called a decentralised digital currency.
Conventional currency is based on gold and silver. So if you hand over a dollar to a bank, you can get gold back of the same value. But Bitcoin isn’t based on gold, its based on mathematics.
Conventional money is printed under the supervision of a central bank, unaccountable to the population and making its own rules. These banks can simply produce more money to cover their
national debt thus devaluing their currency.
Whereas Bitcoin is created digitally by a community of
people called miners, which anyone can be part of.
Bitcoins are mined using powerful computers over a
But the major differentiating factor for Bitcoin is, unlike conventional money, Bitcoin is decentralized and deregulated while offering(pseudo) anonymity and increased transaction transparency. It is not based in a single country or jurisdiction
and its ledger is public, spread out all over the globe .
Unlike conventional money, Bitcoin is completely transparent yet anonymous. Although each bitcoin is recorded in a public ledger, names of buyers and sellers are never revealed – only their wallet ID. This makes it a popular choice for transaction over the Internet.
Did you like the news you just read? Please leave a feedback to help us serve you better
Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.