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Why is Bitcoin better than traditional paper currency?

Technology and digitalization has taken over everything in 21st century, even currency. Yes, you heard it right! Gone are the days when people used to invest their hard earned paper currency in stock-market. No more because people are now more interested in investing the digital currency or what is also called crypto-currency.

Though since last one decade there are a lot of cryptocurrencies that have come to origin like Altcoin, Bitcoin, Ripple, Litcoin and Libra among others but Bitcoin is the most famous among all the crypto-currencies in the market. Though there is no exact explanation for it but yes the unstable and volatile nature of Bitcoin is responsible for it to a great extent. People kind of have high hopes with the unstable nature of Bitcoin which always kinds of hikes up the price of the crypto-currency and have made thousands of people rich.

It will not be wrong to say that paper currency is outdated now and Bitcoin may soon take over the traditional currency.

How to define Bitcoin?

Bitcoin is a digital currency that you cannot touch. You can see it on your computer and smart phones screens though, same thing as online banking. However, many people who are reading this article must be thinking that what is so special about Bitcoin? Why is it considered as the first choice for investment? Well have patience! You will get the answer in this very same article. Get more information about Bitcoin in Bitcoin era.

First of all, it is important to understand that how Bitcoin works?

Bitcoin works on the theory of Blockchain and algorithms and you need to understand algorithms for making the correct forecast regarding the value of Bitcoin in future. Once you have understood how algorithms work, you can go ahead and start investing in Bitcoin.

The best feature about Bitcoin is that it is not controlled by government or banks and is complete free from restrictions. Also the blockchain technology of Bitcoin keeps records of all the transactions occurred and so there is no chance of fraud and identity thefts, and hence is considered a safe mode of holding money.

Here are so of the advantages of Bitcoin that makes it superior to traditional currency:

  • Bitcoin is one of the easiest and the most preferred method for online shopping. There is an e-wallet just like online banking where you can store Bitcoin, do transactions and pay for services.
  • Bitcoin is a very famous form of trading all over the world and it is accepted as a mode of payment everywhere. Even the world’s largest software company Microsoft accepts Bitcoin as a mode of payment.
  • Bitcoin gives people the independence to exchange currency and do the transactions without the involvement of any third party unlike traditional currency that is controlled by government and banks.
  • The technology behind Bitcoin, which is, blockchain is what makes or breaks it. Thousands of computers during a distributed network use cryptological techniques to form a permanent, public record of every Bitcoin transaction that has ever occurred.
  • This record is going to be very valuable for numerous things besides following the payment. Bitcoin is secure, open for all yet private at the same time. So, there is no chance of any fraudulent activities.

Each Bitcoin has a different code and the blockchain technology keeps a record of every transaction that ever took place, so there is no chance of any fraud activities here.

Claire James

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