Bitcoin has been one of the most debated topics across the world for quite some time now. It was created back in 2008 by one or a group of individuals under the pseudonym Satoshi Nakamoto, Bitcoin immediately appealed to people for all the prospects that it offers.
So, what is Bitcoin? Well, it is well known that Bitcoin is a cryptocurrency that runs on the innovative blockchain technology. It is better to call it the first decentralized cryptocurrency ever to utilize blockchain. It is completely based on cryptographic algorithms that come with military grade encryptions.
Being decentralized, Bitcoin gives the ownership to their users and it is not controlled by any government or higher authority. Plus, it is completely secured and the chances of any mishap are very low. Moreover, you can easily use Bitcoin to transact money internationally and avail online services.
So, I have given you a clear idea on what Bitcoin is and how it works. Now, let us come to the question at hand. Is Bitcoin better than the conventional currency? A lot of debate has been going on this topic for years. Now, let’s find out the answer in reality.
1. Bitcoin is Virtual and Decentralised:
Being a cryptocurrency created using mathematical algorithms and programming, Bitcoin is completely virtual or digital and there is no doubt in it. But the best thing about it is that Bitcoin is completely decentralised too. What does that mean? It means you get the complete freedom of transacting money without being controlled by any higher authority which translates to less value for your funds.
On the contrary, the conventional currency like Dollar, Pound and Indian Rupee are controlled by banks which control their value and indirectly have control over your funds.
2. Conventional currency is more volatile:
The conventional currencies are more volatile than Bitcoin. Their value depends completely on the Forex market and it changes every second. Furthermore, the conventional currencies are not globally acceptable. On the other hand, Bitcoin is acceptable mostly across the world. Thus, it becomes easier for you to transact Bitcoins internationally over the internet easily than any conventional currency.
3. Easy to keep track of:
The best thing about Bitcoin is that it can be easily tracked. The distributed digital ledger or blockchain that Bitcoin uses to carry on its operations keeps track of every single transaction that has been made using Bitcoin. Thus, you will always be able to keep track of the money that you are spending using Bitcoin. But the same cannot be said for the conventional currency. There is no tool available to help you track the transactions that you are making.
4. Bitcoin makes international transactions easy:
One of the biggest problems with the real world currencies is to make international transactions. The exchange rates that you need to pay for transacting money internationally are very high. Thus, you actually end-up losing lot money. But that will never be the case when you use Bitcoin to do international transactions. You can transfer Bitcoin across the boundaries without any hassle at a fixed price.
Though it is not possible for us to settle the debate on whether Bitcoin is better than conventional currency, it certainly has some advantages over the real world cash. So, it is up to you to decide.