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20
Sep

Bitcoin and Traditional Currencies- A short comparison

In a number of ways Bitcoin is similar to any traditional currency in the system. It is now a recognized exchange system and offers a value to the user. It is used to purchase stuffs and services and its value changes in the market according to different variables involved. But there are some significant differences too. Bitcoin has no confined boundaries and is not limited to a country or an institution. Bitcoin is an international entity and it is not subjected to any bank, government or other authority that are typically associated with other traditional currencies.

About Bitcoin

Bitcoin is created with a rather complex technology but it revolves around a concept which is simple. People from any class or country in the world can exchange goods, services and credits freely. This can be done instantly and there is no involvement of any intermediate body like merchants, banks or payment gateways. In a simple sense, Bitcoin is a pre form of trade and for that reason it has got a great potential as a future of digital currency. Now Bitcoin stands up as a recognized and robust form of payment today.

Bitcoin is governed by definite principles which can’t be changed. The value of Bitcoin is always being regulated and the more Bitcoins are produced, the harder it becomes to create new ones. The computer designed for the production of Bitcoins is known as Bitcoin miner and the production of Bitcoins is referred as mining.

Bitcoin is a newer way for trading

Traditional currencies are used when trading products and services but have some disadvantages. One disadvantage is trading internationally where one or several third parties are involved like Credit Card Company or a bank. This is making a simple exchange system complicated. Bitcoin aims at solving this issue and provides an instantaneous, reliable and free way to exchange goods and services with people around the world.

 

 

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