The relation between conventional currency and bitcoin is not easy to understand. Both traditional and digital currencies come with the opposition, as both of these methods deal with the money. Here in this article, we will learn about how bitcoin is better than conventional currency.
If we talk about the history of humanity, money is continuously changing its phases like earlier, and there were barter systems, then banknotes, paper bills, digital currency, and now the most decentralized digital (virtual) method of bitcoin. So, the main difference between these methods is that no one controls Bitcoin; it is independent. It is based upon peer to peer network on the robust computer devices, and it is the collection of different users not controlled by anyone, it this peer to peer network of money no one is considered to be less or more. As it is not stable, it is changing its value depending upon the time and situation.
Bitcoin is safe and secures using the cryptocurrency algorithms, which are encrypted, and there is very little chance of attacking it. Whereas conventional currency is not safe, there is always fear with the physical robbery of their cash, which is quite challenging to manage. People must buy bitcoin to protect their real money with external thefts.
Following are few benefits of bitcoin which make it better than any conventional money-
- Bitcoin is digital and decentralized- bitcoin provides the platform for the users to use their currency digitally without the intervention of any external party. It is faster, secure, cheaper, and easy to handle. Banks control the real cash, whereas bitcoins have their owners.
- Ease of online shopping- bitcoin also helps people in buying and selling products quickly over the network. It is like an electronic wallet that can be redeemed easily. In contrast, shopping helps to store, tracking, managing.
- No real way of keeping track of conventional currency. Once the user buys bitcoin, they have their control over their record and wallet; after every transaction, bitcoins record the sale, known as a blockchain. There is no real way of tracking cash.
- Great investment tool- bitcoin can be used worldwide as an investment for the people who used to store gold, properties, and more valuable things for investment.
As bitcoin is independent and not controlled by any individual, it provides open investment without any bank or government intervention.
- Bitcoin is a peer to peer and open- it allows exchanging values over the internet with any intermediary service. Bitcoin also enables its users to manage their accounts by giving strong passwords known as the primary key, yet it is secure and frictionless. This Primary or the private key is the only way to do a transaction.
Maintaining records for tax purposes- once users buy bitcoin, they now have the authorization to manage all their accounts in a well-specified way, without any safety problem; this helps keep records healthy and more straightforward, especially for tax purposes.