Cryptocurrency is a digital currency developer using blockchain technology. This currency only exists virtually, accessed by users worldwide using the internet and stored using digital wallets. Cryptocurrency is designed mainly to use it as a medium of exchange where each unit is a digital file. Its ownership records are stored in a computerized database called ledger, which also records all the transaction details of digital currency.
There are several digital currencies available currently online, namely Bitcoin, Litecoin, Ripple, ZCash, Ethereum, Bitcoin cash, chain-link, etc. At present, Bitcoin is the first place with the most considerable Market capital, followed by Ethereum, Tether, etc. Bitcoin is created firstly for using has a reward for mining process which can be exchanged for other currencies, products, and services. Cryptocurrency can be used to buy daily products like food, pay traveling charges, and even buy properties in many countries. More than ten countries accepted cryptocurrency adoption.
Nowadays, Bitcoin can be used in place of fiat currency or traditional currency. There are many advantages of using Bitcoin for conventional money, making it more popular among its users.
Lower fees: usually, digital wallets are used for storing cryptocurrencies where traditional currency uses banking services. Compared to the payment for conventional banking services, Bitcoins can be stored free of cost, and transaction fees for Bitcoin are less compared to fiat money. Transactions process also faster compared to the standard banking process.
Standard wire transfers and foreign purchase typically involves a fee, using Bitcoin such transaction fees are very low. The prices for account maintenance, our minimum balance fees, no overdraft charges, and no returned deposit fees, etc. which need to be paid when dealing with traditional currency, aren’t involved when it comes to Bitcoin
Decentralized: Bitcoin is developed using a decentralized mechanism where there is no need for intermediaries like administration or third party involvement during transactions. Banks control traditional cash, but owners themselves only hold Bitcoins. Sometimes there are intermediary fees to add up to the total transaction fee. Users can use their money as a wish without any authority or control. The Central Government cannot control Bitcoin or the head of any country, and the government cannot handle the purchase and sales of Bitcoin.
Users can buy, sell, and store Bitcoin has alike. Still, when it comes to traditional currency, the government can control and take decisions of sales and purchases and storage of it, which makes Bitcoin most flexible compared to conventional money.
Globality: Bitcoin is used in many countries, and international transactions are easy using Bitcoin. Typically, the traditional currency has border limits like it is not possible to use outside of their respective countries. Its cross-border trade cannot be uniform. But, it is possible for Bitcoin. Fiat currencies usually have more restrictions, but Bitcoin can be used as a currency without any restrictions.
Fraud-proof transactions: every Bitcoin ownership is recorded in a computerized database called the ledger. When they are exchanged, their ownership also gets transferred and recorded in the database. Duplication of Bitcoins is impossible, and it cannot make fake Bitcoins because it is a digital currency that doesn’t have a physical appearance. Bitcoin technology is developed using blockchain technology where every transaction is recorded in digital ledgers called blocks and is connected. Every transaction is updated regularly in the register and immediately. No one can manipulate or change the recorded data in those digital ledgers.
Transactions of large scale to small scale are possible: the shortest amount of transactions using the traditional currency is quite troublesome but using Bitcoin is possible. 100th million parts a Bitcoin can be transferred, which means the transaction of 0.0000000l part of Bitcoin is acceptable and can be carried out efficiently. There is no limit for the exchange of Bitcoins, and any size of transactions can be carried out at once after confirmation
Safe and secured transactions: Bitcoin uses a decentralized mechanism where there is no need for intermediaries. Bitcoins are exchangeable assets over the internet. There is no third party involvement that can freeze or tax or claim Bitcoin. The government do not have any authority to seize users’ Bitcoins, and they cannot be stolen.
Easy and fast online shopping and payments: many online shopping websites accept cryptocurrency for payments e- wallets are the Wallace developed using blockchain technologies to store, spend, and track digital currency. For fiat money, for online shopping, credit cards are used, and sometimes it can be locked up and payment delays occur for many reasons.
Bitcoins can be used easily compared to traditional currency. Even international payments can be carried out using Bitcoin, and also it will be a faster, cheaper, safer, and most comfortable option. Using Bitcoins, users can quickly pay bills using an online payment system from anywhere globally with simple internet access.
Flexible and open: Bitcoin is open-source, which means its design is public, and anyone can participate in Bitcoin transactions and trading. Bitcoin uses peer-to-peer technology to manage all the trades and Bitcoin issues carried out by the network itself with no central authority involvement.
Using Bitcoin is more flexible because anyone can easily access their currency from anywhere and can be converted into any money as per the user’s requirement.
Users can enjoy all the benefits provided by Bitcoin, as they can easily access their currency using smartphones or computers. Cryptocurrency brings an ecosystem similar to all the transactions processed, like authentication, using a digital signature, cryptocurrency exchanges, storing, etc., using digital wallets or apps. With all the aspects mentioned above, Bitcoin is more beneficial to use then normal traditional currency.
Bitcoin is volatile but more advantages than other currencies of the world. Before starting using it, it is advisable to go through all the necessary knowledge required for Bitcoin trading. Bitcoin is an alternate tool for investment for a few users. Considering the current value of Bitcoin in it is par with gold.
There are no boundaries and restrictions for cryptocurrency like Bitcoin with no exchange value and third party involvement, making Bitcoin more flexible and secured compared to its predecessors. Transactions carried out using Bitcoin are irreversible.