Everything about bitcoin is still at a lot more messed up than it was supposed to be. In fact, it was invented to make things easier to use and understand. It is no longer like any misconception in the past. People have created it to make things clearer without any more misconception.
Bitcoin was invented by a computer programmer in 2009, and it has been on the news as the purpose of the inventor was to make some money available in the economy which could be possibly be transferred without any involvement of any third person into it. Bitcoin System website application is one such platform from where you can trade and buy bitcoin without any intervention of any third party into it.
Although the digital currency has not been very free to use in most cases or in countries where it has been accepted is being able to use the bitcoin as a regular traditional currency, using which one would be able to book flights and hotels. Another very popular use of bitcoin is the use of bitcoin for investment purposes.
Bitcoin Vs Traditional Currency
The basic use of bitcoin is that it is used to make payments digitally if both the parties agree then they can. Bitcoin is like a currency which can be used digitally only, the value of the digital currency is almost similar to Dollar, Euro, and Yen or any other currency. But that does not mean bitcoin and traditional currencies are the same, absolutely not. There is a huge difference between the two of them.
Bitcoin is Decentralized
The most unique and the first adopted characteristics of bitcoin is that bitcoin is a decentralized currency. The bitcoin network is controlled by no one hence it is decentralized. This kind of system is maintained by a group of coders and it is also run by some network that is open and is spread all over the world. This kind of currency system is ideal for individuals who do not like any controlling authority over their money.
On the other hand, bitcoin also solves some major problems like ‘spending double issues’ and this done by a creative process that follows the economic movement of the bitcoins. In the bitcoin circuit, some of the authorities are there who just do their bit of job and leaves it open for any discretion. Like the bitcoin miners, they take up the responsibility of mining bitcoin and once they are done, they leave the responsibility on the others.
Supply of Bitcoin is Limited
Like cash or any other metal on earth, bitcoin is not in abundance. The flow and the mining of the bitcoin are limited on the surface of the earth. Another traditional currency has unlimited supply until the economy gets balanced but in the case of bitcoin, there are only that 21 million bitcoins, and if one is used then the other is mined. The central bank can issue traditional currency whenever they want but, but the bitcoin miners can’t issue bitcoins whenever they want. In the case of bitcoin things are different there is an underlying algorithm that decides the mining and the flow of the bitcoins in the economy.
Anonymity in Bitcoin
It would be better if we say that it is pseudoanonymise rather than anonymity, the sender of bitcoin is hard to find. As it is still possible to find out the address from which the currency is being sent or received from but who exactly is using it is hard to find. This is the whole purpose of the bitcoin; the bitcoin users do not want others to identify them and hence they use the pseudonymous identity to hide the details of the transaction.